Where Illinois Tool Works Stands With Analysts

During the last three months, 6 analysts shared their evaluations of Illinois Tool Works ITW, revealing diverse outlooks from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $245.17, a high estimate of $303.00, and a low estimate of $224.00. This current average reflects an increase of 0.98% from the previous average price target of $242.80.

Breaking Down Analyst Ratings: A Detailed Examination

The standing of Illinois Tool Works among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Illinois Tool Works. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Illinois Tool Works compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Illinois Tool Works's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

For valuable insights into Illinois Tool Works's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using 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.

Illinois Tool Works: Financial Performance Dissected

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Revenue Growth: Illinois Tool Works's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 0.3%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Illinois Tool Works's net margin is impressive, surpassing industry averages. With a net margin of 18.0%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Illinois Tool Works's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 23.84% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Illinois Tool Works's ROA stands out, surpassing industry averages. With an impressive ROA of 4.64%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Illinois Tool Works's debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.78, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Core of Analyst Ratings: What Every Investor Should Know

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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