ILLINOIS TOOL WORKS (ITW) 225.54 -3.43 (-1.5%)
225.54 -3.43 (-1.5%)
US4523081093 - Common Stock
Fundamental Rating
We assign a fundamental rating of 5 out of 10 to ITW. ITW was compared to 146 industry peers in the Machinery industry. ITW has a great profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, ITW is valued expensive at the moment.
Profitability
Profitability Rating
ITW has a Return On Assets of 17.97%. This is amongst the best returns in the industry. The industry average is 2.07%. ITW outperforms 97% of its industry peers.
ITW has a Return On Equity of 90.81%. This is amongst the best returns in the industry. The industry average is 12.72%. ITW outperforms 100% of its industry peers.
ITW's Profit Margin of 17.49% is amongst the best returns of the industry. ITW outperforms 93% of its industry peers. The industry average Profit Margin is 2.41%.
The Piotroski-F score of ITW is 6.00. This is a neutral score and indicates average health and profitability for ITW.
VS Industry
ROA (17.97%) VS Industry: 97% outperformed.
-146.85
30.57
ROE (90.81%) VS Industry: 100% outperformed.
0.07
90.81
Profit Margin (17.49%) VS Industry: 93% outperformed.
-12,683.48
189.04
Valuation
Valuation Rating
The Forward Price/Earnings Ratio of 23.63 indicates a rather expensive current valuation of ITW.
The Price/Earnings Ratio is 25.69, which means the current valuation is very expensive for ITW.
ITW's Price/Earning Ratio is slightly more expensive than the industry average, which is at 19.05.
The high PEG Ratio, which compensates the Price/Earnings for growth, indicates ITW does not grow enough to justify the current Price/Earnings ratio.
With a price book ratio of 22.99, ITW is valued rather expensively.
Compared to an average industry price book ratio of 2.38, ITW is valued more expensive than its industry peers. 99% of the companies listed in the same industry are valued cheaper.
When comparing the Enterprise Value to EBITDA ratio of ITW to the average industry ratio of 13.76, ITW is valued more expensive than its industry peers. 80% of the companies listed in the same industry are valued cheaper.
VS Industry
Price/Earnings (25.69) VS Industry: 29% outperformed.
186.00
1.37
Price/Book (22.99) VS Industry: 1% outperformed.
50.78
0.27
Enterprise Value/ EBITDA (18.75) VS Industry: 20% outperformed.
1,128.65
0.31
Growth
Growth Rating
The Revenue growth is accelerating: in the next 5 years the growth will be better than in the last years.
ITW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.20%.
The Earnings Per Share has been growing slightly by 7.56% on average over the past 5 years.
The Earnings Per Share is expected to grow by 6.41% on average over the next 5 years.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming 5 years, we see that the growth is stable.
Looking at the last year, ITW shows a small growth in Revenue. The Revenue has grown by 9.75% in the last year.
Measured over the past 5 years, ITW shows a small growth in Revenue. The Revenue has been growing by 1.23% on average per year.
ITW is expected to show a small growth in Revenue. In the coming 5 years, the Revenue will grow by 2.90% yearly.
| Past | Future | ||||||
|---|---|---|---|---|---|---|---|
| 5Y | 3Y | 1Y | 1Y | 2Y | 3Y | 5Y | |
| EPS | 7.56% | 2.23% | 7.2% | 12.61% | 8.42% | 7.59% | 6.41% |
| Revenue | 1.23% | -0.71% | 9.75% | 10.55% | 4.74% | 4.31% | 2.9% |
Health
Health Rating
An Altman-Z score of 7.74 indicates that ITW is not in any danger for bankruptcy at the moment.
The Altman-Z score of ITW is much better than the industry average of 2.40. ITW has a better rating than 94% of its industry peers.
ITW has a Current Ratio of 1.41. This is a normal value and indicates that ITW is financially healthy and should not expect problems in meeting its short term obligations.
ITW has a Piotroski-F score of 6.00. This indicates an average health and profitability for ITW.
When comparing the Current Ratio of ITW to the average industry Current Ratio of 2.08, ITW is less able to pay its short term obligations than its industry peers. 87% of its industry peers have a better Current Ratio.
A Quick Ratio of 0.95 indicates that ITW may have some problems paying its short term obligations.
When comparing the Quick Ratio of ITW to the average industry Current Ratio of 1.23, ITW is less able to pay its short term obligations than its industry peers.
ITW has one of the worst Debt to Equity ratios in its industry. 90% of its industry peers require less debt for financing their operations.
VS Industry
Debt/Equity (1.97) VS Industry: 10% outperformed.
9.75
0.00
Quick Ratio (0.95) VS Industry: 31% outperformed.
0.06
23.48
Current Ratio (1.41) VS Industry: 13% outperformed.
0.12
23.49
Altman-Z (7.74) VS Industry: 94% outperformed.
-3.90
46.53
Dividend
Dividend Rating
Compared to an average industry Dividend Yield of 1.44, ITW pays a bit more dividend than its industry peers.
The dividend of ITW is nicely growing with an annual growth rate of 11.58%!
ITW has been paying a dividend for at least 10 years, so it has a reliable track record.
ITW has a Yearly Dividend Yield of 2.31%. Purely for dividend investing, there may be better candidates out there.
Compared to an average S&P500 Dividend Yield of 2.47, ITW has a dividend comparable with the average S&P500 company.
ITW pays out 55.63% of its income as dividend. This is a bit on the high side, but may be sustainable.
ITW's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
VS Industry
Dividend Yield (2.31%) VS Industry: 76% outperformed.
0.15
11.04
ILLINOIS TOOL WORKS225.54
NYSE:ITW (11/28/2022, 12:30:36 PM)-3.43 (-1.5%)
| GICS Sector | Industrials | ||
| GICS IndustryGroup | Capital Goods | ||
| GICS Industry | Machinery | ||
| Earnings (Last) | 10-25 2022-10-25/bmo | Earnings (Next) | 02-01 2023-02-01 |
| Ins Owners | 0.22% | Inst Owners | 81.33% |
| Market Cap | 69.28B | Analysts | 56 |
| PE | 25.69 | Fwd PE | 23.63 |
| PEG (NY) | 2.04 | PEG (5Y) | 3.4 |
| P/S | 4.43 | P/B | 22.99 |
| EV/EBITDA | 18.75 | ||
| Dividend Yield | 2.31% | Dividend Growth | 11.58% |
| DP | 55.63% | Ex-Date | 09-29 2022-09-29 (1.31) |
| EPS 1Y | 7.2% | EPS 3Y | 2.23% |
| EPS 5Y | 7.56% | EPS growth Q2Q | 19.9% |
| EPS Next Y | 12.61% | EPS Next 2Y | 8.42% |
| EPS Next 3Y | 7.59% | EPS Next 5Y | 6.41% |
| Revenue growth 1Y | 9.75% | Revenue growth 3Y | -0.71% |
| Revenue growth 5Y | 1.23% | Revenue growth Q2Q | 12.8% |
| Revenue Next Year | 10.55% | Revenue Next 2Y | 4.74% |
| Revenue Next 3Y | 4.31% | Revenue Next 5Y | 2.9% |
| Current Ratio | 1.41 | Quick Ratio | 0.95 |
| Altman-Z | 7.74 | F-Score | 6 |
| Debt/Equity | 1.97 | WACC | 9.04% |
| ROIC/WACC | 5.61 | ||
| ROA | 17.97% | ROE | 90.81% |
| ROICexgc | 50.71% | ROIC | 24.03% |
| PM | 17.49% | OM | 23.26% |
| Asset Turnover | 1.03 | ||
Fundamental Stock Screener Links
Fundamental Stock Screener
Find stocks with similar Fundamental rating on the USA
Best Fundamental Competitors Stock Screener
Find the competitors with the best fundamentals on the USA
Best Valuation Competitors Stock Screener
Find the competitors with the best valuation on the USA
Best Dividend Competitors Stock Screener
Find the competitors with the best dividend on the USA