Fortive Corp

Industrials
Industrial Machinery/Components
www.fortive.com

Earnings Score
Moat Score
Safety Score

Market Cap $27.37B
PE 31
Debt $4.28B
Cash $811.30M
EV $30.84B
FCF $1.35B

Earnings

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Sales & Net Margins

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Earnings	$889.30M
EBIT	$1.21B
ROE	8%
ROA	7%
FCF	$1.35B
Equity	$10.56B
Growth Stability	34%
PE	30.77
PEG	14.31
PB	2.59
P/FCF	20.21
P/S	4.42
Price/Cash	0.03
Debt/Equity	0.41
Debt/FCF	3.16
Net Margins	14%
Gross Margins	60%
Op. Margins	20%
Earnings CAGR	-3%
Sales Growth YoY	3%
Sales Growth QoQ	-1%
Sales CAGR	-1%
FCF CAGR	3%
Equity CAGR	18%
Earnings Stability	0.03
Earnings Growth YoY	2%
Earnings Growth QoQ	14%
Earnings CAGR 5Y	2%

Sales CAGR 5Y	0%
FCF CAGR 5Y	0%
Equity CAGR 5Y	8%
Earnings CAGR 3Y	6%
Sales CAGR 3Y	6%
FCF CAGR 3Y	14%
Equity CAGR 3Y	5%
Market Cap	$27.37B
Revenue	$6.20B
Dividend Yield	0%
Payout Ratio	13%
Assets	$17.45B
Total Debt	$4.28B
Cash	$811.30M
Shares Outstanding	346.9M
EV	30.84B
Earnings Score	6%
Moat Score	86%
Safety Score	63%
Final Score	52%
Working Capital	534.4M
Current Ratio	1.25
Gross Profit	$3.70B
Shares Growth 3y	-0%
Equity Growth QoQ	1%
Equity Growth YoY	5%

Assets & ROA

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Stockholders Equity & ROE

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Fortive Corp is a diversified industrial technology firm with a broad portfolio of mission-critical products and services that include field solutions, product realization, health, and sensing technologies. The company serves a wide range of end markets, including manufacturing, utilities, medical, and electronics. Fortive generated roughly $5.3 billion in revenue and $1.2 billion in adjusted operating income in 2021.

SEC Filings

Direct access to Fortive Corp (FTV) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 27
- 10-Q Jun 28
- 10-Q Mar 29
2023
- 10-K Dec 31
- 10-Q Sep 29
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jul 01
- 10-Q Apr 01

Sector Comparison

How does Fortive Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Fortive Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -3%

Stability 3%

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Fortive Corp Discounted Cash Flow

Fully customizable DCF calculator online for Fortive Corp.

Years

Calculation mode

= $16B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$1.4B	$1.4B	$1.4B	$1.5B	$1.5B	$1.5B	$1.6B	$1.6B	$1.7B	$1.7B	$1.8B	$18B
DCF		$1.3B	$1.2B	$1.1B	$1B	$960M	$896M	$837M	$781M	$729M	$681M	$6.8B
Value	$16B

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	12/2023	TTM
Net Margins	14%	14%	16%	18%	45%	9%	33%	11%	13%	14%	14%
ROA	-	18%	15%	13%	9%	6%	9%	5%	6%	7%	7%
ROE	-	17%	32%	27%	44%	9%	17%	6%	8%	8%	8%

Good Net Margins (13.53%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

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	12/2023	TTM
Debt over FCF	-	0	3.33	3.9	3.15	6.68	4.18	6.48	3.53	2.94	3.16
Debt over Equity	-	0	1.25	1.07	0.59	1.06	0.63	0.64	0.44	0.35	0.41
Growth Stability	-	-	-	100%	100%	42%	100%	34%	81%	90%	34%

Neutral Debt/FCF ratio (3.16)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.41)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (34%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

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	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-2%	-13%	7%	12%	13%	-37%	13%	11%	4%	0%
Earnings YoY growth	-	-2%	1%	20%	176%	-77%	131%	-63%	32%	15%	2%
Equity YoY growth	-	-	-48%	42%	74%	12%	21%	6%	2%	7%	8%
FCF YoY growth	-	5%	13%	3%	18%	-5%	16%	-31%	28%	3%	0%