Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
Fortive (FTV): SaaS-Led Recurring Revenue Momentum Driving Portfolio Resilience , But What Does Multiple Expansion Really Hinge Upon?
Fortive’s Q3 2024 results underscore its resilience and disciplined execution amid mixed macro conditions. Revenue grew 3% YoY to $1.53 billion, though it fell short of expectations by $18.23 million. Adjusted EPS increased 14% YoY to $0.97, surpassing estimates by $0.04, supported by operational efficiencies and 60% incrementals. Free cash flow rose 12% to $425 million, bringing year-to-date cash flow to $1.4 billion. These results reflect the durability of Fortive’s portfolio and the effectiveness of the Fortive Business System (FBS) in driving growth and margin expansion. Segment highlights include 9% core revenue growth in Advanced Healthcare Solutions (AHS), with double-digit consumables growth and SaaS acceleration, and record ARR growth in Intelligent Operating Solutions (IOS), despite near-term macro-driven softness. Precision Technologies (PT) declined 4%, but order growth tied to AI and semiconductor demand signals recovery into 2025. Fortive’s SaaS-led ARR momentum across segments (+high single digits) reinforces its recurring revenue base, while targeted cost-saving initiatives and disciplined capital allocation, including 6 million share repurchases YTD, position the company for long-term value creation. With FY24 EPS guidance raised to $3.84-$3.87 and steady margin expansion, Fortive remains well-positioned. Can Fortive’s SaaS momentum and strategic spin-offs deliver sustained growth and drive meaningful multiple expansion amid macro uncertainties?
