Key Takeaways From Illinois Tool Works Analyst Ratings

9 analysts have shared their evaluations of Illinois Tool Works ITW during the recent three months, expressing a mix of bullish and bearish perspectives.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $253.67, along with a high estimate of $305.00 and a low estimate of $217.00. Highlighting a 3.87% decrease, the current average has fallen from the previous average price target of $263.89.

Understanding Analyst Ratings: A Comprehensive Breakdown

A comprehensive examination of how financial experts perceive Illinois Tool Works is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Illinois Tool Works. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Illinois Tool Works compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Illinois Tool Works's market standing. Stay informed and make data-driven decisions with 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 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.

Financial Insights: Illinois Tool Works

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: Illinois Tool Works's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2024, the company experienced a revenue decline of approximately -1.14%. This indicates a decrease in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Illinois Tool Works's net margin excels beyond industry benchmarks, reaching 20.61%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Illinois Tool Works's ROE stands out, surpassing industry averages. With an impressive ROE of 27.16%, 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 5.25%, 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 2.76. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

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.

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.