Illinois Tool Works (Illinois Tool Works) Risk Assessment

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What is Illinois Tool Works Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of Illinois Tool Works is: Low Risk: Strong fundamentals, worth long-term holding.

Competitive Comparison of Illinois Tool Works's Risk Assessment

For the Specialty Industrial Machinery subindustry, Illinois Tool Works's Risk Assessment, along with its competitors' market caps and Risk Assessment data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Illinois Tool Works's Risk Assessment Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Illinois Tool Works's Risk Assessment distribution charts can be found below:

* The bar in red indicates where Illinois Tool Works's Risk Assessment falls into.

Illinois Tool Works (NYSE:ITW) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

Illinois Tool Works Risk Assessment Related Terms

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Illinois Tool Works (Illinois Tool Works) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Illinois Tool Works Inc (NYSE:ITW) » Definitions » Risk Assessment

Comparable Companies

Traded in Other Exchanges

ILT:Germany ILT:Germany ILT:Germany I1TW34:Brazil

Address

155 Harlem Avenue, Glenview, IL, USA, 60025

Website

https://www.itw.com

Illinois Tool Works is a diversified global manufacturer that produces specialized industrial equipment, consumables, and related services. The firm operates 87 global divisions through seven distinct operating segments: automotive OEM, construction products, food equipment, specialty products, test/measurement and electronics, polymers and fluids, and welding. About half of its revenue comes from its operations in North America, with the remainder originating from international markets. ITW takes a bottom-up and decentralized approach to portfolio management, with the exception that each segment must apply its 80/20 operating process modeled on the Pareto principle.

Executives

Smith David Byron Jr	director	155 HARLEM AVE., GLENVIEW IL 60025
Randall J Scheuneman	officer: VP & Chief Accounting Officer	155 HARLEM AVE., GLENVIEW IL 60025
Christopher A O'herlihy	officer: Executive Vice President	155 HARLEM AVE., GLENVIEW IL 60025
Ernest Scott Santi	director, officer: President & CEO	ILLINOIS TOOL WORKS INC., 155 HARLEM AVE., GLENVIEW IL 60025
Michael M Larsen	officer: SVP & CFO	ILLINOIS TOOL WORKS INC., 155 HARLEM AVE., GLENVIEW IL 60025
Kelly J Grier	director	155 HARLEM AVE., GLENVIEW IL 60025
Lei Zhang Schlitz	officer: Executive Vice President	5757 N. GREENBAY AVENUE, GLENDALE WI 53129
Patricia A. Hartzell	officer: Executive Vice President	155 HARLEM AVE., GLENVIEW IL 60025
Javier Gracia Carbonell	officer: Executive Vice President	155 HARLEM AVE., GLENVIEW IL 60025
Mary Katherine Lawler	officer: SVP & Chief HR Officer	ILLINOIS TOOL WORKS INC., 155 HARLEM AVE, GLENVIEW IL 60025
Jay L Henderson	director	50 SOUTH LASALLE ST, CHICAGO IL 60603
Jennifer Kaplan Schott	officer: SVP, General Counsel & Secy.	155 HARLEM AVE., GLENVIEW IL 60025
Darrell L Ford	director	55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Finch Norman D. Jr.	officer: Sr. VP, General Counsel & Secy	C/O ILLINOIS TOOL WORKS INC., 155 HARLEM AVE., GLENVIEW IL 60025
Michael R. Zimmerman	officer: Executive Vice President	155 HARLEM AVE., GLENVIEW IL 60025