Investment Thesis
Fortive demonstrates solid operational fundamentals with strong profitability margins (63.5% gross, 17.3% operating) and robust free cash flow generation ($978.1M FCF, 23.5% margin). However, significant concerns around declining profitability (net income down 30.5% YoY despite 1.9% revenue growth), weak liquidity metrics (0.71x current ratio), and elevated debt levels relative to equity (0.50x D/E) warrant a cautious stance pending evidence of operational recovery.
FTV Strengths
- Exceptional gross margins of 63.5% indicating strong pricing power and operational efficiency
- Robust free cash flow generation of $978.1M with 23.5% FCF margin, supporting dividend sustainability
- Diversified industrial instruments portfolio with exposure to critical measurement and control markets
FTV Risks
- Severe net income decline of 30.5% YoY (despite revenue growth) suggests margin compression and potential operational headwinds
- Weak current ratio of 0.71x indicates insufficient short-term liquidity to cover current obligations
- High debt burden of $3.2B with deteriorating profitability constraining financial flexibility and debt service capacity
Key Metrics to Watch
- Operating margin trend and net income recovery trajectory
- Organic revenue growth acceleration versus 1.9% current growth rate
- Current ratio improvement and working capital management efficiency
FTV Financial Metrics
FTV Profitability Ratios
FTV Balance Sheet & Liquidity
FTV 5-Year Financial Trend
5-Year Trend Summary: Fortive Corp's revenue has declined by 21% over the 5-year period, indicating business contraction. The most recent EPS of $2.43 reflects profitable operations.
FTV Growth Metrics (YoY)
FTV Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.0B | $55.0M | $0.16 |
| Q2 2025 | $1.5B | $166.6M | $0.49 |
| Q1 2025 | $1.5B | $171.9M | $0.50 |
| Q3 2024 | $1.5B | $218.0M | $0.61 |
| Q2 2024 | $1.5B | $195.1M | $0.55 |
| Q1 2024 | $1.5B | $173.6M | $0.49 |
| Q3 2023 | $1.5B | N/A | $0.53 |
| Q2 2023 | $1.5B | N/A | $0.48 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
FTV Capital Allocation
FTV SEC Filings
Access official SEC EDGAR filings for Fortive Corp (CIK: 0001659166)