Hide

FocusBar

FeedbackFeedback
Subscribe to Premium Member
70.78 (1y: +30%)
Market Cap 31.49 B P/E(ttm) 12.10
Enterprise Value 33.84 B P/B 3.03
ITW- NYSE (USA)
Illinois Tool Works Inc
  • Currently 3/5
Business Predictability Rank: 3-Star
Back Testing Results:
Average gain of all 3-Star stocks: 8.2% per year.
% of Stocks that are in still loss if held for 10yrs: 11%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$70.78
Switch to:

GuruFocus Financial Strength Rank measures how strong a companyย’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 : 7/10

vs
industry		 vs
history
Cash to Debt 0.551
ITW's Cash to Debt is ranked lower than
66% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: 3.06 vs. ITW: 0.551 )
ITW' s 10-Year Cash to Debt Range
Min: 0.08   Max: 1.73
Current: 0.55
0.08
1.73
Equity to Asset 0.144
ITW's Equity to Asset is ranked lower than
88% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.49 vs. ITW: 0.144 )
ITW' s 10-Year Equity to Asset Range
Min: 0.09   Max: 0.45
Current: 0.14
0.09
0.45
Interest Coverage 16.4
ITW's Interest Coverage is ranked lower than
60% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: 457.80 vs. ITW: 16.4 )
ITW' s 10-Year Interest Coverage Range
Min: 8   Max: 44
Current: 16.4
8
44
F-Score: 5
Z-Score: 4.96
M-Score: -2.48
GuruFocus Profitability Rank ranks how profitable a company is and how likely the companyย’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.
ย•ย•3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rankย•

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 : 7/10

vs
industry		 vs
history
Operating margin (%) 15.90
ITW's Operating margin (%) is ranked higher than
91% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: 5.70 vs. ITW: 15.90 )
ITW' s 10-Year Operating margin (%) Range
Min: 10   Max: 17.5
Current: 15.9
10
17.5
Net-margin (%) 16
ITW's Net-margin (%) is ranked higher than
88% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: 3.70 vs. ITW: 16 )
ITW' s 10-Year Net-margin (%) Range
Min: 6.8   Max: 16
Current: 16
6.8
16
ROE (%) 27.2
ITW's ROE (%) is ranked higher than
93% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: 5.60 vs. ITW: 27.2 )
ITW' s 10-Year ROE (%) Range
Min: 10.7   Max: 27.2
Current: 27.2
10.7
27.2
ROA (%) 14.9
ITW's ROA (%) is ranked higher than
94% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: 2.80 vs. ITW: 14.9 )
ITW' s 10-Year ROA (%) Range
Min: 5.9   Max: 14.9
Current: 14.9
5.9
14.9
ROC (Joel Greenblatt) (%) 57.10
ITW's ROC (Joel Greenblatt) (%) is ranked higher than
95% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: 10.40 vs. ITW: 57.10 )
ITW' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 35.8   Max: 59.4
Current: 57.1
35.8
59.4
Revenue Growth (%) 8.1
ITW's Revenue Growth (%) is ranked higher than
90% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.45 vs. ITW: 8.1 )
ITW' s 10-Year Revenue Growth (%) Range
Min: -0.2   Max: 10.9
Current: 8.1
-0.2
10.9
EBITDA Growth (%) 15.4
ITW's EBITDA Growth (%) is ranked higher than
89% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: -0.35 vs. ITW: 15.4 )
ITW' s 10-Year EBITDA Growth (%) Range
Min: -4.8   Max: 15.4
Current: 15.4
-4.8
15.4
EPS Growth (%) 33.8
ITW's EPS Growth (%) is ranked higher than
88% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: 3.40 vs. ITW: 33.8 )
ITW' s 10-Year EPS Growth (%) Range
Min: -11   Max: 33.8
Current: 33.8
-11
33.8
ยป ITW's 10-Y Financials

Financials


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

» Details

Guru Trades
Q2 2012

ITW Guru Trades in Q2 2012

Paul Tudor Jones 11,400 sh (New)
Jeremy Grantham 57,600 sh (New)
Jim Simons 588,000 sh (New)
Joel Greenblatt 26,205 sh (+524.37%)
Manning & Napier Advisors, Inc 65,891 sh (+72.4%)
Chuck Royce 37,950 sh (+55.02%)
Bill Nygren 2,385,000 sh (+20.15%)
John Hussman 500 sh (unchged)
Tom Gayner 248,652 sh (unchged)
Mario Gabelli 5,800 sh (unchged)
Tweedy Browne 353,253 sh (unchged)
Jeff Auxier 5,875 sh (unchged)
Bill Frels 4,198 sh (unchged)
Brian Rogers 4,987,600 sh (unchged)
Pioneer Investments Sold Out
James Barrow 15,900,410 sh (-1.96%)
Arnold Van Den Berg 19,585 sh (-3.83%)
Diamond Hill Capital 2,304,991 sh (-5.5%)
Steven Cohen 1,184,222 sh (-10.25%)
Scott Black 34,456 sh (-18.15%)
John Rogers 516,382 sh (-27.2%)
» More
Q3 2012

ITW Guru Trades in Q3 2012

Joel Greenblatt 39,370 sh (+50.24%)
Jeremy Grantham 68,600 sh (+19.1%)
Chuck Royce 44,560 sh (+17.42%)
Manning & Napier Advisors, Inc 71,420 sh (+8.39%)
John Hussman 500 sh (unchged)
Jeff Auxier 5,875 sh (unchged)
Brian Rogers 4,987,600 sh (unchged)
Bill Nygren 2,385,000 sh (unchged)
Tweedy Browne 353,253 sh (unchged)
Mario Gabelli 5,800 sh (unchged)
Jim Simons Sold Out
Scott Black Sold Out
Arnold Van Den Berg Sold Out
Tom Gayner 247,490 sh (-0.47%)
James Barrow 15,786,490 sh (-0.72%)
Bill Frels 4,148 sh (-1.19%)
Diamond Hill Capital 2,228,268 sh (-3.33%)
John Rogers 472,040 sh (-8.59%)
Paul Tudor Jones 3,900 sh (-65.79%)
Steven Cohen 27,006 sh (-97.72%)
» More
Q4 2012

ITW Guru Trades in Q4 2012

John Hussman 301,000 sh (+60100%)
Steven Cohen 50,788 sh (+88.06%)
Joel Greenblatt 50,917 sh (+29.33%)
Chuck Royce 48,880 sh (+9.69%)
Bill Nygren 2,460,000 sh (+3.14%)
Jeremy Grantham 93,600 sh (unchged)
Jeff Auxier 5,875 sh (unchged)
Brian Rogers 4,987,600 sh (unchged)
Tweedy Browne 353,253 sh (unchged)
Mario Gabelli 5,800 sh (unchged)
Paul Tudor Jones Sold Out
John Rogers 471,687 sh (-0.07%)
Manning & Napier Advisors, Inc 71,249 sh (-0.24%)
Tom Gayner 245,500 sh (-0.8%)
Bill Frels 4,090 sh (-1.4%)
James Barrow 15,492,607 sh (-1.86%)
Diamond Hill Capital 2,092,550 sh (-6.09%)
» More
Q1 2013

ITW Guru Trades in Q1 2013

Jim Simons 484,400 sh (New)
Ray Dalio 72,436 sh (New)
Paul Tudor Jones 7,500 sh (New)
John Rogers 852,192 sh (+80.67%)
John Hussman 502,500 sh (+66.94%)
Chuck Royce 60,400 sh (+23.57%)
Joel Greenblatt 61,149 sh (+20.1%)
Manning & Napier Advisors, Inc 75,035 sh (+5.31%)
Diamond Hill Capital 2,131,947 sh (+1.88%)
Tweedy Browne 353,253 sh (unchged)
Brian Rogers 4,987,600 sh (unchged)
Mario Gabelli 5,800 sh (unchged)
Jeff Auxier Sold Out
Tom Gayner 245,000 sh (-0.2%)
James Barrow 15,403,512 sh (-0.58%)
Bill Frels 3,645 sh (-10.88%)
Steven Cohen 23,138 sh (-54.44%)
Jeremy Grantham 24,000 sh (-74.36%)
» More
» Details

Insider Trades

Latest Guru Trades with ITW

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
John Hussman 2013-03-31 Add 66.94%0.44%$59.77 - $65.44 $ 70.7813%502500
John Rogers 2013-03-31 Add 80.67%0.4%$59.77 - $65.44 $ 70.7813%852192
Ray Dalio 2013-03-31 New Buy0.04%$59.77 - $65.44 $ 70.7813%72436
Joel Greenblatt 2013-03-31 Add 20.1%0.03%$59.77 - $65.44 $ 70.7813%61149
John Hussman 2012-12-31 Add 60100%0.48%$58.28 - $62.95 $ 70.7817%301000
Joel Greenblatt 2012-12-31 Add 29.33%0.04%$58.28 - $62.95 $ 70.7817%50917
Scott Black 2012-09-30 Sold Out 0.28%$50.05 - $61.36 $ 70.7826%0
Arnold Van Den Berg 2012-09-30 Sold Out 0.1%$50.05 - $61.36 $ 70.7826%0
Joel Greenblatt 2012-09-30 Add 50.24%0.05%$50.05 - $61.36 $ 70.7826%39370
Bill Nygren 2012-06-30 Add 20.15%0.37%$50.94 - $57.85 $ 70.7828%2385000
John Rogers 2012-06-30 Reduce -27.2%0.23%$50.94 - $57.85 $ 70.7828%516382
Joel Greenblatt 2012-06-30 Add 524.37%0.08%$50.94 - $57.85 $ 70.7828%26205
Premium More recent guru trades are included for Premium Members only!!

Top Ranked Articles about Illinois Tool Works Inc

WEEKLY CFO SELLS HIGHLIGHT: ITW, HON, BOX, STZ, PFMT
April 28, 2013
According to GuruFocus Insider Data, the largest CFO sells during the past week were: Illinois Tool Works Inc., Honeywell International Inc., SeaCube Container Leasing Ltd., Constellation Brands Inc., and Performant Financial Corp. Read more...

Ratios

vs
industry		 vs
history
P/E(ttm) 12.10
ITW's P/E(ttm) is ranked higher than
84% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: 18.99 vs. ITW: 12.10 )
ITW' s 10-Year P/E(ttm) Range
Min: 9.21   Max: 39.69
Current: 12.1
9.21
39.69
P/B 3.03
ITW's P/B is ranked lower than
75% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.48 vs. ITW: 3.03 )
ITW' s 10-Year P/B Range
Min: 1.75   Max: 3.97
Current: 3.03
1.75
3.97
P/S 1.90
ITW's P/S is ranked lower than
76% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.75 vs. ITW: 1.90 )
ITW' s 10-Year P/S Range
Min: 0.88   Max: 2.72
Current: 1.9
0.88
2.72
PFCF 19.13
ITW's PFCF is ranked higher than
57% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: 15.61 vs. ITW: 19.13 )
ITW' s 10-Year PFCF Range
Min: 7.47   Max: 40.37
Current: 19.13
7.47
40.37
EV-to-EBIT 12.08
ITW's EV-to-EBIT is ranked higher than
82% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: 12.70 vs. ITW: 12.08 )
ITW' s 10-Year EV-to-EBIT Range
Min: 7.2   Max: 20.8
Current: 12.08
7.2
20.8
PEG 1.21
ITW's PEG is ranked higher than
95% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.80 vs. ITW: 1.21 )
ITW' s 10-Year PEG Range
Min: 0.66   Max: 137.6
Current: 1.21
0.66
137.6
Shiller P/E 18.71
ITW's Shiller P/E is ranked higher than
90% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: 16.60 vs. ITW: 18.71 )
ITW' s 10-Year Shiller P/E Range
Min: 9.93   Max: 30.24
Current: 18.71
9.93
30.24

Dividend & Buy Back

vs
industry		 vs
history
Dividend Yield 2.12
ITW's Dividend Yield is ranked higher than
78% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.85 vs. ITW: 2.12 )
ITW' s 10-Year Dividend Yield Range
Min: 1   Max: 4.51
Current: 2.12
1
4.51
Dividend Payout 0.3
ITW's Dividend Payout is ranked higher than
89% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.66 vs. ITW: 0.3 )
ITW' s 10-Year Dividend Payout Range
Min: 0.24   Max: 0.66
Current: 0.3
0.24
0.66
Dividend growth (3y) 4.5
ITW's Dividend growth (3y) is ranked higher than
94% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: -0.20 vs. ITW: 4.5 )
ITW' s 10-Year Dividend growth (3y) Range
Min: 4.4   Max: 17.9
Current: 4.5
4.4
17.9
Yield on cost (5-Year) 2.80
ITW's Yield on cost (5-Year) is ranked higher than
89% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.88 vs. ITW: 2.80 )
ITW' s 10-Year Yield on cost (5-Year) Range
Min: 1.33   Max: 6.01
Current: 2.8
1.33
6.01
Share Buyback Rate 1.4
ITW's Share Buyback Rate is ranked higher than
96% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: -0.90 vs. ITW: 1.4 )
ITW' s 10-Year Share Buyback Rate Range
Min: 3.2   Max: -0.3
Current: 1.4

Valuation & Return

vs
industry		 vs
history
Price/Net Current Asset Value 10.4
ITW's Price/Net Current Asset Value is ranked higher than
91% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: 4.80 vs. ITW: 10.4 )
ITW' s 10-Year Price/Net Current Asset Value Range
Min: 6.6   Max: 14.5
Current: 10.4
6.6
14.5
Price/Tangible Book 11.5
ITW's Price/Tangible Book is ranked higher than
97% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: 2.00 vs. ITW: 11.5 )
ITW' s 10-Year Price/Tangible Book Range
Min: 5   Max: 13.2
Current: 11.5
5
13.2
Price/DCF (Projected) 1.1
ITW's Price/DCF (Projected) is ranked higher than
89% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.10 vs. ITW: 1.1 )
ITW' s 10-Year Price/DCF (Projected) Range
Min: 0.6   Max: 2
Current: 1.1
0.6
2
Price/Median PS Value 1
ITW's Price/Median PS Value is ranked higher than
81% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.80 vs. ITW: 1 )
ITW' s 10-Year Price/Median PS Value Range
Min: 0.6   Max: 1.4
Current: 1
0.6
1.4
Price/Peter Lynch Fair Value 1.4
ITW's Price/Peter Lynch Fair Value is ranked lower than
72% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.85 vs. ITW: 1.4 )
ITW' s 10-Year Price/Peter Lynch Fair Value Range
Min: 1   Max: 3.1
Current: 1.4
1
3.1
Price/Graham Number 2.6
ITW's Price/Graham Number is ranked higher than
94% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.50 vs. ITW: 2.6 )
ITW' s 10-Year Price/Graham Number Range
Min: 2.1   Max: 3.4
Current: 2.6
2.1
3.4
Earnings Yield (Greenblatt) 8.30
ITW's Earnings Yield (Greenblatt) is ranked higher than
91% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: 7.10 vs. ITW: 8.30 )
ITW' s 10-Year Earnings Yield (Greenblatt) Range
Min: 4.8   Max: 13.8
Current: 8.3
4.8
13.8
Forward Rate of Return (Yacktman) 13.68
ITW's Forward Rate of Return (Yacktman) is ranked higher than
92% of the 1074 Companies
in the Global Diversified Industrials industry.

( Industry Median: 4.32 vs. ITW: 13.68 )
ITW' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 2.6   Max: 22.8
Current: 13.68
2.6
22.8

Business Description

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 52 operating segments to senior management. The Company's 52 operating segments have been aggregated into eight external reportable segments: Industrial Packaging; Power Systems & Electronics; Transportation; Construction Products; Food Equipment; Polymers & Fluids; Decorative Surfaces 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: warewashing 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
Company Website
SEC Reports
Industry: Diversified Industrials
Compare:UTX, MMM, ARG, AP, EMR
Traded in other countries:ILT.Germany
ยป More Articles for ITW

Headlines

Articles On GuruFocus.com
First Quarter 2013: Top and Bottom Performing Dividend Stocks May 07 2013 
WEEKLY CFO SELLS HIGHLIGHT: ITW, HON, BOX, STZ, PFMT Apr 28 2013 
My 3 Favorite Dividend Aristocrats with the Highest Payout Potential Apr 09 2013 
5 Engineering Companies that Keep Boosting Dividends Mar 27 2013 
Why Accomplished Dividend Growth Investors Can Ignore Price Volatility Mar 21 2013 
Illinois Tool Works Inc. (ITW) Dividend Stock Analysis Mar 14 2013 
12 Best Dividend Paying Diversified Machinery Stocks Mar 12 2013 
The Dividend Aristocrats, Where Have All The Bargains Gone? Feb 28 2013 
My 2012 Top and Bottom Performing Dividend Stocks Jan 30 2013 
20 Cheapest Dividend Champions to Buy Now Jan 07 2013 

Personalized Checklist





Within your circle of competence?
Macro economic environment favorable?
High quality business?
Enough margin of safety with stocks?
Gurus are buying?
Insiders are buying?
Management capable and shareholder friendly?
Catalyst for stock price to appreciate?
Your level of confidence with the research?

GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names
Free 7-day Trial