Illinois Tool Works Inc. (ITW) Stock

Illinois Tool Works Inc. trades at a P/E ratio of 21.84, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 23.75 is higher than the current P/E, indicating analysts expect earnings to decline over the next year. The PEG ratio of 3.60 indicates a premium valuation even accounting for growth.

With a beta of 1.12, Illinois Tool Works Inc. is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 22.45 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Illinois Tool Works Inc. achieves a profit margin of 21.40%, meaning it retains $21.40 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 25.10% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 107.60% and ROA at 16.50%, the company generates strong returns on invested capital.

Illinois Tool Works Inc.'s revenue declined by 3.40% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings decreased by 12.80% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against GENERAL INDUSTRIAL MACHINERY & EQUIPMENT industry averages for proper context.

Illinois Tool Works Inc. offers a dividend yield of 2.42%, paying $5.90 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of 6/30/2025.

The dividend sustainability can be assessed through the payout ratio - Illinois Tool Works Inc. pays $5.90 per share in dividends against earnings of $11.36 per share, resulting in a payout ratio of 51.94%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for 7/11/2025.

Illinois Tool Works Inc. has a market capitalization of $72.77B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 293.37M shares outstanding, the company's ownership is relatively concentrated. As a participant in the GENERAL INDUSTRIAL MACHINERY & EQUIPMENT industry, it competes with other firms in this sector.

Illinois Tool Works Inc.'s book value per share is $11.06, while the current stock price is $257.86, resulting in a price-to-book (P/B) ratio of 23.31. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

20 analysts cover ITW with 15% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The bearish sentiment could create opportunity if analysts are wrong. The consensus target of $246.72 implies -4.3% downside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:1 Strong Buy, 2 Buy, 12 Hold, 3 Sell, 2 Strong Sell. The bearish sentiment indicates concerns, but contrarian investors sometimes find opportunities when Wall Street is negative.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

RSI data is not available for this stock.

MACD and moving average data are not available for this stock.