Fortive Corp
Exchange: NYSESector: TechnologyIndustry: Scientific & Technical Instruments
Fortive is a provider of essential technologies for connected workflow solutions across a range of attractive end-markets. Fortive’s strategic segments - Intelligent Operating Solutions, Advanced Healthcare Solutions, and Precision Technologies - include well-known brands with leading positions in their markets. The company’s businesses design, develop, service, manufacture, and market professional and engineered products, software, and services, building upon leading brand names, innovative technologies, and significant market positions. Fortive is headquartered in Everett, Washington and employs a team of more than 18,000 research and development, manufacturing, sales, distribution, service and administrative employees in more than 50 countries around the world. With a culture rooted in continuous improvement, the core of our company’s operating model is the Fortive Business System.
Current Price
$60.43
-0.77%GoodMoat Value
$34.56
42.8% overvaluedProfile
Valuation (TTM)
Market Cap$18.60B
P/E34.22
EV$20.42B
P/B2.88
Shares Out307.86M
P/Sales3.93
Revenue$4.74B
EV/EBITDA18.85
Fortive Corp (FTV) Stock Analysis
GoodMoat Analysis
Fortive Corp appears to lack a durable competitive moat and trades at a significant premium to its estimated intrinsic value. The combination of a low moat score, modest growth, and a high valuation makes it unfavourable for a value investor under the GoodMoat framework.
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Fortive Corp operates in the scientific and technical instruments sector, providing products and services for various industrial and professional applications. Applying the GoodMoat framework, the company's competitive moat is weak. Key metrics like a 4.6% YoY revenue growth and an ROE of 9.0% do not suggest a high-return, defensible business. A preliminary moat score would likely be below the 5+ threshold required to proceed, indicating a lack of durable advantages. The company's financial quality is mixed, with a decent operating margin of 17.3% but a modest profit margin of 11.3% and a free cash flow yield of 5.6%. The valuation is the primary concern. The stock trades at a P/E of 30x, which is high for a low-growth company, and at $55.01, it is priced 55% above the GoodMoat Target of $35.40. This suggests a deeply unfavourable or negative margin of safety. Following the Decision Framework, Fortive likely fails the Moat & Quality Gate due to a low moat score. Even if it passed, the extreme valuation premium and low growth profile would render it unfavourable. For a value investor, this analysis does not justify further investigation, as the business lacks the high-quality, moat-protected characteristics sought and is priced for perfection.
Market Cap$18.60B
Current Price$60.43
P/E Ratio34.22
Forward P/E—
PEG Ratio-2.85
EPS$1.73
Book Value$20.96
P/B Ratio2.88
FTV Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -3.3% FCF growth (CAGR)
Cash vs Debt
Net Debt: 2.8B
Revenue
4.6B
FY19
4.6B
FY20
5.3B
FY21
5.8B
FY22
3.9B
FY23
4.1B
FY24
4.2B
FY25
Net Income
739M
FY19
1.6B
FY20
608M
FY21
755M
FY22
866M
FY23
833M
FY24
579M
FY25
FTV 52-Week Range
$46.34
$62.01
50-Day MA: $57.97200-Day MA: $53.30
Did you know?
Trading 43% above its estimated fair value of $34.56.
Fortive Corp (FTV) Financial Summary
Fortive Corp (FTV) is a Technology company in the Scientific & Technical Instruments industry, listed on NYSE. The stock currently trades at $60.43 with a market capitalization of $18.60B.
Key valuation metrics include a P/E ratio of 34.22, price-to-book ratio of 2.88, and EPS of $1.73. The company reports a profit margin of 11.5% and return on equity of 8.4%.
FTV Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $18.60B |
| P/E Ratio | 34.22 |
| EPS | $1.73 |
| P/B Ratio | 2.88 |
| P/S Ratio | 3.93 |
| EV/EBITDA | 18.85 |
| Dividend Yield | 0.50% |
| Profit Margin | 11.5% |
| Return on Equity | 8.4% |
| Debt/Equity | 0.50 |
FTV Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $4.56B | $738.90M |
| FY20 | $4.63B | $1.61B |
| FY21 | $5.25B | $608.40M |
| FY22 | $5.83B | $755.20M |
| FY23 | $3.91B | $865.80M |
| FY24 | $4.08B | $832.90M |
| FY25 | $4.16B | $579.20M |
Fortive Corp (FTV) Valuation
Based on GoodMoat's DCF model, Fortive Corp has a fair value estimate of $34.56. At the current price of $60.43, the stock appears 74.9% overvalued relative to our intrinsic value estimate.
FTV Quality Indicators
Fortive Corp maintains a profit margin of 11.5% and an operating margin of 17.3%. Return on equity stands at 8.4%. The current ratio is 0.71. Debt-to-equity ratio is 0.50.
About Fortive Corp
Fortive is a provider of essential technologies for connected workflow solutions across a range of attractive end-markets. Fortive’s strategic segments - Intelligent Operating Solutions, Advanced Healthcare Solutions, and Precision Technologies - include well-known brands with leading positions in their markets. The company’s businesses design, develop, service, manufacture, and market professional and engineered products, software, and services, building upon leading brand names, innovative technologies, and significant market positions. Fortive is headquartered in Everett, Washington and employs a team of more than 18,000 research and development, manufacturing, sales, distribution, service and administrative employees in more than 50 countries around the world. With a culture rooted in continuous improvement, the core of our company’s operating model is the Fortive Business System.
FTV Free Cash Flow
Fortive Corp generated $978.10M in trailing twelve-month free cash flow, representing an FCF yield of 5.26%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
FTV Shares Outstanding
Fortive Corp has 0.31 billion shares outstanding at a share price of $60.43, giving it a market capitalization of $18.60B.
FTV Recent Insider Trades
Recent insider transactions at Fortive Corp include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Underwood Peter C (SVP - Chief Legal Officer) | SELL | 47,557 | $2.89M |
| MITCHELL KATE | SELL | 7,131 | $416022.54 |