Illinois Tool Works
Market Cap
US$71.0b
Last Updated
2021/04/17 22:13 UTC
Data Sources
Company Financials +
Executive Summary
Illinois Tool Works Inc. manufactures and sells industrial products and equipment worldwide. More Details
Snowflake Analysis
Established dividend payer with mediocre balance sheet.
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Share Price & News
How has Illinois Tool Works's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ITW is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: ITW's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
0.6%
ITW
1.1%
US Machinery
1.3%
US Market
1 Year Return
41.3%
ITW
88.6%
US Machinery
53.9%
US Market
Return vs Industry: ITW underperformed the US Machinery industry which returned 88.6% over the past year.
Return vs Market: ITW underperformed the US Market which returned 53.9% over the past year.
Shareholder returns
| ITW | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.6% | 1.1% | 1.3% |
| 30 Day | 1.0% | 1.3% | 5.3% |
| 90 Day | 10.3% | 13.3% | 8.9% |
| 1 Year | 44.6%41.3% | 93.2%88.6% | 56.6%53.9% |
| 3 Year | 52.9%41.5% | 61.7%50.2% | 64.4%53.6% |
| 5 Year | 140.9%114.1% | 158.7%132.4% | 120.4%95.7% |
Long-Term Price Volatility Vs. Market
How volatile is Illinois Tool Works's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 days ago | Simply Wall St
Did You Participate In Any Of Illinois Tool Works' (NYSE:ITW) Fantastic 138% Return ?1 week ago | Simply Wall St
Is Illinois Tool Works Inc. (NYSE:ITW) Potentially Undervalued?3 weeks ago | Simply Wall St
Four Days Left To Buy Illinois Tool Works Inc. (NYSE:ITW) Before The Ex-Dividend DateValuation
Is Illinois Tool Works undervalued compared to its fair value and its price relative to the market?
33.66x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ITW ($224.03) is trading above our estimate of fair value ($194.8)
Significantly Below Fair Value: ITW is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ITW is good value based on its PE Ratio (33.7x) compared to the US Machinery industry average (35.8x).
PE vs Market: ITW is poor value based on its PE Ratio (33.7x) compared to the US market (22.5x).
Price to Earnings Growth Ratio
PEG Ratio: ITW is poor value based on its PEG Ratio (3.3x)
Price to Book Ratio
PB vs Industry: ITW is overvalued based on its PB Ratio (22.3x) compared to the US Machinery industry average (3.3x).
Future Growth
How is Illinois Tool Works forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
10.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ITW's forecast earnings growth (10.1% per year) is above the savings rate (2%).
Earnings vs Market: ITW's earnings (10.1% per year) are forecast to grow slower than the US market (18.1% per year).
High Growth Earnings: ITW's earnings are forecast to grow, but not significantly.
Revenue vs Market: ITW's revenue (6.4% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: ITW's revenue (6.4% 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 (81.8%).
Past Performance
How has Illinois Tool Works performed over the past 5 years?
4.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ITW has high quality earnings.
Growing Profit Margin: ITW's current net profit margins (16.8%) are lower than last year (17.9%).
Past Earnings Growth Analysis
Earnings Trend: ITW's earnings have grown by 4.3% 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 (-16.3%) over the past year, making it difficult to compare to the Machinery industry average (-13.3%).
Return on Equity
High ROE: Whilst ITW's Return on Equity (66.28%) is outstanding, this metric is skewed due to their high level of debt.
Financial Health
How is Illinois Tool Works's financial position?
Financial Position Analysis
Short Term Liabilities: ITW's short term assets ($6.5B) exceed its short term liabilities ($2.6B).
Long Term Liabilities: ITW's short term assets ($6.5B) do not cover its long term liabilities ($9.8B).
Debt to Equity History and Analysis
Debt Level: ITW's debt to equity ratio (255.2%) is considered high.
Reducing Debt: ITW's debt to equity ratio has increased from 141.8% to 255.2% over the past 5 years.
Debt Coverage: ITW's debt is well covered by operating cash flow (34.6%).
Interest Coverage: ITW's interest payments on its debt are well covered by EBIT (15.3x coverage).
Balance Sheet
Dividend
What is Illinois Tool Works's current dividend yield, its reliability and sustainability?
2.04%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ITW's dividend (2.04%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: ITW's dividend (2.04%) is low compared to the top 25% of dividend payers in the US market (3.46%).
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.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (66.4%), ITW's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ITW's dividends in 3 years are forecast to be covered by earnings (52.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.0yrs
Average management tenure
CEO
E. Santi (58 yo)
8.42yrs
Tenure
US$14,007,356
Compensation
Mr. E. Scott Santi has been the Chief Executive Officer and Chairman of the Board of Illinois Tool Works Inc. since November 2012 and had been its President since October 2012 until 2015. Mr. Santi served ...
CEO Compensation Analysis
Compensation vs Market: E.'s total compensation ($USD14.01M) is about average for companies of similar size in the US market ($USD11.14M).
Compensation vs Earnings: E.'s compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: ITW's management team is seasoned and experienced (7 years average tenure).
Board Members
Experienced Board: ITW's board of directors are considered experienced (9.9 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 company bio, 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
- Market Cap: US$70.995b
- Shares outstanding: 316.48m
- Website: https://www.itw.com
Number of Employees
Location
- Illinois Tool Works Inc.
- 155 Harlem Avenue
- Glenview
- Illinois
- 60025-4075
- United States
Listings
Biography
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;...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/17 22:13 |
| End of Day Share Price | 2021/04/16 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.