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Fortive Piotroski F-Score

: 5 (As of Today)
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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 5 indicating the company's financial situation is typical for a stable company.

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: 7
Current: 5

During the past 10 years, the highest Piotroski F-Score of Fortive was 7. 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 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 6.00 3.00 6.00 7.00

Fortive Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 6.00 5.00 7.00 5.00 5.00

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 into.


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 (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was 150.8 + 166.5 + 165.1 + 173 = $655 Mil.
Cash Flow from Operations was 262.2 + 274.6 + 214.8 + 294.4 = $1,046 Mil.
Revenue was 1299.5 + 1376.3 + 1376.5 + 1463.3 = $5,516 Mil.
Gross Profit was 744.2 + 795.5 + 792 + 833.5 = $3,165 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(14495.5 + 14976.1 + 16465.5 + 16266.4 + 16070.9) / 5 = $15654.88 Mil.
Total Assets at the begining of this year (Jun21) was $14,496 Mil.
Long-Term Debt & Capital Lease Obligation was $2,682 Mil.
Total Current Assets was $2,445 Mil.
Total Current Liabilities was $2,611 Mil.
Net Income was 225.8 + 1215.6 + 110.2 + 180.9 = $1,733 Mil.

Revenue was 1159.8 + 1324.9 + 1259.2 + 1319.7 = $5,064 Mil.
Gross Profit was 651.6 + 762.1 + 711.9 + 755.5 = $2,881 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(16705.7 + 17199.7 + 16051.5 + 14278.9 + 14495.5) / 5 = $15746.26 Mil.
Total Assets at the begining of last year (Jun20) was $16,706 Mil.
Long-Term Debt & Capital Lease Obligation was $1,588 Mil.
Total Current Assets was $3,086 Mil.
Total Current Liabilities was $2,570 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 655. ==> 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 1,046. ==> 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 (Jun21)
=655.4/14495.5
=0.04521403

ROA (Last Year)=Net Income/Total Assets (Jun20)
=1732.5/16705.7
=0.10370712

Fortive's return on assets of this year was 0.04521403. Fortive's return on assets of last year was 0.10370712. ==> Last year is higher ==> Score 0.

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 655. Fortive's current Cash Flow from Operations (TTM) was 1,046. ==> 1,046 > 655 ==> 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: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=2682.2/15654.88
=0.17133316

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=1587.5/15746.26
=0.10081759

Fortive's gearing of this year was 0.17133316. Fortive's gearing of last year was 0.10081759. ==> 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: Jun22)=Total Current Assets/Total Current Liabilities
=2445.3/2611.3
=0.93643013

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=3086.4/2569.7
=1.20107406

Fortive's current ratio of this year was 0.93643013. Fortive's current ratio of last year was 1.20107406. ==> Last year's current ratio is higher ==> Score 0.

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 359.8. Fortive's number of shares in issue last year was 342.4. ==> There is larger number of shares in issue this year. ==> Score 0.

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
=3165.2/5515.6
=0.57386322

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2881.1/5063.6
=0.56898254

Fortive's gross margin of this year was 0.57386322. Fortive's gross margin of last year was 0.56898254. ==> 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 (Jun21)
=5515.6/14495.5
=0.38050429

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=5063.6/16705.7
=0.30310613

Fortive's asset turnover of this year was 0.38050429. Fortive's asset turnover of last year was 0.30310613. ==> 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+0+1+0+0+0+1+1
=5

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

Fortive has an F-score of 5 indicating the company's financial situation is typical for a stable company.

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 Business Description

Fortive logo
Address
6920 Seaway Boulevard, Everett, WA, USA, 98203
Fortive Corp 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
Newcombe Tamara S. officer: President & CEO of PT 6920 SEAWAY BLVD. EVERETT WA 98203
Lassiter Wright Iii director 500 PLAZA DRIVE C/O QUEST DIAGNOSTICS SECAUCUS NJ 07094
Soroye Olumide officer: President & CEO of IOS 6920 SEAWAY BLVD. EVERETT WA 98203
Simmons Edward Read officer: SVP - Strategy 6920 SEAWAY BLVD EVERETT WA 98203
Hayes Rejji P director ONE ENERGY PLAZA JACKSON MI 49201
Dubey Sharmistha director 8750 NORTH CENTRAL EXPRESSWAY SUITE 1400 DALLAS TX 75231
Mulhall Christopher M. officer: VP - Chief Accounting Officer C/O FORTIVE CORPORATION 6920 SEAWAY BLVD EVERETT WA 98203
Sargent Jeannine P director C/O VEECO INSTRUMENTS INC. 100 SUNNYSIDE BOULEVARD SUITE B WOODBURY NY 11797
Hulit Barbara B. officer: Senior Vice President C/O FORTIVE CORPORATION 6920 SEAWAY BLVD EVERETT WA 98203
Weaver Emily A. officer: VP-Chief Accounting Officer C/O FORTIVE CORPORATION 6920 SEAWAY BOULEVARD EVERETT WA 98203
Mclaughlin Charles E officer: SVP - Chief Financial Officer C/O FORTIVE CORPORATION 6920 SEAWAY BOULEVARD EVERETT WA 98203
Murphy Patrick K officer: Senior Vice President C/O FORTIVE CORPORATION 6920 SEAWAY BOULEVARD EVERETT WA 98203
Schwarz Jonathan L officer: VP-Corporate Development C/O FORTIVE CORPORATION 6920 SEAWAY BOULEVARD EVERETT WA 98203
Pringle William W officer: Senior Vice President C/O FORTIVE CORPORATION 6920 SEAWAY BOULEVARD EVERETT WA 98203
Walker Stacey A. officer: SVP - Human Resources C/O FORTIVE CORPORATION 6920 SEAWAY BOULEVARD EVERETT WA 98203

Fortive Headlines

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