Fortive (FTV) AI Stock Analysis

• Market Cap: $23.01B
• Dividend Yield: 0.5%
• Average Volume (3M): 2.65M
• Price to Earnings (P/E): 28.6
• Beta (1Y): 1.10
• Revenue Growth: 2.75%
• EPS Growth: -2.90%
• Country: US
• Employees: 18,000
• Sector: Technology
• Sector Strength: 40
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 2.36
• Shares Outstanding: 340,290,130
• 10 Day Avg. Volume: 2,321,711
• 30 Day Avg. Volume: 2,648,085
• PEG Ratio: 3.95
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.08
• Price to Cash Flow (P/CF): 12.70
• P/FCF Ratio: 10.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $89.50
• Price Target Upside: 39.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

Fortive's strong financial performance and positive earnings call sentiment are key strengths, supporting its potential for future growth. However, bearish technical indicators, high valuation metrics, and recent corporate caution due to a mini-tender offer represent risks that slightly temper the overall outlook.

Positive Factors

Corporate Spin-Off

The separation of PT (Railliant) is progressing well, with the spin-off expected to close earlier than initially anticipated.

Financial Strategy

The company's financial performance and profile are considered attractive when compared to its peers.

Order Growth

PT had double-digit orders growth, with Tektronix orders up high-single digit for the second consecutive quarter.

Negative Factors

China Market Challenges

China's recovery is lagging, and the expected headwind is likely to persist, impacting the company's outlook.

Earnings Performance

Fortive’s 4Q core operations missed consensus estimates on both revenue and margins.

End Market Exposure

The flow of capital is moving to industrial companies with greater end market focus and exposure to secular trends, putting FTV at a disadvantage given its varied end market mix.

Fortive Business Overview & Revenue Model

Company Description

Fortive Corporation is a diversified industrial growth company headquartered in Everett, Washington. It operates through three main segments: Intelligent Operating Solutions, Precision Technologies, and Advanced Healthcare Solutions. Fortive provides essential technologies for connected workflow solutions across a wide range of industries, including manufacturing, healthcare, and transportation. Its core products and services are designed to improve the efficiency, safety, and environmental sustainability of its customers.

How the Company Makes Money

Fortive makes money primarily through the sale of its products and services within its three business segments. The Intelligent Operating Solutions segment generates revenue from providing software and devices that enhance workflow and operational efficiency. Precision Technologies earn revenue through advanced instrumentation and measurement solutions critical for quality control and productivity improvements in manufacturing and other industries. The Advanced Healthcare Solutions segment derives its earnings from providing technologies that enhance healthcare delivery and patient safety. Fortive's revenue streams are bolstered by its strategic acquisitions, which expand its technological capabilities and market reach, as well as key partnerships that broaden its customer base and innovative offerings.

Fortive Financial Statement Overview

Summary

Fortive demonstrates strong financial health with consistent revenue growth and profitability. The balance sheet shows stability with a solid equity base and manageable debt levels, while cash flow generation is robust. However, the company should remain vigilant in managing its increasing debt levels.

Income Statement

Fortive's income statement reflects strong profitability with a consistent increase in revenue over the years. The gross profit margin for 2024 was approximately 59.86%, indicating effective cost management. The net profit margin declined slightly to 13.37% from the previous year, but remains healthy. Revenue has grown steadily at 2.74% from 2023 to 2024, showcasing a positive growth trend. Both EBIT and EBITDA margins are robust at 19.36%, highlighting operational efficiency.

Balance Sheet

Fortive's balance sheet shows a solid equity position, with stockholders' equity making up 59.86% of total assets in 2024. The debt-to-equity ratio is 0.36, signifying manageable leverage levels. Return on equity is strong at 8.17%, reflecting good returns on shareholders' investments. However, the total debt has seen an increase, which could pose a risk if not managed carefully.

Cash Flow

The cash flow statement for Fortive indicates a healthy cash flow position, with a significant free cash flow of 1.41 billion in 2024. The operating cash flow to net income ratio is 1.83, underscoring excellent cash generation relative to net income. The free cash flow grew by 12.90% from the previous year, showcasing effective cash management. Despite some fluctuations in investing and financing cash flows, the overall cash flow position remains strong.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.23B	6.07B	5.83B	5.25B	4.63B
	Gross Profit
3.73B	3.59B	3.36B	3.01B	2.61B
	EBIT
1.21B	1.13B	987.40M	812.80M	539.40M
	EBITDA
1.67B	1.57B	1.47B	1.21B	947.80M
	Net Income Common Stockholders
832.90M	865.80M	755.20M	608.40M	1.61B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
813.30M	1.89B	709.20M	819.30M	2.94B
	Total Assets
17.02B	16.91B	15.89B	16.47B	16.05B
	Total Debt
3.71B	3.81B	3.25B	4.14B	4.43B
	Net Debt
2.89B	1.92B	2.54B	3.32B	2.61B
	Total Liabilities
6.82B	6.59B	6.20B	6.95B	7.08B
	Stockholders Equity
10.19B	10.32B	9.68B	9.51B	8.96B
Cash Flow		Free Cash Flow
1.41B	1.25B	1.21B	911.10M	1.36B
	Operating Cash Flow
1.53B	1.35B	1.30B	961.10M	1.44B
	Investing Cash Flow
-1.80B	-195.40M	-102.50M	-2.62B	-148.40M
	Financing Cash Flow
-792.70M	32.30M	-1.27B	652.00M	-696.10M

Fortive Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 64.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTV, the sentiment is Negative. The current price of 64.13 is below the 20-day moving average (MA) of 73.47, below the 50-day MA of 77.34, and below the 200-day MA of 75.31, indicating a bearish trend. The MACD of -1.17 indicates Positive momentum. The RSI at 39.64 is Neutral, neither overbought nor oversold. The STOCH value of 25.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FTV.

Fortive Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TDY	76 Outperform	$22.09B	25.35	8.73%	―	0.53%	-7.18%
TEL	71 Outperform	$38.78B	20.75	15.02%	2.13%	-1.09%	-40.55%
FTV	70 Outperform	$23.01B	28.64	8.12%	0.50%	2.75%	-2.90%
TRMB	70 Outperform	$14.82B	9.27	29.37%	―	-3.04%	388.42%
KEYS	66 Neutral	$23.46B	36.37	12.22%	―	-6.07%	-35.80%
Sector *	57 Neutral	$18.57B	9.42	-13.42%	2.72%	5.01%	-23.43%
COHR	53 Neutral	$8.35B	―	0.88%	―	14.61%	85.44%

Fortive Corporate Events

Fortive Expands Board with New Independent Director

On February 26, 2025, Fortive Corporation expanded its Board of Directors from nine to ten members, appointing Gregory J. Moore, M.D., Ph.D., as a new board member. Dr. Moore will also serve on the Compensation Committee and Nominating and Governance Committee, receiving the same compensation as other non-employee directors. His appointment highlights Fortive’s commitment to strengthening its governance and leadership structure, with Dr. Moore being recognized as an independent director under NYSE standards.

Fortive Announces Board Changes with New Chair Appointment

On January 28, 2025, Alan G. Spoon informed Fortive Corporation’s Board of Directors that he will not seek re-election and will retire effective June 3, 2025. His decision was not due to any disagreement with the company. Consequently, the board will reduce its size from nine to eight members and has appointed Sharmistha Dubey as the new Chair of the Board.