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Stock Analysis & ValuationFortive Corp (F03.DE)

Professional Stock Screener
Previous Close
44.41
Sector Valuation Confidence Level
Moderate
Valuation methodValue, Upside, %
Artificial intelligence (AI)n/an/a
Intrinsic value (DCF)n/a
Graham-Dodd Method6.20-86
Graham Formula22.10-50

Strategic Investment Analysis

Company Overview

Fortive Corp (F03.DE) is a diversified industrial growth company headquartered in Everett, Washington, specializing in professional and engineered products, software, and services. Operating in the Industrial - Capital Goods sector, Fortive serves a broad range of end markets through its two key segments: Professional Instrumentation and Industrial Technologies. The Professional Instrumentation segment provides critical measurement and monitoring solutions for industrial applications, including electrical current, pressure, and temperature. The Industrial Technologies segment delivers essential equipment, components, and software for manufacturing, repair, and transportation markets globally. With a workforce of 24,000 employees, Fortive's brands are leaders in field instrumentation, automation, and franchise distribution. The company's strong financial performance, including €6.23 billion in revenue and €832.9 million in net income (FY 2024), underscores its market relevance and growth potential in industrial technology solutions.

Investment Summary

Fortive Corp presents a compelling investment case with its diversified industrial portfolio and strong financial metrics. The company reported €6.23 billion in revenue and €832.9 million in net income for FY 2024, with a diluted EPS of €2.36. Its robust operating cash flow of €1.53 billion and manageable total debt of €3.88 billion indicate financial stability. However, investors should note the company's beta of 1.14, suggesting higher volatility compared to the market. The dividend yield, with a payout of €0.63 per share, adds income appeal. Fortive's exposure to industrial automation and instrumentation positions it well for long-term growth, though cyclical industry risks and competitive pressures remain key considerations.

Competitive Analysis

Fortive Corp competes in the industrial technology and instrumentation space, leveraging its diversified product portfolio and strong brand presence. The company's competitive advantage lies in its dual-segment approach—Professional Instrumentation and Industrial Technologies—which allows it to address a wide array of industrial needs. Fortive's focus on actionable intelligence through measurement and monitoring solutions differentiates it in high-growth areas like automation and sensing. However, the company faces stiff competition from larger industrial conglomerates and specialized players. Its ability to innovate and integrate acquisitions will be critical in maintaining market share. Financially, Fortive's solid cash flow generation and moderate leverage provide flexibility for strategic investments, but competitors with greater scale may outperform in pricing and R&D capabilities.

Major Competitors

  • Honeywell International Inc. (HON): Honeywell is a global industrial giant with a broad portfolio spanning aerospace, building technologies, and performance materials. Its scale and diversified revenue streams give it an edge over Fortive in R&D and global reach. However, Honeywell's complexity can lead to slower decision-making compared to Fortive's more focused segments.
  • Emerson Electric Co. (EMR): Emerson is a key competitor in automation and industrial solutions, with strong brand recognition in process management. Its deep industry expertise rivals Fortive's instrumentation segment, but Fortive's agility in niche markets may offer competitive differentiation.
  • Rockwell Automation Inc. (ROK): Rockwell excels in industrial automation and control systems, posing direct competition to Fortive's Industrial Technologies segment. While Rockwell has superior automation expertise, Fortive's diversified portfolio provides broader market exposure.
  • Danaher Corporation (DHR): Danaher, like Fortive, operates in precision instrumentation and industrial technologies. Its larger scale and strong M&A capabilities make it a formidable competitor, though Fortive's focused segments may allow for more tailored customer solutions.
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