Key Takeaways From Illinois Tool Works Analyst Ratings

Ratings for Illinois Tool Works ITW were provided by 7 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

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.

Analysts have recently evaluated Illinois Tool Works and provided 12-month price targets. The average target is $258.0, accompanied by a high estimate of $305.00 and a low estimate of $217.00. This current average has decreased by 1.74% from the previous average price target of $262.57.

Deciphering Analyst Ratings: An In-Depth Analysis

The standing of Illinois Tool Works among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Illinois Tool Works. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Illinois Tool Works compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Illinois Tool Works's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of Illinois Tool Works's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Illinois Tool Works analyst ratings.

Get to Know Illinois Tool Works Better

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: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Negative Revenue Trend: Examining Illinois Tool Works's financials over 3 months reveals challenges. As of 31 March, 2024, the company experienced a decline of approximately -1.14% in revenue growth, reflecting a decrease in 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: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 20.61%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Illinois Tool Works's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 27.16% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 5.25%, the company showcases effective utilization of assets.

Debt Management: Illinois Tool Works's debt-to-equity ratio surpasses industry norms, standing at 2.76. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Analyst Ratings: Simplified

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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