Fortive (FTV) AI Stock Analysis

• Market Cap: $26.27B
• Dividend Yield: 0.41%
• Average Volume (3M): 2.67M
• Price to Earnings (P/E): 32.7
• Beta (1Y): 1.05
• Revenue Growth: 2.75%
• EPS Growth: -2.90%
• Country: US
• Employees: 18,000
• Sector: Technology
• Sector Strength: 48
• Industry: Hardware & Equipment
• EPS (TTM): 2.36
• Shares Outstanding: 340,290,130
• 10 Day Avg. Volume: 3,062,854
• 30 Day Avg. Volume: 2,669,876
• PEG Ratio: 3.95
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.34
• Price to Cash Flow (P/CF): 14.60
• P/FCF Ratio: 15.60
• 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: $89.67
• Price Target Upside: 16.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

Fortive's overall stock score is driven by strong financial performance and a positive outlook from recent earnings, despite valuation concerns. The company's robust cash flow and strategic growth initiatives contribute to its strengths. However, valuation metrics suggest caution, and external factors like FX headwinds could pose challenges.

Positive Factors

Capital Deployment

Emerging investor approval of the company's capital deployment can be powerful for its valuation.

Corporate Strategy

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

Market Positioning

FTV is well-positioned to combat China tariffs, leveraging their previous strategies from the last tariff regime.

Negative Factors

Financial Performance

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

Market Challenges

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

Product Sales

There is a persisting weakness in product sales, and a more conservative view on the recovery timeline is being adopted.

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 profitability and operational efficiency, with robust profit margins and cash flow despite a decline in revenue. The balance sheet is stable with low leverage, indicating a sound financial position suitable for future growth.

Income Statement

Fortive's income statement shows a solid performance with a TTM gross profit margin of 55.13% and a net profit margin of 15.99%. The revenue growth rate is negative at -8.33% from the previous year, indicating a decline in sales. However, the company maintains strong EBIT and EBITDA margins of 20.64% and 29.56% respectively, reflecting operational efficiency.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.37, indicating prudent financial leverage. The return on equity is a healthy 8.42%, and the equity ratio stands at 60.46%, highlighting strong capitalization and asset stability. These metrics suggest a stable financial position with manageable debt levels.

Cash Flow

Fortive's cash flow statement indicates a positive trajectory with a free cash flow growth rate of 8.67% and an operating cash flow to net income ratio of 1.65, demonstrating efficient cash generation. The free cash flow to net income ratio is 1.52, underscoring strong cash conversion. These figures reflect healthy cash management and a solid foundation for future investments.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.56B	―	―	―	―	―
	Gross Profit
3.07B	3.73B	3.59B	3.36B	3.01B	2.61B
	EBIT
1.15B	1.21B	1.13B	987.40M	812.80M	539.40M
	EBITDA
1.64B	1.36B	1.32B	1.44B	1.18B	2.04B
	Net Income Common Stockholders
889.30M	832.90M	865.80M	755.20M	608.40M	1.61B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
―	―	―	―	―	―
	Total Assets
17.02B	17.02B	16.91B	15.89B	16.47B	16.05B
	Total Debt
3.71B	3.71B	3.65B	3.25B	4.14B	4.43B
	Net Debt
2.89B	2.89B	1.76B	2.54B	3.32B	1.49B
	Total Liabilities
6.82B	6.82B	6.59B	6.20B	6.95B	7.08B
	Stockholders Equity
―	―	―	―	―	―
Cash Flow		Free Cash Flow
1.35B	1.47B	1.35B	1.21B	915.60M	1.37B
	Operating Cash Flow
1.47B	1.53B	1.35B	1.30B	961.10M	1.44B
	Investing Cash Flow
-1.87B	―	―	―	―	―
	Financing Cash Flow
501.90M	―	―	―	―	―

Fortive Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 77.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 77.21 is below the 20-day moving average (MA) of 80.09, below the 50-day MA of 78.44, and above the 200-day MA of 75.35, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 37.54 is Neutral, neither overbought nor oversold. The STOCH value of 12.59 is Positive, 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
ITW	80 Outperform	$76.96B	22.39	105.16%	2.21%	-1.30%	20.26%
FTV	75 Outperform	$26.27B	32.71	8.17%	0.41%	2.75%	-2.90%
AME	72 Outperform	$42.29B	30.93	14.25%	0.60%	5.22%	4.46%
HON	68 Neutral	$135.18B	23.89	596.13%	2.08%	5.05%	2.73%
ROK	66 Neutral	$31.51B	34.67	27.22%	1.84%	-11.28%	-23.69%
DHR	65 Neutral	$147.01B	38.89	7.87%	0.53%	-13.50%	-17.25%
Sector *	59 Neutral	$22.39B	11.53	-18.05%	2.31%	5.00%	-25.89%

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.

Fortive Urges Rejection of TRC’s Mini-Tender Offer

Fortive Corporation has advised its shareholders to reject an unsolicited mini-tender offer from TRC Capital Investment Corporation, which seeks to purchase 1,500,000 shares at a price below the current market value. The company emphasizes that these offers often bypass investor protections and urges shareholders to exercise caution, referencing similar past offers by TRC and the SEC’s warnings about mini-tender offers. Fortive recommends shareholders to withdraw any shares already tendered to TRC and consult with financial advisors.