Illinois Tool Works manufactures and sells industrial products and equipment worldwide. It operates through seven segments: Automotive OEM; Test & Measurement and Electronics; Food Equipment; Polymers & Fluids; Welding; Construction Products; and Specialty Products. The company was founded in 1912 and is based in Glenview, Illinois.
ITW Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Illinois Tool Works Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Illinois Tool Works Inc ranked in the 37th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Illinois Tool Works Inc ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 14.22; that's higher than 83.16% of US stocks in the Industrials sector that have positive free cash flow.
ITW's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 31.71% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
NDSN, BMI, NAT, XYL, and CMI can be thought of as valuation peers to ITW, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
While it’s known as the maker of Post-it Notes, Scotch tape, and Ace bandages, 3M makes the adhesives, abrasives, and chemicals companies need to do what they do. It’s poised to ride an economic rebound.
GLENVIEW, Ill., Jan. 14, 2021 (GLOBE NEWSWIRE) -- Illinois Tool Works Inc. (NYSE: ITW) will issue its fourth quarter and full year 2020 results on Friday, February 5, 2021 at 7:00 a.m. CST. Following the release, ITW will hold its fourth quarter and full year 2020 earnings webcast at 10:00 a.m. CST. To access the webcast for the event, please click on the following link: ITW Q4 2020 Earnings WebcastIf you are a participant on the conference call, please dial 1-877-201-0168 (domestic) or 1-647-788-4901 (international) 10 minutes prior to the 10:00 a.m. CST start time. The passcode is “ITW.”Following the webcast, presentation materials and an audio webcast replay will be available at http://investor.itw.com. An audio-only replay will be available from February 5th through February 12th ...
The U.S. machinery sector appears poised for growth across multiple end markets, Credit Suisse writes, while upgrading Illinois Tool Works ([[ITW]] +1.2%) and Oshkosh ([[OSK]] +3.6%) to Outperform from Neutral with respective $235 and $117 price targets.Illinois Tool is "playing offense," say Credit Suisse analysts led by Jamie Cook, "capitalizing...
Illinois Tool (ITW) is poised to benefit from exposure in multiple markets, solid product offerings, enterprise strategy and a healthy liquidity position. Also, its shareholder-friendly policies add to its attractiveness.