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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 0.54
ITW's Cash to Debt is ranked higher than
59% of the 2453 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.92 vs. ITW: 0.54 )
ITW' s 10-Year Cash to Debt Range
Min: 0.07   Max: 1.73
Current: 0.54

0.07
1.73
Equity to Asset 0.39
ITW's Equity to Asset is ranked higher than
52% of the 2258 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.49 vs. ITW: 0.39 )
ITW' s 10-Year Equity to Asset Range
Min: 0.39   Max: 0.7
Current: 0.39

0.39
0.7
Interest Coverage 11.55
ITW's Interest Coverage is ranked higher than
52% of the 1434 Companies
in the Global Diversified Industrials industry.

( Industry Median: 40.23 vs. ITW: 11.55 )
ITW' s 10-Year Interest Coverage Range
Min: 8.41   Max: 44.82
Current: 11.55

8.41
44.82
F-Score: 6
Z-Score: 5.02
M-Score: -2.18
WACC vs ROIC
7.22%
18.98%
WACC
ROIC
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 : 7/10

vs
industry
vs
history
Operating margin (%) 20.47
ITW's Operating margin (%) is ranked higher than
96% of the 2459 Companies
in the Global Diversified Industrials industry.

( Industry Median: 6.20 vs. ITW: 20.47 )
ITW' s 10-Year Operating margin (%) Range
Min: 9.99   Max: 19.94
Current: 20.47

9.99
19.94
Net-margin (%) 20.56
ITW's Net-margin (%) is ranked higher than
98% of the 2459 Companies
in the Global Diversified Industrials industry.

( Industry Median: 4.44 vs. ITW: 20.56 )
ITW' s 10-Year Net-margin (%) Range
Min: 6.82   Max: 20.34
Current: 20.56

6.82
20.34
ROE (%) 40.04
ITW's ROE (%) is ranked higher than
97% of the 2430 Companies
in the Global Diversified Industrials industry.

( Industry Median: 8.25 vs. ITW: 40.04 )
ITW' s 10-Year ROE (%) Range
Min: 11.23   Max: 35.66
Current: 40.04

11.23
35.66
ROA (%) 15.80
ITW's ROA (%) is ranked higher than
96% of the 2474 Companies
in the Global Diversified Industrials industry.

( Industry Median: 3.80 vs. ITW: 15.80 )
ITW' s 10-Year ROA (%) Range
Min: 6.05   Max: 15.65
Current: 15.8

6.05
15.65
ROC (Joel Greenblatt) (%) 73.17
ITW's ROC (Joel Greenblatt) (%) is ranked higher than
96% of the 2469 Companies
in the Global Diversified Industrials industry.

( Industry Median: 12.63 vs. ITW: 73.17 )
ITW' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 32.23   Max: 103.79
Current: 73.17

32.23
103.79
Revenue Growth (3Y)(%) -0.10
ITW's Revenue Growth (3Y)(%) is ranked higher than
61% of the 2087 Companies
in the Global Diversified Industrials industry.

( Industry Median: 2.80 vs. ITW: -0.10 )
ITW' s 10-Year Revenue Growth (3Y)(%) Range
Min: -0.3   Max: 16.2
Current: -0.1

-0.3
16.2
EBITDA Growth (3Y)(%) 7.70
ITW's EBITDA Growth (3Y)(%) is ranked higher than
77% of the 1813 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.30 vs. ITW: 7.70 )
ITW' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -5.3   Max: 27.7
Current: 7.7

-5.3
27.7
EPS Growth (3Y)(%) 4.60
ITW's EPS Growth (3Y)(%) is ranked higher than
73% of the 1691 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.30 vs. ITW: 4.60 )
ITW' s 10-Year EPS Growth (3Y)(%) Range
Min: -13.2   Max: 34.7
Current: 4.6

-13.2
34.7
» ITW's 10-Y Financials

Financials


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

» Details

Guru Trades

Q2 2014

ITW Guru Trades in Q2 2014

Caxton Associates 25,000 sh (New)
Pioneer Investments 47,422 sh (New)
Ruane Cunniff 2,340 sh (New)
Joel Greenblatt 329,918 sh (+43.71%)
Manning & Napier Advisors, Inc 53,792 sh (+9.20%)
John Keeley 29,410 sh (+3.12%)
Diamond Hill Capital 1,908,741 sh (+0.42%)
Bill Nygren 3,060,000 sh (unchged)
Mario Gabelli 5,800 sh (unchged)
Steven Cohen 444,900 sh (unchged)
Tweedy Browne 353,253 sh (unchged)
Tom Gayner 230,000 sh (unchged)
Brian Rogers 4,987,600 sh (unchged)
Jim Simons Sold Out
Louis Moore Bacon Sold Out
Bill Frels Sold Out
Jeremy Grantham 2,243,634 sh (-1.23%)
Chuck Royce 87,000 sh (-7.74%)
Murray Stahl 8,870 sh (-8.98%)
John Rogers 911,635 sh (-19.19%)
Paul Tudor Jones 269,000 sh (-19.56%)
John Hussman 150,000 sh (-33.33%)
Ray Dalio 20,724 sh (-34.05%)
James Barrow 1,908,429 sh (-38.29%)
» More
Q3 2014

ITW Guru Trades in Q3 2014

Joel Greenblatt 817,986 sh (+147.94%)
Manning & Napier Advisors, Inc 62,934 sh (+17.00%)
Murray Stahl 9,505 sh (+7.16%)
Jeremy Grantham 2,402,434 sh (+7.08%)
John Keeley 31,410 sh (+6.80%)
Diamond Hill Capital 1,962,768 sh (+2.83%)
Bill Nygren 3,115,000 sh (+1.80%)
Ruane Cunniff 2,374 sh (+1.45%)
James Barrow 1,935,740 sh (+1.43%)
John Rogers 917,213 sh (+0.61%)
Tom Gayner 230,000 sh (unchged)
Brian Rogers 4,987,600 sh (unchged)
Mario Gabelli 5,800 sh (unchged)
Tweedy Browne 353,253 sh (unchged)
Pioneer Investments 72,470 sh (unchged)
Ray Dalio Sold Out
Caxton Associates Sold Out
Steven Cohen Sold Out
Chuck Royce 74,800 sh (-14.02%)
John Hussman 100,000 sh (-33.33%)
Paul Tudor Jones 145,000 sh (-46.10%)
» More
Q4 2014

ITW Guru Trades in Q4 2014

Ray Dalio 43,460 sh (New)
RS Investment Management 57,090 sh (New)
Jeremy Grantham 2,915,819 sh (+21.37%)
James Barrow 2,039,308 sh (+5.35%)
Diamond Hill Capital 2,035,513 sh (+3.71%)
Tom Gayner 230,000 sh (unchged)
Brian Rogers 4,987,600 sh (unchged)
Bill Nygren 3,115,000 sh (unchged)
Chuck Royce 74,800 sh (unchged)
Tweedy Browne 352,727 sh (-0.15%)
John Rogers 909,356 sh (-0.86%)
John Keeley 31,030 sh (-1.21%)
Manning & Napier Advisors, Inc 61,592 sh (-2.13%)
Ruane Cunniff 2,248 sh (-5.31%)
Murray Stahl 8,769 sh (-7.74%)
Pioneer Investments 61,243 sh (-15.49%)
Mario Gabelli 4,900 sh (-15.52%)
Paul Tudor Jones 105,000 sh (-27.59%)
Joel Greenblatt 213,911 sh (-73.85%)
John Hussman 25,000 sh (-75.00%)
» More
Q1 2015

ITW Guru Trades in Q1 2015

Manning & Napier Advisors, Inc 60,676 sh (-1.49%)
Brian Rogers 4,487,600 sh (-10.02%)
» More
» Details

Insider Trades

Latest Guru Trades with ITW

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

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Top Ranked Articles about Illinois Tool Works Inc

Weekly 52-Week Highs Highlight: ITW, ESRX, TEVA, CHD, STI
According to GuruFocus' list of 52-week highs, Illinois Tool Works Inc, Express Scripts, Teva Pharmaceutical Industries Ltd, Church & Dwight Company Inc, and SunTrust Banks Inc. have all reached their 52-week highs. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 13.00
ITW's P/E(ttm) is ranked higher than
87% of the 2679 Companies
in the Global Diversified Industrials industry.

( Industry Median: 28.70 vs. ITW: 13.00 )
ITW' s 10-Year P/E(ttm) Range
Min: 9.2   Max: 37.25
Current: 13

9.2
37.25
Forward P/E 16.50
ITW's Forward P/E is ranked higher than
86% of the 2679 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.00 vs. ITW: 16.50 )
N/A
PE(NRI) 20.20
ITW's PE(NRI) is ranked higher than
76% of the 2679 Companies
in the Global Diversified Industrials industry.

( Industry Median: 28.50 vs. ITW: 20.20 )
ITW' s 10-Year PE(NRI) Range
Min: 8.74   Max: 29.3
Current: 20.2

8.74
29.3
P/B 7.30
ITW's P/B is ranked lower than
59% of the 2679 Companies
in the Global Diversified Industrials industry.

( Industry Median: 2.20 vs. ITW: 7.30 )
ITW' s 10-Year P/B Range
Min: 1.71   Max: 7.3
Current: 7.3

1.71
7.3
P/S 2.64
ITW's P/S is ranked lower than
58% of the 2679 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.23 vs. ITW: 2.64 )
ITW' s 10-Year P/S Range
Min: 0.82   Max: 2.78
Current: 2.64

0.82
2.78
PFCF 30.50
ITW's PFCF is ranked higher than
72% of the 2678 Companies
in the Global Diversified Industrials industry.

( Industry Median: 88.25 vs. ITW: 30.50 )
ITW' s 10-Year PFCF Range
Min: 7.49   Max: 31.99
Current: 30.5

7.49
31.99
POCF 23.55
ITW's POCF is ranked higher than
66% of the 2679 Companies
in the Global Diversified Industrials industry.

( Industry Median: 19.44 vs. ITW: 23.55 )
ITW' s 10-Year POCF Range
Min: 6.32   Max: 24.81
Current: 23.55

6.32
24.81
EV-to-EBIT 13.61
ITW's EV-to-EBIT is ranked higher than
78% of the 2679 Companies
in the Global Diversified Industrials industry.

( Industry Median: 20.33 vs. ITW: 13.61 )
ITW' s 10-Year EV-to-EBIT Range
Min: 3.4   Max: 19.2
Current: 13.61

3.4
19.2
PEG 1.43
ITW's PEG is ranked higher than
92% of the 2679 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.00 vs. ITW: 1.43 )
ITW' s 10-Year PEG Range
Min: 0.71   Max: 66.18
Current: 1.43

0.71
66.18
Shiller P/E 21.20
ITW's Shiller P/E is ranked higher than
86% of the 2679 Companies
in the Global Diversified Industrials industry.

( Industry Median: 396.19 vs. ITW: 21.20 )
ITW' s 10-Year Shiller P/E Range
Min: 9.93   Max: 30.24
Current: 21.2

9.93
30.24
Current Ratio 2.29
ITW's Current Ratio is ranked higher than
77% of the 2280 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.81 vs. ITW: 2.29 )
ITW' s 10-Year Current Ratio Range
Min: 1.19   Max: 3.21
Current: 2.29

1.19
3.21
Quick Ratio 1.95
ITW's Quick Ratio is ranked higher than
83% of the 2280 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.26 vs. ITW: 1.95 )
ITW' s 10-Year Quick Ratio Range
Min: 0.82   Max: 2.55
Current: 1.95

0.82
2.55
Days Inventory 53.64
ITW's Days Inventory is ranked higher than
86% of the 2679 Companies
in the Global Diversified Industrials industry.

( Industry Median: 101.74 vs. ITW: 53.64 )
ITW' s 10-Year Days Inventory Range
Min: 39.93   Max: 67.05
Current: 53.64

39.93
67.05
Days Sales Outstanding 60.60
ITW's Days Sales Outstanding is ranked higher than
84% of the 2679 Companies
in the Global Diversified Industrials industry.

( Industry Median: 90.43 vs. ITW: 60.60 )
ITW' s 10-Year Days Sales Outstanding Range
Min: 43.16   Max: 71.56
Current: 60.6

43.16
71.56

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.98
ITW's Dividend Yield is ranked higher than
60% of the 1816 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.70 vs. ITW: 1.98 )
ITW' s 10-Year Dividend Yield Range
Min: 1   Max: 4.51
Current: 1.98

1
4.51
Dividend Payout 0.39
ITW's Dividend Payout is ranked higher than
74% of the 2679 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.71 vs. ITW: 0.39 )
ITW' s 10-Year Dividend Payout Range
Min: 0.19   Max: 0.66
Current: 0.39

0.19
0.66
Dividend growth (3y) 8.90
ITW's Dividend growth (3y) is ranked higher than
77% of the 1144 Companies
in the Global Diversified Industrials industry.

( Industry Median: 6.10 vs. ITW: 8.90 )
ITW' s 10-Year Dividend growth (3y) Range
Min: 5.9   Max: 24.6
Current: 8.9

5.9
24.6
Yield on cost (5-Year) 2.88
ITW's Yield on cost (5-Year) is ranked higher than
70% of the 1845 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.92 vs. ITW: 2.88 )
ITW' s 10-Year Yield on cost (5-Year) Range
Min: 1.44   Max: 6.5
Current: 2.88

1.44
6.5
Share Buyback Rate 6.50
ITW's Share Buyback Rate is ranked higher than
96% of the 1484 Companies
in the Global Diversified Industrials industry.

( Industry Median: -0.70 vs. ITW: 6.50 )
ITW' s 10-Year Share Buyback Rate Range
Min: 6.5   Max: -8.6
Current: 6.5

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 1.50
ITW's Price/DCF (Projected) is ranked higher than
82% of the 2679 Companies
in the Global Diversified Industrials industry.

( Industry Median: 9.23 vs. ITW: 1.50 )
ITW' s 10-Year Price/DCF (Projected) Range
Min: 0.59   Max: 3.52
Current: 1.5

0.59
3.52
Price/Median PS Value 1.40
ITW's Price/Median PS Value is ranked higher than
62% of the 2679 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.30 vs. ITW: 1.40 )
ITW' s 10-Year Price/Median PS Value Range
Min: 0.54   Max: 1.41
Current: 1.4

0.54
1.41
Price/Peter Lynch Fair Value 1.80
ITW's Price/Peter Lynch Fair Value is ranked higher than
92% of the 2679 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.00 vs. ITW: 1.80 )
ITW' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.9   Max: 3.07
Current: 1.8

0.9
3.07
Price/Graham Number 9.50
ITW's Price/Graham Number is ranked higher than
59% of the 2679 Companies
in the Global Diversified Industrials industry.

( Industry Median: 3.54 vs. ITW: 9.50 )
ITW' s 10-Year Price/Graham Number Range
Min: 2   Max: 9.56
Current: 9.5

2
9.56
Earnings Yield (Greenblatt) 7.20
ITW's Earnings Yield (Greenblatt) is ranked higher than
76% of the 2454 Companies
in the Global Diversified Industrials industry.

( Industry Median: 5.60 vs. ITW: 7.20 )
ITW' s 10-Year Earnings Yield (Greenblatt) Range
Min: 5.2   Max: 29.6
Current: 7.2

5.2
29.6
Forward Rate of Return (Yacktman) 14.96
ITW's Forward Rate of Return (Yacktman) is ranked higher than
82% of the 1365 Companies
in the Global Diversified Industrials industry.

( Industry Median: 6.13 vs. ITW: 14.96 )
ITW' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 4.6   Max: 23.2
Current: 14.96

4.6
23.2

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 manufacturer of industrial products and equipment with operations in 57 countries. The Company's operates through seven segments: Automotive OEM; Test and Measurement and Electronics; Food Equipment; Polymers and Fluids; Welding; Construction Products; and Specialty Products. In the Automotive OEM segment, the Company produces components and fasteners for automotive-related applications. The products and services include: plastic and metal components, fasteners and assemblies for automobiles and light trucks. In the Test and Measurement and Electronics segment, the Company produces equipment, consumables, and related software for testing and measuring of materials and structures, as well as equipment and consumables used in the production of electronic subassemblies and microelectronics. The products include: equipment, consumables, and related software for testing and measuring of materials, structures, gases and fluids; electronic assembly equipment and related consumable solder materials; electronic components and component packaging; static control equipment and consumables used for contamination control in clean room environments; and pressure sensitive adhesives and components for telecommunications, electronics, medical and transportation applications. In the Food Equipment segment, the Company produces commercial food equipment and provides related services. The products and services include: warewashing and cooking equipment, including ovens, ranges and broilers; refrigeration equipment, including refrigerators, freezers and prep tables; food processing equipment, including slicers, mixers and scales; kitchen exhaust, ventilation and pollution control systems; and food equipment service, maintenance and repair. In the Polymers and Fluids segment, the Company produces adhesives, sealants, lubrication and cutting fluids, janitorial and hygiene products, and fluids and polymers for auto aftermarket maintenance and appearance. The products include: adhesives for industrial, construction and consumer purposes; chemical fluids which clean or add lubrication to machines; epoxy and resin-based coating products for industrial applications; hand wipes and cleaners for industrial applications; fluids, polymers and other supplies 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. In the Welding segment, the Company produces arc welding equipment, consumables and accessories for industrial and commercial applications. The products include: arc welding equipment; metal arc welding consumables and related accessories; and metal jacketing and other insulation products. In the Construction Products segment, the Company produces construction fastening systems and truss products. The products include: fasteners and related fastening tools
» More Articles for ITW

Headlines

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