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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt 0.47
ITW's Cash to Debt is ranked lower than
51% of the 1947 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.47 vs. ITW: 0.47 )
ITW' s 10-Year Cash to Debt Range
Min: 0.07   Max: 1.78
Current: 0.47

0.07
1.78
Equity to Asset 0.43
ITW's Equity to Asset is ranked higher than
54% of the 1933 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.51 vs. ITW: 0.43 )
ITW' s 10-Year Equity to Asset Range
Min: 0.43   Max: 0.7
Current: 0.43

0.43
0.7
Interest Coverage 10.52
ITW's Interest Coverage is ranked higher than
53% of the 1122 Companies
in the Global Diversified Industrials industry.

( Industry Median: 27.24 vs. ITW: 10.52 )
ITW' s 10-Year Interest Coverage Range
Min: 8.41   Max: 44.82
Current: 10.52

8.41
44.82
F-Score: 5
Z-Score: 4.27
M-Score: -2.87
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 17.79
ITW's Operating margin (%) is ranked higher than
94% of the 1815 Companies
in the Global Diversified Industrials industry.

( Industry Median: 6.33 vs. ITW: 17.79 )
ITW' s 10-Year Operating margin (%) Range
Min: 9.99   Max: 17.79
Current: 17.79

9.99
17.79
Net-margin (%) 11.88
ITW's Net-margin (%) is ranked higher than
90% of the 1815 Companies
in the Global Diversified Industrials industry.

( Industry Median: 4.40 vs. ITW: 11.88 )
ITW' s 10-Year Net-margin (%) Range
Min: 6.82   Max: 19.4
Current: 11.88

6.82
19.4
ROE (%) 17.30
ITW's ROE (%) is ranked higher than
92% of the 1800 Companies
in the Global Diversified Industrials industry.

( Industry Median: 7.31 vs. ITW: 17.30 )
ITW' s 10-Year ROE (%) Range
Min: 10.72   Max: 27.18
Current: 17.3

10.72
27.18
ROA (%) 8.41
ITW's ROA (%) is ranked higher than
91% of the 1819 Companies
in the Global Diversified Industrials industry.

( Industry Median: 3.50 vs. ITW: 8.41 )
ITW' s 10-Year ROA (%) Range
Min: 5.89   Max: 14.86
Current: 8.41

5.89
14.86
ROC (Joel Greenblatt) (%) 46.35
ITW's ROC (Joel Greenblatt) (%) is ranked higher than
94% of the 1815 Companies
in the Global Diversified Industrials industry.

( Industry Median: 14.43 vs. ITW: 46.35 )
ITW' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 35.81   Max: 65.12
Current: 46.35

35.81
65.12
Revenue Growth (%) 0.90
ITW's Revenue Growth (%) is ranked higher than
61% of the 1707 Companies
in the Global Diversified Industrials industry.

( Industry Median: 4.00 vs. ITW: 0.90 )
ITW' s 10-Year Revenue Growth (%) Range
Min: -0.3   Max: 16.2
Current: 0.9

-0.3
16.2
EBITDA Growth (%) 8.40
ITW's EBITDA Growth (%) is ranked higher than
76% of the 1489 Companies
in the Global Diversified Industrials industry.

( Industry Median: 3.50 vs. ITW: 8.40 )
ITW' s 10-Year EBITDA Growth (%) Range
Min: -5.3   Max: 27.7
Current: 8.4

-5.3
27.7
EPS Growth (%) 7.90
ITW's EPS Growth (%) is ranked higher than
73% of the 1333 Companies
in the Global Diversified Industrials industry.

( Industry Median: 4.00 vs. ITW: 7.90 )
ITW' s 10-Year EPS Growth (%) Range
Min: -13.2   Max: 34.7
Current: 7.9

-13.2
34.7
» ITW's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q3 2013

ITW Guru Trades in Q3 2013

Murray Stahl 4,421 sh (New)
Jeremy Grantham 373,800 sh (New)
Joel Greenblatt 84,290 sh (+137.14%)
Steven Cohen 253,028 sh (+23.57%)
John Rogers 1,187,080 sh (+13.74%)
Chuck Royce 88,400 sh (+10.26%)
Bill Frels 3,457 sh (+2.95%)
Manning & Napier Advisors, Inc 76,873 sh (+0.15%)
Bill Nygren 3,060,000 sh (unchged)
Mario Gabelli 5,800 sh (unchged)
Brian Rogers 4,987,600 sh (unchged)
Tweedy Browne 353,253 sh (unchged)
Jim Simons Sold Out
Tom Gayner 242,810 sh (-0.45%)
Diamond Hill Capital 1,849,936 sh (-0.59%)
John Hussman 125,000 sh (-0.99%)
James Barrow 14,936,830 sh (-5.23%)
» More
Q4 2013

ITW Guru Trades in Q4 2013

Paul Tudor Jones 129,532 sh (New)
John Keeley 26,020 sh (New)
Jeremy Grantham 1,404,228 sh (+275.66%)
Steven Cohen 448,954 sh (+77.43%)
Murray Stahl 6,434 sh (+45.53%)
John Hussman 175,000 sh (+40%)
Bill Frels 3,656 sh (+5.76%)
John Rogers 1,209,645 sh (+1.9%)
Chuck Royce 89,900 sh (+1.7%)
Tweedy Browne 353,253 sh (unchged)
Brian Rogers 4,987,600 sh (unchged)
Bill Nygren 3,060,000 sh (unchged)
Mario Gabelli 5,800 sh (unchged)
Joel Greenblatt 84,042 sh (-0.29%)
Tom Gayner 241,200 sh (-0.66%)
Diamond Hill Capital 1,832,235 sh (-0.96%)
James Barrow 10,163,539 sh (-31.96%)
Manning & Napier Advisors, Inc 49,411 sh (-35.72%)
» More
Q1 2014

ITW Guru Trades in Q1 2014

Louis Moore Bacon 3,500 sh (New)
Ray Dalio 31,424 sh (New)
Jim Simons 749,643 sh (New)
Steven Cohen 1,633,057 sh (+263.75%)
Joel Greenblatt 229,566 sh (+173.16%)
Paul Tudor Jones 334,398 sh (+158.16%)
Jeremy Grantham 2,271,534 sh (+61.76%)
Murray Stahl 9,745 sh (+51.46%)
John Hussman 225,000 sh (+28.57%)
John Keeley 28,520 sh (+9.61%)
Chuck Royce 94,300 sh (+4.89%)
Diamond Hill Capital 1,900,746 sh (+3.74%)
Bill Frels 3,676 sh (+0.55%)
Mario Gabelli 5,800 sh (unchged)
Brian Rogers 4,987,600 sh (unchged)
Tweedy Browne 353,253 sh (unchged)
Bill Nygren 3,060,000 sh (unchged)
Manning & Napier Advisors, Inc 49,262 sh (-0.3%)
Tom Gayner 230,000 sh (-4.64%)
John Rogers 1,128,171 sh (-6.74%)
James Barrow 3,092,655 sh (-69.57%)
» More
Q2 2014

ITW Guru Trades in Q2 2014

Manning & Napier Advisors, Inc 53,792 sh (+9.2%)
Brian Rogers 4,987,600 sh (unchged)
» More
» Details

Insider Trades

Latest Guru Trades with ITW

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
James Barrow 2014-03-31 Reduce -69.57%0.83%$76.78 - $84.08 $ 85.395%3092655
John Hussman 2014-03-31 Add 28.57%0.31%$76.78 - $84.08 $ 85.396%225000
Joel Greenblatt 2014-03-31 Add 173.16%0.18%$76.78 - $84.08 $ 85.395%229566
Ray Dalio 2014-03-31 New Buy0.02%$76.78 - $84.08 $ 85.395%31424
James Barrow 2013-12-31 Reduce -31.96%0.58%$74.06 - $83.71 $ 85.398%10163539
John Hussman 2013-12-31 Add 40%0.29%$74.06 - $83.71 $ 85.398%175000
John Keeley 2013-12-31 New Buy0.04%$74.06 - $83.71 $ 85.398%26020
Joel Greenblatt 2013-09-30 Add 137.14%0.12%$68.77 - $78 $ 85.3917%84290
John Hussman 2013-06-30 Reduce -74.88%0.82%$60.5 - $71.33 $ 85.3928%126250
Joel Greenblatt 2013-06-30 Reduce -41.87%0.08%$60.5 - $71.33 $ 85.3928%35544
Ray Dalio 2013-06-30 Sold Out 0.04%$60.5 - $71.33 $ 85.3928%0
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Top Ranked Articles about Illinois Tool Works Inc

Weekly CFO Buys Highlight
According to GuruFocus Insider Data, these are the largest CFO buys during the past week. The overall trend of CFOs is illustrated in the chart below: Read more...
Insider Buys
According to GuruFocus Insider Data, these are the largest insider buys during the past week: Illinois Tool Works Inc. (ITW), Williams Companies Inc. (WMB), Energy Transfer Partners L.P. (ETP), Southwestern Energy Company (SWN) and Equinix Inc. (EQIX). Read more...
Second Quarter Update - Three Diversified Industrials
In spite of uncertain market conditions, a number of large-cap engineering and production companies are up, and second quarter trading activity reflects the investing billionaires’ interest in them. Here are the highlights of most recent trading of three diversified industrial companies, each up 26% or more over 12 months. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 21.20
ITW's P/E(ttm) is ranked higher than
72% of the 2028 Companies
in the Global Diversified Industrials industry.

( Industry Median: 24.10 vs. ITW: 21.20 )
ITW' s 10-Year P/E(ttm) Range
Min: 9.2   Max: 37.25
Current: 21.2

9.2
37.25
P/B 4.30
ITW's P/B is ranked lower than
55% of the 2028 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.73 vs. ITW: 4.30 )
ITW' s 10-Year P/B Range
Min: 1.71   Max: 4.43
Current: 4.3

1.71
4.43
P/S 2.70
ITW's P/S is ranked lower than
51% of the 2028 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.07 vs. ITW: 2.70 )
ITW' s 10-Year P/S Range
Min: 0.82   Max: 2.72
Current: 2.7

0.82
2.72
PFCF 18.10
ITW's PFCF is ranked higher than
81% of the 2028 Companies
in the Global Diversified Industrials industry.

( Industry Median: 43.56 vs. ITW: 18.10 )
ITW' s 10-Year PFCF Range
Min: 7.49   Max: 29.6
Current: 18.1

7.49
29.6
EV-to-EBIT 14.73
ITW's EV-to-EBIT is ranked higher than
75% of the 2028 Companies
in the Global Diversified Industrials industry.

( Industry Median: 17.19 vs. ITW: 14.73 )
ITW' s 10-Year EV-to-EBIT Range
Min: 3.4   Max: 19.2
Current: 14.73

3.4
19.2
PEG 1.30
ITW's PEG is ranked higher than
85% of the 2028 Companies
in the Global Diversified Industrials industry.

( Industry Median: 9999.00 vs. ITW: 1.30 )
ITW' s 10-Year PEG Range
Min: 0.71   Max: 68.68
Current: 1.3

0.71
68.68
Shiller P/E 22.10
ITW's Shiller P/E is ranked higher than
90% of the 2028 Companies
in the Global Diversified Industrials industry.

( Industry Median: 9999.00 vs. ITW: 22.10 )
ITW' s 10-Year Shiller P/E Range
Min: 9.96   Max: 30.24
Current: 22.1

9.96
30.24
Current Ratio 1.87
ITW's Current Ratio is ranked higher than
67% of the 1944 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.82 vs. ITW: 1.87 )
ITW' s 10-Year Current Ratio Range
Min: 1.19   Max: 3.21
Current: 1.87

1.19
3.21
Quick Ratio 1.63
ITW's Quick Ratio is ranked higher than
74% of the 1944 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.29 vs. ITW: 1.63 )
ITW' s 10-Year Quick Ratio Range
Min: 0.82   Max: 2.55
Current: 1.63

0.82
2.55

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 2.00
ITW's Dividend Yield is ranked higher than
64% of the 1495 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.52 vs. ITW: 2.00 )
ITW' s 10-Year Dividend Yield Range
Min: 1   Max: 4.51
Current: 2

1
4.51
Dividend Payout 0.40
ITW's Dividend Payout is ranked higher than
86% of the 2028 Companies
in the Global Diversified Industrials industry.

( Industry Median: 9999.00 vs. ITW: 0.40 )
ITW' s 10-Year Dividend Payout Range
Min: 0.17   Max: 0.89
Current: 0.4

0.17
0.89
Dividend growth (3y) 7.20
ITW's Dividend growth (3y) is ranked higher than
77% of the 978 Companies
in the Global Diversified Industrials industry.

( Industry Median: 5.50 vs. ITW: 7.20 )
ITW' s 10-Year Dividend growth (3y) Range
Min: 5.9   Max: 24.6
Current: 7.2

5.9
24.6
Yield on cost (5-Year) 2.75
ITW's Yield on cost (5-Year) is ranked higher than
71% of the 1509 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.78 vs. ITW: 2.75 )
ITW' s 10-Year Yield on cost (5-Year) Range
Min: 1.38   Max: 6.21
Current: 2.75

1.38
6.21
Share Buyback Rate 3.70
ITW's Share Buyback Rate is ranked higher than
93% of the 1239 Companies
in the Global Diversified Industrials industry.

( Industry Median: -0.40 vs. ITW: 3.70 )
ITW' s 10-Year Share Buyback Rate Range
Min: 4.2   Max: -8.6
Current: 3.7

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 20.80
ITW's Price/Tangible Book is ranked lower than
58% of the 2028 Companies
in the Global Diversified Industrials industry.

( Industry Median: 2.24 vs. ITW: 20.80 )
ITW' s 10-Year Price/Tangible Book Range
Min: 4.19   Max: 19.79
Current: 20.8

4.19
19.79
Price/DCF (Projected) 1.50
ITW's Price/DCF (Projected) is ranked higher than
86% of the 2028 Companies
in the Global Diversified Industrials industry.

( Industry Median: 9999.00 vs. ITW: 1.50 )
ITW' s 10-Year Price/DCF (Projected) Range
Min: 0.52   Max: 3.69
Current: 1.5

0.52
3.69
Price/Median PS Value 1.30
ITW's Price/Median PS Value is ranked higher than
57% of the 2028 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.16 vs. ITW: 1.30 )
ITW' s 10-Year Price/Median PS Value Range
Min: 0.5   Max: 1.46
Current: 1.3

0.5
1.46
Price/Peter Lynch Fair Value 1.30
ITW's Price/Peter Lynch Fair Value is ranked higher than
92% of the 2028 Companies
in the Global Diversified Industrials industry.

( Industry Median: 9999.00 vs. ITW: 1.30 )
ITW' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.9   Max: 4.82
Current: 1.3

0.9
4.82
Price/Graham Number 4.40
ITW's Price/Graham Number is ranked higher than
55% of the 2028 Companies
in the Global Diversified Industrials industry.

( Industry Median: 2.25 vs. ITW: 4.40 )
ITW' s 10-Year Price/Graham Number Range
Min: 1.89   Max: 4.98
Current: 4.4

1.89
4.98
Earnings Yield (Greenblatt) 6.80
ITW's Earnings Yield (Greenblatt) is ranked higher than
69% of the 1806 Companies
in the Global Diversified Industrials industry.

( Industry Median: 6.70 vs. ITW: 6.80 )
ITW' s 10-Year Earnings Yield (Greenblatt) Range
Min: 5.2   Max: 29.6
Current: 6.8

5.2
29.6
Forward Rate of Return (Yacktman) 19.97
ITW's Forward Rate of Return (Yacktman) is ranked higher than
88% of the 1378 Companies
in the Global Diversified Industrials industry.

( Industry Median: 6.21 vs. ITW: 19.97 )
ITW' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 2.6   Max: 22.3
Current: 19.97

2.6
22.3

Business Description

Industry: Industrial Products » Diversified Industrials
Compare:UTX, MMM, ARG, AP, EMR » details
Traded in other countries:ILT.Germany
Illinois Tool Works Inc. was founded in 1912 and incorporated in 1915. The Company is a multinational manufacturer of a range of industrial products and equipment with operations in 58 countries. These businesses are internally reported as 40 operating segments to senior management. The Company's 40 operating segments have been aggregated into seven external reportable segments: Transportation; Power Systems & Electronics; Industrial Packaging; Food Equipment; Construction Products; Polymers & Fluids; and All Other. Businesses in the Industrial Packaging segment produce steel, plastic and paper products used for bundling, shipping and protecting goods in transit. In the Industrial Packaging segment, products include: steel and plastic strapping and related tools and equipment; plastic stretch film and related equipment; paper and plastic products; and metal jacketing and other insulation products. Businesses in the Power Systems & Electronics segment produce equipment and consumables associated with specialty power conversion, metallurgy and electronics. In the Power Systems & Electronics segment, products include: arc welding equipment; metal arc and related accessories; metal solder materials for PC board fabrication; equipment and services for microelectronics assembly; electronic components and component packaging; and airport ground support equipment. Businesses in the Transportation segment produce components, fasteners, fluids and polymers, as well as truck remanufacturing and related parts and service. In the Transportation segment, products include: metal and plastic components and light trucks; fluids and polymers for auto aftermarket maintenance and appearance; fillers and putties for auto body repair; and polyester coatings and patch and repair products for the marine industry. Businesses in the Food Equipment segment produce commercial food equipment and related service. In the Food Equipment segment, products include: ware washing equipment; cooking equipment; refrigeration equipment, including refrigerators, freezers and prep tables; food processing equipment, including slicers, mixers and scales; and kitchen exhaust, ventilation and pollution control systems. Businesses in the Construction Products segment produce tools, fasteners and other products for construction applications. In the Construction Products segment, products include: fasteners and related fastening tools for wood applications; anchors, fasteners and related tools for concrete applications; metal plate truss components and related equipment and software; and packaged hardware, fasteners, anchors and other products for retail. Businesses in the Polymers & Fluids segment produce adhesives, sealants, lubrication and cutting fluid, and hygiene products. In the Polymers & Fluids segment, products include: adhesives for industrial, construction and consumer purposes; chemical fluids that clean or add lubrication to machines; epoxy and resin-based coatin
» More Articles for ITW

Headlines

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