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Fortive Corporation

FTV
48
Industrial - Machinery · Industrials
Price
$61.78
-0.67 (-1.07%)
Market Cap
$18.83B
Winston Score
48
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

9.3% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 352.3M (2021) → 319.4M (2025)

Fortive Corporation makes tools and software used to measure, monitor, and manage industrial equipment and workflows. Its products include precision instruments, field service software, and safety compliance tools sold to manufacturers, utilities, healthcare facilities, and government agencies. The company owns well-known brands like Fluke, which makes handheld electrical testing devices, and Accruent, which provides facility management software.

Fortive earns money through a mix of hardware sales, software subscriptions, and recurring service contracts — a model that helps smooth out revenue over time. It operates globally, with significant business in North America, Europe, and Asia, and generates roughly $6 billion in annual revenue. Its competitive edge comes from sticky software platforms and trusted brand names in specialized niches that are hard for customers to replace. The main growth driver is expanding its software and recurring revenue base, though the company faces risk from slowing industrial capital spending if the broader economy weakens.

Winston Score History

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Score breakdown

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Quality

Gross Margin
63.2%
Premium pricing power — 63.2% gross margin
Operating Margin
17.9%
Healthy — 17.9% operating margin
ROCE
2.0%
Weak — 2.0% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-23.4%
Shrinking sales (-23.4% YoY)
EPS YoY
-26.5%
Earnings shrinking (-26.5% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
198%
Turns 198% of profit into real cash
FCF Margin
20.5%
Converts sales into free cash efficiently (20.5%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity
0.57
Conservative — low debt load (0.57)
Interest Cover
6.99x
Adequate interest coverage (7.0x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
36.6x
Pricey — P/E 36.6

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
+19.1
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (36.6 → 17.5)

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Dividends

Dividend Yield
0.39%
Small dividend — 0.39% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
-25.0%
Dividend cut (-25.0% YoY) — warning sign

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