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Fortive (NYSE:FTV) Piotroski F-Score

: 8 (As of Today)
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Good Sign:

Piotroski F-Score is 8, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Fortive has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Fortive's Piotroski F-Score or its related term are showing as below:

FTV' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 8
Current: 8

During the past 11 years, the highest Piotroski F-Score of Fortive was 8. The lowest was 3. And the median was 6.


Fortive Piotroski F-Score Historical Data

The historical data trend for Fortive's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Fortive Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 3.00 6.00 7.00 8.00

Fortive Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 5.00 5.00 7.00 8.00

Competitive Comparison

For the Scientific & Technical Instruments subindustry, Fortive's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Fortive Piotroski F-Score Distribution

For the Hardware industry and Technology sector, Fortive's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Fortive's Piotroski F-Score falls in comparison to its industry or sector. The grey bar indicates the Piotroski F-Score's extreme value range as defined by GuruFocus.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec22) TTM:Last Year (Dec21) TTM:
Net Income was 165.1 + 173 + 189.9 + 227.2 = $755 Mil.
Cash Flow from Operations was 214.8 + 294.4 + 329.8 + 464.2 = $1,303 Mil.
Revenue was 1376.5 + 1463.3 + 1456 + 1529.9 = $5,826 Mil.
Gross Profit was 792 + 833.5 + 845.4 + 892.5 = $3,363 Mil.
Average Total Assets from the begining of this year (Dec21)
to the end of this year (Dec22) was
(16465.5 + 16266.4 + 16070.9 + 15893.1 + 15890.6) / 5 = $16117.3 Mil.
Total Assets at the begining of this year (Dec21) was $16,466 Mil.
Long-Term Debt & Capital Lease Obligation was $2,252 Mil.
Total Current Assets was $2,477 Mil.
Total Current Liabilities was $2,727 Mil.
Net Income was 110.2 + 180.9 + 152.3 + 165 = $608 Mil.

Revenue was 1259.2 + 1319.7 + 1301 + 1374.8 = $5,255 Mil.
Gross Profit was 711.9 + 755.5 + 745.7 + 794 = $3,007 Mil.
Average Total Assets from the begining of last year (Dec20)
to the end of last year (Dec21) was
(16051.5 + 14278.9 + 14495.5 + 14976.1 + 16465.5) / 5 = $15253.5 Mil.
Total Assets at the begining of last year (Dec20) was $16,052 Mil.
Long-Term Debt & Capital Lease Obligation was $1,947 Mil.
Total Current Assets was $2,515 Mil.
Total Current Liabilities was $3,715 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Fortive's current Net Income (TTM) was 755. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Fortive's current Cash Flow from Operations (TTM) was 1,303. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec21)
=755.2/16465.5
=0.0458656

ROA (Last Year)=Net Income/Total Assets (Dec20)
=608.4/16051.5
=0.037903

Fortive's return on assets of this year was 0.0458656. Fortive's return on assets of last year was 0.037903. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Fortive's current Net Income (TTM) was 755. Fortive's current Cash Flow from Operations (TTM) was 1,303. ==> 1,303 > 755 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=2251.6/16117.3
=0.13970082

Gearing (Last Year: Dec21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec20 to Dec21
=1947.2/15253.5
=0.12765595

Fortive's gearing of this year was 0.13970082. Fortive's gearing of last year was 0.12765595. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Dec22)=Total Current Assets/Total Current Liabilities
=2477/2727.1
=0.90829086

Current Ratio (Last Year: Dec21)=Total Current Assets/Total Current Liabilities
=2514.9/3714.9
=0.6769765

Fortive's current ratio of this year was 0.90829086. Fortive's current ratio of last year was 0.6769765. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Fortive's number of shares in issue this year was 0. Fortive's number of shares in issue last year was 362.8. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=3363.4/5825.7
=0.57733835

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=3007.1/5254.7
=0.57226864

Fortive's gross margin of this year was 0.57733835. Fortive's gross margin of last year was 0.57226864. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec21)
=5825.7/16465.5
=0.35381252

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec20)
=5254.7/16051.5
=0.32736504

Fortive's asset turnover of this year was 0.35381252. Fortive's asset turnover of last year was 0.32736504. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+1+1+1+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Fortive has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

Fortive  (NYSE:FTV) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Fortive Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Fortive's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Fortive (NYSE:FTV) Business Description

Fortive logo
Traded in Other Exchanges
Address
6920 Seaway Boulevard, Everett, WA, USA, 98203
Fortive is a diversified industrial technology firm with a broad portfolio of mission-critical products and services that include field solutions, product realization, health, and sensing technologies. The company serves a wide range of end markets, including manufacturing, utilities, medical, and electronics. Fortive generated roughly $5.3 billion in revenue and $1.2 billion in adjusted operating income in 2021.
Executives
Eric Branderiz director 915 DEGUIGNE DRIVE, PO BOX 3453, SUNNYVALE CA 94088-3453
Tamara S. Newcombe officer: President & CEO of PT 6920 SEAWAY BLVD., EVERETT WA 98203
Wright Iii Lassiter director 500 PLAZA DRIVE, C/O QUEST DIAGNOSTICS, SECAUCUS NJ 07094
Olumide Soroye officer: President & CEO of IOS 6920 SEAWAY BLVD., EVERETT WA 98203
Edward Read Simmons officer: SVP - Strategy 6920 SEAWAY BLVD, EVERETT WA 98203
Rejji P Hayes director ONE ENERGY PLAZA, JACKSON MI 49201
Sharmistha Dubey director 8750 NORTH CENTRAL EXPRESSWAY SUITE 1400, DALLAS TX 75231
Christopher M. Mulhall officer: VP - Chief Accounting Officer C/O FORTIVE CORPORATION, 6920 SEAWAY BLVD, EVERETT WA 98203
Jeannine P Sargent director C/O VEECO INSTRUMENTS INC., 100 SUNNYSIDE BOULEVARD SUITE B, WOODBURY NY 11797
Barbara B. Hulit officer: Senior Vice President C/O FORTIVE CORPORATION, 6920 SEAWAY BLVD, EVERETT WA 98203
Emily A. Weaver officer: VP-Chief Accounting Officer C/O FORTIVE CORPORATION, 6920 SEAWAY BOULEVARD, EVERETT WA 98203
Charles E Mclaughlin officer: SVP - Chief Financial Officer C/O FORTIVE CORPORATION, 6920 SEAWAY BOULEVARD, EVERETT WA 98203
Patrick K Murphy officer: Senior Vice President C/O FORTIVE CORPORATION, 6920 SEAWAY BOULEVARD, EVERETT WA 98203
Jonathan L Schwarz officer: VP-Corporate Development C/O FORTIVE CORPORATION, 6920 SEAWAY BOULEVARD, EVERETT WA 98203
William W Pringle officer: Senior Vice President C/O FORTIVE CORPORATION, 6920 SEAWAY BOULEVARD, EVERETT WA 98203

Fortive (NYSE:FTV) Headlines

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