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Illinois Tool Works Inc. (NYSE: ITW) – Is this large market cap stock undervalued?

Illinois Tool Works Inc. (NYSE: ITW), is firmly in the large market cap category with market cap of 42294.45. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Illinois Tool Works Inc. is 115.72 (with a change from open of -0.27%), this in conjunction with a target price of 119.71. Volume today has so far reached 507629, with an average volume of about 1420.18. The GAP for this stock, is -0.66%.

The P/E ratio is 21.74, bringing the forward P/E to a value of 19.03. The current EPS for Illinois Tool Works Inc., is 5.37, with a EPS growth for this year coming to a value of 9.80%. Performance has been interesting with performance year to date coming to 28.12%.

Looking further into the growth statistics for Illinois Tool Works Inc., EPS is looking like it will grow 9.12% in the next year. Looking even further it is projected to be 8.28%. Quarter over quarter is 12.40% for EPS growth and for sales growth quarter over quarter it is -0.10%. Looking at past EPS growth statistics we see that for the past five years it has been 12.20%. Sales growth for the past five years has in fact been -2.80%.

Looking at the ownership, we see that the insider ownership is at 0.20% and institutional ownership is 77.10%. Shares outstanding is 362.11, while shares float is at a value of 354.35. Float short for Illinois Tool Works Inc. is 2.27% and the short ratio is 5.67.

In terms of debt, long term debt/equity is 1.27, while the total debt/equity comes to 1.45. The ability to meet these debts, means that the current ratio is 2.2, and the quick ratio is 1.8. The most recent gross margin is 41.80% and their operating margin is 22.20%. The profit margin is 14.70%.

Illinois Tool Works Inc. has seen returns on assets of 12.50%, and on investment, 16.20%. Return on equity is 38.20%. Price/Earnings to growth ratio is 2.63. Price/Sales ratio is at a value of 3.17, with Price/book ratio coming to 8.42 and Price/cash is 17.96, and finally Price/Free cash Flow is 30.43.

The simple moving averages are -1.86% and 11.30% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -5.78% and the 52 week low is 48.64%.

Illinois Tool Works Inc. has a dividend yield of 2.23%, with a current price of 115.72. The ability to pay this means the payout ratio is 40.70%. This is in an industry, Diversified Machinery, with equally high dividends from other companies in this sector, which it is Industrial Goods. Illinois Tool Works Inc. is based in USA.

Performance in the Diversified Machinery industry means that Illinois Tool Works Inc. has seen performance for the past week of -2.07%, with performance for the month coming to 1.51%. Looking at the data for the quarter it is at a value of 5.76%, and for the half year the performance is 38.04%. Volatility for this week is 1.81% and for the month this is 1.36%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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