Illinois Tool Works Inc (ITW)
Industrials · Industrial Machinery & Supplies & Components · US stock · S&P 500 component
$279.24
▲ +2.44 (0.88%)
Fair valueFair
$244 −12.6% to fair value
$122fair band $208–$296$366
Day's range
$267.86 – $279.71
52-week range
$238.82 – $303.16
About Illinois Tool Works Inc
A broad mix of industrial products and equipment comes from Illinois Tool Works, a diversified manufacturer. Its businesses make vehicle components, commercial food equipment, welding equipment, test and measurement instruments, polymers and fluids, construction products and other specialty products. It operates through a decentralised structure of many operating units, each focused on its own niche, with customers in automotive, food service, construction, electronics and general industry.
Revenue comes from products and consumables purchased by manufacturers, builders, restaurants and vehicle makers. Sales were $16.5 billion over the last twelve months, essentially flat with growth of 0.2% a year over the last three years. The operating margin is 26.5%, and the business earns a profit of 25% on the capital invested in it. Net debt is 2.5 times EBITDA. A dividend is paid, with a yield of 2.3%. On the site's X-Ray Score it receives 46 out of 100.
Price chart
52-wk range $238.82 – $303.16Volume 2,155,186Daily, split-adjusted
Vitals
Market cap$80.1B
52-week range$238.82 – $303.16
Volume (last day)2,155,186
P/E (TTM)25.4
EBIT / EV yield4.8%
Free-cash-flow yield3.6%
Dividend yield2.3%
Revenue (TTM)$16.5B
Net income (TTM)$3.2B
Operating margin26.5%
Return on capital24.9%
Debt incl. leases$11.8B
Cash & securities$839M
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$244middle half of models $234 – $264
Fair
−12.6% to fair value
Average of the 15 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $279
Undervalued < $208Fair $208 – $296Overvalued > $296
P/E multiple
$277
P/B multiple
$241
P/S multiple
$257
EV/EBITDA multiple
$264
EV/EBIT multiple
$279
EV/revenue multiple
$256
10-year DCF, EBITDA exit
$248
5-year DCF, EBITDA exit
$265
10-year DCF, revenue exit
$248
5-year DCF, revenue exit
$263
10-year DCF, growth exit
$167
5-year DCF, growth exit
$164
Dividend discount, stable
$211
Dividend discount, multi-stage
$291
Earnings power value
$227
Growth the price implies
13.4%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Average business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Industrials peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Weak
42/100
Expensive against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield4.8%
Free-cash-flow yield3.6%
Fair value vs price0.9×
Growth
Weak
27/100
Growing slower than most of its sector.
See the numbers →
Revenue growth (3y)0.2%
EPS growth (3y)2.4%
Growth consistency50%
Profitability
Fair
67/100
Returns on capital are typical for its sector.
See the numbers →
Return on invested capital24.9%
Operating margin26.5%
Gross profitability52.9%
Financial health
Weak
41/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score5 / 9
Net debt / EBITDA2.5×
Interest cover14.5×
Dividends
Fair
53/100
Dividend is typical for its sector.
See the numbers →
Dividend yield2.3%
Dividends vs free cash flow64%
Dividend growth5.0%
Quarterly results: last 6 quarters
-3.4%
Mar '25
+0.6%
Jun '25
+2.3%
Sep '25
+4.1%
Dec '25
+4.6%
Mar '26
+6.1%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $4.3B, diluted EPS $2.84.
Compare with peers
SNA Snap-on Inc66 PNR PENTAIR plc62 XYL Xylem Inc.55 GWW W.W. Grainger, Inc.55Other Industrial Machinery & Supplies & Components companies by X-Ray Score.
SWOT analysis: Illinois Tool Works Inc
Strengthsinside the company
- Return on invested capital is 24.9%, against a median of 13.1% for industry peers.
- Operating margin of 26.5% is well above the 18.1% median of industry peers, a sign of pricing power or lower costs.
- Operating profit covers interest 14x, so debt costs are a small drag.
Weaknessesinside the company
- No clear weakness in the figures we track.
Opportunitiesvaluation and setting
- Price momentum is strong on the weekly and monthly signals (trends can reverse).
Threatsvaluation and setting
- No specific threat is flagged by our checks; general market and interest-rate risk still applies.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare ITW with peers and sector
Medians of 13 Industrial Machinery & Supplies & Components peers and of 80 Industrials stocks in our universe.
Largest peers (X-Ray Score): PH 50, GWW 55, IR 47, OTIS 55, DOV 49, XYL 55.
| Metric | ITW | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 46 | 50 | 51 |
| Valuation | 42 | 57 | 48 |
| Growth | 27 | 40 | 51 |
| Profitability | 67 | 48 | 50 |
| Financial health | 41 | 56 | 49 |
| Dividends | 53 | 55 | 53 |
Sector leaders: highest X-Ray Score in Industrials
ITW ranks #55 of 81 in Industrials and #12 of 14 in Industrial Machinery & Supplies & Components by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for ITW
Each factor is rated by where ITW stands among the 81 Industrials stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 6 Good · 6 Average · 11 Bad of 23
Growth: 0 · 1 · 2
Profitability: 5 · 0 · 0
Financial strength: 0 · 1 · 3
Valuation: 0 · 2 · 3
Cash flow: 1 · 1 · 2
Efficiency: 0 · 1 · 1
| Factor | ITW | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +0.2% | Bad beats 22% | +5.6% | – | – |
| Revenue growth, last year | +0.9% | Bad beats 22% | +4.5% | +1.1% | ≈ In line |
| EPS growth, 3 years a year | +2.4% | Average beats 43% | +5.7% | – | – |
| Profitability | |||||
| Gross margin | 53.0% | Good beats 84% | 38.0% | 50.7% | ≈ In line |
| Operating margin | 26.5% | Good beats 87% | 17.5% | 25.1% | ≈ In line |
| Net margin | 19.4% | Good beats 81% | 12.8% | 19.0% | ≈ In line |
| Return on invested capital | 24.9% | Good beats 72% | 14.9% | – | – |
| Return on equity | 110.3% | Good beats 99% | 23.7% | 98.1% | ▲ Better |
| Financial strength | |||||
| Net debt / EBITDA | 2.5x | Bad beats 29% | 1.8x | 2.0x | ▼ Worse |
| Interest cover | 14.5x | Average beats 43% | 21.4x | 15.2x | ≈ In line |
| Current ratio | 1.11 | Bad beats 33% | 1.25 | 1.36 | ▼ Worse |
| Piotroski F-score | 5 / 9 | Bad beats 16% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 25.1x | Average beats 62% | 28.9x | 23.5x | ≈ In line |
| Price / book | 27.7x | Bad beats 3% | 6.2x | 22.3x | ▼ Worse |
| Price / sales | 4.9x | Bad beats 28% | 3.5x | 4.7x | ≈ In line |
| EV / EBITDA | 20.9x | Bad beats 33% | 18.5x | 20.3x | ≈ In line |
| Free cash flow yield | 3.6% | Average beats 37% | 3.8% | 3.8% | ≈ In line |
| Cash flow | |||||
| Free cash flow margin | 17.7% | Good beats 71% | 13.8% | 16.9% | ≈ In line |
| Cash from operations / net income | 1.04 | Bad beats 10% | 1.39 | 0.95 | ≈ In line |
| Free cash flow growth, 3 years a year | +11.8% | Average beats 34% | +14.5% | – | – |
| Accruals (lower is better) | −0.8% | Bad beats 11% | −3.2% | – | – |
| Efficiency | |||||
| Inventory turnover | 4.4x | Average beats 61% | 4.0x | 4.7x | ≈ In line |
| Days sales outstanding | 79 days | Bad beats 19% | 57 days | 72 days | ▼ Worse |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 4 Good · ● 6 Average · ● 6 BadCash quality
Earnings backed by cashBad
Free-cash-flow yieldAverage
Risk models
Altman Z''Good
Piotroski F-ScoreBad
Growth
EPS growth (3y)Average
Free-cash-flow growth (3y)Average
Revenue growth (3y)Bad
Growth consistencyBad
Balance sheet
Current ratioBad
Net debt / EBITDABad
Interest coverAverage
Valuation
Fair value vs priceAverage
EBIT / EV yieldAverage
Profitability
Return on invested capitalGood
Operating marginGood
Gross profitabilityGood
Each check is graded against the company's sector, not a fixed number. Checklist score 45/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $14.5B | $15.9B | $16.1B | $15.9B | $16.0B |
| Operating income | $3.5B | $3.8B | $4.0B | $4.3B | $4.2B |
| Net income | $2.7B | $3.0B | $3.0B | $3.5B | $3.1B |
| Operating cash flow | $2.6B | $2.3B | $3.5B | $3.3B | $3.1B |
| Operating margin | 24.1% | 23.8% | 25.1% | 26.8% | 26.3% |
| Free cash flow | $2.3B | $1.9B | $3.1B | $2.8B | $2.7B |
| Diluted EPS | $8.51 | $9.77 | $9.74 | $11.71 | $10.49 |
Fiscal years, from SEC filings.
Technical summary
Daily
Strongly bullish
12 bullish · 1 neutral · 3 bearish
Weekly
Strongly bullish
10 bullish · 1 neutral · 1 bearish
Monthly
Strongly bullish
7 bullish · 1 neutral · 0 bearish
Moving averages (daily)
| SMA 10 | 271.0 | Bullish |
| EMA 10 | 272.3 | Bullish |
| SMA 20 | 267.9 | Bullish |
| EMA 20 | 270.2 | Bullish |
| SMA 50 | 271.4 | Bullish |
| EMA 50 | 270.4 | Bullish |
| SMA 100 | 270.8 | Bullish |
| EMA 100 | 269.4 | Bullish |
| SMA 200 | 266.9 | Bullish |
| EMA 200 | 265.3 | Bullish |
Oscillators (daily)
| RSI (14) | 64.11 | Neutral |
| MACD (12, 26) | 1.62 | Bullish |
| Momentum (12) | 4.53 | Bullish |
| Stochastic %K (14) | 97.79 | Bearish |
| Williams %R (14) | -2.21 | Bearish |
| CCI (20) | 119.1 | Bearish |
Pivot points (classic, last session)
S3 259.6 | S2 263.8 | S1 271.5 | Pivot 275.6 | R1 283.3 | R2 287.5 | R3 295.2 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
6.55 USD
Yield on today's price
2.35%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 1.7200 | |
| 1.6100 | |
| 1.6100 | |
| 1.6100 | |
| 1.6100 | |
| 1.5000 | |
| 1.5000 | |
| 1.5000 | |
| 1.5000 | |
| 1.4000 | |
| 1.4000 | |
| 1.4000 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold ITW
| ETF | Share of the fund |
|---|---|
| KNG FT Cboe Vest S&P 500 Dividend Aristocr... | 1.44% |
| RSPN Invesco S&P 500 Equal Weight Industria... | 1.36% |
| NOBL ProShares S&P 500 Dividend Aristocrats | 1.34% |
| VALQ American Century STOXX U.S. Quality Va... | 1.27% |
| XLI Industrial Select Sector SPDR | 1.23% |
| FIDU Fidelity MSCI Industrials Index | 1.12% |
| MFSV MFS Active Value | 1.11% |
| SDY SPDR S&P Dividend | 1.03% |
The eight funds with the largest weight in ITW among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
ITW stock splits
ITW has split its stock 3 times since 1993. The latest was a 2-for-1 split on 26 May 2006.
Full ITW stock split history →ITW SEC filings
8-KSEC EDGAR
Other events
424B5SEC EDGAR
424B5
424B5SEC EDGAR
424B5
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Director or officer change
8-KSEC EDGAR
Shareholder vote results
10-QSEC EDGAR
Quarterly report
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.