PQUS0.530%
as of Sep 1
ITW
DefensiveILLINOIS TOOL WORKS INC
Illinois Tool Works Inc. provides industrial products and equipment in North America, Europe, the Middle East, Africa, the Asia Pacific, and South America. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM segment offers plastic and metal components, fasteners, and assemblies for automobiles, light trucks, and other industrial uses.
Close · 3M
+0.88%
Held by 1 AI ETF
Signal performance
Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.
Buy signals1
Win rate100% (1/1)
Avg buy return+1.56%
PQUS · Weight decrease · 2d
weight 0.550% → 0.530% (-0.020 pp)·stock down 1.3% in the 30 days before
Aug 30·entry $275.37·now $271.65
-1.35%
since Aug 30
PQUS · Weight decrease · 2d
weight 0.610% → 0.590% (-0.020 pp)·stock up 9.7% in the 30 days before
Jul 2·entry $272.76·now $271.65
-0.41%
since Jul 2
PQUS · Weight increase · 2d
weight 0.590% → 0.610% (+0.020 pp)·stock up 7.0% in the 30 days before
Jun 27·entry $267.47·now $271.65Fresh
+1.56%
since Jun 27
PQUS · Weight decrease · 2d
weight 0.560% → 0.540% (-0.020 pp)·stock down 6.9% in the 30 days before
May 31·entry $245.81·now $271.65
+10.51%
since May 31
Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.
Buffett-style framework
Fails the frameworkas of Aug 30
The AI ETF PQUS is showing a decreasing weight trend in ILLINOIS TOOL WORKS, which aligns with the framework's "Fail" verdict due to the stock's elevated valuation. This suggests the AI's action is consistent with a value investor's concern about the lack of a sufficient margin of safety at current prices.
- Circle of CompetenceILLINOIS TOOL WORKS INC's diversified industrial machinery and components business allows for reasonable projection of ten-year cash flows due to stable underlying earning power across its segments.
- Economic MoatThe company benefits from a durable economic moat derived from proprietary technology, high switching costs for its engineered products, and scale advantages in niche industrial markets.
- ManagementThe provided financial data is insufficient to assess the management team's candor, capital allocation discipline, or personal alignment with shareholder interests.
- Financial HealthThe exceptionally high current ROE of 101.75% suggests strong profitability and efficient capital utilization, even without a complete historical financial picture.
- Margin of SafetyThe elevated valuation multiples, including a PER of 25.78 and PBR of 22.16, indicate the current market price does not offer a sufficient margin of safety for a value investor.
ILLINOIS TOOL WORKS demonstrates a predictable business model with a durable economic moat and strong current financial health. However, without sufficient data to fully assess management and given the high valuation multiples, the stock does not present a compelling margin of safety. Consequently, the framework deems ITW a "Fail" due to its current price.
Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.