Illinois Tool Works Inc. [NYSE:ITW]: Analyst Rating and Earnings
Equities traders often pay a significant amount of attention to what top market analysts have to say about a potential stock investment. In regards to Illinois Tool Works Inc. [ITW], the most recent average analyst recommendation we can read comes from the fiscal quarter ending in December. On average, stock market experts give ITW an Hold rating. Its stock price has been found in the range of 117.75 to 158.69. This is compared to its latest closing price of $150.94.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Illinois Tool Works Inc. [ITW] is sitting at 3.00. This is compared to 1 month ago, when its average rating was 3.05.
For the quarter ending in Mar-19 Illinois Tool Works Inc. [ITW] generated $3.55 billion in sales. That’s 2.04% lower than the average estimate of $3.63 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes on this company’s next financial results, which are scheduled to be made public on Mon 22 Jul (In 67 Days).
Fundamental Analysis of Illinois Tool Works Inc. [ITW]
Now let’s turn to look at profitability: with a current Operating Margin for Illinois Tool Works Inc. [ITW] sitting at +24.27 and its Gross Margin at +40.46, this company’s Net Margin is now 17.20%. These measurements indicate that Illinois Tool Works Inc. [ITW] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 30.43, and its Return on Invested Capital has reached 25.90%. Its Return on Equity is 65.39, and its Return on Assets is 16.20. These metrics all suggest that Illinois Tool Works Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Illinois Tool Works Inc. [ITW] has generated a Total Debt to Total Equity ratio of 226.80. Similarly, its Total Debt to Total Capital is 69.40, while its Total Debt to Total Assets stands at 49.63. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 185.28, and its Long-Term Debt to Total Capital is 56.70. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 13.76 and its Total Debt to EBITDA Value is 1.82. The Enterprise Value to Sales for this firm is now 3.82, and its Total Debt to Enterprise Value stands at 0.15. Illinois Tool Works Inc. [ITW] has a Price to Book Ratio of 12.77, a Price to Cash Flow Ratio of 15.19 and P/E Ratio of 20.41. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, Illinois Tool Works Inc. [ITW] earns $307,667 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.26 and its Total Asset Turnover is 0.93. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.25 and its Current Ratio is 1.63. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Illinois Tool Works Inc. [ITW] has 327.30M shares outstanding, amounting to a total market cap of $49.40B. Its stock price has been found in the range of 117.75 to 158.69. At its current price, it has moved by -3.38% from its 52-week high, and it has moved 30.22% from its 52-week low.
This stock’s Beta value is currently 1.23, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 52.26. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Illinois Tool Works Inc. [ITW] a Reliable Buy?
Shares of Illinois Tool Works Inc. [ITW], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.