One-glance verdict
Undervalued
$81.62 our estimate vs market $60.68
Wall Street consensus: $63.62 (-22.0% lower than our fair-value estimate)
26% below our estimate, below the bear case
Fundamentals snapshot
Fortive Corporation
FTV · NYQ · Technology · Scientific & Technical Instruments
Current price
$60.68
52-week range
$46.34 - $63.40
Market cap
$18.50B
Balance sheet
Watch
5.98x Adequate
Net debt $3.23B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 13.9% last year.
- Reward Returns 6.8% on equity, ahead of 20% of its peers.
- Risk Stock trades 40.3% above its 5-year average P/E.
- Risk Net debt grew 8.1% over 3 years.
What this company does
Fortive Corporation
Fortive provides specialized tools and software that other essential businesses, like factories and hospitals, rely on to operate safely and efficiently. It makes money primarily by selling critical products to the healthcare industry, such as systems that sterilize medical instruments, and by providing operational tools to industrial companies. Because these offerings are often necessary for its customers' day-to-day work, it can create a steady and reliable business for the company.
How the company got here
Fortive was established in 2016 when it was separated from Danaher Corporation, a larger science and technology company. This move was designed to create a more focused industrial technology company. From the start, Fortive inherited a set of well-known brands and a method of doing business called the Fortive Business System, which focuses on continuous improvement. Over the years, it has grown by acquiring other companies, such as Industrial Scientific (gas detection products) and Advanced Sterilization Products (infection prevention for hospitals), to strengthen its position in specific markets. The company has also sharpened its focus by spinning off other parts of its business, like its transportation-related businesses which became Vontier.
What it actually does
Fortive provides essential technologies that other businesses use to keep their operations safe and running smoothly. Think of them as a company that makes specialized tools and software for professionals in critical fields like manufacturing, energy, and healthcare. For example, they make handheld devices that electricians use to test circuits, software that hospitals use to track and sterilize surgical tools, and sensors that detect dangerous gases in industrial plants. Their products aren't typically sold to everyday consumers but are vital for the companies and professionals who rely on them to do their jobs effectively and safely.
Intelligent Operating Solutions
This is Fortive's largest business segment, making up a significant portion of its revenue. It provides a mix of hardware and software to various industries to help them operate more safely and efficiently. Customers in manufacturing, utilities, and even healthcare buy products from brands like Fluke (professional electronic test tools), Industrial Scientific (gas detectors), and ServiceChannel (software for managing facility maintenance). Essentially, this segment helps companies manage their physical assets, monitor for hazards, and ensure their workers are safe and their facilities are compliant with regulations.
Advanced Healthcare Solutions
This segment focuses entirely on the healthcare industry, providing tools and software that are critical for patient safety and hospital efficiency. Hospitals and medical facilities pay for solutions that help with things like sterilizing surgical instruments (from a brand called ASP) and software that helps manage clinical workflows (from a brand called Provation). This part of the business is all about helping healthcare providers protect patients from infections, ensure medical equipment is working correctly, and make complex medical procedures safer and more efficient.
What management is betting on now
Fortive's leadership is focused on growing the parts of the business that provide recurring revenue (predictable income from subscriptions and services, rather than one-time sales). They are doing this by emphasizing software-enabled workflow solutions, which deeply integrate into a customer's daily operations, making the services very sticky. The company is also concentrating on high-growth markets, particularly in healthcare technology and solutions that improve safety and productivity for its industrial customers. A key part of their strategy involves using artificial intelligence (AI) and other new technologies to make their products smarter and more valuable to customers.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$437.40M
FY2024 Q4
$465.20M
FY2025 Q1
$215.00M
FY2025 Q2
$274.50M
FY2025 Q3
$135.80M
FY2025 Q4
$335.50M
FY2026 Q2
$208.20M
Revenue
$1.07B
Net income
$136.40M
Diluted EPS
0.44
Operating cash flow
$234.80M
Free cash flow
$208.20M
Fetching…
Sources
Revenue
$1.12B
Net income
$185.70M
Diluted EPS
0.58
Operating cash flow
$365.90M
Free cash flow
$335.50M
Fetching…
Sources
Revenue
$1.03B
Net income
$55.00M
Diluted EPS
0.16
Operating cash flow
$164.40M
Free cash flow
$135.80M
Fetching…
Sources
Revenue
$1.52B
Net income
$166.60M
Diluted EPS
0.49
Operating cash flow
$311.20M
Free cash flow
$274.50M
Fetching…
Sources
Revenue
$1.47B
Net income
$171.90M
Diluted EPS
0.50
Operating cash flow
$241.70M
Free cash flow
$215.00M
Fetching…
Sources
Revenue
$1.07B
Net income
$208.80M
Diluted EPS
0.60
Operating cash flow
$502.20M
Free cash flow
$465.20M
Fetching…
Sources
Revenue
$1.53B
Net income
$221.60M
Diluted EPS
0.63
Operating cash flow
$459.00M
Free cash flow
$437.40M
Fetching…
Sources
Is it cheap or expensive?
Fair value $81.62 vs current price $60.68
Wall Street consensus is the average analyst price target: $63.62 (-22.0% lower than our fair-value estimate).
Our most-likely fair value is $81.62 a share — about 34.5% above today's price of $60.68, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $3.2B. Interest coverage 6.0x.
Net debt
$3.23B
Interest coverage
5.98x
Fortive Corporation's profit covers its interest bill about 6.0 times over. which is weaker than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
FTV
BASELINE
Fortive Corporation
Total debt $3.58B Interest coverage 5.98x This is the baseline the peer rows are being compared against.
Total debt $2.46B Interest coverage 23.51x +293% vs FTV Carries about 3.9x more debt cushion than FTV.
Total debt $10.46B Interest coverage 6.88x +15% vs FTV Carries about 1.2x more debt cushion than FTV.
Total debt $2.76B Interest coverage 9.12x +53% vs FTV Carries about 1.5x more debt cushion than FTV.
Total debt $2.23B Interest coverage 16.32x +173% vs FTV Carries about 2.7x more debt cushion than FTV.
Total debt $5.60B Interest coverage 11.54x +93% vs FTV Carries about 1.9x more debt cushion than FTV.
What you should know
The case for and against FTV
3 Rewards
2 Risks
Rewards
-
Revenue grew 13.9% last year.
-
Returns 6.8% on equity, ahead of 20% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 40.3% above its 5-year average P/E.
-
Net debt grew 8.1% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
35.69x
Forward P/E
18.84x
P/B
3.05x
P/S
4.37x
EV/EBITDA
18.45x
PEG ratio
0.98x
Profitability
How much profit each dollar creates
Gross margin
63.3%
Operating margin
17.9%
Net margin
12.8%
ROE
6.8%
ROA
3.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.59x
Current ratio
0.71x
Quick ratio
0.53x
Total debt
$3.58B
Total cash
$356.10M
Growth
How the business has been compounding
Revenue TTM
$4.74B
Revenue 5Y CAGR
-5.7%
EPS TTM
1.70
EPS 5Y CAGR
-6.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.08B
Free CF TTM
$978.10M
FCF margin
20.6%
Dividend
Shareholder payout
Yield
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Payout ratio
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Last ex-div date
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