One-glance verdict
Undervalued
$86.44 our estimate vs market $56.45
Wall Street consensus: $64.31 (-25.6% lower than our fair-value estimate)
35% below our estimate, below the bear case
Fundamentals snapshot
Fortive Corporation
FTV · NYQ · Technology · Scientific & Technical Instruments
Current price
$56.45
52-week range
$47.31 - $64.56
Market cap
$17.05B
Balance sheet
Watch
5.98x Adequate
Net debt $3.22B. 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 7.3% on equity, ahead of 20% of its peers.
- Risk Stock trades 15.0% above its 5-year average P/E.
- Risk Net debt grew 8.1% over 3 years.
What this company does
Fortive Corporation
Fortive provides essential technology and services that help other businesses in fields like manufacturing and healthcare operate more safely and efficiently. The company makes most of its money by selling things like precision instruments for factories and software that helps hospitals manage tasks like sterilizing equipment. This creates a lot of recurring revenue (sales that are predictable and repeat regularly) because their customers depend on these critical tools and often sign up for ongoing service and software updates.
How the company got here
Fortive was created in 2016 when a large industrial company called Danaher decided to separate into two publicly traded companies. Fortive started with Danaher's industrial technology businesses, including well-known brands like Fluke, which makes testing and measurement tools. Since then, Fortive has focused on buying companies that provide software and services that create recurring revenue (predictable sales from ongoing subscriptions or services, rather than one-time purchases). To sharpen its focus, the company has also separated from some of its earlier businesses, such as a 2020 spin-off (creating a new, independent company from a part of the existing one) of its transportation and payment businesses into a company called Vontier.
What it actually does
Fortive provides essential technologies that other businesses use to keep their operations safe and productive. You likely wouldn't buy their products at a store, but they are used behind the scenes in places like factories, hospitals, and large commercial buildings. For example, they make handheld tools that electricians use to test wiring, software that hospitals use to track surgical tools, and systems that help building managers keep track of maintenance. The company's goal is to provide a mix of hardware, software, and services that help professionals do their jobs more efficiently and safely.
Intelligent Operating Solutions
This is Fortive's largest business segment and focuses on providing tools and software that help other companies manage their facilities and keep workers safe. Customers in manufacturing, healthcare, and communications pay for things like Fluke's electronic test tools, Industrial Scientific's gas detectors, and Accruent's software for managing buildings and assets. This segment aims to combine hardware with software and services to create what's known as a connected workflow, where data from devices helps businesses run more efficiently. This part of the company generates a significant portion of Fortive's total revenue.
Advanced Healthcare Solutions
This segment provides specialized equipment and software for hospitals and other healthcare facilities. For example, its ASP (Advanced Sterilization Products) brand makes systems that sterilize surgical instruments to prevent infections. Other brands in this group, like Fluke Biomedical and Landauer, make devices that test medical equipment and monitor radiation exposure to keep both patients and healthcare workers safe. Hospitals and clinics pay for these critical tools and software to improve patient safety and make their own operations more efficient.
What management is betting on now
Fortive's leadership is focused on growing its software and recurring revenue streams, which provide more predictable income than one-time hardware sales. They are doing this by acquiring software companies and developing new services that complement their existing tools. The company is also emphasizing the use of its Fortive Business System, a set of internal processes for continuous improvement, to make its businesses more efficient and innovative. A key part of their strategy is to focus on high-growth markets like healthcare technology and solutions that help digitize the work of frontline employees.
Price history
How the share price has moved
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Loading price history…
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 $86.44 vs current price $56.45
Wall Street consensus is the average analyst price target: $64.31 (-25.6% lower than our fair-value estimate).
Our most-likely fair value is $86.44 a share — about 53.1% above today's price of $56.45, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $3.2B. Interest coverage 6.0x.
Net debt
$3.22B
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 $3.60B Interest coverage 5.98x This is the baseline the peer rows are being compared against.
Total debt $2.31B Interest coverage 23.51x +293% vs FTV Carries about 3.9x more debt cushion than FTV.
Total debt $11.32B Interest coverage 6.88x +15% vs FTV Carries about 1.2x more debt cushion than FTV.
Total debt $2.77B Interest coverage 9.12x +53% vs FTV Carries about 1.5x more debt cushion than FTV.
Total debt $2.14B Interest coverage 16.32x +173% vs FTV Carries about 2.7x more debt cushion than FTV.
Total debt $5.48B 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 7.3% on equity, ahead of 20% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 15.0% 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)
29.25x
Forward P/E
17.37x
P/B
2.82x
P/S
3.95x
EV/EBITDA
16.43x
PEG ratio
0.98x
Profitability
How much profit each dollar creates
Gross margin
63.2%
Operating margin
19.1%
Net margin
12.4%
ROE
7.3%
ROA
3.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.59x
Current ratio
1.24x
Quick ratio
0.80x
Total debt
$3.60B
Total cash
$374.20M
Growth
How the business has been compounding
Revenue TTM
$4.74B
Revenue 5Y CAGR
-5.7%
EPS TTM
1.93
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
0.5%
Payout ratio
12.7%
Last ex-div date
2026-09-04