Analyzing ILLINOIS TOOL WORKS (NYSE:ITW)'s Dividend Potential.

Discover ILLINOIS TOOL WORKS (NYSE:ITW)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. ITW showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

Dividend Insights: ITW

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. ITW has received a 7 out of 10:

• ITW's Dividend Yield is rather good when compared to the industry average which is at 2.02. ITW pays more dividend than 89.84% of the companies in the same industry.
• On average, the dividend of ITW grows each year by 6.98%, which is quite nice.
• ITW has been paying a dividend for at least 10 years, so it has a reliable track record.
• ITW has not decreased their dividend for at least 10 years, which is a reliable track record.
• The dividend of ITW is growing, but earnings are growing more, so the dividend growth is sustainable.

ChartMill's Evaluation of Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. ITW scores a 6 out of 10:

• An Altman-Z score of 8.16 indicates that ITW is not in any danger for bankruptcy at the moment.
• The Altman-Z score of ITW (8.16) is better than 89.84% of its industry peers.
• The Debt to FCF ratio of ITW is 2.90, which is a good value as it means it would take ITW, 2.90 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of ITW (2.90) is better than 65.63% of its industry peers.

Evaluating Profitability: ITW

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. ITW was assigned a score of 9 for profitability:

• Looking at the Return On Assets, with a value of 21.78%, ITW belongs to the top of the industry, outperforming 99.22% of the companies in the same industry.
• ITW has a Return On Equity of 103.95%. This is amongst the best in the industry. ITW outperforms 100.00% of its industry peers.
• With an excellent Return On Invested Capital value of 25.21%, ITW belongs to the best of the industry, outperforming 97.66% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for ITW is significantly above the industry average of 10.56%.
• With an excellent Profit Margin value of 21.37%, ITW belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
• ITW's Profit Margin has improved in the last couple of years.
• ITW's Operating Margin of 25.93% is amongst the best of the industry. ITW outperforms 97.66% of its industry peers.
• In the last couple of years the Operating Margin of ITW has grown nicely.
• ITW's Gross Margin of 43.71% is amongst the best of the industry. ITW outperforms 80.47% of its industry peers.

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Our latest full fundamental report of ITW contains the most current fundamental analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.