Fortive (FTV) AI Stock Analysis

• Market Cap: $24.52B
• Dividend Yield: 0.44%
• Average Volume (3M): 3.55M
• Price to Earnings (P/E): 31.7
• Beta (1Y): 1.01
• Revenue Growth: 0.85%
• EPS Growth: -10.01%
• Country: US
• Employees: 18,000
• Sector: Technology
• Sector Strength: 83
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.85
• Shares Outstanding: 339,882,300
• 10 Day Avg. Volume: 3,309,001
• 30 Day Avg. Volume: 3,546,860
• PEG Ratio: -8.01
• Price to Book (P/B): 2.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.23
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 1.15
• Enterprise Value/Gross Profit: 7.27
• Enterprise Value/Ebitda: 4.16
• 1Y Price Target: $78.27
• Price Target Upside: 9.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 77 Outperform
• Price Target: $82.00 ▲(14.27%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 Business Overview & Revenue Model

Company Description

Fortive 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 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 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

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
704.60M	813.30M	1.89B	709.20M	819.30M	2.94B
	Total Assets
17.52B	17.02B	16.91B	15.89B	16.47B	16.05B
	Total Debt
4.12B	3.88B	3.81B	3.25B	4.14B	4.43B
	Net Debt
3.41B	3.06B	1.92B	2.54B	3.32B	2.61B
	Total Liabilities
7.04B	6.82B	6.59B	6.20B	6.95B	7.08B
	Stockholders Equity
10.48B	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: Positive
• Last Price: 71.76
• 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 Positive. The current price of 71.76 is above the 20-day moving average (MA) of 71.46, above the 50-day MA of 69.35, and below the 200-day MA of 74.57, indicating a neutral trend. The MACD of 0.47 indicates Negative momentum. The RSI at 54.99 is Neutral, neither overbought nor oversold. The STOCH value of 71.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FTV.

Fortive Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KEYS	78 Outperform	$27.72B	37.54	14.30%	―	-1.16%	-7.04%
TDY	77 Outperform	$23.34B	28.58	8.61%	―	2.98%	-5.64%
FTV	77 Outperform	$24.52B	31.67	7.70%	0.44%	0.85%	-10.01%
TRMB	77 Outperform	$17.10B	11.59	31.00%	―	-6.93%	537.94%
TEL	76 Outperform	$48.02B	35.49	11.33%	1.64%	1.23%	-58.22%
COHR	73 Outperform	$12.51B	―	1.25%	―	21.68%	92.07%
Sector *	62 Neutral	$11.75B	10.58	-7.10%	2.91%	7.47%	-7.95%

Fortive Corporate Events

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.