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How to buy Illinois Tool Works stock | $235.81
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
- Compare share trading platforms.Use our comparison table to help you find a platform that fits you.
- Open your brokerage account. Complete an application with your details.
- Confirm your payment details. Fund your account.
- 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.
- 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.
- Check in on your investment. Optimize your portfolio by tracking your stock.
What's in this guide?
- ITW shares summary
- Compare share dealing platforms
- Is ITW stock a buy or sell?
- Stock performance over time
- Can I short ITW shares?
- Is ITW suitable for ethical investing?
- Are ITW shares over-valued?
- Illinois Tool Works's financials
- How volatile are ITW shares?
- Does Illinois Tool Works pay a dividend?
- Have ITW shares ever split?
- Other common questions
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
|Latest market close||$235.81|
|52-week range||$180.32 - $240.84|
|50-day moving average||$226.32|
|200-day moving average||$220.05|
|Wall St. target price||$243.65|
|Dividend yield||$4.49 (1.99%)|
|Earnings per share (TTM)||$6.97|
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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
|1 week (2021-07-20)||N/A|
|1 month (2021-07-01)||4.99%|
|3 months (2021-04-30)||2.32%|
|6 months (2021-01-27)||N/A|
|1 year (2020-07-27)||N/A|
|2 years (2019-07-27)||N/A|
|3 years (2018-07-27)||N/A|
|5 years (2016-07-27)||N/A|
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 33x. In other words, Illinois Tool Works shares trade at around 33x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-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 1.8757. 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 $3.5 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||$12.9 billion|
|Operating margin TTM||23.6%|
|Gross profit TTM||$5.2 billion|
|Return on assets TTM||12.76%|
|Return on equity TTM||79.64%|
|Market capitalisation||$72.1 billion|
TTM: trailing 12 months
Shorting Illinois Tool Works shares
There are currently 4.2 million Illinois Tool Works shares held short by investors – that's known as Illinois Tool Works's "short interest". This figure is 10.7% up from 3.8 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 970768.43317972). Illinois Tool Works's SIR currently stands at 4.34. In other words for every 100,000 Illinois Tool Works shares traded daily on the market, roughly 4340 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 0.0146% of the tradable shares (for every 100,000 tradable Illinois Tool Works shares, roughly 15 shares are currently held short).
Such a low SIR usually points to an 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
|Total ESG score||24.97|
|Total ESG percentile||27.46|
|Environmental score percentile||9|
|Social score percentile||9|
|Governance score percentile||9|
|Level of controversy||2|
Illinois Tool Works share dividends
Dividend payout ratio: 76.51% of net profits
Recently Illinois Tool Works has paid out, on average, around 76.51% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 2% 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% return on their shares, in the form of dividend payments. In Illinois Tool Works's case, that would currently equate to about $4.49 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 14 July 2021. The latest dividend was paid out to all shareholders who bought their shares by 28 June 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 $180.3175 up to $240.8365. A popular way to gauge a stock's volatility is its "beta".
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 1.1023. 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.
Stocks similar to Illinois Tool Works
Illinois Tool Works in the news
Illinois Tool Works Q2 Result Beats Estimates, Cuts FY21 Operating Margin Outlook
Illinois Tool Works Inc. (ITW) CEO Scott Santi on Q2 2021 Results - Earnings Call Transcript
Illinois Tool (ITW) Beats Q2 Earnings Estimates, Ups '21 View
Frequently asked questionsWhat percentage of Illinois Tool Works is owned by insiders or institutions?
Currently 0.236% of Illinois Tool Works shares are held by insiders and 80.112% 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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