Fortive (FTV) AI Stock Analysis

• Market Cap: $16.20B
• Dividend Yield: 0.47%
• Average Volume (3M): 4.46M
• Price to Earnings (P/E): 21.6
• Beta (1Y): 1.03
• Revenue Growth: -0.12%
• EPS Growth: -11.27%
• Country: US
• Employees: 18,000
• Sector: Technology
• Sector Strength: 82
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.68
• Shares Outstanding: 338,336,330
• 10 Day Avg. Volume: 3,401,588
• 30 Day Avg. Volume: 4,458,050
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.69
• Enterprise Value/Revenue: 4.47
• Enterprise Value/Gross Profit: 7.47
• Enterprise Value/Ebitda: 17.40
• 1Y Price Target: $59.27
• Price Target Upside: 23.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 16

• Rating: 72 Outperform
• Price Target: $54.00 ▲(12.81% Upside)

Fortive's overall stock score reflects strong financial performance and strategic execution, particularly in managing cash flows and completing the Ralliant spin-off. While technical indicators suggest caution, the company's valuation remains fair, and strategic initiatives are expected to drive future growth.

Positive Factors

Competitive Position

The presentation highlighted Fortive's top market share across many business lines and a clear prioritization of R&D spend, indicating strong competitive positioning.

Valuation

Fortive's equity is considered discounted compared to peers with similar organic growth, hinting at a potential undervaluation.

Negative Factors

Growth Forecast

Forecast return to +4% organic growth has unclear drivers and brings downside risk, an overhang that likely keeps Fortive's multiple below business quality.

Organic Growth

Fortive organic growth has slowed to flattish, with approximately 40% of company revenue tied to Government and Healthcare spend, and the recovery pathway is unclear and clouded by US policy uncertainty.

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 generates revenue primarily through the sale of its diverse range of products and services in its core segments: Professional Instrumentation and Industrial Technologies. The company earns money by selling high-precision instruments, software, and automation solutions that are essential for various industrial applications. Key revenue streams include product sales, recurring software subscription fees, and service contracts for maintenance and support. Additionally, Fortive benefits from partnerships with other technology firms and collaborations with industry leaders that enhance its product offerings and market reach. The company's focus on innovation and efficiency, along with its strategic acquisitions, further contribute to its revenue growth.

Fortive Financial Statement Overview

Summary

Fortive demonstrates strong financial performance with consistent revenue growth and robust cash flow generation. The company maintains a stable balance sheet with manageable leverage and efficient equity usage. Minor fluctuations in profit margins and a slight increase in debt are present, but overall, the trajectory remains positive.

Income Statement

Fortive has demonstrated strong revenue growth with a notable increase from $5.25 billion in 2021 to $6.15 billion in TTM (Trailing-Twelve-Months) 2025. The gross profit margin remains robust at 59.8% for TTM 2025, indicating effective cost management. However, the net profit margin decreased slightly to 12.5% in TTM 2025, suggesting some pressure on net earnings. Despite these challenges, EBIT and EBITDA margins are healthy, reflecting solid operational efficiency.

Balance Sheet

The debt-to-equity ratio in TTM 2025 is approximately 0.46, reflecting a stable leverage position. Return on equity (ROE) is healthy at 7.41%, indicating efficient use of equity. The equity ratio stands strong at 56.9%, highlighting a solid equity base. Overall, the balance sheet shows stability, although there's a slight increase in total debt over the years, which should be monitored.

Cash Flow

Fortive's cash flow performance is strong, with operating cash flow to net income ratio at 1.97 in TTM 2025, indicating strong cash generation relative to net income. The free cash flow to net income ratio is robust at 1.80, reflecting efficient capital expenditure management. While free cash flow growth is relatively stable, it shows a slight decrease compared to previous years, which could impact future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.15B	6.23B	6.07B	5.83B	5.25B	4.63B
Gross Profit	3.68B	3.73B	3.59B	3.36B	3.01B	2.62B
EBITDA	1.58B	1.67B	1.57B	1.44B	1.18B	2.04B
Net Income	768.90M	832.90M	865.80M	755.20M	608.40M	1.61B
Balance Sheet
Total Assets	18.24B	17.02B	16.91B	15.89B	16.47B	16.05B
Cash, Cash Equivalents and Short-Term Investments	1.83B	813.30M	1.89B	709.20M	819.30M	2.94B
Total Debt	4.81B	3.88B	3.81B	3.42B	4.14B	4.43B
Total Liabilities	7.86B	6.82B	6.59B	6.20B	6.95B	7.08B
Stockholders Equity	10.38B	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	-64.60M	-1.80B	-195.40M	-102.50M	-2.62B	-148.40M
Financing Cash Flow	-268.30M	-792.70M	32.30M	-1.27B	652.00M	-696.10M

Fortive Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 47.87
• 50DMA: Negative
• 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 47.87 is below the 20-day moving average (MA) of 47.92, below the 50-day MA of 49.79, and below the 200-day MA of 54.39, indicating a bearish trend. The MACD of -0.51 indicates Negative momentum. The RSI at 45.70 is Neutral, neither overbought nor oversold. The STOCH value of 33.47 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
SANM	80 Outperform	$6.44B	25.89	11.58%	―	5.87%	20.66%
TDY	79 Outperform	$25.74B	30.25	8.72%	―	6.47%	-1.48%
FLEX	74 Outperform	$20.89B	24.44	17.67%	―	-3.63%	2.26%
FTV	72 Outperform	$16.20B	21.61	7.36%	0.47%	-0.12%	-11.27%
TRMB	72 Outperform	$18.97B	68.94	5.06%	―	-3.72%	-80.83%
Sector *	61 Neutral	$35.55B	8.88	-11.02%	1.87%	8.55%	-8.14%
COHR	60 Neutral	$15.24B	―	0.63%	―	23.42%	71.17%

Fortive Corporate Events

Fortive Completes Spin-Off of Precision Technologies

On June 28, 2025, Fortive completed the spin-off of its Precision Technologies segment, forming Ralliant Corporation, which now trades independently on the New York Stock Exchange under the symbol ‘RAL’. Concurrently, Olumide Soroye was appointed as President, CEO, and Director of Fortive, succeeding James Lico, who retired but will remain as a senior advisor until the end of the year. The separation aims to unlock significant shareholder value, with Fortive focusing on accelerating profitable growth and maintaining a strong financial track record despite facing market headwinds.

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.