Illinois Tool Works Stock Analysis, Valuation (NYSE:ITW)

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$141.46 $0.7 (0.5%) ITW stock closing price Jun 22, 2018 (Closing)

Watch the robo advisor video of Illinois Tool Works stock analysis on Amigobulls. Our ITW analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Illinois Tool Works Inc. Stock Rating 3.5/5

Amigobulls ITW stock analysis takes into account various financial ratios like relative valuation, Illinois Tool Works revenue, growth and return on equity based on latest quarter 2018 Q1 financial statements. We also check Illinois Tool Works dividend performance. We also use relative valuation metrics like PE ratio and price to sales ratio for Illinois Tool Works valuation analysis. Based on a company's historical fundamentals we arrive at Illinois Tool Works stock rating which is indicative of the company's financial performance.

Should you buy ITW stock?

  • Illinois Tool Works's average operating margin of 24.6 was exceptional.
  • LTM Net margins were good at 12.4% for Illinois Tool Works.
  • Illinois Tool Works generates a high return on invested capital of 17.2.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Illinois Tool Works at 39.1.
  • The company has a good Free Cash Flow (FCF) margin of 11.9.

Should you sell ITW stock?

  • The company saw an average annual sales decline of -3.4 in sales over the last 5 years.
  • Illinois Tool Works has a debt/equity ratio of 1.81, which is worse than the average in the -sectordesc- sector.
  • The company is trading at a price to sales multiple of 3.3, which is overvalued in comparison to the Industrial Products sector average multiple of 1.4.

Comments on this video and Illinois Tool Works stock

Investors can make use of the Amigobulls Illinois Tool Works stock analysis to ascertain how ITW stock fares in fundamental analysis investment criteria. Fundamentals of a company give detailed information which helps in making invesment decisions.

Illinois Tool Works revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. One can also combine technical analysis and fundamental analysis to get a holistic picture about ITW stock.