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How to buy Illinois Tool Works shares | $203.56
Own Illinois Tool Works shares in just a few minutes. Share price changes are updated daily.
Fact checked
Illinois Tool Works Inc (ITW) is a leading specialty industrial machinery business based in the US. It opened the day at $201.09 after a previous close of $202.55. During the day the price has varied from a low of $201 to a high of $204.31. The latest price was $203.56 (25 minute delay). Illinois Tool Works is listed on the NYSE and employs 45,000 staff. All prices are listed in US Dollars.
How to buy shares in Illinois Tool Works
- Choose a platform. If you're a beginner, our share-dealing table below can help you choose.
- Open your account. You'll need your ID, bank details and national insurance number.
- Confirm your payment details. You'll need to fund your account with a bank transfer, debit card or credit card.
- Search the platform for stock code: ITW in this case.
- Research Illinois Tool Works shares. The platform should provide the latest information available.
- Buy your Illinois Tool Works shares. It's that simple.
What's in this guide?
- Can I buy shares in Illinois Tool Works?
- Has coronavirus impacted Illinois Tool Works shares?
- Illinois Tool Works shares summary
- Compare share dealing platforms
- Is Illinois Tool Works stock a buy or sell?
- Illinois Tool Works performance over time
- Can I short Illinois Tool Works shares?
- Is Illinois Tool Works suitable for ethical investing?
- Are Illinois Tool Works shares over-valued?
- Illinois Tool Works's financials
- How volatile are Illinois Tool Works shares?
- Does Illinois Tool Works pay a dividend?
- Have Illinois Tool Works shares ever split?
- Other common questions
How has Coronavirus impacted Illinois Tool Works's share price?
Since the stock market crash in March caused by coronavirus, Illinois Tool Works's share price has had significant positive movement.
Its last market close was $206.64, which is 8.26% up on its pre-crash value of $189.58 and 78.23% up on the lowest point reached during the March crash when the shares fell as low as $115.94.
If you had bought $1,000 worth of Illinois Tool Works shares at the start of February 2020, those shares would have been worth $669.57 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth $1,171.65.
Illinois Tool Works share price
Use our graph to track the performance of ITW stocks over time.Illinois Tool Works shares at a glance
Information last updated 2020-12-11.
| Open | $201.09 |
|---|---|
| High | $204.31 |
| Low | $201 |
| Close | $203.56 |
| Previous close | $202.55 |
| Change | $1.01 |
| Change % | 0.499% |
| Volume | 908,651 |
Information last updated 2020-12-27.
| 52-week range | $113.6744 - $224.69 |
|---|---|
| 50-day moving average | $207.0764 |
| 200-day moving average | $194.0876 |
| Wall St. target price | $207.76 |
| PE ratio | 30.696 |
| Dividend yield | $4.56 (2.25%) |
| Earnings per share (TTM) | $6.595 |
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All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
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.
Illinois Tool Works price performance over time
Historical closes compared with the last close of $203.56
| 1 week (2021-01-15) | 0.18% |
|---|---|
| 1 month (2020-12-23) | 0.78% |
| 3 months (2020-10-23) | -1.52% |
| 6 months (2020-07-23) | 10.74% |
| 1 year (2020-01-22) | 14.68% |
|---|---|
| 2 years (2019-01-22) | 54.01% |
| 3 years (2018-01-22) | 17.40% |
| 5 years (2016-01-22) | 147.76% |
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 31x. In other words, Illinois Tool Works shares trade at around 31x 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 2.795. 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 a whopping $3.3 billion (£2.4 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 | $12.6 billion |
|---|---|
| Operating margin TTM | 22.59% |
| Gross profit TTM | $5.9 billion |
| Return on assets TTM | 11.87% |
| Return on equity TTM | 74.4% |
| Profit margin | 16.77% |
| Book value | $8.518 |
| Market capitalisation | $64.1 billion |
TTM: trailing 12 months
How to short and sell Illinois Tool Works shares
- Create a CFD or spread betting account.
- Search for the stock code. E.g. "ITW.US"
- Choose your position size.
- Select "sell" rather than "buy".
- Confirm your position and keep tabs on it. You may wish to set limits on your position.
There are currently 3.7 million Illinois Tool Works shares held short by investors – that's known as Illinois Tool Works's "short interest". This figure is 17.9% down from 4.5 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 1.3 million). Illinois Tool Works's SIR currently stands at 2.86. In other words for every 100,000 Illinois Tool Works shares traded daily on the market, roughly 2860 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 0.0124% of the tradable shares (for every 100,000 tradable Illinois Tool Works shares, roughly 12 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 01/01/2019) 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. A high-profile company, 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
Dividend payout ratio: 64.78% of net profits
Recently Illinois Tool Works has paid out, on average, around 64.78% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 2.25% 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 2.25% 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 14 January 2021. The latest dividend was paid out to all shareholders who bought their shares by 30 December 2020 (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 26 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 $113.6744 up to $224.69. 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 1.0955. 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).
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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, cooking, refrigeration, 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 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. The Polymers & Fluids segment produces adhesives, sealants, lubrication and cutting fluids, and fluids and polymers for auto aftermarket maintenance and appearance. The Construction Products segment offers engineered fastening systems and solutions for the residential construction, renovation/remodel, and commercial construction markets. The Specialty Products segment offers beverage packaging equipment and consumables, product coding and marking equipment and consumables, and appliance components and fasteners. It serves the automotive OEM/tiers, commercial food equipment, construction, general industrial, and automotive aftermarket end markets. The company distributes its products directly to industrial manufacturers, as well as through independent distributors. Illinois Tool Works Inc. was founded in 1912 and is headquartered in Glenview, Illinois.
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