ITW Stock Analysis: Illinois Tool Works | NYSE
Specialty Industrial Machinery | NYSE, USA | Market Cap: 75.861m USD | 12M Return: 8.1% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 357M
EPS Trend: 68.4%
Qual. Beats: 1
Rev. Trend: -23.9%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Seasonality 10.5 years of data
Average return per month, with how dependable it is below — did the month move the same way every year (high) or randomly (low). Above 60 is a pattern worth trusting; under 40 is noise.
Illinois Tool Works Inc. (NYSE: ITW) is a diversified global manufacturer of industrial products and equipment, founded in 1912 and headquartered in Glenview, Illinois. The company operates through seven reportable segments-Automotive OEM, Food Equipment, Test & Measurement and Electronics, Welding, Polymers & Fluids, Construction Products, and Specialty Products-serving a broad set of end markets that includes automotive OEM and aftermarket, commercial food equipment, construction, general industrial, industrial capital goods, and consumer durables.
Within the GICS Industrials sector and the Industrial Machinery & Supplies & Components sub-industry, ITW reaches customers both through direct sales to industrial manufacturers and via independent distributors, including supply into MRO (maintenance, repair, and operations) channels across North America, Europe, the Middle East, Africa, the Asia Pacific, and South America.
- Automotive OEM segment pressured by declining global auto production
- Construction Products demand tracks US housing and renovation cycles
- 80/20 operating model drives margin expansion across segments
| 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 (4.65b): 1.84 < 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: 14.60 > 6 (EBIT TTM 4.33b / 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 4.33b / Avg Total Assets 15.9b) |
| D: 0.25 (Book Value of Equity 3.23b / Total Liabilities 13.0b) |
| Altman-Z'' = 8.61 = 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 July 02, 2026, the stock is trading at USD 270.47 with a total of 923,150 shares traded. Over the past week, the price has changed by +2.62%, over one month by +10.08%, over three months by +3.86% and over the past year by +8.06%.
Current recommended Stop Loss: 263.70 (which is 2.5% or 1.3 ATR below the current price).
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 | 1.5% |
P/E Trailing = 24.5056
P/E Forward = 22.7273
P/S = 4.6767
P/B = 23.4936
P/EG = 2.6086
Revenue TTM = 16.2b USD
EBIT TTM = 4.33b USD
EBITDA TTM = 4.65b 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 = 84.4b USD (75.9b + Debt 9.39b - CCE 827.0m)
Interest Coverage Ratio = 14.60 (Ebit TTM 4.33b / Interest Expense TTM 297.0m)
EV/FCF = 30.82x (Enterprise Value 84.4b / FCF TTM 2.74b)
FCF Yield = 3.24% (FCF TTM 2.74b / Enterprise Value 84.4b)
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 = 5.19 (Enterprise Value 84.4b / Total Assets 16.3b)
Interest Expense / Debt = 3.16% (Interest Expense 297.0m / Debt 9.39b)
Taxrate = 22.39% (904.0m / 4.04b)
NOPAT = 3.36b (EBIT 4.33b * (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 = 1.84 (Net Debt 8.56b / EBITDA 4.65b)
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 = 44.14% (EBIT 4.33b / Capital Employed (Equity 3.22b + L.T.Debt 6.60b))
RoIC = 26.56% (NOPAT 3.36b / Invested Capital 12.7b)
WACC = 7.42% (E(75.9b)/V(85.3b) * Re(8.04%) + D(9.39b)/V(85.3b) * Rd(3.16%) * (1-Tc(0.22)))
Discount Rate = 8.04% (= 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: 68.43 | EPS CAGR: 1.98% | SUE: 0.86 | # QB: 1
Revenue Correlation: -23.91 | Revenue CAGR: -0.23% | SUE: 0.16 | # QB: 0
EPS current Quarter (2026-09-30): EPS=2.93 | Chg30d=-0.25% | Revisions=+0% | Analysts=14
EPS current Year (2026-12-31): EPS=11.33 | Chg30d=-0.07% | Revisions=+62% | GrowthEPS=+8.0% | GrowthRev=+3.5%
EPS next Year (2027-12-31): EPS=12.14 | Chg30d=-0.16% | Revisions=+0% | GrowthEPS=+7.2% | GrowthRev=+3.5%
[Analyst] Revisions Ratio: +62%