Illinois Tool Works Inc Stock Buy Recommendation Reiterated (ITW)
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- The current debt-to-equity ratio, 0.49, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, ITW has a quick ratio of 1.95, which demonstrates the ability of the company to cover short-term liquidity needs.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Machinery industry and the overall market, ILLINOIS TOOL WORKS's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- 39.50% is the gross profit margin for ILLINOIS TOOL WORKS which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 8.83% is above that of the industry average.
- Compared to where it was 12 months ago, this stock has enjoyed a nice rise of 27.36% which was in line with the performance of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ITW should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Net operating cash flow has increased to $366.00 million or 13.31% when compared to the same quarter last year. Despite an increase in cash flow of 13.31%, ILLINOIS TOOL WORKS is still growing at a significantly lower rate than the industry average of 245.97%.
--Written by a member of TheStreet Ratings Staff. Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
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