Fortive (FTV) AI Stock Analysis

• Market Cap: $17.68B
• Dividend Yield: 0.43%
• Average Volume (3M): 3.16M
• Price to Earnings (P/E): 31.8
• Beta (1Y): 0.98
• Revenue Growth: -8.96%
• EPS Growth: -30.29%
• Country: US
• Employees: 18,000
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.68
• Shares Outstanding: 317,611,630
• 10 Day Avg. Volume: 3,785,991
• 30 Day Avg. Volume: 3,162,528
• PEG Ratio: -8.32
• Price to Book (P/B): 1.94
• Price to Sales (P/S): 3.17
• P/FCF Ratio: 14.03
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 3.38
• Enterprise Value/Gross Profit: 5.60
• Enterprise Value/Ebitda: 13.75
• 1Y Price Target: $57.40
• Price Target Upside: 3.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 2.63
• Revenue Forecast (FY): $4.13B

• Rating: 72 Outperform
• Price Target: $56.00 ▲(0.65% Upside)

Fortive's overall stock score is driven by strong earnings call performance and positive technical indicators, reflecting confidence in strategic growth initiatives. However, challenges in revenue growth, cash flow generation, and valuation concerns slightly temper the outlook.

Positive Factors

Operational Efficiency

A strong gross profit margin indicates effective cost management, which is crucial for maintaining profitability and competitive advantage.

Strategic Focus and Innovation

New product launches in high-growth sectors enhance Fortive's market position and drive long-term revenue growth through innovation.

Shareholder Value Initiatives

Significant share repurchases demonstrate strong capital allocation, boosting shareholder value and confidence in future growth.

Negative Factors

Revenue Growth Challenges

Negative revenue growth indicates declining sales performance, which could impact long-term financial stability and market competitiveness.

Cash Flow Generation

Declining free cash flow growth suggests potential liquidity challenges, affecting the company's ability to invest in growth opportunities.

Healthcare Sector Challenges

Regulatory challenges in healthcare can limit growth in this segment, affecting overall revenue and profitability in the long term.

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 products and services in the instrumentation and industrial technology sectors. Key revenue streams include direct product sales, subscription-based software services, and recurring revenue from maintenance and support agreements. The company also benefits from strategic partnerships and collaborations with other technology firms, which enhance its product offerings and market reach. Additionally, Fortive's focus on innovation and investment in research and development allows it to stay competitive and meet the evolving needs of its customers, contributing to sustained earnings growth.

Fortive Financial Statement Overview

Summary

Fortive demonstrates strong operational efficiency with robust margins, but faces challenges in revenue growth and cash flow generation. The balance sheet remains stable with manageable leverage, though profitability metrics have softened. Continued focus on revenue growth and cash flow improvement will be crucial for sustaining financial health.

Income Statement

Fortive's income statement shows a strong gross profit margin of 60.33% TTM, indicating effective cost management. However, the net profit margin has decreased to 10.68% TTM, reflecting challenges in maintaining profitability. The revenue growth rate has turned negative at -8.26% TTM, suggesting a decline in sales performance. Despite these challenges, the company maintains a healthy EBIT margin of 16.41% TTM, showcasing operational efficiency.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.51 TTM, indicating manageable leverage. Return on equity stands at 6.46% TTM, which is lower than previous years, suggesting reduced profitability for shareholders. The equity ratio of 54.73% TTM reflects a stable capital structure, with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis indicates a decline in free cash flow growth at -21.93% TTM, highlighting potential liquidity challenges. The operating cash flow to net income ratio is 0.48 TTM, suggesting moderate cash generation relative to net income. The free cash flow to net income ratio remains strong at 90.64% TTM, indicating efficient conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.64B	6.23B	6.07B	5.83B	5.25B	4.63B
Gross Profit	3.40B	3.73B	3.59B	3.36B	3.01B	2.62B
EBITDA	1.39B	1.67B	1.57B	1.44B	1.18B	2.04B
Net Income	602.30M	832.90M	865.80M	755.20M	608.40M	1.61B
Balance Sheet
Total Assets	11.89B	17.02B	16.91B	15.89B	16.47B	16.05B
Cash, Cash Equivalents and Short-Term Investments	430.80M	813.30M	1.89B	709.20M	819.30M	2.94B
Total Debt	3.31B	3.88B	3.81B	3.42B	4.14B	4.43B
Total Liabilities	5.38B	6.82B	6.59B	6.20B	6.95B	7.08B
Stockholders Equity	6.50B	10.19B	10.32B	9.68B	9.51B	8.96B
Cash Flow
Free Cash Flow	1.08B	1.41B	1.25B	1.21B	911.10M	1.36B
Operating Cash Flow	1.19B	1.53B	1.35B	1.30B	961.10M	1.44B
Investing Cash Flow	-75.40M	-1.80B	-195.40M	-102.50M	-2.62B	-148.40M
Financing Cash Flow	-1.52B	-792.70M	32.30M	-1.27B	652.00M	-696.10M

Fortive Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 55.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 55.64 is above the 20-day moving average (MA) of 54.11, above the 50-day MA of 51.77, and above the 200-day MA of 51.31, indicating a bullish trend. The MACD of 1.03 indicates Positive momentum. The RSI at 65.60 is Neutral, neither overbought nor oversold. The STOCH value of 70.32 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
SANM	79 Outperform	$8.34B	34.60	10.81%	―	7.40%	13.79%
FLEX	74 Outperform	$23.59B	28.13	17.45%	―	0.77%	0.51%
TRMB	74 Outperform	$19.50B	54.75	6.13%	―	-0.86%	-75.37%
FTV	72 Outperform	$17.68B	31.77	7.79%	0.43%	-8.96%	-30.29%
TDY	71 Outperform	$24.33B	30.07	8.11%	―	7.41%	-12.85%
COHR	66 Neutral	$30.01B	276.51	3.08%	―	20.80%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Fortive Corporate Events

Fortive Announces Retirement of Chief People Officer

Stacey Walker, Senior Vice President and Chief People Officer of Fortive Corporation, has announced her retirement, effective January 2, 2026. Her departure marks a significant leadership change for Fortive, with potential implications for the company’s human resources strategy and operations.