(ITW) Illinois Tool Works - Overview
Sector: Industrials | Industry: Specialty Industrial Machinery | Exchange: NYSE (USA) | Market Cap: 71.142m USD | Total Return: 4.6% in 12m
Avg Turnover: 314M
EPS Trend: 97.4%
Qual. Beats: 1
Rev. Trend: -23.9%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Illinois Tool Works Inc. (ITW) is a global multi-industrial manufacturer operating across seven diverse segments, including Automotive OEM, Food Equipment, Welding, and Construction Products. The company utilizes a decentralized operating structure and the proprietary 80/20 business process to focus resources on its highest-volume, highest-margin product lines and customers.
The company maintains a broad geographic footprint across North America, Europe, and the Asia Pacific, serving sectors ranging from commercial food service to aerospace and electronics. This business model relies on a mix of direct sales to original equipment manufacturers and distribution through independent channels for the maintenance, repair, and operations (MRO) markets. As a diversified industrial, ITWs performance is often closely tied to global industrial production indices and capital expenditure cycles.
For a detailed breakdown of the companys historical valuation trends, consider reviewing the data on ValueRay.
- Automotive OEM production volumes drive high-margin component demand and revenue growth
- Global industrial capital expenditure cycles dictate welding and food equipment demand
- Execution of Enterprise Strategy initiatives expands operating margins through cost optimization
- Residential and commercial construction activity impacts fastener and engineered tool sales
- Raw material price volatility and supply chain logistics influence manufacturing segment profitability
| Net Income: 3.13b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.17 > 0.02 and ΔFCF/TA -1.56 > 1.0 |
| NWC/Revenue: 6.19% < 20% (prev 14.32%; Δ -8.13% < -1%) |
| CFO/TA 0.19 > 3% & CFO 3.16b > Net Income 3.13b |
| Net Debt (8.56b) to EBITDA (4.63b): 1.85 < 3 |
| Current Ratio: 1.19 > 1.5 & < 3 |
| Outstanding Shares: last quarter (289.1m) vs 12m ago -1.83% < -2% |
| Gross Margin: 44.12% > 18% (prev 43.09%; Δ 1.03% > 0.5%) |
| Asset Turnover: 102.2% > 50% (prev 101.9%; Δ 0.32% > 0%) |
| Interest Coverage Ratio: 14.53 > 6 (EBIT TTM 4.32b / Interest Expense TTM 297.0m) |
| A: 0.06 (Total Current Assets 6.33b - Total Current Liabilities 5.33b) / Total Assets 16.3b |
| B: 1.87 (Retained Earnings 30.5b / Total Assets 16.3b) |
| C: 0.27 (EBIT TTM 4.32b / Avg Total Assets 15.9b) |
| D: 0.25 (Book Value of Equity 3.23b / Total Liabilities 13.0b) |
| Altman-Z'' = 8.60 = AAA |
| DSRI: 1.04 (Receivables 3.38b/3.15b, Revenue 16.2b/15.8b) |
| GMI: 0.98 (GM 43.09% / 44.12%) |
| AQI: 1.00 (AQ_t 0.47 / AQ_t-1 0.47) |
| SGI: 1.03 (Revenue 16.2b / 15.8b) |
| TATA: -0.00 (NI 3.13b - CFO 3.16b) / TA 16.3b) |
| Beneish M = -2.99 (Cap -4..+1) = A |
As of June 04, 2026, the stock is trading at USD 250.26 with a total of 723,500 shares traded.
Over the past week, the price has changed by -0.01%,
over one month by -0.55%,
over three months by -11.94% and
over the past year by +4.62%.
Illinois Tool Works has received a consensus analysts rating of 2.85. Therefore, it is recommended to hold ITW.
- StrongBuy: 2
- Buy: 1
- Hold: 12
- Sell: 2
- StrongSell: 3
| Analysts Target Price | 274.5 | 9.7% |
P/E Trailing = 22.9388
P/E Forward = 21.322
P/S = 4.3858
P/B = 22.0323
P/EG = 2.4464
Revenue TTM = 16.2b USD
EBIT TTM = 4.32b USD
EBITDA TTM = 4.63b USD
Long Term Debt = 6.60b USD (from longTermDebt, last quarter)
Short Term Debt = 2.54b USD (from shortTermDebt, last quarter)
Debt = 9.39b USD (from shortLongTermDebtTotal, last quarter) + Leases 242.0m
Net Debt = 8.56b USD (calculated: Debt 9.39b - CCE 827.0m)
Enterprise Value = 79.7b USD (71.1b + Debt 9.39b - CCE 827.0m)
Interest Coverage Ratio = 14.53 (Ebit TTM 4.32b / Interest Expense TTM 297.0m)
EV/FCF = 29.10x (Enterprise Value 79.7b / FCF TTM 2.74b)
FCF Yield = 3.44% (FCF TTM 2.74b / Enterprise Value 79.7b)
FCF Margin = 16.89% (FCF TTM 2.74b / Revenue TTM 16.2b)
Net Margin = 19.32% (Net Income TTM 3.13b / Revenue TTM 16.2b)
Gross Margin = 44.12% ((Revenue TTM 16.2b - Cost of Revenue TTM 9.06b) / Revenue TTM)
Gross Margin QoQ = 43.82% (prev 44.20%)
Tobins Q-Ratio = 4.90 (Enterprise Value 79.7b / Total Assets 16.3b)
Interest Expense / Debt = 3.16% (Interest Expense 297.0m / Debt 9.39b)
Taxrate = 22.39% (904.0m / 4.04b)
NOPAT = 3.35b (EBIT 4.32b * (1 - 22.39%))
Current Ratio = 1.19 (Total Current Assets 6.33b / Total Current Liabilities 5.33b)
Debt / Equity = 2.91 (Debt 9.39b / totalStockholderEquity, last quarter 3.23b)
Debt / EBITDA = 1.85 (Net Debt 8.56b / EBITDA 4.63b)
Debt / FCF = 3.13 (Net Debt 8.56b / FCF TTM 2.74b)
Total Stockholder Equity = 3.22b (last 4 quarters mean from totalStockholderEquity)
RoA = 19.75% (Net Income 3.13b / Total Assets 16.3b)
RoE = 97.38% (Net Income TTM 3.13b / Total Stockholder Equity 3.22b)
RoCE = 43.94% (EBIT 4.32b / Capital Employed (Equity 3.22b + L.T.Debt 6.60b))
RoIC = 26.44% (NOPAT 3.35b / Invested Capital 12.7b)
WACC = 7.38% (E(71.1b)/V(80.5b) * Re(8.03%) + D(9.39b)/V(80.5b) * Rd(3.16%) * (1-Tc(0.22)))
Discount Rate = 8.03% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -100.00 | Cagr: -1.79%
[DCF] Terminal Value 74.92% ; FCFF base≈2.78b ; Y1≈2.71b ; Y5≈2.69b
[DCF] Fair Price = 116.6 (EV 42.1b - Net Debt 8.56b = Equity 33.5b / Shares 287.7m; r=8.35% [WACC [floored]]; 5y FCF grow -3.76% → 2.50% )
EPS Correlation: 97.41 | EPS CAGR: 4.10% | SUE: 2.82 | # QB: 1
Revenue Correlation: -23.91 | Revenue CAGR: -0.23% | SUE: 0.16 | # QB: 0
EPS current Quarter (2026-06-30): EPS=2.79 | Chg30d=-0.23% | Revisions=-12% | Analysts=14
EPS next Quarter (2026-09-30): EPS=2.93 | Chg30d=-0.25% | Revisions=+0% | Analysts=14
EPS current Year (2026-12-31): EPS=11.33 | Chg30d=+0.54% | Revisions=+62% | GrowthEPS=+8.0% | GrowthRev=+3.5%
EPS next Year (2027-12-31): EPS=12.14 | Chg30d=+0.19% | Revisions=+0% | GrowthEPS=+7.2% | GrowthRev=+3.5%
[Analyst] Revisions Ratio: +62%