Illinois Tool Works is a diversified global manufacturer that produces specialized industrial equipment, consumables, and related services. The firm operates 84 global divisions through seven distinct operating segments: automotive OEM, construction products, food equipment, specialty products, test/measurement and electronics, polymers and fluids, and welding. About half of its revenue comes from its operations in North America, with the remainder originating from international markets. Europe, the Middle East, and Africa is the next largest contributor at about 25% of revenue. ITW takes a bottom-up and decentralized approach to portfolio management, with the exception that each segment must apply its 80/20 operating process modeled on the Pareto principle.

Financial Strength

6/10

Name	Current	Vs Industry
Cash-To-Debt	0.13
Equity-to-Asset	0.19
Debt-to-Equity	2.78
Debt-to-EBITDA	1.87
Interest Coverage	15.19
Piotroski F-Score	7/9	0 1 2 3 4 5 6 7 8 9
Altman Z-Score	8.07	Distress Grey Safe
Beneish M-Score	-2.68	Manipulator Not Manipulator
WACC vs ROIC		WACC ROIC

Growth Rank

8/10

	Name	Current	Vs Industry		Vs History
	3-Year Revenue Growth Rate	10.3
	3-Year EBITDA Growth Rate	12.1
	3-Year EPS without NRI Growth Rate	14.1
	3-Year FCF Growth Rate	7.9
	3-Year Book Growth Rate	0.1
	Future 3-5Y EPS without NRI Growth Rate	5.11
	Future 3-5Y Total Revenue Growth Rate	2.2

Momentum Rank

8/10

	Name	Current	Vs Industry		Vs History
	5-Day RSI	32.38
	9-Day RSI	29.07
	14-Day RSI	32.65
	6-1 Month Momentum %	20.77
	12-1 Month Momentum %	13.75

Liquidity Ratio

	Name	Current	Vs Industry		Vs History
	Current Ratio	1.33
	Quick Ratio	0.97
	Cash Ratio	0.23
	Days Inventory	74.29
	Days Sales Outstanding	71.94
	Days Payable	23.07

Dividend & Buy Back

	Name	Current	Vs Industry		Vs History
	Dividend Yield %	2.21
	Dividend Payout Ratio	0.55
	3-Year Dividend Growth Rate	7
	Forward Dividend Yield %	2.24
	5-Year Yield-on-Cost %	3.28
	3-Year Average Share Buyback Ratio	1.9
	Shareholder Yield %	3.45

Profitability Rank

9/10

	Name	Current	Vs Industry		Vs History
	Gross Margin %	42.16
	Operating Margin %	25.08
	Net Margin %	18.36
	FCF Margin %	19.15
	ROE %	96.66
	ROA %	18.98
	ROIC %	25.6
	ROC (Joel Greenblatt) %	89.01
	ROCE %	37.07
	Years of Profitability over Past 10-Year	10

GF Value Rank

6/10

	Name	Current	Vs Industry		Vs History
	PE Ratio	25.8
	Forward PE Ratio	24.57
	PE Ratio without NRI	25.69
	Shiller PE Ratio	29.45
	Price-to-Owner-Earnings	23.97
	PEG Ratio	5.35
	PS Ratio	4.71
	PB Ratio	24.98
	Price-to-Free-Cash-Flow	24.7
	Price-to-Operating-Cash-Flow	21.54
	EV-to-EBIT	20.08
	EV-to-Forward-EBIT	19.3
	EV-to-EBITDA	18.31
	EV-to-Forward-EBITDA	17.55
	EV-to-Revenue	5.1
	EV-to-Forward-Revenue	4.96
	EV-to-FCF	26.65
	Price-to-Projected-FCF	2.73
	Price-to-DCF (Earnings Based)	1.65
	Price-to-DCF (FCF Based)	1.77
	Price-to-Median-PS-Value	1.29
	Price-to-Peter-Lynch-Fair-Value	4.63
	Earnings Yield (Greenblatt) %	4.98
	FCF Yield %	4.11
	Forward Rate of Return (Yacktman) %	8.74

GF Value: $250.74

ITW

Warning Signs

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