(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 September 26, 2025
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 | 71,092m |
| Sub-Industry | Industrial Machinery & Supplies & Components |
| IPO / Inception | 1987-11-05 |
ITW Stock Ratings
| Growth Rating | 25.8% |
| Fundamental | 71.8% |
| Dividend Rating | 62.4% |
| Return 12m vs S&P 500 | -19.2% |
| Analyst Rating | 2.85 of 5 |
ITW Dividends
| Dividend Yield 12m | 2.49% |
| Yield on Cost 5y | 3.20% |
| Annual Growth 5y | 7.03% |
| Payout Consistency | 99.5% |
| Payout Ratio | 59.3% |
ITW Growth Ratios
| Growth Correlation 3m | -80.8% |
| Growth Correlation 12m | -11.5% |
| Growth Correlation 5y | 85.4% |
| CAGR 5y | 5.18% |
| CAGR/Max DD 3y (Calmar Ratio) | 0.25 |
| CAGR/Mean DD 3y (Pain Ratio) | 0.83 |
| Sharpe Ratio 12m | -0.76 |
| Alpha | -25.44 |
| Beta | 1.153 |
| Volatility | 16.50% |
| Current Volume | 1077.2k |
| Average Volume 20d | 1271.3k |
| Stop Loss | 238.1 (-3%) |
| Signal | 0.67 |
Piotroski VR‑10 (Strict, 0-10) 6.0
| Net Income (3.03b TTM) > 0 and > 6% of Revenue (6% = 953.0m TTM) |
| FCFTA 0.18 (>2.0%) and ΔFCFTA 0.22pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 13.78% (prev 10.51%; Δ 3.26pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.20 (>3.0%) and CFO 3.28b > Net Income 3.03b (YES >=105%, WARN >=100%) |
| Net Debt (8.02b) to EBITDA (4.61b) ratio: 1.74 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.53 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (291.7m) change vs 12m ago -1.78% (target <= -2.0% for YES) |
| Gross Margin 43.64% (prev 43.26%; Δ 0.38pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 99.40% (prev 100.8%; Δ -1.39pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 14.77 (EBITDA TTM 4.61b / Interest Expense TTM 285.0m) >= 6 (WARN >= 3) |
Altman Z'' 10.96
| (A) 0.14 = (Total Current Assets 6.32b - Total Current Liabilities 4.13b) / Total Assets 16.14b |
| (B) 1.85 = Retained Earnings (Balance) 29.82b / Total Assets 16.14b |
| warn (B) unusual magnitude: 1.85 — check mapping/units |
| (C) 0.26 = EBIT TTM 4.21b / Avg Total Assets 15.98b |
| (D) 2.16 = Book Value of Equity 27.95b / Total Liabilities 12.93b |
| Total Rating: 10.96 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 71.79
| 1. Piotroski 6.0pt = 1.0 |
| 2. FCF Yield 3.60% = 1.80 |
| 3. FCF Margin 17.91% = 4.48 |
| 4. Debt/Equity 2.79 = -0.45 |
| 5. Debt/Ebitda 1.74 = 0.51 |
| 6. ROIC - WACC (= 19.19)% = 12.50 |
| 7. RoE 93.28% = 2.50 |
| 8. Rev. Trend -17.02% = -1.28 |
| 9. EPS Trend 14.70% = 0.73 |
What is the price of ITW shares?
Over the past week, the price has changed by +0.64%, over one month by -4.01%, over three months by -3.80% and over the past year by -7.84%.
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 223.54 USD . This means that ITW is currently overvalued and has a potential downside of -8.94%.
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 | 259 | 5.5% |
| Analysts Target Price | 259 | 5.5% |
| ValueRay Target Price | 250.8 | 2.2% |
ITW Fundamental Data Overview November 07, 2025
P/E Trailing = 23.7461
P/E Forward = 22.7273
P/S = 4.476
P/B = 23.6769
P/EG = 3.6487
Beta = 1.153
Revenue TTM = 15.88b USD
EBIT TTM = 4.21b USD
EBITDA TTM = 4.61b USD
Long Term Debt = 6.31b USD (from longTermDebt, last fiscal year)
Short Term Debt = 1.27b USD (from shortTermDebt, last quarter)
Debt = 8.94b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 8.02b USD (from netDebt column, last quarter)
Enterprise Value = 79.11b USD (71.09b + Debt 8.94b - CCE 924.0m)
Interest Coverage Ratio = 14.77 (Ebit TTM 4.21b / Interest Expense TTM 285.0m)
FCF Yield = 3.60% (FCF TTM 2.85b / Enterprise Value 79.11b)
FCF Margin = 17.91% (FCF TTM 2.85b / Revenue TTM 15.88b)
Net Margin = 19.05% (Net Income TTM 3.03b / Revenue TTM 15.88b)
Gross Margin = 43.64% ((Revenue TTM 15.88b - Cost of Revenue TTM 8.95b) / Revenue TTM)
Gross Margin QoQ = 44.49% (prev 43.97%)
Tobins Q-Ratio = 4.90 (Enterprise Value 79.11b / Total Assets 16.14b)
Interest Expense / Debt = 0.84% (Interest Expense 75.0m / Debt 8.94b)
Taxrate = 21.73% (228.0m / 1.05b)
NOPAT = 3.29b (EBIT 4.21b * (1 - 21.73%))
Current Ratio = 1.53 (Total Current Assets 6.32b / Total Current Liabilities 4.13b)
Debt / Equity = 2.79 (Debt 8.94b / totalStockholderEquity, last quarter 3.21b)
Debt / EBITDA = 1.74 (Net Debt 8.02b / EBITDA 4.61b)
Debt / FCF = 2.82 (Net Debt 8.02b / FCF TTM 2.85b)
Total Stockholder Equity = 3.24b (last 4 quarters mean from totalStockholderEquity)
RoA = 18.75% (Net Income 3.03b / Total Assets 16.14b)
RoE = 93.28% (Net Income TTM 3.03b / Total Stockholder Equity 3.24b)
RoCE = 44.07% (EBIT 4.21b / Capital Employed (Equity 3.24b + L.T.Debt 6.31b))
RoIC = 28.38% (NOPAT 3.29b / Invested Capital 11.61b)
WACC = 9.19% (E(71.09b)/V(80.03b) * Re(10.26%) + D(8.94b)/V(80.03b) * Rd(0.84%) * (1-Tc(0.22)))
Discount Rate = 10.26% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -1.57%
[DCF Debug] Terminal Value 71.60% ; FCFE base≈2.81b ; Y1≈2.97b ; Y5≈3.52b
Fair Price DCF = 147.7 (DCF Value 42.84b / Shares Outstanding 290.1m; 5y FCF grow 6.29% → 3.0% )
EPS Correlation: 14.70 | EPS CAGR: -1.75% | SUE: 0.19 | # QB: 0
Revenue Correlation: -17.02 | Revenue CAGR: 0.80% | SUE: -0.83 | # QB: 0
Additional Sources for ITW Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle