(ITW) Illinois Tool Works - Overview
Sector: Industrials | Industry: Specialty Industrial Machinery | Exchange: NYSE (USA) | Market Cap: 72.558m USD | Total Return: 5% in 12m
Avg Turnover: 304M
EPS Trend: 44.3%
Qual. Beats: 0
Rev. Trend: -23.9%
Qual. Beats: 0
Warnings
Below Avwap Earnings
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 0.43%; Δ 4.37k% > 0.5%) |
| Asset Turnover: 102.2% > 50% (prev 101.9%; Δ 0.32% > 0%) |
| Interest Coverage Ratio: 14.53 > 6 (EBITDA TTM 4.63b / 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: 2.20 (Book Value of Equity 28.7b / Total Liabilities 13.0b) |
| Altman-Z'' = 10.65 = AAA |
| DSRI: 1.04 (Receivables 3.38b/3.15b, Revenue 16.2b/15.8b) |
| GMI: 0.98 (GM 44.12% / 43.09%) |
| 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 = -3.00 (Cap -4..+1) = A |
As of May 29, 2026, the stock is trading at USD 249.64 with a total of 1,033,813 shares traded.
Over the past week, the price has changed by -0.45%,
over one month by -7.01%,
over three months by -13.56% and
over the past year by +4.97%.
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 | 10% |
P/E Trailing = 23.4169
P/E Forward = 21.7391
P/S = 4.4731
P/B = 22.4707
P/EG = 2.4951
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 = 81.1b USD (72.6b + Debt 9.39b - CCE 827.0m)
Interest Coverage Ratio = 14.53 (Ebit TTM 4.32b / Interest Expense TTM 297.0m)
EV/FCF = 29.62x (Enterprise Value 81.1b / FCF TTM 2.74b)
FCF Yield = 3.38% (FCF TTM 2.74b / Enterprise Value 81.1b)
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 = 4.99 (Enterprise Value 81.1b / Total Assets 16.3b)
Interest Expense / Debt = 3.16% (Interest Expense 297.0m / Debt 9.39b)
Taxrate = 20.58% (199.0m / 967.0m)
NOPAT = 3.43b (EBIT 4.32b * (1 - 20.58%))
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 = 27.09% (NOPAT 3.43b / Invested Capital 12.7b)
WACC = 7.40% (E(72.6b)/V(81.9b) * Re(8.03%) + D(9.39b)/V(81.9b) * Rd(3.16%) * (1-Tc(0.21)))
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: 44.28 | EPS CAGR: 3.09% | SUE: 0.21 | # QB: 0
Revenue Correlation: -23.91 | Revenue CAGR: -0.23% | SUE: 0.16 | # QB: 0
EPS current Quarter (2026-06-30): EPS=2.79 | Chg30d=-0.20% | Revisions=-12% | Analysts=13
EPS next Quarter (2026-09-30): EPS=2.93 | Chg30d=-0.12% | Revisions=-14% | Analysts=13
EPS current Year (2026-12-31): EPS=11.34 | Chg30d=+0.62% | Revisions=+60% | GrowthEPS=+8.1% | GrowthRev=+3.5%
EPS next Year (2027-12-31): EPS=12.16 | Chg30d=+0.37% | Revisions=+0% | GrowthEPS=+7.3% | GrowthRev=+3.5%
[Analyst] Revisions Ratio: +60%