This week’s Stock of the Week makes a variety of tools for a wide variety of industries.
Fortiv Corporation (FTV) created extraordinary long-term value for shareholders as a part of Danaher Corporation and has continued doing so since being spun off in 2016.
Its former parent now focuses on health care, and Fortiv offers professional test tools and calibration equipment for electrical, electronic and industrial applications…monitoring equipment and maintenance management software for electric-utility and industrial use…and equipment and services for fuel dispensing, payment systems, environmental compliance, fleet management and much more. Fortiv is also important to the automotive industry, for which it makes tools, diagnostic equipment, tire changers, wheel balancers and other heavy-duty items.
Collectively, the types of products Fortiv offers are crucial to US infrastructure, and as more infrastructure projects ramp up, the company’s sales should benefit. The company grows both organically and through acquisitions—and even if the economy stutters, a slowdown in some of its businesses would likely be balanced by the resulting chance to acquire more firms. Revenue for 2017 likely will be reported as $6.6 billion, then likely $7.2 billion for 2018 and $7.6 billion next year. The dividend is small, $0.28/share/yr., recently yielding 0.38%, but it appears secure.
Fiscal year: December. Earnings per share: 2019 est./$3.61…2018 est./$3.27…2017 est./$2.86.
Dennison “Dan” T. Veru is chief investment officer, Palisade Capital Management, LLC, Fort Lee, New Jersey, which has $3 billion under management. PalisadeCapital.com