Fortive (FTV) AI Stock Analysis

• Market Cap: $23.69B
• Dividend Yield: 0.46%
• Average Volume (3M): 2.80M
• Price to Earnings (P/E): 29.5
• Beta (1Y): 1.03
• Revenue Growth: 2.75%
• EPS Growth: -2.90%
• Country: US
• Employees: 18,000
• Sector: Technology
• Sector Strength: 64
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 2.36
• Shares Outstanding: 339,876,250
• 10 Day Avg. Volume: 2,039,039
• 30 Day Avg. Volume: 2,801,591
• PEG Ratio: 3.95
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 7.82
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $77.91
• Price Target Upside: 11.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

Fortive's strong financial performance and positive earnings outlook are key strengths, offset by technical weakness and high valuation concerns. The company's robust cash generation and strategic growth initiatives provide a solid foundation, though technical indicators suggest caution in the near term.

Positive Factors

Capital Allocation

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

Company Strategy

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

Financial Performance

Analyst reiterates an Outperform rating with a price target of $97, indicating confidence in the company's performance.

Negative Factors

Market Conditions

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

Market Position

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.

Operational Performance

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

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: Neutral
• Last Price: 69.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTV, the sentiment is Neutral. The current price of 69.69 is above the 20-day moving average (MA) of 66.92, below the 50-day MA of 72.82, and below the 200-day MA of 74.77, indicating a neutral trend. The MACD of -1.24 indicates Negative momentum. The RSI at 50.31 is Neutral, neither overbought nor oversold. The STOCH value of 88.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FTV.

Fortive Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEL	77 Outperform	$38.17B	20.42	11.33%	1.79%	1.23%	-58.22%
TDY	74 Outperform	$21.77B	26.98	8.61%	―	2.98%	-5.64%
FTV	71 Outperform	$23.69B	29.52	8.12%	0.46%	2.75%	-2.90%
KEYS	71 Outperform	$24.87B	41.22	12.22%	―	-6.07%	-35.80%
TRMB	67 Neutral	$14.66B	10.07	29.37%	―	-3.04%	388.42%
Sector *	59 Neutral	$10.65B	10.45	-6.56%	3.01%	7.31%	-12.18%
COHR	51 Neutral	$9.97B	―	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.