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Fortive Corp (FTV)
NYSE:FTV

Fortive (FTV) AI Stock Analysis

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Fortive

(NYSE:FTV)

Rating:77Outperform
Price Target:
$82.00
▲(14.02%Upside)
Fortive's strong financial performance and strategic actions in mitigating tariff impacts are significant strengths. However, challenges in specific segments and macroeconomic uncertainties slightly offset these positives. The stock's moderate technical position and valuation suggest cautious optimism.
Positive Factors
Corporate Strategy
The impending CMD and subsequent spin of Ralliant are expected to drive the shares higher as some of the SoTP upside potential is realized.
Financial Performance
Ralliant reported a free cash flow margin of 20% and an EBITDA margin of 25%, with an 80% conversion of adjusted EBITDA to free cash flow, indicating high margin quality.
Investor Confidence
Analyst reiterates an Outperform rating with a price target of $97, indicating confidence in the company's performance.
Negative Factors
Dividend Uncertainty
The dividend policy of Ralliant has not been determined yet, creating uncertainty for investors looking for income.
Earnings Guidance
A disappointing earnings update and a larger-than-expected $0.10 net tariff headwind have contributed to a more challenging earnings guidance.
Market Conditions
China's recovery is lagging, and the expected headwind is likely to persist, impacting the company's outlook.

Fortive (FTV) vs. SPDR S&P 500 ETF (SPY)

Fortive Business Overview & Revenue Model

Company DescriptionFortive Corporation is a diversified industrial technology company that operates globally, providing essential technologies for connected workflow solutions across a range of sectors. It is primarily involved in three business segments: Intelligent Operating Solutions, Precision Technologies, and Advanced Healthcare Solutions. Fortive offers a wide array of products and services, including field instrumentation, transportation technologies, and software solutions, catering to various industries such as healthcare, transportation, and manufacturing.
How the Company Makes MoneyFortive Corporation generates revenue through the sale of its diverse portfolio of products and services across its three main business segments. In the Intelligent Operating Solutions segment, revenue is derived from sales of connected workflow solutions that enhance productivity and operational efficiency. The Precision Technologies segment contributes to revenue through high-precision instruments and software that serve industrial and scientific applications. The Advanced Healthcare Solutions segment earns income through healthcare technology solutions that improve patient care and operational efficiency in medical settings. Fortive's revenue model also benefits from recurring income through service contracts, software subscriptions, and aftermarket services. Strategic acquisitions and partnerships further bolster its market presence and financial performance, enabling Fortive to expand its offerings and customer base.

Fortive Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q1-2025)
|
% Change Since: 3.32%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The call highlighted Fortive's strong operational execution and strategic actions to mitigate tariff impacts, alongside ongoing growth in software and recurring revenue segments. However, challenges remain with declines in Precision Technologies and macroeconomic uncertainties affecting certain regions.
Q1-2025 Updates
Positive Updates
Strong Operational Execution
Fortive delivered strong operational execution in Q1 2025, achieving adjusted earnings per share of $0.85, in line with expectations, and expanding both adjusted gross and operating margins.
Share Repurchases and Cash Flow
Better-than-expected cash flow generation was driven by disciplined working capital management. The company repurchased 2.5 million shares, reflecting a commitment to value-enhancing capital deployment.
Resilient New Fortive Growth
Core revenue for New Fortive grew 2.2%, with Intelligent Operating Solutions and Advanced Healthcare Solutions segments showing stable performance despite challenges.
Software and Services Growth
Intelligent Operating Solutions segment saw adjusted operating margins expand by 150 basis points, driven by accretive software growth and the benefits of productivity actions.
Mitigation of Tariff Impacts
Since 2018, Fortive has reduced exposure to imports from China by 70% and is deploying countermeasures to fully offset estimated tariff exposure by Q4 2025.
Negative Updates
Decline in Precision Technologies
Core revenue for Precision Technologies declined by 8.4%, driven by lower-than-expected orders in Test and Measurement and shipment delays in Sensors and Safety Systems.
Impact of Tariffs
The newly announced tariffs are estimated to have a gross impact in the range of $190 million to $220 million, with full mitigation expected by the fourth quarter of 2025.
Challenges in China and Western Europe
The company experienced further slowing in China and a significant decline in Western Europe, impacting the recovery in Precision Technologies.
Company Guidance
During Fortive Corporation's First Quarter 2025 Earnings Call, the company provided guidance detailing its financial performance and future expectations amidst a challenging macroeconomic environment. The company reported adjusted earnings per share (EPS) of $0.85, aligning with expectations, despite a 2% core revenue decline and a 3% total revenue decrease due to foreign exchange headwinds. Fortive achieved an adjusted operating profit of $373 million and experienced a 20 basis point increase in adjusted operating margins, driven by strong performance in Intelligent Operating Solutions (IOS), which grew core revenues by 2%. Advanced Healthcare Solutions (AHS) saw a 2.5% core revenue increase, albeit with a 70 basis point contraction in adjusted operating margins due to unfavorable foreign exchange and growth investments. Precision Technologies (PT) faced an 8.4% core revenue decline, attributed to reduced demand in Test and Measurement and shipment delays in Sensors and Safety Systems. The company expects to mitigate the $190-$220 million gross tariff impact primarily from China by the fourth quarter of 2025 through pricing strategies and supply chain adjustments, with an anticipated full offset by 2026. For the second quarter, Fortive projects an adjusted EPS of $0.85 to $0.90, maintaining its full-year adjusted EPS guidance of $3.80 to $4.00, inclusive of tariff-related headwinds and demand moderation in PT.

Fortive Financial Statement Overview

Summary
Fortive exhibits strong financial health across all major statements. The company has shown consistent revenue growth and profitability, supported by efficient operational margins and a solid balance sheet. While there are minor fluctuations in revenue and liabilities, the overall cash flow position remains strong, ensuring the company is well-positioned for future expansion and stability.
Income Statement
85
Very Positive
Fortive has demonstrated consistent revenue growth over the years with a strong gross profit margin of 59.98% TTM (Trailing-Twelve-Months). The net profit margin stands at 12.90% TTM, indicating solid profitability. However, there was a slight decline in revenue compared to the previous annual period, affecting the growth rate negatively. EBIT and EBITDA margins remain robust at 18.41% and 24.58% TTM, respectively, showcasing operational efficiency.
Balance Sheet
75
Positive
The company's debt-to-equity ratio of 0.38 TTM indicates a balanced capital structure with manageable debt levels. The return on equity (ROE) is healthy at 7.79% TTM, reflecting effective use of equity. The equity ratio is strong at 59.73% TTM, ensuring a stable financial position. Despite a slight increase in total liabilities, the company maintains a strong equity base.
Cash Flow
80
Positive
Fortive's operating cash flow to net income ratio of 1.90 TTM suggests efficient cash generation relative to its profit. The free cash flow to net income ratio is notable at 1.74 TTM, indicating strong free cash flow generation. Although there was a minor decline in free cash flow growth, the overall cash flow position remains robust, supporting future growth initiatives.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
6.18B6.23B6.07B5.83B5.25B4.63B
Gross Profit
3.71B3.73B3.59B3.36B3.01B2.61B
EBIT
1.14B1.21B1.13B987.40M812.80M539.40M
EBITDA
1.52B1.67B1.57B1.47B1.21B947.80M
Net Income Common Stockholders
797.40M832.90M865.80M755.20M608.40M1.61B
Balance SheetCash, Cash Equivalents and Short-Term Investments
704.60M813.30M1.89B709.20M819.30M2.94B
Total Assets
17.52B17.02B16.91B15.89B16.47B16.05B
Total Debt
4.12B3.88B3.81B3.25B4.14B4.43B
Net Debt
3.41B3.06B1.92B2.54B3.32B2.61B
Total Liabilities
7.04B6.82B6.59B6.20B6.95B7.08B
Stockholders Equity
10.48B10.19B10.32B9.68B9.51B8.96B
Cash FlowFree Cash Flow
1.39B1.41B1.25B1.21B911.10M1.36B
Operating Cash Flow
1.51B1.53B1.35B1.30B961.10M1.44B
Investing Cash Flow
-84.80M-1.80B-195.40M-102.50M-2.62B-148.40M
Financing Cash Flow
-1.24B-792.70M32.30M-1.27B652.00M-696.10M

Fortive Technical Analysis

Technical Analysis Sentiment
Positive
Last Price71.92
Price Trends
50DMA
69.43
Positive
100DMA
73.88
Negative
200DMA
74.56
Negative
Market Momentum
MACD
0.44
Negative
RSI
55.77
Neutral
STOCH
62.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTV, the sentiment is Positive. The current price of 71.92 is above the 20-day moving average (MA) of 71.27, above the 50-day MA of 69.43, and below the 200-day MA of 74.56, indicating a neutral trend. The MACD of 0.44 indicates Negative momentum. The RSI at 55.77 is Neutral, neither overbought nor oversold. The STOCH value of 62.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FTV.

Fortive Risk Analysis

Fortive disclosed 36 risk factors in its most recent earnings report. Fortive reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
Our plans to separate into two independent, publicly traded companies may not be completed on the currently contemplated timeline or at all and may not achieve the intended benefits, including the anticipated tax treatment. Q4, 2024
2.
Our ability to attract, develop, and retain senior leaders and other key employees is critical to our success. Q4, 2024

Fortive Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$27.67B37.8314.30%-1.16%-7.04%
TDTDY
77
Outperform
$23.37B28.478.61%2.98%-5.64%
FTFTV
77
Outperform
$23.88B30.857.70%0.44%0.85%-10.01%
77
Outperform
$17.11B11.6731.00%-6.93%537.94%
TETEL
76
Outperform
$47.41B35.0411.33%1.64%1.23%-58.22%
73
Outperform
$11.93B1.25%21.68%92.07%
62
Neutral
$11.70B10.39-7.10%2.92%7.45%-8.42%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FTV
Fortive
71.92
-1.02
-1.40%
COHR
Coherent Corp
81.63
15.60
23.63%
TEL
TE Connectivity
162.07
15.29
10.42%
TDY
Teledyne Technologies
498.11
105.11
26.75%
TRMB
Trimble
71.67
16.10
28.97%
KEYS
Keysight Technologies
161.06
25.06
18.43%

Fortive Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Fortive’s Ralliant Secures Major Credit Agreement
Positive
May 19, 2025

On May 15, 2025, Ralliant Corporation, a subsidiary of Fortive Corporation, entered into a credit agreement with a syndicate of banks, establishing significant credit facilities. This agreement includes a three-year, $700 million term loan, an eighteen-month, $600 million term loan, and a $750 million revolving credit facility. The credit facilities are contingent upon the separation of Ralliant from Fortive, with the proceeds intended to fund a cash distribution to Fortive and support Ralliant’s working capital needs post-separation. This strategic financial move is expected to enhance Ralliant’s operational independence and financial flexibility, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (FTV) stock is a Buy with a $85.00 price target. To see the full list of analyst forecasts on Fortive stock, see the FTV Stock Forecast page.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.