This article originally appeared on The DIV-Net March 5, 2012.
Linked here is a detailed quantitative analysis of Illinois Tool Works Inc. (ITW). Below are some highlights from the above linked analysis:Company Description: Illinois Tool Works Inc. is a diversified manufacturer that operates a portfolio of 60 business units that serve the industrial and consumer markets globally.Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description:
1. Avg. High Yield Price
2. 20-Year DCF Price
3. Avg. P/E Price
4. Graham Number
ITW is trading at a discount to only 3.) above. The stock is trading at a 50.4% premium to its calculated fair value of $37.18. ITW did not earn any Stars in this section.Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description:
1. Free Cash Flow Payout
2. Debt To Total Capital
3. Key Metrics
4. Dividend Growth Rate
5. Years of Div. Growth
6. Rolling 4-yr Div. > 15%
ITW earned two Stars in this section for 1.) and 2.) above. A Star was earned since the Free Cash Flow payout ratio was less than 60% and there were no negative Free Cash Flows over the last 10 years. The stock earned a Star as a result of its most recent Debt to Total Capital being less than 45%. The company has paid a cash dividend to shareholders every year since 1933 and has increased its dividend payments for 49 consecutive years.
Solar stocks are rallying due to positive earnings and deals. Biotechnology stocks are also rallying due to read on...
Private payrolls increased substantially more than expected in February, delivering an encouraging dose of read on...
One of the more intriguing observations in Berkshire Hathaway’s new letter to shareholders is Warren read on...
Following Janet Yellen's Senate Banking Committee testimony, the Fed seems to be quite deliberate in read on...