Fortive Corporation FTV
Verdict: Sell. Fair value $48.87 against a price of $53.81 on 6 Jan 2026, 9% below the price.
In plain words
The case for: Narrow competitive moat provides durability. Industry tailwinds with growing market.
The case against: Macro headwinds could impact growth. Valuation multiple compression risk.
Main risks
- Revenue and Net Income Deceleration: TTM Revenue ($5.64B) is down 9.5% from the latest full year ($6.23B), and annual Net Income declined from 2023 to 2024, indicating a potential negative inflection point in business momentum.
- Weak Return Metrics on Existing Capital: Current ROE (8.2%) and estimated ROIC (6.5%) are low for a technology company and likely below its cost of capital, suggesting inefficient use of its large, existing asset base.
- Data Gaps Obscure Risk: The absence of a cash balance and interest expense data prevents a full assessment of leverage (Net Debt/EBITDA) and solvency (Interest Coverage), hiding potential balance sheet risks.
- Valuation prices in optimistic scenario (limited margin for error)
- Technical signals bearish (sell)
- Market volatility