Illinois Tool Works Inc.Find Ratings Reports
ILLINOIS TOOL WORKS's gross profit margin for the third quarter of its fiscal year 2021 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its subsector. ILLINOIS TOOL WORKS has strong liquidity. Currently, the Quick Ratio is 1.57 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 29.52% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
|Income Statement||Q3 FY21||Q3 FY20|
|Net Sales ($mil)||3556.0||3307.0|
|Net Income ($mil)||639.0||582.0|
|Balance Sheet||Q3 FY21||Q3 FY20|
|Cash & Equiv. ($mil)||1987.0||2169.0|
|Total Assets ($mil)||15517.0||14940.0|
|Total Debt ($mil)||7551.0||7945.0|
|Profitability||Q3 FY21||Q3 FY20|
|Gross Profit Margin||43.03||44.36|
|Return on Assets||17.57||14.1|
|Return on Equity||78.09||78.19|
|Debt||Q3 FY21||Q3 FY20|
|Share Data||Q3 FY21||Q3 FY20|
|Shares outstanding (mil)||313.88||316.52|
|Div / share||1.22||1.14|
|Book value / share||11.13||8.52|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||911892.0||851835.0|
BUY. ILLINOIS TOOL WORKS's P/E ratio indicates a discount compared to an average of 36.36 for the Machinery Manufacturing subsector and a value on par with the S&P 500 average of 29.63. For additional comparison, its price-to-book ratio of 21.66 indicates a significant premium versus the S&P 500 average of 4.74 and a significant premium versus the subsector average of 12.37. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. The valuation analysis reveals that, ILLINOIS TOOL WORKS seems to be trading at a discount to investment alternatives.
|ITW 28.02||Peers 36.36||ITW 29.68||Peers 25.39|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
ITW is trading at a discount to its peers.
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
ITW is trading at a premium to its peers.
|ITW 26.57||Peers 27.29||ITW 1.01||Peers 0.77|
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations.
ITW is trading at a valuation on par with its peers.
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
ITW trades at a significant premium to its peers.
|ITW 21.66||Peers 12.37||ITW 30.30||Peers 103.85|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
ITW is trading at a significant premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, ITW is expected to significantly trail its peers on the basis of its earnings growth rate.
|ITW 5.31||Peers 6.71||ITW 13.39||Peers 24.97|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
ITW is trading at a discount to its subsector on this measurement.
Lower. A sales growth rate that trails the subsector implies that a company is losing market share.
ITW significantly trails its peers on the basis of sales growth.