7 Analysts Have This To Say About Illinois Tool Works

7 analysts have expressed a variety of opinions on Illinois Tool Works ITW over the past quarter, offering a diverse set of opinions from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $250.86, a high estimate of $303.00, and a low estimate of $224.00. This current average reflects an increase of 4.09% from the previous average price target of $241.00.

Breaking Down Analyst Ratings: A Detailed Examination

In examining recent analyst actions, we gain insights into how financial experts perceive Illinois Tool Works. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Illinois Tool Works. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Illinois Tool Works compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Illinois Tool Works's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Illinois Tool Works's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Illinois Tool Works analyst ratings.

Discovering Illinois Tool Works: A Closer Look

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.

Illinois Tool Works's Financial Performance

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: Illinois Tool Works's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 0.3%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in 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 18.0%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Illinois Tool Works's ROE stands out, surpassing industry averages. With an impressive ROE of 23.84%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Illinois Tool Works's ROA stands out, surpassing industry averages. With an impressive ROA of 4.64%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Illinois Tool Works's debt-to-equity ratio stands notably higher than the industry average, reaching 2.78. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Significance of Analyst Ratings Explained

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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