Fortive (FTV) AI Stock Analysis

• Market Cap: $24.68B
• Dividend Yield: 0.44%
• Average Volume (3M): 3.67M
• Price to Earnings (P/E): 32.1
• Beta (1Y): 1.00
• Revenue Growth: 0.85%
• EPS Growth: -10.01%
• Country: US
• Employees: 18,000
• Sector: Technology
• Sector Strength: 77
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.85
• Shares Outstanding: 339,882,300
• 10 Day Avg. Volume: 3,568,376
• 30 Day Avg. Volume: 3,669,616
• 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: 1.09
• Enterprise Value/Revenue: 1.15
• Enterprise Value/Gross Profit: 7.27
• Enterprise Value/Ebitda: 4.16
• 1Y Price Target: $79.08
• Price Target Upside: 9.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

Fortive Corporation holds a strong financial position with consistent revenue growth and robust cash flow. The stock's technical indicators reflect positive momentum, though caution is advised due to high valuation and overbought technical signals. Strategic actions highlighted in the earnings call and recent corporate events bolster confidence in Fortive's ability to navigate external pressures, resulting in a moderately strong overall score.

Positive Factors

Market positioning

FTV is well-positioned to combat China tariffs, leveraging their previous strategies from the last tariff regime.

Operational 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.

Spin-off 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.

Negative Factors

Dividend policy 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.

International market challenges

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 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 makes money primarily through the sale of its products and services within its three business segments. The Intelligent Operating Solutions segment generates revenue from providing software and devices that enhance workflow and operational efficiency. Precision Technologies earn revenue through advanced instrumentation and measurement solutions critical for quality control and productivity improvements in manufacturing and other industries. The Advanced Healthcare Solutions segment derives its earnings from providing technologies that enhance healthcare delivery and patient safety. Fortive's revenue streams are bolstered by its strategic acquisitions, which expand its technological capabilities and market reach, as well as key partnerships that broaden its customer base and innovative offerings.

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: Neutral
• Last Price: 71.95
• 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 Neutral. The current price of 71.95 is above the 20-day moving average (MA) of 70.02, above the 50-day MA of 70.22, and below the 200-day MA of 74.52, indicating a neutral trend. The MACD of 0.97 indicates Negative momentum. The RSI at 55.84 is Neutral, neither overbought nor oversold. The STOCH value of 69.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FTV.

Fortive Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TDY	77 Outperform	$23.29B	28.41	8.61%	―	2.98%	-5.64%
TRMB	77 Outperform	$17.10B	11.77	31.00%	―	-6.93%	537.94%
FTV	76 Outperform	$24.68B	32.13	7.70%	0.44%	0.85%	-10.01%
TEL	76 Outperform	$48.30B	35.94	11.33%	1.60%	1.23%	-58.22%
KEYS	74 Outperform	$28.13B	46.62	14.30%	―	-6.07%	-35.80%
COHR	68 Neutral	$12.34B	―	1.25%	―	21.68%	92.07%
Sector *	60 Neutral	$11.58B	10.33	-7.23%	2.94%	7.47%	-10.84%

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.

Spark’s Take on FTV Stock

According to Spark, TipRanks’ AI Analyst, FTV is a Outperform.

Fortive presents a solid financial foundation with strong cash flow and profitability, supported by effective management strategies. However, the high valuation and macroeconomic challenges, particularly in Precision Technologies, pose risks. The stock’s technical indicators suggest positive momentum but caution due to approaching overbought levels. The company’s proactive measures in the earnings call provide confidence in its ability to navigate external pressures, resulting in a moderately strong overall score.

To see Spark’s full report on FTV stock, click here.

Fortive Expands Board with New Independent Director

On February 26, 2025, Fortive Corporation expanded its Board of Directors from nine to ten members, appointing Gregory J. Moore, M.D., Ph.D., as a new board member. Dr. Moore will also serve on the Compensation Committee and Nominating and Governance Committee, receiving the same compensation as other non-employee directors. His appointment highlights Fortive’s commitment to strengthening its governance and leadership structure, with Dr. Moore being recognized as an independent director under NYSE standards.