company background image
ITW

Illinois Tool Works NYSE:ITW Stock Report

Last Price

US$217.46

Market Cap

US$67.3b

7D

3.2%

1Y

-6.7%

Updated

12 Aug, 2022

Data

Company Financials +
ITW fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance2/6
Financial Health3/6
Dividends5/6

ITW Stock Overview

Illinois Tool Works Inc. manufactures and sells industrial products and equipment worldwide.

Illinois Tool Works Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Illinois Tool Works
Historical stock prices
Current Share PriceUS$217.46
52 Week HighUS$249.81
52 Week LowUS$173.52
Beta1.12
1 Month Change21.96%
3 Month Change4.73%
1 Year Change-6.67%
3 Year Change44.76%
5 Year Change60.29%
Change since IPO3,601.45%

Recent News & Updates

Aug 11
Illinois Tool Works (NYSE:ITW) Will Pay A Larger Dividend Than Last Year At $1.31

Illinois Tool Works (NYSE:ITW) Will Pay A Larger Dividend Than Last Year At $1.31

Illinois Tool Works Inc. ( NYSE:ITW ) will increase its dividend on the 14th of October to $1.31, which is 7.4% higher...

Aug 01

Illinois Tool Works Q2 2022 Earnings Preview

Illinois Tool Works (NYSE:ITW) is scheduled to announce Q2 earnings results on Tuesday, August 2nd, before market open. The consensus EPS Estimate is $2.23 (-9.0% Y/Y) and the consensus Revenue Estimate is $3.98B (+8.2% Y/Y). Over the last 3 months, EPS estimates have seen 2 upward revisions and 9 downward. Revenue estimates have seen 8 upward revisions and 4 downward.

Shareholder Returns

ITWUS MachineryUS Market
7D3.2%3.4%1.3%
1Y-6.7%-12.3%-11.7%

Return vs Industry: ITW exceeded the US Machinery industry which returned -12.3% over the past year.

Return vs Market: ITW exceeded the US Market which returned -11.7% over the past year.

Price Volatility

Is ITW's price volatile compared to industry and market?
ITW volatility
ITW Average Weekly Movement3.9%
Machinery Industry Average Movement6.0%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: ITW is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ITW's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
191245,000E. Santihttps://www.itw.com

Illinois Tool Works Inc. manufactures and sells industrial products and equipment worldwide. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM segment offers plastic and metal components, fasteners, and assemblies for automobiles, light trucks, and other industrial uses.

Illinois Tool Works Fundamentals Summary

How do Illinois Tool Works's earnings and revenue compare to its market cap?
ITW fundamental statistics
Market CapUS$67.33b
Earnings (TTM)US$2.65b
Revenue (TTM)US$15.19b

25.4x

P/E Ratio

4.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ITW income statement (TTM)
RevenueUS$15.19b
Cost of RevenueUS$9.04b
Gross ProfitUS$6.15b
Other ExpensesUS$3.50b
EarningsUS$2.65b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)8.55
Gross Margin40.49%
Net Profit Margin17.44%
Debt/Equity Ratio226.1%

How did ITW perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

58%

Payout Ratio

Does ITW pay a reliable dividends?

See ITW dividend history and benchmarks
When do you need to buy ITW by to receive an upcoming dividend?
Illinois Tool Works dividend dates
Ex Dividend DateSep 29 2022
Dividend Pay DateOct 14 2022
Days until Ex dividend47 days
Days until Dividend pay date62 days

Does ITW pay a reliable dividends?

See ITW dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is ITW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ITW?

Other financial metrics that can be useful for relative valuation.

ITW key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.9x
Enterprise Value/EBITDA18.8x
PEG Ratio4.3x

Price to Earnings Ratio vs Peers

How does ITW's PE Ratio compare to its peers?

ITW PE Ratio vs Peers
The above table shows the PE ratio for ITW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average28x
PH Parker-Hannifin
30.1x22.0%US$39.5b
OTIS Otis Worldwide
27.6x8.8%US$34.4b
FTV Fortive
37x15.6%US$24.4b
DOV Dover
17.5x6.5%US$20.0b
ITW Illinois Tool Works
25.4x6.0%US$67.3b

Price-To-Earnings vs Peers: ITW is good value based on its Price-To-Earnings Ratio (25.4x) compared to the peer average (28x).


Price to Earnings Ratio vs Industry

How does ITW's PE Ratio compare vs other companies in the US Machinery Industry?

Price-To-Earnings vs Industry: ITW is expensive based on its Price-To-Earnings Ratio (25.4x) compared to the US Machinery industry average (22.6x)


Price to Earnings Ratio vs Fair Ratio

What is ITW's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ITW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.4x
Fair PE Ratio23x

Price-To-Earnings vs Fair Ratio: ITW is expensive based on its Price-To-Earnings Ratio (25.4x) compared to the estimated Fair Price-To-Earnings Ratio (23x).


Share Price vs Fair Value

What is the Fair Price of ITW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ITW ($217.46) is trading below our estimate of fair value ($261.95)

Significantly Below Fair Value: ITW is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is lower than the current share price.


Discover undervalued companies

Future Growth

How is Illinois Tool Works forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


6.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ITW's forecast earnings growth (6% per year) is above the savings rate (1.9%).

Earnings vs Market: ITW's earnings (6% per year) are forecast to grow slower than the US market (14.4% per year).

High Growth Earnings: ITW's earnings are forecast to grow, but not significantly.

Revenue vs Market: ITW's revenue (3.5% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: ITW's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ITW's Return on Equity is forecast to be very high in 3 years time (89.5%).


Discover growth companies

Past Performance

How has Illinois Tool Works performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


5.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ITW has high quality earnings.

Growing Profit Margin: ITW's current net profit margins (17.4%) are lower than last year (19.1%).


Past Earnings Growth Analysis

Earnings Trend: ITW's earnings have grown by 5.8% per year over the past 5 years.

Accelerating Growth: ITW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ITW had negative earnings growth (-0.8%) over the past year, making it difficult to compare to the Machinery industry average (9.3%).


Return on Equity

High ROE: Whilst ITW's Return on Equity (78.37%) is outstanding, this metric is skewed due to their high level of debt.


Discover strong past performing companies

Financial Health

How is Illinois Tool Works's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ITW's short term assets ($6.4B) exceed its short term liabilities ($4.3B).

Long Term Liabilities: ITW's short term assets ($6.4B) do not cover its long term liabilities ($8.0B).


Debt to Equity History and Analysis

Debt Level: ITW's net debt to equity ratio (200.1%) is considered high.

Reducing Debt: ITW's debt to equity ratio has increased from 168.6% to 226.1% over the past 5 years.

Debt Coverage: ITW's debt is well covered by operating cash flow (29%).

Interest Coverage: ITW's interest payments on its debt are well covered by EBIT (19.5x coverage).


Balance Sheet


Discover healthy companies

Dividend

What is Illinois Tool Works's current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.24%

Current Dividend Yield

Upcoming Dividend Payment

TodayAug 13 2022Ex Dividend DateSep 29 2022Dividend Pay DateOct 14 202215 days from Ex DividendBuy in the next 47 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: ITW's dividend (2.24%) is higher than the bottom 25% of dividend payers in the US market (1.49%).

High Dividend: ITW's dividend (2.24%) is low compared to the top 25% of dividend payers in the US market (4%).


Stability and Growth of Payments

Stable Dividend: ITW's dividends per share have been stable in the past 10 years.

Growing Dividend: ITW's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (57.6%), ITW's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (79%), ITW's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

7.6yrs

Average management tenure


CEO

E. Santi (60 yo)

9.75yrs

Tenure

US$20,787,622

Compensation

Mr. E. Scott Santi has been the Chief Executive Officer of Illinois Tool Works Inc. since November 2012 and had been its President since October 2012 until 2015. Mr. Santi served as the Chief Operating Off...


CEO Compensation Analysis

Compensation vs Market: E.'s total compensation ($USD20.79M) is above average for companies of similar size in the US market ($USD12.88M).

Compensation vs Earnings: E.'s compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: ITW's management team is seasoned and experienced (7.6 years average tenure).


Board Members

Experienced Board: ITW's board of directors are seasoned and experienced ( 10.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Illinois Tool Works Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Illinois Tool Works Inc.
  • Ticker: ITW
  • Exchange: NYSE
  • Founded: 1912
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Implied Market Cap: US$67.330b
  • Shares outstanding: 309.62m
  • Website: https://www.itw.com

Number of Employees


Location

  • Illinois Tool Works Inc.
  • 155 Harlem Avenue
  • Glenview
  • Illinois
  • 60025-4075
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/12 00:00
End of Day Share Price2022/08/12 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.