# Fortive (FTV.US)

Canonical: https://gigainvestors.com/s/FTV

Analysis as of: 2026-10-16T07:28:40.375Z. Financial observations: FY2012–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $57.78 per share; close as of 2026-10-15.

Estimated value: low $30.83 per share, central $34.95 per share, high $40.43 per share. Buy at or below the central value $34.95 per share. Valuation as of 2026-10-16T07:28:40.375Z; scenarios are not confidence intervals.

Expected annual return: 7.1% at the stated quote. About 7.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 4 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.14×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.20×

- FY2018: 0.18×

- FY2019: 0.12×

- FY2020: 0.14×

- FY2021: 0.16×

- FY2022: 0.17×

- FY2023: 0.19×

- FY2024: 0.19×

- FY2025: 0.18×

- LTM to Jun 2026: 0.18×

### moat: pass

- ROIC, median of available years: 23.2%

- ROIC, second-lowest year: 16.7%

- Typical minus recent gross margin: -3.0 pp

- Typical gross margin (annual median): 56.9%

- Recent gross margin (lower of latest and 3-year median): 59.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.9%

- ROIC including acquisitions, ten-year median: 9.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 41.8%

- FY2017: 33.9%

- FY2018: 26.2%

- FY2019: 7.7%

- FY2020: 20.3%

- FY2021: 20.5%

- FY2022: 26.0%

- FY2023: 19.9%

- FY2024: 16.7%

- FY2025: 38.9%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.47×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $5.4B

- Net income, five-year total: $3.6B

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: -0.5 pp

- Working capital / revenue, change between three-year averages: -2.9 pp

- Working capital / revenue, final three-year average: 12.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.57×

- FY2022: 1.49×

- FY2023: 1.40×

- FY2024: 1.51×

- FY2025: 1.38×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 33.9% vs 19.9%

- Per-share earnings: 1.89 to 2.36 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -3.1%

- Ordinary dilution, 5-year annual growth: -6.8%

- Market cap gain: -$7.3B

- Cumulative retained earnings: $5.0B

- Diluted shares, 10-year annual growth: -3.1%

- Diluted shares, 5-year annual growth: -6.8%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 2.8%

- Per-share value change: $0.47

- Per-share value, starting three-year median: $1.89

- Per-share value, ending three-year median: $2.36

- Buybacks concentrated in cheaper years (correlation): -0.20

- Average buyback yield: 3.8%

- Buyback history: 4 years

- Debt-funded buybacks: No

- Acquisition spending: $9.0B

- Cumulative net income, 10 years: $11B

- ROIC, first three-year median: 33.9%

- ROIC, last three-year median: 19.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.89

- FY2017: $2.23

- FY2018: $6.26

- FY2019: $1.64

- FY2020: $3.39

- FY2021: $1.30

- FY2022: $1.58

- FY2023: $2.43

- FY2024: $2.36

- FY2025: $1.73

### accounting: pass

- Sloan accruals: -4.3%

- Receivables to sales index (DSRI): 0.88×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 10.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.87×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.47×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.2%

- FY2017: -1.3%

- FY2018: 12.2%

- FY2019: -3.1%

- FY2020: 1.1%

- FY2021: -2.1%

- FY2022: -3.4%

- FY2023: -2.9%

- FY2024: -4.1%

- FY2025: -4.3%

## Holders

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Arnold Van Den Berg](https://gigainvestors.com/VAN): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Wallace Weitz](https://gigainvestors.com/WIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andreas Halvorsen](https://gigainvestors.com/vg): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 33% since Mar 2024 · "Fortive (FTV) Margin Contraction Challenges Community Bull Case Despite Valuation Discount" (finance.yahoo.com, Oct 2025) · sales -16.1%

Story as of 2026-10-16T09:58:47.717Z; price observation 2026-10-15.

Price needs cash profits to grow 7.3% a year for ten years

- 2025-07-31: Fortive's Q2 Earnings Miss Estimates, Revenues Beat, Stock Down ([finance.yahoo.com](https://finance.yahoo.com/news/fortives-q2-earnings-miss-estimates-143000199.html))

- 2025-10-31: Fortive (FTV) Margin Contraction Challenges Community Bull Case Despite Valuation Discount ([finance.yahoo.com](https://finance.yahoo.com/news/fortive-ftv-margin-contraction-challenges-012208721.html))

- 2026-02-05: FTV Q4 Deep Dive: New Product Launches and Cost Actions Drive Outperformance ([finance.yahoo.com](https://finance.yahoo.com/news/ftv-q4-deep-dive-product-053731453.html))

### Sales · FY2025–2026

sales -16.1%; source https://www.sec.gov/Archives/edgar/data/1659166/000165916626000007/ftv-20251231.htm; observed 2026-02-25.

- FY2017: $5.8B 

- FY2018: $6.5B 

- FY2019: $4.6B 

- FY2020: $4.6B 

- FY2021: $5.3B 

- FY2022: $5.8B 

- FY2023: $6.1B 

- FY2024: $6.2B 

- FY2025: $5.1B 

- FY2026: $4.3B 

### Gross margin · FY2025

gross margin 61%; source https://www.sec.gov/Archives/edgar/data/1659166/000165916626000007/ftv-20251231.htm; observed 2026-02-25.

- FY2016: 48.9% 

- FY2017: 50.8% 

- FY2018: 51.5% 

- FY2019: 54.7% 

- FY2020: 56.5% 

- FY2021: 57.3% 

- FY2022: 57.7% 

- FY2023: 59.3% 

- FY2024: 59.9% 

- FY2025: 61.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in scientific & technical instruments; annual sales are USD 5.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1659166/000165916626000007/ftv-20251231.htm (filed 2026-02-25); FY2025: revenue 5142599999; grossProfit 3134700000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); FTV.US: Fortive Corporation designs, develops, manufactures, and markets products, software, and services in the United States, China, and internationally. It operates through Intelligent Operating Solutions and Advanced Healthcare Solutions segments. The Intelligent Operating Solutions segment provides advanced instrumentation, software, and services, including maintenance, repair, measurement and condition monitoring, facility and asset lifecycle software applications, and connected worker safety and compliance solutions for manufacturing, process industries, healthcare, utilities and power, communications and electronics, and other industries. This segment markets its products and services under the ACCRUENT, FLUKE, GORDIAN, INDUSTRIAL SCIENTIFIC, INTELEX, and SERVICECHANNEL brand names. The Advanced Healthcare Solutions segment provides critical workflow solutions comprising instrument sterilization, instrument tracking, biomedical test tools, radiation detection and safety monitoring, and end-to-end clinical productivity software and solutions under the ASP, CENSIS, FLUKE BIOMEDICAL, LANDAUER, and PROVATION brand names. Fortive Corporation was incorporated in 2015 and is headquartered in Everett, Washington.

### Why customers stay

Margins ranged from 59.3% to 61% during 2023–25; it earns 23.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2023: grossProfit / revenue = 59.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2024: grossProfit / revenue = 59.9%.

- Source: https://www.sec.gov/Archives/edgar/data/1659166/000165916626000007/ftv-20251231.htm (filed 2026-02-25); FY2025: grossProfit / revenue = 61%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); 10-year return on capital observations [[2016,0.41769721039173596],[2017,0.3392127938618031],[2018,0.26192711271298297],[2019,0.07743996228924624],[2020,0.20251761219496653],[2021,0.2045954600247338],[2022,0.2597268826406554],[2023,0.19912997770442847],[2024,0.1674566457155142],[2025,0.38931766471613255]]; median 0.2321611713326946. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

"Sales growth in 2025 was driven by favorable pricing of 2.2%." (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1659166/000165916626000007/ftv-20251231.htm (filed 2026-02-25); Sales growth in 2025 was driven by favorable pricing of 2.2%.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 1.6 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2016: growth capex 0; upkeep 129600000; owner earnings 919100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2017: growth capex 0; upkeep 136100000; owner earnings 1066700000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2018: growth capex 0; upkeep 112300000; owner earnings 3062300000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2019: growth capex 0; upkeep 112500000; owner earnings 967900000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2020: growth capex 0; upkeep 75700000; owner earnings 1921600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2021: growth capex 0; upkeep 50000000; owner earnings 953900000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2022: growth capex 0; upkeep 95800000; owner earnings 1125000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2023: growth capex 0; upkeep 107800000; owner earnings 1214800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2024: growth capex 0; upkeep 120400000; owner earnings 1256400000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1659166/000165916626000007/ftv-20251231.htm (filed 2026-02-25); FY2025: growth capex 0; upkeep 105100000; owner earnings 800100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Dividend observations: [[2016,3048400000],[2017,97200000],[2018,131500000],[2019,162800000],[2020,163400000],[2021,132200000],[2022,99500000],[2023,102000000],[2024,111200000],[2025,92200000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1659166/000165916626000007/ftv-20251231.htm (filed 2026-02-25); FY2025: cash repurchases 1610100000 USD.

### Are managers owners

Insiders own 0.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); FTV.US SharesStats.PercentInsiders = 0.409 percentage points; cache date 2026-10-16.

### What could break it

"We have incurred a significant amount of debt" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1659166/000165916626000007/ftv-20251231.htm (filed 2026-02-25); We have incurred a significant amount of debt

### What the price says

The price assumes cash profits grow 7.3% yearly over ten years; actual growth was 1.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Ten-year compound average after fade. Initial solved rate 0.0923855592384718. Price 57.78; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.00969087522627 → FY2025 2.3912133891213387. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $51.05 per share

- 2016-11: $54.99 per share

- 2016-12: $53.63 per share

- 2017-01: $55.31 per share

- 2017-02: $57.65 per share

- 2017-03: $60.22 per share

- 2017-04: $63.26 per share

- 2017-05: $62.45 per share

- 2017-06: $63.35 per share

- 2017-07: $64.74 per share

- 2017-08: $64.97 per share

- 2017-09: $70.79 per share

- 2017-10: $72.26 per share

- 2017-11: $74.65 per share

- 2017-12: $72.35 per share

- 2018-01: $76.02 per share

- 2018-02: $76.80 per share

- 2018-03: $77.52 per share

- 2018-04: $70.31 per share

- 2018-05: $72.69 per share

- 2018-06: $77.11 per share

- 2018-07: $82.08 per share

- 2018-08: $83.98 per share

- 2018-09: $84.20 per share

- 2018-10: $74.25 per share

- 2018-11: $76.07 per share

- 2018-12: $67.66 per share

- 2019-01: $74.99 per share

- 2019-02: $81.57 per share

- 2019-03: $83.89 per share

- 2019-04: $86.34 per share

- 2019-05: $76.15 per share

- 2019-06: $81.52 per share

- 2019-07: $76.05 per share

- 2019-08: $70.90 per share

- 2019-09: $68.56 per share

- 2019-10: $69.00 per share

- 2019-11: $72.17 per share

- 2019-12: $76.39 per share

- 2020-01: $74.93 per share

- 2020-02: $69.16 per share

- 2020-03: $55.19 per share

- 2020-04: $64.00 per share

- 2020-05: $60.98 per share

- 2020-06: $67.66 per share

- 2020-07: $70.19 per share

- 2020-08: $72.11 per share

- 2020-09: $76.21 per share

- 2020-10: $61.60 per share

- 2020-11: $70.13 per share

- 2020-12: $70.82 per share

- 2021-01: $66.08 per share

- 2021-02: $65.82 per share

- 2021-03: $70.64 per share

- 2021-04: $70.82 per share

- 2021-05: $72.52 per share

- 2021-06: $69.74 per share

- 2021-07: $72.66 per share

- 2021-08: $73.87 per share

- 2021-09: $70.57 per share

- 2021-10: $75.71 per share

- 2021-11: $73.87 per share

- 2021-12: $76.29 per share

- 2022-01: $70.54 per share

- 2022-02: $64.75 per share

- 2022-03: $60.93 per share

- 2022-04: $57.50 per share

- 2022-05: $61.77 per share

- 2022-06: $54.38 per share

- 2022-07: $64.45 per share

- 2022-08: $63.33 per share

- 2022-09: $58.30 per share

- 2022-10: $63.90 per share

- 2022-11: $67.55 per share

- 2022-12: $64.25 per share

- 2023-01: $68.03 per share

- 2023-02: $66.66 per share

- 2023-03: $68.17 per share

- 2023-04: $63.09 per share

- 2023-05: $65.11 per share

- 2023-06: $74.77 per share

- 2023-07: $78.35 per share

- 2023-08: $78.85 per share

- 2023-09: $74.16 per share

- 2023-10: $65.28 per share

- 2023-11: $68.98 per share

- 2023-12: $73.63 per share

- 2024-01: $78.18 per share

- 2024-02: $85.13 per share

- 2024-03: $86.02 per share

- 2024-04: $75.27 per share

- 2024-05: $74.44 per share

- 2024-06: $74.10 per share

- 2024-07: $71.85 per share

- 2024-08: $74.40 per share

- 2024-09: $78.93 per share

- 2024-10: $71.43 per share

- 2024-11: $79.33 per share

- 2024-12: $75.00 per share

- 2025-01: $81.33 per share

- 2025-02: $79.54 per share

- 2025-03: $73.18 per share

- 2025-04: $69.69 per share

- 2025-05: $70.19 per share

- 2025-06: $52.13 per share

- 2025-07: $47.93 per share

- 2025-08: $47.86 per share

- 2025-09: $48.99 per share

- 2025-10: $50.34 per share

- 2025-11: $53.48 per share

- 2025-12: $55.21 per share

- 2026-01: $52.81 per share

- 2026-02: $59.20 per share

- 2026-03: $55.28 per share

- 2026-04: $59.79 per share

- 2026-05: $58.32 per share

- 2026-06: $61.09 per share

- 2026-07: $59.21 per share

- 2026-08: $58.84 per share

- 2026-09: $54.81 per share

- 2026-10: $57.78 per share

## Annual estimated value (USD per share)

- FY2016: low $23.47 per share, central $26.50 per share, high $30.54 per share

- FY2017: low $22.15 per share, central $24.96 per share, high $28.69 per share

- FY2018: low $25.18 per share, central $28.35 per share, high $32.55 per share

- FY2019: low $22.96 per share, central $25.78 per share, high $29.54 per share

- FY2020: low $28.54 per share, central $31.64 per share, high $35.78 per share

- FY2021: low $27.58 per share, central $31.17 per share, high $35.96 per share

- FY2022: low $29.44 per share, central $33.33 per share, high $38.51 per share

- FY2023: low $42.31 per share, central $47.46 per share, high $54.31 per share

- FY2024: low $40.62 per share, central $45.95 per share, high $53.05 per share

- FY2025: low $33.26 per share, central $37.73 per share, high $43.68 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:34:22.398Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1659166/000165916626000007/ftv-20251231.htm); period 2025-12-31, filed 2026-02-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.