Fortive Corporation
Fortive Corporation Fundamental Analysis
Fortive Corporation (FTV) shows weak financial fundamentals with a PE ratio of 31.26, profit margin of 11.26%, and ROE of 6.90%. The company generates $5.2B in annual revenue with weak year-over-year growth of 2.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FTV's fundamental strength across five key dimensions:
Efficiency Score
WeakFTV struggles to generate sufficient returns from assets.
Valuation Score
ModerateFTV shows balanced valuation metrics.
Growth Score
WeakFTV faces weak or negative growth trends.
Financial Health Score
ModerateFTV shows balanced financial health with some risks.
Profitability Score
WeakFTV struggles to sustain strong margins.
Key Financial Metrics
Is FTV Expensive or Cheap?
P/E Ratio
FTV trades at 31.26 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, FTV's PEG of -27.67 indicates potential undervaluation.
Price to Book
The market values Fortive Corporation at 2.81 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.12 times EBITDA. This signals the market has high growth expectations.
How Well Does FTV Make Money?
Net Profit Margin
For every $100 in sales, Fortive Corporation keeps $11.26 as profit after all expenses.
Operating Margin
Core operations generate 17.67 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.90 in profit for every $100 of shareholder equity.
ROA
Fortive Corporation generates $4.93 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Fortive Corporation produces operating cash flow of $1.09B, showing steady but balanced cash generation.
Free Cash Flow
Fortive Corporation generates strong free cash flow of $981.85M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.09 in free cash annually.
FCF Yield
FTV converts 5.36% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.26
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-27.67
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.81
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.53
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.50
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How FTV Stacks Against Its Sector Peers
| Metric | FTV Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.26 | 34.79 | Better (Cheaper) |
| ROE | 6.90% | 1185.00% | Weak |
| Net Margin | 11.26% | -133093.00% (disorted) | Strong |
| Debt/Equity | 0.50 | 0.43 | Neutral |
| Current Ratio | 0.71 | 4.90 | Weak Liquidity |
| ROA | 4.93% | -324805.00% (disorted) | Weak |
FTV outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Fortive Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
31.31%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
8.40%
Industry Style: Growth, Innovation, High Beta
GrowingFCF CAGR
15.48%
Industry Style: Growth, Innovation, High Beta
High Growth