May 31, 2025 a 03:30 pm
FTV: Dividend Analysis - Fortive Corporation
Fortive Corporation's dividend profile presents a steady blend of moderate yield and consistent growth. With a history spanning over a decade, its commitment to shareholders is evident through continuous dividend payments, making it a stable choice for income-focused investors.
📊 Overview
Fortive Corporation operates within a robust sector and maintains a dividend yield of 0.46%, offering a dividend per share of $0.32. Over the past 10 years, there have been no significant interruptions in dividend payments:
| Sector | Dividend Yield | Current Dividend per Share | Dividend History | Last Cut or Suspension |
|---|---|---|---|---|
| Industrial | 0.46% | $0.32 | 10 years | None |
🗣️ Dividend History
Fortive's consistent dividend history reflects its commitment to reward shareholders, crucial for building investor trust and long-term value. Here below is a visible trend over recent years:
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.16 |
| 2024 | 0.32 |
| 2023 | 0.29 |
| 2022 | 0.28 |
| 2021 | 0.28 |
📈 Dividend Growth
Minor yet consistent growth in dividends is a testament to gradual yet assured performance enhancement, safeguarding against inflation:
| Time | Growth |
|---|---|
| 3 years | 4.55% |
| 5 years | 6.43% |
The average dividend growth is 6.43% over 5 years. This shows moderate but steady dividend growth.
📉 Payout Ratio
Understanding the payout ratio is vital to gauging sustainability. Fortive exhibits impressive control with an EPS-based ratio of 13.62% and a FCF-based ratio of 7.78%, indicating sustainable dividend distribution without overstraining financial resources:
| Key Figure | Ratio |
|---|---|
| EPS-based | 13.62% |
| Free Cash Flow-based | 7.78% |
This low payout ratio reflects robust financial health, allowing reinvestment and future growth without jeopardizing shareholder returns.
✅ Cashflow & Capital Efficiency
The evaluation of cash flow aspects and capital utilization offers insight into the company’s capability to sustain operations, rewarding shareholders and promoting growth. Here's an overview of the financial efficiency data:
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 5.37% | 4.80% | 5.27% |
| Earnings Yield | 3.18% | 3.34% | 3.30% |
| CAPEX to Operating Cash Flow | 7.89% | 7.96% | 7.35% |
| Stock-based Compensation to Revenue | 1.75% | 1.87% | 1.61% |
| Free Cash Flow / Operating Cash Flow Ratio | 92.11% | 92.04% | 92.65% |
Fortive's strong cash flow positions bolster its capacity to commit resources effectively, ensuring operational continuity and strategic initiatives.
🔍 Balance Sheet & Leverage Analysis
The analysis of leverage illustrate Fortive's adeptness at maintaining financial control and capital structure flexibility. Key indicators are:
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.38 | 0.37 | 0.34 |
| Debt-to-Assets | 0.23 | 0.23 | 0.20 |
| Debt-to-Capital | 0.28 | 0.27 | 0.25 |
| Net Debt to EBITDA | 1.84 | 1.22 | 1.73 |
| Current Ratio | 1.16 | 2.05 | 0.91 |
| Quick Ratio | 0.91 | 1.75 | 0.71 |
| Financial Leverage | 1.67 | 1.64 | 1.64 |
Fortive's controlled leverage ratios underscore a prudent long-term strategy, with robust liquid assets on hand.
🔥 Fundamental Strength & Profitability
Assessing its fundamental strength, we see a strategic deployment of resources towards value maximization. Here's a breakdown of profitability metrics:
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 0.08 | 0.08 | 0.08 |
| Return on Assets | 0.05 | 0.05 | 0.05 |
| Net Margin | 13.37% | 14.27% | 12.96% |
| EBIT Margin | 18.01% | 18.37% | 17.26% |
| EBITDA Margin | 26.74% | 25.90% | 25.25% |
| Gross Margin | 59.87% | 59.26% | 57.73% |
| R&D to Revenue | 6.71% | 6.56% | 6.89% |
Fortive's profitability ratios suggest efficient operations and strategic investments yielding profitable outcomes, ensuring strategic adaptability.
📷 Price Development
🏆 Dividend Scoring System
Our proprietary scoring evaluates Fortive's dividend potential across various dimensions:
| Category | Score | Indicator |
|---|---|---|
| Dividend Yield | 2 | |
| Dividend Stability | 4 | |
| Dividend Growth | 3 | |
| Payout Ratio | 5 | |
| Financial Stability | 5 | |
| Dividend Continuity | 4 | |
| Cashflow Coverage | 5 | |
| Balance Sheet Quality | 4 |
Total Score: 32/40
🔶 Rating
Fortive Corporation stands as a reliable option in the income investing segment. With robust financial health, steady cash flow, and strategic growth potential, it ranks well under our dividend scoring system, marking it as a commendable choice for dividend-seeking investors aiming for steady income and capital appreciation.