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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Illinois Tool Works Inc. To summarize, we found that Illinois Tool Works Inc ranked in the 40th 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. In terms of the factors that were most noteworthy in this DCF analysis for ITW, they are:
ITW's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 34.87% of tickers in our DCF set.
Relative to other stocks in its sector (Industrials), Illinois Tool Works Inc has a reliance on debt greater than just 22.14% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ITW, try FAST, WCC, CODA, PCAR, and SXI.
Illinois Tool Works (NYSE:ITW) is scheduled to announce Q2 earnings results on Friday, July 31st, before market open.The consensus EPS Estimate is $0.71 (-64.5% Y/Y) and the consensus Revenue Estimate is $2.34B (-35.2% Y/Y).Analysts expect organic growth of -32.2% vs. -2.8% in 2Q19; and operating income of $328.2M.Over the last 2...
Illinois Tool Works (NYSE: ITW) unveils its next round of earnings this Friday, July 31. Get prepared with Benzinga's ultimate preview for Illinois Tool Works's Q2 earnings.Earnings and Revenue Wall Street analysts see Illinois Tool Works reporting earnings of $0.70 per share on revenue of $2.33 billion. In the same quarter last year, Illinois Tool Works reported EPS of $2.00 on revenue of $3.61 billion. If the company were to report inline earnings when it publishes results Friday, quarterly profit would be down 65.0%. Sales would be down 29.18% on a year-over-year basis. Here's how the company's reported EPS has stacked up against analyst estimates in the past:Quarter Q1 2020 Q4 2020 Q3 2019 Q2 2019 EPS Estimate 1.71 1.85 1.94 1.97 EPS Actual 1.77 1.88 2.04 2 Revenu...
With the Industrial Products Sector's second-quarter earnings anticipated to bear the brunt of weak demand amid the COVID-19 pandemic, let's see how some of the stocks are likely to fare in their upcoming releases.