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How to buy Illinois Tool Works stock | $217.88

Learn how to easily invest in Illinois Tool Works stock.

Illinois Tool Works Inc is a specialty industrial machinery business based in the US. Illinois Tool Works shares (ITW) are listed on the NYSE and all prices are listed in US Dollars. Illinois Tool Works employs 43,000 staff and has a trailing 12-month revenue of around 0.00.

How to buy shares in Illinois Tool Works

  1. Compare share trading platforms.Use our comparison table to help you find a platform that fits you.
  2. Open your brokerage account. Complete an application with your details.
  3. Confirm your payment details. Fund your account.
  4. Research the stock. Find the stock by name or ticker symbol – ITW – and research it before deciding if it's a good investment for you.
  5. Purchase now or later. Buy your desired number of shares with a market order or use a limit order to delay your purchase until the stock reaches a desired price.
  6. Check in on your investment. Optimize your portfolio by tracking your stock.

Illinois Tool Works stock price (NYSE: ITW)

Use our graph to track the performance of ITW stocks over time.

Illinois Tool Works shares at a glance

Information last updated 2021-09-17.
Latest market close$217.88
52-week range$185.18 - $240.84
50-day moving average $227.88
200-day moving average $226.36
Wall St. target price$242.11
PE ratio 25.6706
Dividend yield $4.56 (2.09%)
Earnings per share (TTM) $8.41

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy Illinois Tool Works stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Illinois Tool Works price performance over time

Historical closes compared with the close of $217.88 from 2021-09-23

1 week (2021-09-17) 0.92%
1 month (2021-08-24) -5.50%
3 months (2021-06-24) -2.10%
6 months (2021-03-24) -1.13%
1 year (2020-09-24) 13.28%
2 years (2019-09-24) 43.13%
3 years (2018-09-24) 49.21%
5 years (2016-09-23) 84.94%

Is Illinois Tool Works under- or over-valued?

Valuing Illinois Tool Works stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Illinois Tool Works's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Illinois Tool Works's P/E ratio

Illinois Tool Works's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 26x. In other words, Illinois Tool Works shares trade at around 26x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

Illinois Tool Works's PEG ratio

Illinois Tool Works's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.7157. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Illinois Tool Works's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Illinois Tool Works's EBITDA

Illinois Tool Works's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $3.9 billion.

The EBITDA is a measure of a Illinois Tool Works's overall financial performance and is widely used to measure a its profitability.

Illinois Tool Works financials

Revenue TTM $14 billion
Operating margin TTM 24.92%
Gross profit TTM $5.2 billion
Return on assets TTM 14.61%
Return on equity TTM 90.83%
Profit margin 19.07%
Book value $11.18
Market capitalisation $68 billion

TTM: trailing 12 months

Shorting Illinois Tool Works shares

There are currently 4.4 million Illinois Tool Works shares held short by investors – that's known as Illinois Tool Works's "short interest". This figure is 0.9% up from 4.4 million last month.

There are a few different ways that this level of interest in shorting Illinois Tool Works shares can be evaluated.

Illinois Tool Works's "short interest ratio" (SIR)

Illinois Tool Works's "short interest ratio" (SIR) is the quantity of Illinois Tool Works shares currently shorted divided by the average quantity of Illinois Tool Works shares traded daily (recently around 712566.45056726). Illinois Tool Works's SIR currently stands at 6.17. In other words for every 100,000 Illinois Tool Works shares traded daily on the market, roughly 6170 shares are currently held short.

However Illinois Tool Works's short interest can also be evaluated against the total number of Illinois Tool Works shares, or, against the total number of tradable Illinois Tool Works shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Illinois Tool Works's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 Illinois Tool Works shares in existence, roughly 10 shares are currently held short) or 0.0153% of the tradable shares (for every 100,000 tradable Illinois Tool Works shares, roughly 15 shares are currently held short).

A SIR below 10% would generally be considered to indicate a fairly optimistic outlook for the share price, with fewer people currently willing to bet against Illinois Tool Works.

Find out more about how you can short Illinois Tool Works stock.

Illinois Tool Works's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Illinois Tool Works.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Illinois Tool Works's total ESG risk score

Total ESG risk: 24.97

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Illinois Tool Works's overall score of 24.97 (as at 12/31/2018) is pretty good – landing it in it in the 27th percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Illinois Tool Works is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Illinois Tool Works's environmental score

Environmental score: 11.24/100

Illinois Tool Works's environmental score of 11.24 puts it squarely in the 9th percentile of companies rated in the same sector. This could suggest that Illinois Tool Works is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Illinois Tool Works's social score

Social score: 13.29/100

Illinois Tool Works's social score of 13.29 puts it squarely in the 9th percentile of companies rated in the same sector. This could suggest that Illinois Tool Works is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Illinois Tool Works's governance score

Governance score: 12.95/100

Illinois Tool Works's governance score puts it squarely in the 9th percentile of companies rated in the same sector. That could suggest that Illinois Tool Works is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Illinois Tool Works's controversy score

Controversy score: 2/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Illinois Tool Works scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Illinois Tool Works has, for the most part, managed to keep its nose clean.

Environmental, social, and governance (ESG) summary

Illinois Tool Works Inc was last rated for ESG on: 2019-01-01.

Total ESG score 24.97
Total ESG percentile 27.46
Environmental score 11.24
Environmental score percentile 9
Social score 13.29
Social score percentile 9
Governance score 12.95
Governance score percentile 9
Level of controversy 2

Illinois Tool Works share dividends

58%

Dividend payout ratio: 57.57% of net profits

Recently Illinois Tool Works has paid out, on average, around 57.57% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 2.24% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Illinois Tool Works shareholders could enjoy a 2.24% return on their shares, in the form of dividend payments. In Illinois Tool Works's case, that would currently equate to about $4.56 per share.

Illinois Tool Works's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

Illinois Tool Works's most recent dividend payout was on 13 October 2021. The latest dividend was paid out to all shareholders who bought their shares by 28 September 2021 (the "ex-dividend date").

Have Illinois Tool Works's shares ever split?

Illinois Tool Works's shares were split on a 2:1 basis on 25 May 2006. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Illinois Tool Works shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Illinois Tool Works shares which in turn could have impacted Illinois Tool Works's share price.

Illinois Tool Works share price volatility

Over the last 12 months, Illinois Tool Works's shares have ranged in value from as little as $185.1848 up to $240.8365. A popular way to gauge a stock's volatility is its "beta".

ITW.US volatility(beta: 1.09)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Illinois Tool Works's is 1.0906. This would suggest that Illinois Tool Works's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).

Illinois Tool Works overview

Illinois Tool Works Inc. manufactures and sells industrial products and equipment worldwide. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM segment offers plastic and metal components, fasteners, and assemblies for automobiles, light trucks, and other industrial uses. The Food Equipment segment provides warewashing, refrigeration, cooking, and food processing equipment; kitchen exhaust, ventilation, and pollution control systems; and food equipment maintenance and repair services. The Test & Measurement and Electronics segment produces and sells equipment, consumables, and related software for testing and measuring of materials and structures, as well as equipment and consumables used in the production of electronic subassemblies and microelectronics. The Welding segment produces arc welding equipment; and metal arc welding consumables and related accessories.

Frequently asked questions

What percentage of Illinois Tool Works is owned by insiders or institutions?
Currently 0.239% of Illinois Tool Works shares are held by insiders and 79.929% by institutions.
How many people work for Illinois Tool Works?
Latest data suggests 43,000 work at Illinois Tool Works.
When does the fiscal year end for Illinois Tool Works?
Illinois Tool Works's fiscal year ends in December.
Where is Illinois Tool Works based?
Illinois Tool Works's address is: 155 Harlem Avenue, Glenview, IL, United States, 60025-4075
What is Illinois Tool Works's ISIN number?
Illinois Tool Works's international securities identification number is: US4523081093
What is Illinois Tool Works's CUSIP number?
Illinois Tool Works's Committee on Uniform Securities Identification Procedures number is: 452308109

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