Company Reports

We will discontinue analyst coverage of Fortive on or around June 12. We provide analyst research and ratings on over 1,500 companies globally and periodically adjust our coverage according to investor interest and staffing.

Fortive, spun off from Danaher in 2016, has followed in its former parent’s footsteps and adopted the philosophy underpinning the proven Danaher Business System, which has its roots in the Toyota Production System. The Fortive Business System essentially involves acquiring moatworthy companies, expanding operating margins through Lean manufacturing principles, and redeploying cash flows into further mergers and acquisitions.

Narrow-moat-rated Fortive reported first-quarter adjusted EPS of $0.85, in line with management's guidance. We've lowered our fair value estimate to $87 from $90, which reflects our more muted near-term revenue growth projections for the precision technologies business. We see the name as undervalued, with shares currently trading in 4-star territory.

Narrow-moat-rated Fortive finished 2024 on a solid note, as its full-year adjusted EPS of $3.89 came in $0.02 above our estimate. After rolling our model forward one year, we’ve raised our fair value estimate to $90 from $88, which reflects our slightly more optimistic midcycle operating margin assumptions and time value of money.

Fortive, spun off from Danaher in 2016, has followed in its former parent’s footsteps and adopted the philosophy underpinning the proven Danaher Business System, which has its roots in the Toyota Production System. The Fortive Business System essentially involves acquiring moatworthy companies, expanding operating margins through Lean manufacturing principles, and redeploying cash flows into further mergers and acquisitions.

Fortive, spun off from Danaher in 2016, has followed in its former parent’s footsteps and adopted the philosophy underpinning the proven Danaher Business System, which has its roots in the Toyota Production System. The Fortive Business System essentially involves acquiring moatworthy companies, expanding operating margins through Lean manufacturing principles, and redeploying cash flows into further mergers and acquisitions.

Narrow-moat-rated Fortive posted solid third-quarter results, as its adjusted earnings per share of $0.97 surpassed management’s $0.92 to $0.95 guidance range. While nothing in the earnings release materially alters our long-term thesis, we’ve raised our fair value estimate to $88 from $87 due to the time value of money. We see the name as modestly undervalued at current levels, and we think the planned spinoff of the precision technologies segment in the fourth quarter of 2025 could be a positive catalyst for the stock.

We are maintaining our $87 fair value estimate after narrow-moat Fortive announced plans to spin off its precision technologies segment in the fourth quarter of 2025. We have seen the stock as persistently undervalued throughout the last three years, so the spinoff could be a positive catalyst by simplifying the portfolio and highlighting Fortive’s transformation into a more resilient business.

Fortive, spun off from Danaher in 2016, has followed in its former parent’s footsteps and adopted the philosophy underpinning the proven Danaher Business System, which has its roots in the Toyota Production System. The Fortive Business System essentially involves acquiring moatworthy companies, expanding operating margins through Lean manufacturing principles, and redeploying cash flows into further mergers and acquisitions.

Narrow-moat Fortive’s second-quarter adjusted earnings per share of $0.93 came in at the top of management’s previous guidance. We’ve lowered our fair value estimate to $87 from $88, driven by our slightly more muted revenue growth expectations, partially offset by the time value of money. We see the name as modestly undervalued at current levels.

Fortive, spun off from Danaher in 2016, has followed in its former parent’s footsteps and adopted the philosophy underpinning the proven Danaher Business System, which has its roots in the Toyota Production System. The Fortive Business System essentially involves acquiring moatworthy companies, expanding operating margins through Lean manufacturing principles, and redeploying cash flows into further mergers and acquisitions.

Narrow-moat-rated Fortive reported solid first-quarter results, as its adjusted EPS of $0.83 came in above management’s guidance range of $0.77-$0.80. Management raised the midpoint of its full-year 2024 outlook and now expects adjusted EPS of $3.77-$3.86, up from $3.73-$3.85 previously. We’ve made some puts and takes in our model, but our $88 fair value estimate is unchanged. We see the name as modestly undervalued, with shares now trading in 4-star territory.

Fortive, spun off from Danaher in 2016, has followed in its former parent’s footsteps and adopted the philosophy underpinning the proven Danaher Business System, which has its roots in the Toyota Production System. The Fortive Business System essentially involves acquiring moatworthy companies, expanding operating margins through Lean manufacturing principles, and redeploying cash flows into further mergers and acquisitions.

Narrow-moat-rated Fortive ended 2023 with a solid fourth quarter, as its full-year revenue of $6,065 million and adjusted EPS of $3.43 both came in above our estimates of $6,047 million and $3.39, respectively. After rolling our model forward one year, we’ve modestly bumped our fair value estimate up to $88 from $87, mostly due to the time value of money.

Fortive, spun off from Danaher in 2016, has followed in its former parent’s footsteps and adopted the philosophy underpinning the proven Danaher Business System, which has its roots in the Toyota Production System. The Fortive Business System essentially involves acquiring moatworthy companies, expanding operating margins through Lean manufacturing principles, and redeploying cash flows into further mergers and acquisitions.

We’ve trimmed our fair value estimate for narrow-moat-rated Fortive to $87 per share from $89 to reflect our slightly more muted near-term revenue growth projections, partially offset by the time value of money. The shares are currently trading at a roughly 26% discount to our fair value estimate, which we see as an attractive entry point.

Fortive, spun off from Danaher in 2016, has followed in its former parent’s footsteps and adopted the philosophy underpinning the proven Danaher Business System, which has its roots in the Toyota Production System. The Fortive Business System essentially involves acquiring moatworthy companies, expanding operating margins through Lean manufacturing principles, and redeploying cash flows into further mergers and acquisitions.

Fortive, spun off from Danaher in 2016, has followed in its former parent’s footsteps and adopted the philosophy underpinning the proven Danaher Business System, which has its roots in the Toyota Production System. The Fortive Business System essentially involves acquiring moatworthy companies, expanding operating margins through Lean manufacturing principles, and redeploying cash flows into further mergers and acquisitions.

We’ve modestly bumped our fair value estimate for narrow-moat-rated Fortive up to $89 from $88 after the company reported its second-quarter earnings. This reflects our slightly more optimistic near-term revenue growth projections as well as time value of money. The stock is currently trading in 4-star territory, which we view as an attractive entry point.

After Fortive’s 2023 investor day on May 25, we’ve increased our fair value estimate to $88 from $86, as we’ve modestly raised our long-term revenue growth and operating margin assumptions. The stock is currently trading in 4-star territory, which we see as an attractive entry point.