Fortive (FTV) AI Stock Analysis

• Market Cap: $24.70B
• Dividend Yield: 0.44%
• Average Volume (3M): 3.65M
• Price to Earnings (P/E): 31.9
• Beta (1Y): 1.02
• Revenue Growth: 0.85%
• EPS Growth: -10.01%
• Country: US
• Employees: 18,000
• Sector: Technology
• Sector Strength: 84
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.85
• Shares Outstanding: 339,882,300
• 10 Day Avg. Volume: 3,249,795
• 30 Day Avg. Volume: 3,654,403
• PEG Ratio: 1.04
• Price to Book (P/B): 2.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.97
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 1.08
• Enterprise Value/Gross Profit: 6.86
• Enterprise Value/Ebitda: 3.93
• 1Y Price Target: $80.08
• Price Target Upside: 12.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 74 Outperform
• Price Target: $80.00 ▲(12.20%Upside)

Fortive's strong financial performance and strategic corporate actions are its greatest strengths, offset by valuation concerns and external challenges in Precision Technologies.

Positive Factors

Competitive Positioning

Fortive's top market share across many business lines and prioritization of R&D spend indicate strong competitive positioning.

Future Performance Potential

Investor Day targets for Fortive are seen as highly achievable, suggesting strong future performance potential.

Strategic Growth Focus

CEO Olumide Soroye’s focus is on accelerating organic revenue growth, with M&A biased towards bolt-on deals.

Negative Factors

Earnings Challenges

A disappointing earnings update and a larger-than-expected $0.10 net tariff headwind have contributed to a more challenging earnings guidance.

Uncertainty in Dividend Policy

The dividend policy of Ralliant has not been determined yet, creating uncertainty for investors looking for income.

Valuation Concerns

Analyst maintains a Neutral rating on Fortive as there is little upside to the sum-of-the-parts valuation.

Fortive Business Overview & Revenue Model

Company Description

Fortive Corporation designs, develops, manufactures, markets, and services professional and engineered products, software, and services worldwide. Its Intelligent Operating Solutions segment offers connected reliability tools; environment, health, safety, and quality enterprise software products; facility and asset lifecycle software; pre-construction planning and construction procurement solutions; ruggedized professional test tools; electric, pressure, and temperature calibration tools; and portable gas detection tools for a range of vertical end markets including manufacturing, process industries, healthcare, utilities and power, communications and electronics, and others. It markets its products and services under the ACCRUENT, FLUKE, GORDIAN, INDUSTRIAL SCIENTIFIC, INTELEX, PRUFTECHNIK, and SERVICECHANNEL brands. The company's Precision Technologies segment provides electrical test and measurement instruments and services; energetic material devices; and sensor and control system solutions for power and energy, medical equipment, food and beverage, aerospace and defense, off-highway vehicles, electronics, semiconductors, and other general industrial markets. This segment markets its products under the ANDERSON-NEGELE, GEMS, SETRA, HENGSTLER-DYNAPAR, QUALITROL, PACIFIC SCIENTIFIC, KEITHLEY, and TEKTRONIX brands. Its Advanced Healthcare Solutions segment offers hardware and software products and services, including instrument and device reprocessing, instrument tracking, biomedical test tools, radiation safety monitoring, and asset management services; subscription-based surgical inventory management systems to facilitate inventory management and regulatory compliance, as well as technical, analytical, and compliance services to determine radiation exposure services under the ASP, CENSIS, CENSITRAC, EVOTECH, FLUKE BIOMEDICAL, INVETECH, LANDAUER, RAYSAFE, and STERRAD brands. Fortive Corporation was incorporated in 2015 and is headquartered in Everett, Washington.

How the Company Makes Money

Fortive 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 Financial Statement Overview

Summary

Fortive demonstrates solid financial health with consistent revenue growth, strong profitability, robust operational margins, and a stable balance sheet, despite minor revenue fluctuations and increased liabilities.

Income Statement

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

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

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.18B	6.23B	6.07B	5.83B	5.25B	4.63B
	Gross Profit
3.71B	3.73B	3.59B	3.36B	3.01B	2.61B
	EBIT
1.14B	1.21B	1.13B	987.40M	812.80M	539.40M
	EBITDA
1.52B	1.67B	1.57B	1.47B	1.21B	947.80M
	Net Income Common Stockholders
797.40M	832.90M	865.80M	755.20M	608.40M	1.61B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
892.10M	813.30M	1.89B	709.20M	819.30M	2.94B
	Total Assets
17.14B	17.02B	16.91B	15.89B	16.47B	16.05B
	Total Debt
3.86B	3.88B	3.81B	3.25B	4.14B	4.43B
	Net Debt
2.97B	3.06B	1.92B	2.54B	3.32B	2.61B
	Total Liabilities
6.89B	6.82B	6.59B	6.20B	6.95B	7.08B
	Stockholders Equity
10.24B	10.19B	10.32B	9.68B	9.51B	8.96B
Cash Flow		Free Cash Flow
1.39B	1.41B	1.25B	1.21B	911.10M	1.36B
	Operating Cash Flow
1.51B	1.53B	1.35B	1.30B	961.10M	1.44B
	Investing Cash Flow
-84.80M	-1.80B	-195.40M	-102.50M	-2.62B	-148.40M
	Financing Cash Flow
-1.24B	-792.70M	32.30M	-1.27B	652.00M	-696.10M

Fortive Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 71.30
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTV, the sentiment is Negative. The current price of 71.3 is below the 20-day moving average (MA) of 71.59, above the 50-day MA of 69.25, and below the 200-day MA of 74.60, indicating a neutral trend. The MACD of 0.60 indicates Negative momentum. The RSI at 50.66 is Neutral, neither overbought nor oversold. The STOCH value of 73.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FTV.

Fortive Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KEYS	78 Outperform	$28.16B	38.43	14.30%	―	-1.16%	-7.04%
TEL	78 Outperform	$49.34B	36.47	11.33%	1.71%	1.23%	-58.22%
TDY	77 Outperform	$23.46B	28.62	8.61%	―	2.98%	-5.64%
TRMB	77 Outperform	$17.37B	11.85	31.00%	―	-6.93%	537.94%
FTV	74 Outperform	$24.70B	31.90	7.70%	0.44%	0.85%	-10.01%
COHR	73 Outperform	$12.75B	―	1.25%	―	21.68%	92.07%
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%

Fortive Corporate Events

Fortive Shareholders Approve Key Proposals at Annual Meeting

At the Annual Meeting on June 3, 2025, Fortive‘s shareholders voted on five key proposals. All nine director nominees were elected for a one-year term, and the executive officer compensation and the amendment of the 2016 Stock Incentive Plan were approved. Ernst & Young LLP was ratified as the independent public accounting firm for 2025. However, a shareholder proposal to reduce the ownership requirement for calling a special meeting was rejected.

The most recent analyst rating on (FTV) stock is a Hold with a $83.00 price target. To see the full list of analyst forecasts on Fortive stock, see the FTV Stock Forecast page.

Fortive’s Ralliant Secures Major Credit Agreement

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.