investorscraft@gmail.com

Intrinsic Value of Fortive Corporation (FTV)

Previous Close$53.05
Intrinsic Value
Upside potential
Previous Close
$53.05

VALUATION INPUT DATA

This valuation is based on fiscal year data as of 2024 and quarterly data as of .

Data is not available at this time.

Stock Valuation Context

Business Model And Market Position

Fortive Corporation operates as a diversified industrial technology conglomerate, specializing in precision technologies, advanced healthcare solutions, and intelligent operating technologies. The company serves a broad range of end markets, including manufacturing, healthcare, and telecommunications, leveraging its portfolio of well-known brands such as Fluke, Gilbarco Veeder-Root, and Accruent. Fortive’s revenue model is driven by a mix of hardware sales, software subscriptions, and aftermarket services, ensuring recurring income streams and long-term customer relationships. Its market position is strengthened by a focus on innovation, operational efficiency, and strategic acquisitions, allowing it to maintain leadership in niche industrial and healthcare segments. The company’s ability to integrate advanced technologies like IoT and AI into its product offerings further differentiates it from competitors, positioning Fortive as a key enabler of industrial digital transformation.

Revenue Profitability And Efficiency

Fortive reported revenue of $6.23 billion for FY 2024, with net income of $832.9 million, reflecting a net margin of approximately 13.4%. Diluted EPS stood at $2.36, demonstrating solid profitability. Operating cash flow was robust at $1.53 billion, while capital expenditures were modest at $120.4 million, indicating efficient capital deployment and strong cash generation capabilities. The company’s ability to convert revenue into cash underscores its operational efficiency.

Earnings Power And Capital Efficiency

Fortive’s earnings power is evident in its consistent profitability and cash flow generation. The company’s operating cash flow of $1.53 billion highlights its ability to fund growth initiatives and shareholder returns. With a disciplined approach to capital allocation, Fortive maintains a balance between reinvesting in the business and returning capital to shareholders, as seen in its dividend payments and potential share repurchases.

Balance Sheet And Financial Health

Fortive’s balance sheet remains healthy, with $813.3 million in cash and equivalents and total debt of $3.88 billion. The company’s leverage is manageable, supported by strong cash flow generation. Its financial health is further reinforced by a solid liquidity position, providing flexibility to pursue strategic acquisitions or other growth opportunities while maintaining financial stability.

Growth Trends And Dividend Policy

Fortive has demonstrated steady growth through organic initiatives and strategic acquisitions. The company’s dividend policy, with a dividend per share of $0.32, reflects a commitment to returning capital to shareholders while retaining sufficient funds for reinvestment. Growth trends are supported by its focus on high-margin segments and technological innovation, positioning Fortive for sustained long-term expansion.

Valuation And Market Expectations

Fortive’s valuation reflects its strong market position and consistent financial performance. Investors likely price in expectations of continued growth in high-margin segments and efficient capital allocation. The company’s ability to deliver stable earnings and cash flow supports a premium valuation relative to peers, with market expectations centered on sustained operational execution and strategic acquisitions.

Strategic Advantages And Outlook

Fortive’s strategic advantages include its diversified portfolio, technological leadership, and disciplined M&A strategy. The company is well-positioned to capitalize on trends like industrial automation and digital transformation. The outlook remains positive, with opportunities for margin expansion and revenue growth driven by innovation and operational excellence. Fortive’s focus on high-growth markets and efficient capital deployment should continue to drive shareholder value.

Sources

10-K, investor presentations

show cash flow forecast

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year2025202620272028202920302031203220332034203520362037203820392040204120422043204420452046204720482049

INCOME STATEMENT

Revenue growth rate, %NaN
Revenue, $NaN
Variable operating expenses, $mNaN
Fixed operating expenses, $mNaN
Total operating expenses, $mNaN
Operating income, $mNaN
EBITDA, $mNaN
Interest expense (income), $mNaN
Earnings before tax, $mNaN
Tax expense, $mNaN
Net income, $mNaN

BALANCE SHEET

Cash and short-term investments, $mNaN
Total assets, $mNaN
Adjusted assets (=assets-cash), $mNaN
Average production assets, $mNaN
Working capital, $mNaN
Total debt, $mNaN
Total liabilities, $mNaN
Total equity, $mNaN
Debt-to-equity ratioNaN
Adjusted equity ratioNaN

CASH FLOW

Net income, $mNaN
Depreciation, amort., depletion, $mNaN
Funds from operations, $mNaN
Change in working capital, $mNaN
Cash from operations, $mNaN
Maintenance CAPEX, $mNaN
New CAPEX, $mNaN
Total CAPEX, $mNaN
Free cash flow, $mNaN
Issuance/(repurchase) of shares, $mNaN
Retained Cash Flow, $mNaN
Pot'l extraordinary dividend, $mNaN
Cash available for distribution, $mNaN
Discount rate, %NaN
PV of cash for distribution, $mNaN
Current shareholders' claim on cash, %NaN
HomeMenuAccount