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

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$162.75 $5.47 (3.25%) ITW stock closing price Mar 22, 2018 (Closing)
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Illinois Tool Works
Updated on : Mar 22, 2018
previous close
ITW 168.2 (0%)
S&P 500 2711.9 (0%)
Closing Price On: Mar 21, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Machinery-General Industrial
Sector :
Industrial Products
5 Quarter Revenue
Revenue Growth
Compared to the industry
Long Term Growth
5 Year CAGR:
Operating Profit
Operating Margin:
Sector Average:
5 Quarter Net Profit
Net Margins
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt/Equity Ratio:
Compared to the industry
Cash Flow
Operating cash flow:
Net Income:
Dividend Yield
ITW dividend yield:
Operating Margins
Net Margins
FCF Margin
Long Term Growth
High Debt Burden
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
Industry PS :
Sector:   Industrial Products.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
Return on Equity:
Free Cash Flow Margin:
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ITW Stock Analysis

80 5 2

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 2017 Q4 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 had a healthy average operating margin of 24.4% over the last 4 quarters.
  • LTM Net margins were good at 11.8% for Illinois Tool Works.
  • Illinois Tool Works has an attractive ROIC (Return on Invested Capital) of 16.4%
  • The LTM ROE of 36.4% for Illinois Tool Works is attractive.
  • The company has a good Free Cash Flow (FCF) margin of 17.2%.

Should you sell ITW stock?

  • Revenue declined at a CAGR of -4.4% over the last 5 years.
  • With a debt/equity ratio of  1.82, Illinois Tool Works is highly leveraged in comparison to Industrial Products peers.
  • ITW stock is trading at a PS multiple of 4.1, which is a negative when compared to the Machinery-General Industrial industry average multiple of 1.6.

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.