ITW Stock Analysis: Illinois Tool Works | NYSE
Specialty Industrial Machinery | NYSE, USA | Market Cap: 78.625m USD | 12M Return: 17.3% | US4523081093 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 349M
EPS Trend: 86.5%
Qual. Beats: 0
Rev. Trend: 54.5%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Illinois Tool Works Inc. (ITW) is a diversified U.S. industrial manufacturer that operates through seven segments-Automotive OEM, Food Equipment, Test & Measurement and Electronics, Welding, Polymers & Fluids, Construction Products, and Specialty Products-serving customers in North America, Europe, the Middle East, Africa, the Asia Pacific, and South America. Its products range from automotive fasteners and components to commercial kitchen equipment, welding consumables, adhesives and sealants, engineered fastening systems, and beverage packaging and product coding equipment, with end markets spanning automotive OEM and aftermarket, commercial food equipment, construction, general industrial, capital goods, consumer durables, and maintenance, repair, and operations (MRO). Founded in 1912 and headquartered in Glenview, Illinois, ITW sells through both direct channels to industrial manufacturers and independent distributors. As a large-cap Industrials stock (GICS Sub-Industry: Industrial Machinery & Supplies & Components), ITW is part of a sector known for cyclical demand tied to manufacturing, construction, and capital investment cycles, and its multi-segment structure is typical of conglomerates that use a decentralized operating model to drive margin expansion across diverse industrial end markets.
- Automotive OEM segment tracks global light vehicle production and EV transition
- Construction Products demand tied to residential remodeling and commercial build cycle
- Welding segment margins expand on industrial capex recovery and pricing actions
| Net Income: 3.23b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.16 > 0.02 and ΔFCF/TA -1.22 > 1.0 |
| NWC/Revenue: 9.00% < 20% (prev 13.78%; Δ -4.78% < -1%) |
| CFO/TA 0.19 > 3% & CFO 3.13b > Net Income 3.23b |
| Net Debt (8.80b) to EBITDA (4.83b): 1.82 < 3 |
| Current Ratio: 1.29 > 1.5 & < 3 |
| Outstanding Shares: last quarter (285.3m) vs 12m ago -2.19% < -2% |
| Gross Margin: 44.32% > 18% (prev 43.64%; Δ 0.68% > 0.5%) |
| Asset Turnover: 102.0% > 50% (prev 98.44%; Δ 3.58% > 0%) |
| Interest Coverage Ratio: 14.29 > 6 (EBIT TTM 4.43b / Interest Expense TTM 310.0m) |
| A: 0.09 (Total Current Assets 6.60b - Total Current Liabilities 5.10b) / Total Assets 16.5b |
| B: 1.89 (Retained Earnings 31.2b / Total Assets 16.5b) |
| C: 0.27 (EBIT TTM 4.43b / Avg Total Assets 16.3b) |
| D: 0.24 (Book Value of Equity 3.14b / Total Liabilities 13.4b) |
| Altman-Z'' = 8.83 = AAA |
| DSRI: 1.03 (Receivables 3.52b/3.25b, Revenue 16.6b/15.9b) |
| GMI: 0.98 (GM 43.64% / 44.32%) |
| AQI: 0.98 (AQ_t 0.46 / AQ_t-1 0.47) |
| SGI: 1.05 (Revenue 16.6b / 15.9b) |
| TATA: 0.01 (NI 3.23b - CFO 3.13b) / TA 16.5b) |
| Beneish M = -2.99 (Cap -4..+1) = A |
As of November 01, 2026, the stock is trading at USD 278.55 with a total of 1,715,747 shares traded. Over the past week, the price has changed by +1.02%, over one month by +4.97%, over three months by -1.18% and over the past year by +17.25%.
Current recommended Stop Loss: 267.40 (which is 4% or 1.9 ATR below the current price).
Illinois Tool Works has received a consensus analysts rating of 2.75. Therefore, it is recommended to hold ITW.
- StrongBuy: 1
- Buy: 0
- Hold: 12
- Sell: 0
- StrongSell: 3
| Analysts Target Price | 294.5 | 5.7% |
P/E Trailing = 24.6271
P/E Forward = 22.4215
P/S = 4.7233
P/B = 27.1544
P/EG = 2.5626
Revenue TTM = 16.6b USD
EBIT TTM = 4.43b USD
EBITDA TTM = 4.83b USD
Long Term Debt = 6.68b USD (from longTermDebt, last fiscal year)
Short Term Debt = 2.22b USD (from shortTermDebt, last quarter)
Debt = 9.61b USD (from shortLongTermDebtTotal, last quarter) + Leases 242.0m
Net Debt = 8.80b USD (calculated: Debt 9.61b - CCE 809.0m)
Enterprise Value = 87.4b USD (78.6b + Debt 9.61b - CCE 809.0m)
Interest Coverage Ratio = 14.29 (Ebit TTM 4.43b / Interest Expense TTM 310.0m)
EV/FCF = 32.30x (Enterprise Value 87.4b / FCF TTM 2.71b)
FCF Yield = 3.10% (FCF TTM 2.71b / Enterprise Value 87.4b)
FCF Margin = 16.26% (FCF TTM 2.71b / Revenue TTM 16.6b)
Net Margin = 19.39% (Net Income TTM 3.23b / Revenue TTM 16.6b)
Gross Margin = 44.32% ((Revenue TTM 16.6b - Cost of Revenue TTM 9.27b) / Revenue TTM)
Gross Margin QoQ = 45.09% (prev 44.13%)
Tobins Q-Ratio = 5.30 (Enterprise Value 87.4b / Total Assets 16.5b)
Interest Expense / Debt = 3.22% (Interest Expense 310.0m / Debt 9.61b)
Taxrate = 23.18% (974.0m / 4.20b)
NOPAT = 3.40b (EBIT 4.43b * (1 - 23.18%))
Current Ratio = 1.29 (Total Current Assets 6.60b / Total Current Liabilities 5.10b)
Debt / Equity = 3.06 (Debt 9.61b / totalStockholderEquity, last quarter 3.14b)
Debt / EBITDA = 1.82 (Net Debt 8.80b / EBITDA 4.83b)
Debt / FCF = 3.25 (Net Debt 8.80b / FCF TTM 2.71b)
Total Stockholder Equity = 3.12b (last 4 quarters mean from totalStockholderEquity)
RoA = 19.78% (Net Income 3.23b / Total Assets 16.5b)
RoE = 103.4% (Net Income TTM 3.23b / Total Stockholder Equity 3.12b)
RoCE = 45.17% (EBIT 4.43b / Capital Employed (Equity 3.12b + L.T.Debt 6.68b))
RoIC = 26.57% (NOPAT 3.40b / Invested Capital 12.8b)
WACC = 6.67% (E(78.6b)/V(88.2b) * Re(7.18%) + D(9.61b)/V(88.2b) * Rd(3.22%) * (1-Tc(0.23)))
Discount Rate = 7.18% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -99.81 | Cagr: -1.99%
[DCF] Terminal Value 74.76% ; FCFF base≈2.76b ; Y1≈2.66b ; Y5≈2.59b
[DCF] Fair Price = 112.1 (EV 40.7b - Net Debt 8.80b = Equity 31.9b / Shares 284.8m; r=8.35% [WACC [floored]]; 5y FCF grow -4.85% → 2.50% )
EPS Correlation: 86.49 | EPS CAGR: 3.94% | SUE: 0.26 | # QB: 0
Revenue Correlation: 54.48 | Revenue CAGR: 0.99% | SUE: -0.32 | # QB: 0
EPS current Quarter (2027-03-31): EPS=2.78 | Chg30d=+1.75% | Revisions=-25% | Analysts=6
EPS current Year (2026-12-31): EPS=11.48 | Chg30d=+0.16% | Revisions=+0% | GrowthEPS=+9.4% | GrowthRev=+5.0%
EPS next Year (2027-12-31): EPS=12.35 | Chg30d=-0.43% | Revisions=-29% | GrowthEPS=+7.6% | GrowthRev=+3.7%
[Analyst] Revisions Ratio: -25% (up=3, down=6)