Illinois Tool Works Achieves High Score in Investor Model

A recent report highlights Illinois Tool Works Inc. (ITW) earning a remarkable 89% rating from the Patient Investor model based on Warren Buffett’s strategy, indicating strong fundamentals and favorable stock valuation.

Date: 24-09-2024

AI Rating: 8

According to the report, Illinois Tool Works Inc. (ITW) has rated highly under the Patient Investor strategy by achieving an impressive score of 89%. This score suggests that ITW is viewed positively in terms of its underlying fundamentals and overall valuation, with a threshold of 80% indicating general interest in the stock.

The report demonstrates that ITW has passed key criteria that typically suggest stability and growth potential, including:

Earnings Predictability: PASS
Debt Service: PASS
Return on Equity (ROE): PASS
Return on Total Capital: PASS
Free Cash Flow (FCF): PASS
Use of Retained Earnings: PASS
Share Repurchase: PASS
Initial Rate of Return: PASS
Expected Return: PASS

This comprehensive assessment shows strong performance across essential financial metrics, particularly highlighting the company’s Return on Equity (ROE) and Free Cash Flow (FCF), which are critical indicators of profitability and operational efficiency.

Overall, the report positions ITW favorably, suggesting that investors may want to take note of its potential as a candidate for investment. The strong rating reflects a commitment to shareholder value and financial health, making ITW an appealing option within the Auto & Truck Parts industry.

Stocks: ITW