- ITW delivered an impressive double-digit beat at the operating income line, and ITW's margin performance through the downturn was exemplary.
- Management avoided the large-scale curtailments/shutdowns taken by some of its competitors, and has gained share as a result, likely driving stronger recovery growth.
- ITW has above-average short-cycle recovery leverage and could achieve double-digit organic growth in 2021, but longer-term, it's not as leveraged to high-growth markets.
- ITW shares have underperformed its industrial peers over the last six months, shrinking its relative valuation premium, but not really making the shares "cheap".
For further details see:
Illinois Tool Works Offers Sharp Short-Cycle Recovery Exposure, But A Robust Valuation