Is Illinois Tool Stock a Good Investment?
Illinois Tool Investment Advice | ITW |
- Examine Illinois Tool's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Illinois Tool's leadership team and their track record. Good management can help Illinois Tool navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Industrial Machinery & Supplies & Components space and any emerging trends that could impact Illinois Tool's business and its evolving consumer preferences.
- Compare Illinois Tool's performance and market position to its competitors. Analyze how Illinois Tool is positioned in terms of product offerings, innovation, and market share.
- Check if Illinois Tool pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Illinois Tool's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Illinois Tool Works stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Illinois Tool Works is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Hold | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine Illinois Tool Stock
Researching Illinois Tool's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 83.0% of the company shares are owned by institutional investors. The company recorded earning per share (EPS) of 11.54. Illinois Tool Works last dividend was issued on the 31st of December 2024. The entity had 2:1 split on the 26th of May 2006.
To determine if Illinois Tool is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Illinois Tool's research are outlined below:
| Illinois Tool Works is unlikely to experience financial distress in the next 2 years | |
| Over 83.0% of the company shares are owned by institutional investors | |
| On 11th of October 2024 Illinois Tool paid $ 1.5 per share dividend to its current shareholders | |
| Latest headline from finance.yahoo.com: Illinois Tool Works Up 5.7 percent Since Last Earnings Report Can It Continue |
Illinois Tool Quarterly Good Will |
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Illinois Tool uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Illinois Tool Works. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Illinois Tool's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 1st of February 2024 Upcoming Quarterly Report | View | |
| 7th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 1st of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Illinois Tool's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Illinois Tool's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2009-04-16 | 2009-03-31 | 0.14 | 0.17 | 0.03 | 21 | ||
2010-04-20 | 2010-03-31 | 0.57 | 0.63 | 0.06 | 10 | ||
2009-01-29 | 2008-12-31 | 0.48 | 0.54 | 0.06 | 12 | ||
2004-04-20 | 2004-03-31 | 0.41 | 0.47 | 0.06 | 14 | ||
2009-10-20 | 2009-09-30 | 0.53 | 0.63 | 0.1 | 18 | ||
2010-01-27 | 2009-12-31 | 0.74 | 0.61 | -0.13 | 17 | ||
2017-10-23 | 2017-09-30 | 1.65 | 1.85 | 0.2 | 12 | ||
2021-04-30 | 2021-03-31 | 1.9 | 2.11 | 0.21 | 11 |
Know Illinois Tool's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Illinois Tool is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Illinois Tool Works backward and forwards among themselves. Illinois Tool's institutional investor refers to the entity that pools money to purchase Illinois Tool's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Massachusetts Financial Services Company | 2024-09-30 | 3.6 M | Bank Of America Corp | 2024-06-30 | 3.4 M | Fisher Asset Management, Llc | 2024-09-30 | 3.3 M | Norges Bank | 2024-06-30 | 3.2 M | Legal & General Group Plc | 2024-06-30 | 2.7 M | Bank Of New York Mellon Corp | 2024-06-30 | 2.5 M | Charles Schwab Investment Management Inc | 2024-09-30 | 2.5 M | Ameriprise Financial Inc | 2024-06-30 | 2.3 M | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 1.8 M | Vanguard Group Inc | 2024-09-30 | 26.2 M | Briar Hall Management Llc | 2024-09-30 | 25.9 M |
Illinois Tool's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 81.95 B.Market Cap |
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Illinois Tool's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.30 | 0.31 | |
| Return On Capital Employed | 0.37 | 0.39 | |
| Return On Assets | 0.19 | 0.20 | |
| Return On Equity | 0.98 | 1.03 |
Determining Illinois Tool's profitability involves analyzing its financial statements and using various financial metrics to determine if Illinois Tool is a good buy. For example, gross profit margin measures Illinois Tool's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Illinois Tool's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Illinois Tool's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Illinois Tool Works. Check Illinois Tool's Beneish M Score to see the likelihood of Illinois Tool's management manipulating its earnings.
Evaluate Illinois Tool's management efficiency
Illinois Tool Works has Return on Asset of 0.1703 % which means that on every $100 spent on assets, it made $0.1703 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 1.0804 %, implying that it generated $1.0804 on every 100 dollars invested. Illinois Tool's management efficiency ratios could be used to measure how well Illinois Tool manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to climb to 0.31 in 2024. Return On Capital Employed is likely to climb to 0.39 in 2024. At this time, Illinois Tool's Non Currrent Assets Other are fairly stable compared to the past year. Return On Tangible Assets is likely to climb to 0.31 in 2024, whereas Non Current Assets Total are likely to drop slightly above 6.8 B in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 9.96 | 7.90 | |
| Tangible Book Value Per Share | (8.44) | (8.02) | |
| Enterprise Value Over EBITDA | 19.31 | 20.27 | |
| Price Book Value Ratio | 26.32 | 27.63 | |
| Enterprise Value Multiple | 19.31 | 20.27 | |
| Price Fair Value | 26.32 | 27.63 | |
| Enterprise Value | 24.2 B | 17 B |
Understanding the operational decisions made by Illinois Tool management offers insights into its financial robustness. This evaluation is crucial for assessing the stock's investment potential.
Dividend Yield 0.0216 | Forward Dividend Yield 0.0216 | Forward Dividend Rate 6 | Beta 1.109 |
Basic technical analysis of Illinois Stock
As of the 30th of November, Illinois Tool retains the Market Risk Adjusted Performance of 0.1981, risk adjusted performance of 0.138, and Downside Deviation of 0.7861. Illinois Tool technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Please check out Illinois Tool Works coefficient of variation, maximum drawdown, as well as the relationship between the Maximum Drawdown and skewness to decide if Illinois Tool is priced fairly, providing market reflects its last-minute price of 277.52 per share. Given that Illinois Tool Works has jensen alpha of 0.055, we strongly advise you to confirm Illinois Tool Works's regular market performance to make sure the company can sustain itself at a future point.Illinois Tool's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Illinois Tool insiders, such as employees or executives, is commonly permitted as long as it does not rely on Illinois Tool's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Illinois Tool insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Javier Carbonell over two months ago Disposition of 213 shares by Javier Carbonell of Illinois Tool at 256.42 subject to Rule 16b-3 | ||
Ernest Santi over two months ago Disposition of 4090 shares by Ernest Santi of Illinois Tool subject to Rule 16b-3 | ||
Michael Larsen over two months ago Disposition of 12247 shares by Michael Larsen of Illinois Tool subject to Rule 16b-3 | ||
Ernest Santi over six months ago Disposition of 267 shares by Ernest Santi of Illinois Tool at 254.85 subject to Rule 16b-3 | ||
Michael Zimmerman over six months ago Exercise or conversion by Michael Zimmerman of 4803 shares of Illinois Tool subject to Rule 16b-3 | ||
Michael Zimmerman over a year ago Payment of 835 shares by Michael Zimmerman of Illinois Tool subject to Rule 16b-3 | ||
Michael Zimmerman over a year ago Illinois Tool exotic insider transaction detected |
Illinois Tool's Outstanding Corporate Bonds
Illinois Tool issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Illinois Tool Works uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Illinois bonds can be classified according to their maturity, which is the date when Illinois Tool Works has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| ILMN 255 23 MAR 31 Corp BondUS452327AM11 | View | |
| ILMN 58 12 DEC 25 Corp BondUS452327AN93 | View | |
| ILMN 575 13 DEC 27 Corp BondUS452327AP42 | View | |
| ILLUMINATE BUYER LLC Corp BondUS45232TAA97 | View | |
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| ILLINOIS TOOL WKS Corp BondUS452308AR01 | View |
Understand Illinois Tool's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Illinois Tool's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.138 | |||
| Market Risk Adjusted Performance | 0.1981 | |||
| Mean Deviation | 0.7905 | |||
| Semi Deviation | 0.6161 | |||
| Downside Deviation | 0.7861 | |||
| Coefficient Of Variation | 564.04 | |||
| Standard Deviation | 1.02 | |||
| Variance | 1.04 | |||
| Information Ratio | 0.0424 | |||
| Jensen Alpha | 0.055 | |||
| Total Risk Alpha | 6.0E-4 | |||
| Sortino Ratio | 0.055 | |||
| Treynor Ratio | 0.1881 | |||
| Maximum Drawdown | 4.73 | |||
| Value At Risk | (1.33) | |||
| Potential Upside | 1.53 | |||
| Downside Variance | 0.6179 | |||
| Semi Variance | 0.3796 | |||
| Expected Short fall | (0.99) | |||
| Skewness | 0.7049 | |||
| Kurtosis | 1.26 |
| Risk Adjusted Performance | 0.138 | |||
| Market Risk Adjusted Performance | 0.1981 | |||
| Mean Deviation | 0.7905 | |||
| Semi Deviation | 0.6161 | |||
| Downside Deviation | 0.7861 | |||
| Coefficient Of Variation | 564.04 | |||
| Standard Deviation | 1.02 | |||
| Variance | 1.04 | |||
| Information Ratio | 0.0424 | |||
| Jensen Alpha | 0.055 | |||
| Total Risk Alpha | 6.0E-4 | |||
| Sortino Ratio | 0.055 | |||
| Treynor Ratio | 0.1881 | |||
| Maximum Drawdown | 4.73 | |||
| Value At Risk | (1.33) | |||
| Potential Upside | 1.53 | |||
| Downside Variance | 0.6179 | |||
| Semi Variance | 0.3796 | |||
| Expected Short fall | (0.99) | |||
| Skewness | 0.7049 | |||
| Kurtosis | 1.26 |
Consider Illinois Tool's intraday indicators
Illinois Tool intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Illinois Tool stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Illinois Tool Corporate Filings
F4 | 8th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 30th of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
10Q | 2nd of August 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
| 26th of June 2024 Other Reports | ViewVerify |
Illinois Stock media impact
Far too much social signal, news, headlines, and media speculation about Illinois Tool that are available to investors today. That information is available publicly through Illinois media outlets and privately through word of mouth or via Illinois internal channels. However, regardless of the origin, that massive amount of Illinois data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Illinois Tool news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Illinois Tool relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Illinois Tool's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Illinois Tool alpha.
Illinois Tool Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Illinois Tool can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Illinois Tool Works Historical Investor Sentiment
Investor biases related to Illinois Tool's public news can be used to forecast risks associated with an investment in Illinois. The trend in average sentiment can be used to explain how an investor holding Illinois can time the market purely based on public headlines and social activities around Illinois Tool Works. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Illinois Tool's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Illinois Tool and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Illinois Tool news discussions. The higher the estimate score, the more favorable the investor's outlook on Illinois Tool.
Illinois Tool Corporate Directors
| James Griffith | Independent Director | Profile | |
| Anre Williams | Independent Director | Profile | |
| Kevin Warren | Independent Director | Profile | |
| Richard Lenny | Lead Independent Director | Profile |
Additional Tools for Illinois Stock Analysis
When running Illinois Tool's price analysis, check to measure Illinois Tool's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Illinois Tool is operating at the current time. Most of Illinois Tool's value examination focuses on studying past and present price action to predict the probability of Illinois Tool's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Illinois Tool's price. Additionally, you may evaluate how the addition of Illinois Tool to your portfolios can decrease your overall portfolio volatility.