Illinois Tool Works (ITW) Stock Price, News & Analysis

Company Overview

Illinois Tool Works Inc. manufactures and sells industrial products and equipment in the United States and internationally. 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. The Food Equipment segment provides warewashing, refrigeration, cooking, and food processing equipment; kitchen exhaust, ventilation, and pollution control systems; and food equipment maintenance and repair services. The Test & Measurement and Electronics segment produces and sells equipment, consumables, and related software for testing and measuring of materials and structures, as well as equipment and consumables used in the production of electronic subassemblies and microelectronics. The Welding segment produces arc welding equipment; and metal arc welding consumables and related accessories. The Polymers & Fluids segment produces adhesives, sealants, lubrication and cutting fluids, and fluids and polymers for auto aftermarket maintenance and appearance. The Construction Products segment offers engineered fastening systems and solutions for the residential construction, renovation/remodel, and commercial construction markets. The Specialty Products segment provides beverage packaging equipment and consumables, product coding and marking equipment and consumables, and appliance components and fasteners. It serves the automotive OEM and tiers, MRO, commercial food equipment, construction, general industrial, industrial capital goods, consumer durables, automotive aftermarket end, and other markets. The company distributes its products directly to industrial manufacturers, as well as through independent distributors. Illinois Tool Works Inc. was founded in 1912 and is based in Glenview, Illinois.

Key Stats

• Today's Range: $269.57 to $274.34
• 50-Day Range: $252.94 to $275.47
• 52-Week Range: $232.77 to $277.58
• Volume: 950,465 shs
• Average Volume: 923,390 shs
• Market Capitalization: $80.90 billion
• P/E Ratio: 23.70
• Dividend Yield: 2.19%
• Price Target: $257.30
• Consensus Rating: Hold

Illinois Tool Works Stock Analysis - MarketRank™

Illinois Tool Works scored higher than 85% of companies evaluated by MarketBeat, and ranked 38th out of 179 stocks in the industrial products sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.0 / 5
• Analyst Rating: Hold

Consensus Rating

Illinois Tool Works has received a consensus rating of Hold. The company's average rating score is 2.00, and is based on 2 buy ratings, 4 hold ratings, and 4 sell ratings.

Amount of Analyst Coverage

Illinois Tool Works has been the subject of 6 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Earnings and Valuation

• Score: 1.3 / 5
• Proj. Earnings Growth: 5.13%

Earnings Growth

Earnings for Illinois Tool Works are expected to grow by 5.13% in the coming year, from $10.13 to $10.65 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Illinois Tool Works is 23.70, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 117.37.

Price to Earnings Ratio vs. Sector

The P/E ratio of Illinois Tool Works is 23.70, which means that it is trading at a more expensive P/E ratio than the Industrial Products sector average P/E ratio of about 20.55.

Price to Earnings Growth Ratio

Illinois Tool Works has a PEG Ratio of 4.18. PEG Ratios above 1 indicate that a company could be overvalued.

Price to Book Value per Share Ratio

Illinois Tool Works has a P/B Ratio of 23.84. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

• Score: 4.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

1.80% of the float of Illinois Tool Works has been sold short.

Short Interest Ratio / Days to Cover

Illinois Tool Works has a short interest ratio ("days to cover") of 6.6.

Change versus previous month

Short interest in Illinois Tool Works has recently decreased by 15.04%, indicating that investor sentiment is improving significantly.

Dividend

• Score: 4.2 / 5
• Dividend Strength: Strong

Dividend Yield

Illinois Tool Works pays a meaningful dividend of 2.22%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

Illinois Tool Works has been increasing its dividend for 55 years.

Dividend Coverage

The dividend payout ratio of Illinois Tool Works is 51.90%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, Illinois Tool Works will have a dividend payout ratio of 56.34% next year. This indicates that Illinois Tool Works will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: 1.2 / 5
• Environmental Score: -3.80

Percentage of Shares Shorted

1.80% of the float of Illinois Tool Works has been sold short.

Short Interest Ratio / Days to Cover

Illinois Tool Works has a short interest ratio ("days to cover") of 6.6.

Change versus previous month

Short interest in Illinois Tool Works has recently decreased by 15.04%, indicating that investor sentiment is improving significantly.

News and Social Media

• Score: 3.4 / 5
• News Sentiment: 1.17

News Sentiment

Illinois Tool Works has a news sentiment score of 1.17. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.78 average news sentiment score of Industrial Products companies.

News Coverage This Week

MarketBeat has tracked 26 news articles for Illinois Tool Works this week, compared to 11 articles on an average week.

Search Interest

Only 12 people have searched for ITW on MarketBeat in the last 30 days. This is a decrease of -14% compared to the previous 30 days.

MarketBeat Follows

8 people have added Illinois Tool Works to their MarketBeat watchlist in the last 30 days. This is an increase of 700% compared to the previous 30 days.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Illinois Tool Works insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 0.88% of the stock of Illinois Tool Works is held by insiders.

Percentage Held by Institutions

79.77% of the stock of Illinois Tool Works is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

ITW Stock Analysis - Frequently Asked Questions

How have ITW shares performed this year?

Illinois Tool Works' stock was trading at $261.94 on January 1st, 2024. Since then, ITW shares have increased by 4.6% and is now trading at $273.95.
View the best growth stocks for 2024 here.

How were Illinois Tool Works' earnings last quarter?

Illinois Tool Works Inc. (NYSE:ITW) issued its quarterly earnings results on Wednesday, October, 30th. The industrial products company reported $2.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.53 by $0.12. The company's revenue for the quarter was down 1.6% on a year-over-year basis.
Read the conference call transcript.

Does Illinois Tool Works have any subsidiaries?

Illinois Tool Works subsidiaries include these companies: MTS Systems., Vesta, Coeur, Despatch Industries, Elro Group, Hartness International, Avery Weigh Tronix, and more.

Who are Illinois Tool Works' major shareholders?

Top institutional shareholders of Illinois Tool Works include State Street Corp (4.21%), Geode Capital Management LLC (2.13%), Massachusetts Financial Services Co. MA (1.22%) and Fisher Asset Management LLC (1.13%). Insiders that own company stock include Ernest Scott Santi, David Byron Smith Jr, Michael M Larsen, Christopher A O'herlihy, Randall J Scheuneman, Lei Zhang Schlitz and Sharon Szafranski.
View institutional ownership trends.

How do I buy shares of Illinois Tool Works?

Shares of ITW stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of Illinois Tool Works own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Illinois Tool Works investors own include BlackRock (BLK), Broadcom (AVGO), UnitedHealth Group (UNH), The Goldman Sachs Group (GS), ServiceNow (NOW), Meta Platforms (META) and Ford Motor (F).

Company Calendar

• Ex-Dividend for 10/11 Dividend: 9/30/2024
• Dividend Payable: 10/11/2024
• Last Earnings: 10/30/2024
• Today: 11/23/2024
• Ex-Dividend for 1/10 Dividend: 12/31/2024
• Fiscal Year End: 12/31/2024
• Dividend Payable: 1/10/2025
• Next Earnings (Estimated): 2/06/2025

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Industrial Products
• Industry: General industrial machinery & equipment
• Sub-Industry: Industrial Machinery
• Current Symbol: NYSE:ITW
• CUSIP: 45230810
• CIK: 49826
• Web: www.itw.com
• Phone: (224) 661-8870
• Fax: 847-657-4572
• Employees: 45,000
• Year Founded: 1912

Price Target and Rating

• Average Stock Price Target: $257.30
• High Stock Price Target: $312.00
• Low Stock Price Target: $230.00
• Potential Upside/Downside: -6.1%
• Consensus Rating: Hold
• Rating Score (0-4): 2.00
• Research Coverage: 11 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $11.56
• Trailing P/E Ratio: 23.70
• Forward P/E Ratio: 27.04
• P/E Growth: 4.18
• Net Income: $2.96 billion
• Net Margins: 21.66%
• Pretax Margin: 27.38%
• Return on Equity: 97.06%
• Return on Assets: 19.22%

Debt

• Debt-to-Equity Ratio: 1.94
• Current Ratio: 1.36
• Quick Ratio: 0.97

Sales & Book Value

• Annual Sales: $16.11 billion
• Price / Sales: 5.02
• Cash Flow: $11.35 per share
• Price / Cash Flow: 24.14
• Book Value: $11.49 per share
• Price / Book: 23.84

Miscellaneous

• Outstanding Shares: 295,300,000
• Free Float: 292,701,000
• Market Cap: $80.90 billion
• Optionable: Optionable
• Beta: 1.10