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Illinois Tool Works Inc. (the "Company" or "ITW") was founded in 1912 and incorporated in 1915. The Company is a global manufacturer of a diversified range of industrial products and equipment with 88 divisions in 49 countries.
$247.68
$3.09 (-1.23%)
Price from 19 days ago
Margins and capital returns are both well above average: 26.28% operating margin, ROIC at 27.83%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue growth slowed to 0.9%, essentially flat. This is a business that needs a catalyst.
Even for strong businesses, today's 23x P/E means the stock needs to keep delivering. There's no margin of safety if growth disappoints.
23.0x earnings, 26.1x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$16.22B
▲ +0.9% YoY
Net Income (TTM)
$3.13B
▼ -12.1% YoY
Op. Margin
26.42%
▼ -0.5pp YoY
ROIC
25.46%
▲ +0.2pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$2.74B
▼ -4.8% YoY
Op. Cash Flow (TTM)
$3.16B
▼ -4.7% YoY
Net Debt
$9.82B
Cash & Equiv.
$827M
5Y CAGR: +5.0%
5Y CAGR: +1.0%
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