ITW

Illinois Tool Works Inc

Industrial/Transportation


Presented:08/06/2019
Price:$148.98
Cap:$48.19B
Current Price:$261.35
Cap:$77.59B

Presented

Date08/06/2019
Price$148.98
Market Cap$48.19B
Ent Value$55.57B
P/E Ratio20x
Book Value$9.56
Div Yield2.68%
Shares O/S323.48M
Ave Daily Vol1,358,433
Short Int2.87%

Current

Price$261.35
Market Cap$77.59B
Illinois Tool Works, Inc. manufactures industrial products and equipment. It operates through the following segments: Automotive OEM, Test & Measurement and Electronics, Food Equipment, Polymers & Fluids, Welding, Construction Products, and Specialty Products. The Automotive OEM segment produces components and fasteners for automotive-related applications. The Test & Measurement and Electronics segment manufactures equipment, consumables, and related software for testing and measuring of materials, structures, gases and fluids. The Food Equipment segment supplies commercial food equipment and provides related services. The Polymers & Fluids segment provides adhesives, sealants, lubrication and cutting fluids, janitorial and hygiene products, and fluids and polymers for auto aftermarket maintenance and appearance. The Welding segment furnishes arc welding equipment, consumables and accessories for a wide array of industrial and commercial applications. The Construction Products segment makes construction fastening systems and truss products. The Specialty Products segment manufacturing beverage packaging equipment and consumables, product coding and marking equipment and consumables, and appliance components and fasteners. The company was founded by Byron L. Smith in 1912 and is headquartered in Glenview, IL.

Publicly traded companies mentioned herein: Fastenal Company (FAST), Illinois Tool Works (ITW).

Highlights

The presenter is short shares of Illinois Tool Works (ITW), a diversified industrial equipment manufacturer that serves industries such as automotive OEM, food, construction, electronics, and general manufacturing. While bulls expect the company to reaccelerate growth and expand margins as per management guidance, the presenter thinks this is unrealistic in the current down cycle. The stock currently trades at 19x earnings and 14x EBITDA on the guidance, which is a premium to peers at 13x - 14x earnings. The presenter is looking for 25-30% downside in anticipation of EPS headwinds and a multiple contracting to its peer group. 

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.