Breaking Down Illinois Tool Works: 5 Analysts Share Their Views

In the last three months, 5 analysts have published ratings on Illinois Tool Works ITW, offering a diverse range of perspectives from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $252.2, a high estimate of $277.00, and a low estimate of $235.00. This upward trend is apparent, with the current average reflecting a 2.94% increase from the previous average price target of $245.00.

Diving into Analyst Ratings: An In-Depth Exploration

The standing of Illinois Tool Works among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Illinois Tool Works. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Illinois Tool Works compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Illinois Tool Works's stock. This comparison reveals trends in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Illinois Tool Works's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Illinois Tool Works analyst ratings.

All You Need to Know About Illinois Tool Works

Illinois Tool Works is a diversified global manufacturer that produces specialized industrial equipment, consumables, and related services. The firm operates 87 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. 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.

Key Indicators: Illinois Tool Works's Financial Health

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: Illinois Tool Works's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2023, the company achieved a revenue growth rate of approximately 0.5%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Illinois Tool Works's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 19.15%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Illinois Tool Works's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 25.33%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Illinois Tool Works's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 4.97%, the company showcases efficient use of assets and strong financial health.

Debt Management: Illinois Tool Works's debt-to-equity ratio surpasses industry norms, standing at 2.69. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Understanding the Relevance of Analyst Ratings

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

This article was generated by Benzinga's automated content engine and reviewed by an editor.