Illinois Tool Works Inc.

Illinois Tool Works Inc. manufactures and sells industrial products and equipment globally. The company operates through seven segments: Automotive OEM, Food Equipment, Test & Measurement, Welding, Polymers & Fluids, Construction Products, and Specialty Products. Automotive OEM offers components and assemblies for autos and light trucks. Food Equipment provides warewashing, refrigeration, and cooking equipment. Test & Measurement produces testing and measuring equipment. The company also offers welding equipment and consumables, as well as adhesives and lubricants.

Overview

Sector

Industrial Machinery

Target Price

109.0 USD

Current Price

259.2 USD

Potential

-58%

Strengths

The company has high returns. ROIC (29.35%) is higher than the sector mean (12.02%).
EV/EBIT (17.87) is lower than the sector mean.
Strong EBITDA Margin of 29.80%.

Weaknesses

With a depreciation Potential of -58.47%, based on our fundamental analysis, it suggests the stock may be overvalued.
Price to book ratio (23.27) is significantly higher than the sector mean (6.31).
Analysts expect revenues to decline in the coming year.

Key Financial Data

Indicator	Value
PER	21.8
EV/EBITDA	17.5
Price/Free Cash Flow'	26.8
ROIC	29.3%
Net Debt/EBITDA	1.5