Illinois Tool Works Inc
NYSE:ITW
Intrinsic Value
Illinois Tool Works, Inc. engages in the manufacture of industrial products and equipment. [ Read More ]
The intrinsic value of one ITW stock under the Base Case scenario is 193.12 USD. Compared to the current market price of 264.86 USD, Illinois Tool Works Inc is Overvalued by 27%.
Valuation Backtest
Illinois Tool Works Inc
Run backtest to discover the historical profit from buying and selling ITW stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
Underlying Strength Amid Challenges Reflected in Solid 2024 Guidance
2023-Q4 Earnings Call
The company forecasts a moderation in external headwinds such as supply chain issues, input cost inflation, and inventory reductions, with the caveat of challenges including a decrease in automotive builds. The guidance for 2024 includes a revenue growth of 2% to 4%, organic growth of 1% to 3%, and an anticipated operating margin improvement of about 100 basis points to a range of 25.5% to 26.5%, incorporating contributions from enterprise initiatives. The after-tax return on invested capital is expected to stay above 30%, with strong free cash flows exceeding net income. GAAP EPS is projected between $10 and $10.40, despite higher interest and income tax expenses. Priorities for capital allocation are internal investments, dividend growth, high-quality acquisitions, and a $1.5 billion share repurchase program. Most segments aim for a 4% midpoint organic growth, alongside margin improvements, positioning the company to outperform through the economic conditions of 2024.
Balance Sheet Decomposition
Illinois Tool Works Inc
Current Assets | 6.2B |
Cash & Short-Term Investments | 1.1B |
Receivables | 3.1B |
Other Current Assets | 2B |
Non-Current Assets | 9.3B |
PP&E | 2B |
Intangibles | 5.6B |
Other Non-Current Assets | 1.7B |
Current Liabilities | 4.7B |
Accounts Payable | 581m |
Accrued Liabilities | 1.7B |
Short-Term Debt | 464m |
Other Current Liabilities | 2B |
Non-Current Liabilities | 7.8B |
Long-Term Debt | 6.3B |
Other Non-Current Liabilities | 1.5B |
Earnings Waterfall
Illinois Tool Works Inc
Revenue
|
16.1B
USD
|
Cost of Revenue
|
-9.3B
USD
|
Gross Profit
|
6.8B
USD
|
Operating Expenses
|
-2.8B
USD
|
Operating Income
|
4B
USD
|
Other Expenses
|
-1.1B
USD
|
Net Income
|
3B
USD
|
Free Cash Flow Analysis
Illinois Tool Works Inc
What is Free Cash Flow?
ITW Profitability Score
Profitability Due Diligence
Illinois Tool Works Inc's profitability score is 73/100. The higher the profitability score, the more profitable the company is.
Score
Illinois Tool Works Inc's profitability score is 73/100. The higher the profitability score, the more profitable the company is.
ITW Solvency Score
Solvency Due Diligence
Illinois Tool Works Inc's solvency score is 59/100. The higher the solvency score, the more solvent the company is.
Score
Illinois Tool Works Inc's solvency score is 59/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
ITW Price Targets Summary
Illinois Tool Works Inc
According to Wall Street analysts, the average 1-year price target for ITW is 248.01 USD with a low forecast of 202 USD and a high forecast of 288.75 USD.
Ownership
ITW Insider Trading
Buy and sell transactions by insiders
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Shareholder Return
ITW Price
Illinois Tool Works Inc
Average Annual Return | 14.42% |
Standard Deviation of Annual Returns | 15.38% |
Max Drawdown | -38% |
Market Capitalization | 79.3B USD |
Shares Outstanding | 298 800 000 |
Percentage of Shares Shorted | 2.63% |
Company Profile
Country
Industry
Market Cap
Dividend Yield
Description
Illinois Tool Works, Inc. engages in the manufacture of industrial products and equipment. The company is headquartered in Glenview, Illinois and currently employs 45,000 full-time employees. The company operates through segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM segment produces components and fasteners. The Food Equipment segment offers commercial food equipment. The Test & Measurement and Electronics segment produces test and measurement, and electronic manufacturing and maintenance, repair and operations (MRO) solutions. The Welding segment produces welding equipment, consumables and accessories. The Polymers & Fluids segment produces adhesives, sealants, lubrication and cutting fluids, and fluids and polymers. The Construction Products segment supplies engineered fastening systems and solutions. The Specialty Products segment produces beverage packaging equipment and consumables, product coding and marking equipment and consumables, and appliance components and fasteners.
Contact
IPO
Employees
Officers
The intrinsic value of one ITW stock under the Base Case scenario is 193.12 USD.
Compared to the current market price of 264.86 USD, Illinois Tool Works Inc is Overvalued by 27%.