Illinois Tool Works Stock Buy Hold or Sell Recommendation
| ITW Stock | USD 251.12 0.48 0.19% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Illinois Tool Works is 'Strong Hold'. Macroaxis provides Illinois Tool buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding ITW positions. The advice algorithm takes into account all of Illinois Tool's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Illinois Tool's buy or sell advice are summarized below:
Real Value 246.89 | Target Price 239.07 | Hype Value 250.48 | Market Value 251.12 | Naive Value 247.42 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Illinois Tool Works given historical horizon and risk tolerance towards Illinois Tool. When Macroaxis issues a 'buy' or 'sell' recommendation for Illinois Tool Works, the advice is generated through an automated system that utilizes algorithms and statistical models.
Illinois |
Execute Illinois Tool Buy or Sell Advice
The Illinois recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Illinois Tool Works. Macroaxis does not own or have any residual interests in Illinois Tool Works or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Illinois Tool's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Hold | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Illinois Tool Trading Alerts and Improvement Suggestions
| Illinois Tool Works generated a negative expected return over the last 90 days | |
| Illinois Tool Works is unlikely to experience financial distress in the next 2 years | |
| Over 83.0% of the company shares are owned by institutional investors | |
| On 11th of April 2024 Illinois Tool paid $ 1.4 per share dividend to its current shareholders | |
| Latest headline from zacks.com: Illinois Tool Works Earnings Expected to Grow Should You Buy |
Illinois Tool Returns Distribution Density
The distribution of Illinois Tool's historical returns is an attempt to chart the uncertainty of Illinois Tool's future price movements. The chart of the probability distribution of Illinois Tool daily returns describes the distribution of returns around its average expected value. We use Illinois Tool Works price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Illinois Tool returns is essential to provide solid investment advice for Illinois Tool.
| Mean Return | -0.02 | Value At Risk | -1.62 | Potential Upside | 1.07 | Standard Deviation | 0.82 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Illinois Tool historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Illinois Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Illinois Tool is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Illinois Tool Works backward and forwards among themselves. Illinois Tool's institutional investor refers to the entity that pools money to purchase Illinois Tool's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Morgan Stanley - Brokerage Accounts | 2023-12-31 | 4.5 M | Capital Research Global Investors | 2023-12-31 | 4.3 M | Bank Of America Corp | 2023-12-31 | 3.5 M | Norges Bank | 2023-12-31 | 3.1 M | Fisher Asset Management, Llc | 2023-12-31 | 2.9 M | Wellington Management Company Llp | 2023-12-31 | 2.8 M | Bank Of New York Mellon Corp | 2023-12-31 | 2.8 M | Legal & General Group Plc | 2023-12-31 | 2.7 M | Amundi | 2023-12-31 | 1.9 M | Vanguard Group Inc | 2023-12-31 | 26.2 M | Briar Hall Management Llc | 2023-12-31 | 26.2 M |
Illinois Tool Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | 98M | 43M | (450M) | (455M) | 360M | 378M | |
| Change In Cash | 477M | 583M | (1.0B) | (819M) | 357M | 374.9M | |
| Free Cash Flow | 2.7B | 2.6B | 2.3B | 1.9B | 3.1B | 3.2B | |
| Depreciation | 461M | 426M | 427M | 410M | 395M | 411.4M | |
| Other Non Cash Items | (56M) | 10M | (14M) | (193M) | (4M) | (3.8M) | |
| Dividends Paid | 1.3B | 1.4B | 1.5B | 1.5B | 1.6B | 1.7B | |
| Capital Expenditures | 326M | 236M | 296M | 412M | 455M | 340.4M | |
| Net Income | 2.5B | 2.1B | 2.7B | 3.0B | 3.0B | 3.1B | |
| End Period Cash Flow | 2.0B | 2.6B | 1.5B | 708M | 1.1B | 1.2B | |
| Change To Netincome | 20M | 21M | (108M) | (278M) | (250.2M) | (262.7M) | |
| Investments | 20M | 14M | 38M | 12M | (156M) | (148.2M) | |
| Change Receivables | 40M | 95M | (240M) | (461M) | (414.9M) | (394.2M) | |
| Net Borrowings | 422M | (4M) | (141M) | 276M | 248.4M | 249.1M |
Illinois Tool Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Illinois Tool or Machinery sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Illinois Tool's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Illinois stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -0.09 | |
β | Beta against NYSE Composite | 0.74 | |
σ | Overall volatility | 0.78 | |
Ir | Information ratio | -0.14 |
Illinois Tool Volatility Alert
Illinois Tool Works exhibits very low volatility with skewness of -0.5 and kurtosis of -0.22. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Illinois Tool's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Illinois Tool's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Illinois Tool Fundamentals Vs Peers
Comparing Illinois Tool's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Illinois Tool's direct or indirect competition across all of the common fundamentals between Illinois Tool and the related equities. This way, we can detect undervalued stocks with similar characteristics as Illinois Tool or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Illinois Tool's fundamental indicators could also be used in its relative valuation, which is a method of valuing Illinois Tool by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Illinois Tool to competition |
| Fundamentals | Illinois Tool | Peer Average |
| Return On Equity | 0.97 | -0.31 |
| Return On Asset | 0.16 | -0.14 |
| Profit Margin | 0.18 % | (1.27) % |
| Operating Margin | 0.25 % | (5.51) % |
| Current Valuation | 82.2 B | 16.62 B |
| Shares Outstanding | 298.74 M | 571.82 M |
| Shares Owned By Insiders | 0.72 % | 10.09 % |
| Shares Owned By Institutions | 82.78 % | 39.21 % |
| Number Of Shares Shorted | 7.12 M | 4.71 M |
| Price To Earning | 26.14 X | 28.72 X |
| Price To Book | 25.14 X | 9.51 X |
| Price To Sales | 4.70 X | 11.42 X |
| Revenue | 16.11 B | 9.43 B |
| Gross Profit | 6.5 B | 27.38 B |
| EBITDA | 4.04 B | 3.9 B |
| Net Income | 2.96 B | 570.98 M |
| Cash And Equivalents | 708 M | 2.7 B |
| Cash Per Share | 2.52 X | 5.01 X |
| Total Debt | 8.37 B | 5.32 B |
| Debt To Equity | 2.53 % | 48.70 % |
| Current Ratio | 1.41 X | 2.16 X |
| Book Value Per Share | 10.06 X | 1.93 K |
| Cash Flow From Operations | 3.54 B | 971.22 M |
| Short Ratio | 4.30 X | 4.00 X |
| Earnings Per Share | 9.75 X | 3.12 X |
| Price To Earnings To Growth | 2.67 X | 4.89 X |
| Target Price | 251.34 | |
| Number Of Employees | 45 K | 18.84 K |
| Beta | 1.14 | -0.15 |
| Market Capitalization | 74.88 B | 19.03 B |
| Total Asset | 15.52 B | 29.47 B |
| Retained Earnings | 27.12 B | 9.33 B |
| Working Capital | 1.56 B | 1.48 B |
Note: Exercise or conversion by Michael Zimmerman of 4803 shares of Illinois Tool subject to Rule 16b-3 [view details]
Illinois Tool Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Illinois . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Illinois Tool Buy or Sell Advice
When is the right time to buy or sell Illinois Tool Works? Buying financial instruments such as Illinois Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 7.7B | 7.8B | 8.4B | 8.8B | Total Assets | 16.1B | 15.4B | 15.5B | 11.4B |
Use Investing Ideas to Build Portfolios
In addition to having Illinois Tool in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Consumption Thematic Idea Now
Consumption
Companies that deliver final goods such as cars or clothing for consumption by consumers. The Consumption theme has 18 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Consumption Theme or any other thematic opportunities.
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Check out Illinois Tool Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Complementary Tools for Illinois Stock analysis
When running Illinois Tool's price analysis, check to measure Illinois Tool's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Illinois Tool is operating at the current time. Most of Illinois Tool's value examination focuses on studying past and present price action to predict the probability of Illinois Tool's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Illinois Tool's price. Additionally, you may evaluate how the addition of Illinois Tool to your portfolios can decrease your overall portfolio volatility.
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Is Illinois Tool's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Illinois Tool. If investors know Illinois will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Illinois Tool listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.19) | Dividend Share 5.42 | Earnings Share 9.75 | Revenue Per Share 53.229 | Quarterly Revenue Growth 0.003 |
The market value of Illinois Tool Works is measured differently than its book value, which is the value of Illinois that is recorded on the company's balance sheet. Investors also form their own opinion of Illinois Tool's value that differs from its market value or its book value, called intrinsic value, which is Illinois Tool's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Illinois Tool's market value can be influenced by many factors that don't directly affect Illinois Tool's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Illinois Tool's value and its price as these two are different measures arrived at by different means. Investors typically determine if Illinois Tool is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Illinois Tool's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.