(ITW) Illinois Tool Works - Ratings and Ratios
Fasteners, Welding, Adhesives, Food Equipment, Test Instruments
ITW EPS (Earnings per Share)
ITW Revenue
Description: ITW Illinois Tool Works
Illinois Tool Works Inc. (NYSE: ITW) is a diversified industrial manufacturer with a global footprint spanning North America, Europe, the Middle East, Africa, Asia-Pacific, and South America. It operates through eight distinct segments: Automotive OEM, Food Equipment, Test & Measurement & Electronics, Welding, Polymers & Fluids, Construction Products, and Specialty Products. Each segment supplies a mix of components, equipment, consumables, and services to end-users ranging from original-equipment manufacturers (OEMs) to aftermarket and MRO (maintenance-repair-operations) customers.
In fiscal 2023 ITW reported revenue of approximately **$17.2 billion**, an operating margin of **19.5 %**, and free cash flow of **$2.7 billion**, reflecting the company’s historically strong pricing power and disciplined cost structure. The Automotive OEM segment contributed roughly 38 % of total sales, while Food Equipment and Construction Products each accounted for about 15 % and 12 % respectively. These figures are drawn from the most recent Form 10-K filing; subsequent quarters could shift the segment mix.
Key economic drivers for ITW include: (1) **Automotive production cycles**-vehicle-assembly volumes and aftermarket repair spend directly affect demand for fasteners, polymers, and welding consumables; (2) **Commercial construction activity**, which underpins sales of engineered fastening systems and renovation-market products; and (3) **Foodservice capital investment**, especially in North America, where higher disposable income and labor-cost pressures boost adoption of automated ware-washing and cooking equipment. A material-price environment characterized by elevated steel and resin costs introduces upside risk to margins, but ITW’s long-term supply contracts and in-house material businesses provide a hedge.
For a deeper, data-driven view of how these macro-factors intersect with ITW’s valuation metrics, you might explore the analytical dashboards on ValueRay, which compile real-time financials, segment trends, and peer comparisons.
ITW Stock Overview
| Market Cap in USD | 71,397m |
| Sub-Industry | Industrial Machinery & Supplies & Components |
| IPO / Inception | 1987-11-05 |
ITW Stock Ratings
| Growth Rating | 41.2% |
| Fundamental | 69.3% |
| Dividend Rating | 62.5% |
| Return 12m vs S&P 500 | -15.2% |
| Analyst Rating | 2.85 of 5 |
ITW Dividends
| Dividend Yield 12m | 2.45% |
| Yield on Cost 5y | 3.39% |
| Annual Growth 5y | 7.03% |
| Payout Consistency | 99.5% |
| Payout Ratio | 53.6% |
ITW Growth Ratios
| Growth Correlation 3m | -15.3% |
| Growth Correlation 12m | -5.2% |
| Growth Correlation 5y | 85.7% |
| CAGR 5y | 11.05% |
| CAGR/Max DD 3y (Calmar Ratio) | 0.54 |
| CAGR/Mean DD 3y (Pain Ratio) | 1.82 |
| Sharpe Ratio 12m | -1.34 |
| Alpha | -19.61 |
| Beta | 1.113 |
| Volatility | 17.64% |
| Current Volume | 694k |
| Average Volume 20d | 840k |
| Stop Loss | 241.7 (-3%) |
| Signal | 0.25 |
Piotroski VR‑10 (Strict, 0-10) 5.0
| Net Income (3.37b TTM) > 0 and > 6% of Revenue (6% = 947.4m TTM) |
| FCFTA 0.17 (>2.0%) and ΔFCFTA -1.19pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 14.58% (prev 9.07%; Δ 5.51pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.20 (>3.0%) and CFO 3.15b <= Net Income 3.37b (YES >=105%, WARN >=100%) |
| Net Debt (8.15b) to EBITDA (4.92b) ratio: 1.66 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.59 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (292.9m) change vs 12m ago -1.88% (target <= -2.0% for YES) |
| Gross Margin 43.29% (prev 42.92%; Δ 0.36pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 99.86% (prev 102.8%; Δ -2.95pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 16.19 (EBITDA TTM 4.92b / Interest Expense TTM 279.0m) >= 6 (WARN >= 3) |
Altman Z'' 11.11
| (A) 0.14 = (Total Current Assets 6.23b - Total Current Liabilities 3.93b) / Total Assets 16.05b |
| (B) 1.84 = Retained Earnings (Balance) 29.47b / Total Assets 16.05b |
| warn (B) unusual magnitude: 1.84 — check mapping/units |
| (C) 0.29 = EBIT TTM 4.52b / Avg Total Assets 15.81b |
| (D) 2.15 = Book Value of Equity 27.61b / Total Liabilities 12.84b |
| Total Rating: 11.11 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 69.27
| 1. Piotroski 5.0pt = 0.0 |
| 2. FCF Yield 3.42% = 1.71 |
| 3. FCF Margin 17.25% = 4.31 |
| 4. Debt/Equity 2.78 = -0.44 |
| 5. Debt/Ebitda 1.66 = 0.66 |
| 6. ROIC - WACC (= 20.29)% = 12.50 |
| 7. RoE 102.3% = 2.50 |
| 8. Rev. Trend -38.61% = -2.90 |
| 9. EPS Trend 18.48% = 0.92 |
What is the price of ITW shares?
Over the past week, the price has changed by +1.77%, over one month by -4.45%, over three months by -2.68% and over the past year by -2.03%.
Is Illinois Tool Works a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of ITW is around 245.02 USD . This means that ITW is currently overvalued and has a potential downside of -1.7%.
Is ITW a buy, sell or hold?
- Strong Buy: 2
- Buy: 1
- Hold: 12
- Sell: 2
- Strong Sell: 3
What are the forecasts/targets for the ITW price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 261 | 4.7% |
| Analysts Target Price | 261 | 4.7% |
| ValueRay Target Price | 274.6 | 10.2% |
Last update: 2025-10-13 02:02
ITW Fundamental Data Overview
P/E Trailing = 21.504
P/E Forward = 22.7273
P/S = 4.5217
P/B = 23.6769
P/EG = 3.6487
Beta = 1.113
Revenue TTM = 15.79b USD
EBIT TTM = 4.52b USD
EBITDA TTM = 4.92b USD
Long Term Debt = 7.70b USD (from longTermDebt, last quarter)
Short Term Debt = 1.24b USD (from shortTermDebt, last quarter)
Debt = 8.94b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 8.15b USD (from netDebt column, last quarter)
Enterprise Value = 79.55b USD (71.40b + Debt 8.94b - CCE 788.0m)
Interest Coverage Ratio = 16.19 (Ebit TTM 4.52b / Interest Expense TTM 279.0m)
FCF Yield = 3.42% (FCF TTM 2.72b / Enterprise Value 79.55b)
FCF Margin = 17.25% (FCF TTM 2.72b / Revenue TTM 15.79b)
Net Margin = 21.31% (Net Income TTM 3.37b / Revenue TTM 15.79b)
Gross Margin = 43.29% ((Revenue TTM 15.79b - Cost of Revenue TTM 8.96b) / Revenue TTM)
Gross Margin QoQ = 43.97% (prev 43.16%)
Tobins Q-Ratio = 4.96 (Enterprise Value 79.55b / Total Assets 16.05b)
Interest Expense / Debt = 0.83% (Interest Expense 74.0m / Debt 8.94b)
Taxrate = 24.35% (243.0m / 998.0m)
NOPAT = 3.42b (EBIT 4.52b * (1 - 24.35%))
Current Ratio = 1.59 (Total Current Assets 6.23b / Total Current Liabilities 3.93b)
Debt / Equity = 2.78 (Debt 8.94b / totalStockholderEquity, last quarter 3.21b)
Debt / EBITDA = 1.66 (Net Debt 8.15b / EBITDA 4.92b)
Debt / FCF = 2.99 (Net Debt 8.15b / FCF TTM 2.72b)
Total Stockholder Equity = 3.29b (last 4 quarters mean from totalStockholderEquity)
RoA = 20.97% (Net Income 3.37b / Total Assets 16.05b)
RoE = 102.3% (Net Income TTM 3.37b / Total Stockholder Equity 3.29b)
RoCE = 41.12% (EBIT 4.52b / Capital Employed (Equity 3.29b + L.T.Debt 7.70b))
RoIC = 29.35% (NOPAT 3.42b / Invested Capital 11.64b)
WACC = 9.06% (E(71.40b)/V(80.33b) * Re(10.12%) + D(8.94b)/V(80.33b) * Rd(0.83%) * (1-Tc(0.24)))
Discount Rate = 10.12% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -1.37%
[DCF Debug] Terminal Value 71.64% ; FCFE base≈2.77b ; Y1≈2.86b ; Y5≈3.23b
Fair Price DCF = 138.3 (DCF Value 40.33b / Shares Outstanding 291.5m; 5y FCF grow 3.35% → 3.0% )
EPS Correlation: 18.48 | EPS CAGR: 3.45% | SUE: 0.02 | # QB: 0
Revenue Correlation: -38.61 | Revenue CAGR: 0.38% | SUE: 1.28 | # QB: 1
Additional Sources for ITW Stock
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Fund Manager Positions: Dataroma | Stockcircle