FTV
Fortive Corp
Industrial/Transportation
10/17/2022
Presented
| Date | 10/11/2022 |
| Price | $59.10 |
| Market Cap | $21.02B |
| Ent Value | $22.75B |
| P/E Ratio | 32.83x |
| Book Value | $26.56 |
| Div Yield | 0.47% |
| Shares O/S | 355.70M |
| Ave Daily Vol | 1,723,481 |
| Short Int | 1.58% |
Current
| Price | $77.30 |
| Market Cap | $27.08B |
| Fortive Corp. engages in the design, development, manufacturing, and marketing of professional and engineered products, software, and services for a variety of end markets. It operates through the following segments: Intelligent Operating Solutions, Precision Technologies, and Advanced Healthcare Solutions. The Intelligent Operating Solutions segment provides solutions to accelerate industrial and facility reliability and performance, as well as compliance and safety across a range of vertical end markets, including manufacturing, process industries, healthcare, utilities and power, communications, and electronics. The Precision Technologies segment supplies technologies such as electrical test and measurement instruments and services, energetic material devices, and a broad portfolio of sensor and control system solutions. The Advanced Healthcare Solutions segment serves healthcare customers with products and services for critical activities, including instrument and device reprocessing, instrument tracking, cell therapy equipment design and manufacturing, biomedical test tools, radiation safety monitoring, and asset management. The company was founded on November 10, 2015, and is headquartered in Everett, WA. |
Publicly traded companies mentioned herein: Danaher Corp (DHR), Fortive Corp (FTV), Johnson & Johnson (JNJ), Roper Technologies Inc (ROP)
Highlights
The presenter is long shares of Fortive Corp (FTV), a diversified industrial company operating in the software, healthcare, and industrial markets. The company has undergone significant changes since it spun out of Danaher Corp (DHR) in 2016 and the presenter feels that these changes haven’t been fully digested by investors. Originally operating as an automotive conglomerate, the company has restructured and reprioritized certain segments to assemble a high-quality collection of very profitable assets. Roughly 40% of revenues are recurring from software and healthcare contracts with the remaining 60% of revenues generated from high-quality industrial sales. When evaluating the new company structure, it's clear that Fortive is capable of executing its capital deployment strategy at a high level. Despite this, the company trades at an industry-average multiple as investor sentiment has been misguided for a variety of reasons.
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