Fortive Corporation doesn’t just create products; it transforms industries and elevates everyday experiences through its innovative solutions. As a powerhouse in the hardware and equipment sector, Fortive’s diverse portfolio—spanning sectors like healthcare, manufacturing, and energy—demonstrates its commitment to quality and performance. With a reputation for cutting-edge technology and unparalleled service, the company continually pushes boundaries. As I evaluate its current market position, I must ask: do Fortive’s fundamentals align with its growth potential in today’s dynamic landscape?
Table of contents
Company Description
Fortive Corporation (NYSE: FTV), established in 2015 and headquartered in Everett, Washington, operates in the technology sector, specifically within the Hardware, Equipment & Parts industry. With a market capitalization of approximately $18.2B, Fortive specializes in designing, manufacturing, and servicing a diverse range of professional and engineered products, software, and services. The company’s core activities are structured into segments focusing on Intelligent Operating Solutions, Precision Technologies, and Advanced Healthcare Solutions, catering to various markets including healthcare, manufacturing, and aerospace. Fortive’s strategic positioning as an innovator in connected reliability tools and software solutions emphasizes its role in enhancing operational efficiency and safety across industries, thereby shaping the future of industrial technology.
Fundamental Analysis
In this section, I will analyze Fortive Corporation’s income statement, financial ratios, and dividend payout policy to assess its financial health and investment potential.
Income Statement
Below is the income statement for Fortive Corporation (FTV), which highlights key financial metrics over the past five years.
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 4.63B | 5.25B | 5.83B | 6.07B | 6.23B |
| Cost of Revenue | 2.02B | 2.24B | 2.46B | 2.47B | 2.50B |
| Operating Expenses | 1.97B | 2.18B | 2.36B | 2.46B | 2.55B |
| Gross Profit | 2.62B | 3.01B | 3.36B | 3.59B | 3.73B |
| EBITDA | 2.04B | 1.78B | 1.44B | 1.57B | 1.67B |
| EBIT | 1.66B | 0.78B | 0.97B | 1.11B | 1.12B |
| Interest Expense | 148M | 103M | 98M | 124M | 153M |
| Net Income | 1.61B | 608M | 755M | 866M | 833M |
| EPS | 4.58 | 1.64 | 2.12 | 2.46 | 2.39 |
| Filing Date | 2021-02-26 | 2022-03-01 | 2023-02-28 | 2024-02-27 | 2025-02-25 |
Interpretation of Income Statement
The income statement shows a steady revenue growth from 4.63B in 2020 to 6.23B in 2024, indicating a positive trajectory. However, net income has slightly decreased from 866M in 2023 to 833M in 2024, suggesting that while revenue is increasing, the growth in operating and interest expenses is impacting profitability. Margins have remained relatively stable, but the recent year reflects a potential slowdown in net income growth, which may warrant caution for investors considering the stock.
Financial Ratios
The following table summarizes the key financial ratios for Fortive Corporation (FTV) over the last few fiscal years.
| Metrics | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Net Margin | 11.58% | 12.96% | 14.27% | 13.37% |
| ROE | 6.40% | 7.80% | 8.39% | 8.17% |
| ROIC | 5.04% | 6.12% | 6.54% | 6.65% |
| P/E | 32.98 | 22.85 | 22.59 | 23.69 |
| P/B | 2.11 | 1.78 | 1.90 | 1.94 |
| Current Ratio | 0.68 | 0.91 | 2.05 | 1.16 |
| Quick Ratio | 0.54 | 0.71 | 1.75 | 0.91 |
| D/E | 0.44 | 0.35 | 0.37 | 0.38 |
| Debt-to-Assets | 25.16% | 21.53% | 22.53% | 22.78% |
| Interest Coverage | 8.06 | 10.23 | 9.18 | 7.70 |
| Asset Turnover | 0.32 | 0.37 | 0.36 | – |
| Fixed Asset Turnover | 13.29 | 13.81 | 13.79 | 14.39 |
| Dividend Yield | 0.66% | 0.58% | 0.52% | 0.56% |
Interpretation of Financial Ratios
Analyzing Fortive Corporation’s financial ratios from 2024 reveals a mixed picture of financial health. The liquidity ratios indicate a current ratio of 1.16 and a quick ratio of 0.91, suggesting a decent short-term liquidity position, but the quick ratio is slightly below 1, which could raise concerns about immediate liquidity in times of need. The solvency ratio stands at 0.20, indicating a moderate level of debt relative to assets, while the debt-to-equity ratio of 0.38 suggests manageable leverage. Profitability metrics are relatively strong, with a net profit margin of 13.37% and a return on equity (ROE) of 8.17%. However, the price-to-earnings ratio (P/E) of 23.69 may indicate that the stock is overvalued, particularly given the negative price-to-earnings growth ratio. Overall, while the company showcases solid profitability, the liquidity concerns and high valuation could pose risks.
Evolution of Financial Ratios
Over the past five years, Fortive’s financial ratios have shown a general trend of improvement in profitability and solvency. The current ratio increased from 0.68 in 2021 to 1.16 in 2024, reflecting enhanced liquidity, while the net profit margin climbed from 11.58% to 13.37%, showcasing better operational efficiency. However, the price-to-earnings ratio has fluctuated significantly, indicating volatility in market perceptions of the company’s value.
Distribution Policy
Fortive Corporation (FTV) maintains a dividend payout ratio of approximately 13.4%, with a consistent annual dividend yield around 0.56%. The company has demonstrated a stable trend in dividend per share, currently at $0.318, and engages in share buybacks, which reflects a commitment to returning value to shareholders. However, investors should monitor the sustainability of these distributions given the potential risks associated with economic fluctuations. Overall, Fortive’s distribution strategy appears aligned with long-term value creation.
Sector Analysis
Fortive Corporation operates in the Hardware, Equipment & Parts industry, offering a diverse range of engineered products and services across multiple sectors, with strong competitive advantages and notable brands.
Strategic Positioning
Fortive Corporation (FTV) holds a competitive position in the hardware and equipment industry, with a market cap of approximately $18.2B. The company has leveraged its diverse product portfolio, which includes advanced testing and measurement instruments, to capture significant market share. However, competitive pressure from both established players and emerging technologies poses challenges. The rapid pace of technological disruption requires Fortive to continuously innovate, particularly in its Intelligent Operating Solutions segment, to maintain its edge in the market. With a beta of 1.043, I remain cautious about potential volatility, which underscores the importance of effective risk management.
Revenue by Segment
The following chart illustrates Fortive Corporation’s revenue by segment for the fiscal year 2024, highlighting the performance of each division.
In FY 2024, Fortive’s Intelligent Operating Solutions led with $2.71B, showing a notable increase from $2.61B in FY 2023. Precision Technologies also experienced growth, rising to $2.23B from $2.13B. However, Advanced Healthcare Solutions saw a slight decline to $1.29B from $1.32B. The overall trend indicates a shift towards Intelligent Operating Solutions, which is now a key driver of growth, while Advanced Healthcare Solutions may face concentration risks due to its stagnating performance.
Key Products
The following table outlines the key products offered by Fortive Corporation, highlighting their descriptions and applications in various industries.
| Product | Description |
|---|---|
| Intelligent Reliability Tools | A suite of connected tools designed to enhance reliability and performance in manufacturing and process industries. |
| Environmental Health Software | Enterprise software products aimed at improving safety and compliance within organizations across various sectors. |
| Calibration Tools | Electric, pressure, and temperature calibration tools for ensuring accurate measurements in diverse industries. |
| Portable Gas Detection Tools | Devices that provide real-time monitoring of hazardous gases, essential for safety in various environments. |
| Biomedical Test Tools | Instruments used for testing and managing biomedical equipment, ensuring compliance with healthcare standards. |
| Surgical Inventory Management Systems | Subscription-based systems that streamline inventory management for surgical supplies, enhancing regulatory compliance. |
| Electrical Test Instruments | Precision instruments for testing electrical systems, widely used in power, energy, and industrial markets. |
| Sensor and Control Systems | Solutions designed for monitoring and controlling processes in aerospace, defense, and general industrial applications. |
Fortive Corporation’s diverse product lineup caters to a wide range of industries, demonstrating its commitment to innovation and reliability.
Main Competitors
The competitive landscape for Fortive Corporation (FTV) showcases several key players in the technology sector, particularly in hardware, equipment, and parts. Below is a table of the main competitors sorted by descending market cap:
| Company | Market Cap |
|---|---|
| Coherent, Inc. | 28.25B |
| Corpay, Inc. | 21.83B |
| CGI Inc. | 20.55B |
| Trimble Inc. | 19.87B |
| GoDaddy Inc. | 17.93B |
| Gartner, Inc. | 17.63B |
| Logitech International S.A. | 17.30B |
| Fabrinet | 17.14B |
| Gen Digital Inc. | 16.70B |
| F5, Inc. | 14.37B |
| Fortive Corporation | 18.23B |
The main competitors in the technology sector, particularly in the hardware and equipment markets, include companies like Coherent, Inc. and Corpay, Inc. operating primarily in the North American market.
Competitive Advantages
Fortive Corporation (FTV) boasts a diverse portfolio of professional and engineered products, enhancing its competitive positioning across various industries. With strong brands such as Fluke and Tektronix, the company benefits from established market trust. Looking ahead, Fortive is set to capitalize on emerging opportunities by expanding its Intelligent Operating Solutions segment with new software products and enhancing its Advanced Healthcare Solutions offerings. This strategic focus on innovation and market expansion positions Fortive well for sustained growth and resilience in an evolving landscape.
SWOT Analysis
The SWOT analysis provides a structured evaluation of Fortive Corporation’s internal and external factors affecting its strategic positioning.
Strengths
- Strong market position
- Diverse product portfolio
- Innovative technology solutions
Weaknesses
- High dependency on specific sectors
- Moderate brand recognition compared to competitors
- Vulnerability to economic downturns
Opportunities
- Expansion in emerging markets
- Growth in healthcare technology
- Increased demand for automation and reliability solutions
Threats
- Intense competition
- Regulatory changes
- Supply chain disruptions
Overall, Fortive Corporation benefits from a robust market presence and innovation but must address sector dependencies and competitive pressures. The company should leverage growth opportunities in emerging markets while managing potential threats effectively to enhance its strategic resilience.
Stock Analysis
Over the past year, Fortive Corporation (FTV) has experienced notable price movements and trading dynamics, culminating in a current bearish trend despite recent fluctuations that show some stabilization.
Trend Analysis
Analyzing the stock over the past year, Fortive’s price has changed by -0.78%, indicating a bearish trend. This trend is noteworthy as it reflects a period of acceleration, with a standard deviation of 4.63 indicating some volatility. The stock reached a high of 64.89 and a low of 46.55, suggesting a challenging environment for investors, especially in the context of the overall market sentiment.
Volume Analysis
Examining the trading volumes over the last three months, it is evident that activity has been strongly buyer-driven, with a total volume of approximately 1.81B shares. Buyer volume stood at 964.77M, constituting 53.44% of total activity, indicating increasing interest from buyers. In the recent period, this trend has intensified further, with buyer dominance at 72.91% and volume showing an increasing trend. This suggests positive investor sentiment and heightened market participation, despite the overarching bearish price trend.
Analyst Opinions
Recent analyst recommendations for Fortive Corporation (FTV) indicate a consensus to buy. Analysts have assigned an A- rating, highlighting strong discounted cash flow and return on equity scores of 5 and 4, respectively. Notably, the debt-to-equity and price-to-earnings scores are lower, suggesting some caution. Analysts emphasize Fortive’s robust growth potential and operational efficiency as key factors driving their bullish outlook. As of now, the consensus leans towards a buy for 2025, reflecting confidence in the company’s strategic direction and market position.
Stock Grades
Fortive Corporation (FTV) has received a series of evaluations from recognized grading companies, reflecting a cautious approach in the current market landscape.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Morgan Stanley | Maintain | Equal Weight | 2025-11-05 |
| Baird | Maintain | Outperform | 2025-11-04 |
| Truist Securities | Maintain | Hold | 2025-10-30 |
| Citigroup | Maintain | Neutral | 2025-10-30 |
| JP Morgan | Maintain | Neutral | 2025-10-30 |
| Barclays | Maintain | Equal Weight | 2025-10-30 |
| Mizuho | Maintain | Outperform | 2025-10-17 |
| JP Morgan | Downgrade | Neutral | 2025-10-15 |
| Morgan Stanley | Downgrade | Equal Weight | 2025-09-02 |
| Barclays | Downgrade | Equal Weight | 2025-08-14 |
The overall trend for Fortive Corporation indicates a stable position with several companies maintaining their grades, though the downgrades from JP Morgan and others suggest caution in market sentiment. Investors should consider these evaluations while assessing their investment strategies.
Target Prices
The consensus target price for Fortive Corporation (FTV) reflects a range of optimistic and conservative expectations from analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 66 | 40 | 54.57 |
Overall, analysts expect Fortive’s stock to have a balanced outlook, with a consensus target suggesting moderate growth potential.
Consumer Opinions
Consumer sentiment about Fortive Corporation (FTV) reveals a mix of appreciation and criticism, reflecting the company’s strengths and areas for improvement.
| Positive Reviews | Negative Reviews |
|---|---|
| “Innovative products that enhance efficiency.” | “Customer service could use significant improvement.” |
| “Reliable and durable tools for professionals.” | “Pricing is on the higher side for some items.” |
| “Strong commitment to sustainability initiatives.” | “Inconsistent delivery times for orders.” |
Overall, consumer feedback on Fortive Corporation highlights its innovative and reliable products, while also pointing out concerns regarding customer service and pricing.
Risk Analysis
Understanding the potential risks associated with investing in Fortive Corporation (FTV) is crucial for making informed decisions. Below is a table summarizing key risks:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Fluctuations in market conditions affecting sales | High | High |
| Regulatory Risk | Changes in regulations impacting operations | Medium | Medium |
| Supply Chain Risk | Disruptions in supply chain affecting production | High | High |
| Technological Risk | Rapid technological changes requiring adaptation | Medium | High |
| Economic Risk | Economic downturns leading to reduced demand | Medium | High |
Recent trends indicate heightened market volatility, making market and supply chain risks particularly salient for Fortive. As a trader, it’s essential to monitor these factors closely to manage investment risk effectively.
Should You Buy Fortive Corporation?
Fortive Corporation (FTV) exhibits a positive net profit margin of 13.37% and a solid revenue growth of 7.78%, indicating a strong profitability trend. The company has created value, as its return on invested capital (ROIC) of 6.65% exceeds its weighted average cost of capital (WACC) of 7.78%. Fortive’s total debt stands at 3.88B, reflecting a manageable debt-to-equity ratio of 0.204 and indicating moderate leverage. The overall rating of A- suggests a solid investment quality, although caution should be exercised due to the current debt levels and WACC exceeding ROIC.
Favorable signals
Fortive Corporation displays several favorable elements in its financial evaluations. The gross margin is a positive 59.87%, indicating efficient production and cost management. Additionally, the EBIT margin stands at 18.01%, suggesting healthy operational profitability. The net margin is also favorable at 13.37%, demonstrating effective control over expenses relative to revenue. Moreover, the company has a favorable debt-to-equity ratio of 0.38, which shows prudent leverage, and its interest coverage ratio of 7.35 implies strong ability to meet interest obligations.
Unfavorable signals
Despite some favorable indicators, there are notable unfavorable elements. The revenue growth is a modest 2.75%, which may indicate slower sales expansion. The net margin growth is negative at -6.37%, revealing a concerning trend in profitability. Furthermore, EPS growth is also unfavorable at -2.88%, suggesting declining earnings per share. Lastly, the return on equity (ROE) is at 8.17%, which may be seen as underwhelming given investor expectations for higher returns.
Conclusion
In summary, while Fortive Corporation has several favorable aspects, the unfavorable signals reflect challenges in growth and profitability. The overall opinion on the income statement is neutral, and with a bearish stock trend and recent seller volume exceeding buyer volume, it might be prudent to wait for a more favorable market sentiment before making any investment decisions.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Taking Stock of Fortive (FTV)’s Valuation After Its Better‑Than‑Expected Q3 Results – Yahoo Finance (Dec 03, 2025)
- Hsbc Holdings PLC Increases Stake in Fortive Corporation $FTV – MarketBeat (Dec 01, 2025)
- Fortive (FTV): Assessing Valuation After Strong Quarterly Results and Automation-Driven Growth – Sahm (Nov 30, 2025)
- Fortive Stock Price Forecast: Where Analysts See the Stock Going by 2027 – TIKR.com (Dec 01, 2025)
- Fortive (FTV): Assessing Valuation After Strong Quarterly Results and Automation-Driven Growth – simplywall.st (Nov 30, 2025)
For more information about Fortive Corporation, please visit the official website: fortive.com
