Fortive Corp
FTV
Industrial Instruments For Measurement, Display, and Control
Mkt Cap
$23.85BPE
28.81Debt
$3.488BCash
$714.1MEV
$26.62BFCF
$1.261BP/E Ratio
28.81Debt
$3.488BCash
$714.1MEV
$26.62BFCF
$1.261BFortive Corporation designs, develops, manufactures, markets, and services professional and engineered products, software, and services worldwide. Intelligent Operating Solutions segment provides advanced instrumentation, software and services, which includes electrical test and measurement, facility and asset lifecycle software applications, and worker safety and compliance solutions for manufacturing, process industries, healthcare, utilities and power, communications and electronics, and other industries. Additionally, it markets its products and services under the ACCRUENT, FLUKE, GORDIAN, INDUSTRIAL SCIENTIFIC, INTELEX, PRUFTECHNIK, and SERVICECHANNEL brands. Its Precision Technologies segment provides electrical test & measurement, sensing and material technologies under the ANDERSON-NEGELE, GEMS, SETRA, HENGSTLER-DYNAPAR, QUALITROL, PACIFIC SCIENTIFIC, KEITHLEY, and TEKTRONIX brands for industrial, power and energy, automotive, medical equipment, food and beverage, aerospace and defense, semiconductor, and other general industries. Advanced Healthcare Solutions segment offers critical workflow solutions including instrument sterilization, instrument tracking, design and manufacture of cell therapy equipment, biomedical test tools, radiation detection and safety monitoring, and end-to-end clinical productivity software and solutions under the ASP, CENSIS, CENSITRAC, EVOTECH, FLUKE BIOMEDICAL, INVETECH, LANDAUER, PROVATION, RAYSAFE, and STERRAD brands. The company was incorporated in 2015 and is headquartered in Everett, Washington.
DCF
Discounted Cash Flow Valuation of Fortive Corp
Value
Growth
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Discount
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Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $1.261B | $1.29B | $1.319B | $1.349B | $1.38B | $1.412B | $1.444B | $1.477B | $1.51B | $1.545B | $1.58B | $15.8B |
| DCF | $1.122B | $997.6M | $887.3M | $789.1M | $701.8M | $624.2M | $555.2M | $493.8M | $439.1M | $390.6M | $3.906B | |
| Value | $10.91B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth -3.2%
Earnings Stability -5.6%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 14% | 14% | 16% | 18% | 45% | 9.2% | 33% | 11% | 13% | 14% |
| ROA | 17% | 18% | 15% | 13% | 9.1% | 5.8% | 9.4% | 4.9% | 6.2% | 7.1% |
| ROE | - | 17% | 32% | 27% | 44% | 9.1% | 17% | 6% | 7.8% | 8.2% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +21.52%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is -2.94%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +8.06%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -1.21%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +18.51%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -5.79%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | - | 0.00 | 3.33 | 3.90 | 3.15 | 6.68 | 4.18 | 6.48 | 3.53 | 2.77 |
| Debt Equity | - | 0.00 | 1.25 | 1.07 | 0.59 | 1.06 | 0.63 | 0.64 | 0.44 | 0.35 |
| MIN | ||||||||||
| Graham Stability | - | - | - | 100% | 100% | 42% | 100% | 34% | 81% | 34% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 2.77.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is 0.16.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.34.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2015 | 12-2017 | 12-2019 | 12-2021 | Trend |
|---|---|---|---|---|---|
| Revenue | -0.84% | 0.24% | -7.3% | 11% | 1.1% |
| Net Income | -1.9% | -6.3% | 4.1% | 32% | -0.029% |
| Stockholders Equity | 9.3% | 21% | 9.4% | 1.8% | 0.94% |
| FCF | 4.5% | 3% | 0.99% | 28% | -0.55% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +0.24%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +1.14%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is -6.28%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -0.03%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +20.53%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +0.94%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +3.02%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -0.55%.