Fortive Corp. (FTV) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Coherent Corp.

KLA Corp.

Rockwell Automation, Inc.

Keysight Technologies, Inc.

NCR Voyix Corp.

Sensata Technologies Holding Plc

Cognex Corp.

Emerson Electric Co.

Novanta, Inc.

Onto Innovation, Inc.

Fortive Corp.

Why is Fortive Corp. ?

Poor Management Efficiency with a low ROCE of 7.69%

The company has been able to generate a Return on Capital Employed (avg) of 7.69% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -2.97% and Operating profit at 2.02% over the last 5 years

ROCE(HY) Lowest at 7.36%
OPERATING PROFIT MARGIN(Q) Lowest at 26.38 %
INVENTORY TURNOVER RATIO(HY) Lowest at 4.18 times

With ROCE of 8.86%, it has a expensive valuation with a 2.10 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -5.96%, its profits have fallen by -8.3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -5.96% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Fortive Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Fortive Corp.

-2.35%

-0.64

37.77%

S&P 500

17.45%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.61%

EBIT Growth (5y)

-1.40%

EBIT to Interest (avg)

7.91

Debt to EBITDA (avg)

1.83

Net Debt to Equity (avg)

0.29

Sales to Capital Employed (avg)

0.44

Tax Ratio

14.90%

Dividend Payout Ratio

16.18%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

7.69%

ROE (avg)

7.44%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.61

EV to EBIT

17.36

EV to EBITDA

11.73

EV to Capital Employed

1.47

EV to Sales

3.20

PEG Ratio

Dividend Yield

34.17%

ROCE (Latest)

8.47%

ROE (Latest)

8.02%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -4.79% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 4.8 times

-18What is not working for the Company

NET SALES(Q)

At USD 1,122.5 MM has Fallen at -30.72%

OPERATING CASH FLOW(Y)

Lowest at USD 1,083.2 MM

INTEREST(Q)

At USD 31 MM has Grown at 22.05%

INTEREST COVERAGE RATIO(Q)

Lowest at 727.42

OPERATING PROFIT MARGIN(Q)

Lowest at 20.09 %

DIVIDEND PAYOUT RATIO(Y)

Lowest at 10.34%

CASH AND EQV(HY)

Lowest at USD 806.3 MM

DEBT-EQUITY RATIO (HY)

Highest at 43.86 %

DIVIDEND PER SHARE(HY)

Lowest at USD 5.89

PRE-TAX PROFIT(Q)

Fallen at -30.4%

Here's what is working for Fortive Corp.

Inventory Turnover Ratio

Highest at 4.8 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -4.79% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Fortive Corp.

Net Sales

At USD 1,122.5 MM has Fallen at -30.72%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (USD MM)

Interest

At USD 31 MM has Grown at 22.05%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 727.42

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 20.09 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Cash Flow

Lowest at USD 1,083.2 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Pre-Tax Profit

Fallen at -30.4%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Cash and Eqv

Lowest at USD 806.3 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 43.86 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Dividend per share

Lowest at USD 5.89

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)

Dividend Payout Ratio

Lowest at 10.34%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)