Overview Dividends

(ITW) Illinois Tool Works - Ratings and Ratios

Exchange: NYSE • Country: United States • Currency: USD • Type: Common Stock • ISIN: US4523081093

Industrial Equipment, Fasteners, Adhesives, Welding Supplies, Automotive Parts

ITW EPS (Earnings per Share)

EPS Growth (3Y CAGR): 3.46%
EPS Trend (3Y Correlation): 18.4%

ITW Revenue

Revenue Growth (3Y CAGR): 0.38%
Revenue Trend (3Y Correlation): -38.6%

Description: ITW Illinois Tool Works

Illinois Tool Works Inc. is a diversified industrial manufacturer with a broad portfolio of products and equipment sold globally, operating through seven distinct segments that cater to various industries, including automotive, food equipment, and construction.

The companys diverse business segments provide a range of products, from plastic and metal components, fasteners, and welding equipment to food processing equipment and beverage packaging solutions, allowing ITW to tap into multiple markets, including the automotive OEM, commercial food equipment, and construction industries.

From a financial perspective, ITWs key performance indicators (KPIs) suggest a stable and profitable business. The companys return on equity (RoE) of 104.39% indicates a high level of profitability, while its price-to-earnings (P/E) ratio of 22.88 and forward P/E of 24.88 suggest that the stock may be fairly valued relative to its earnings growth prospects.

Additionally, ITWs market capitalization of $76.2 billion and its presence in various industries provide a level of stability and diversification, potentially reducing the companys reliance on any single market or segment. The companys distribution channels, which include both direct sales to industrial manufacturers and sales through independent distributors, further support its ability to reach a broad customer base.

To further evaluate ITWs investment potential, other relevant KPIs could be examined, such as its debt-to-equity ratio, interest coverage ratio, and operating margin, which could provide additional insights into the companys financial health, efficiency, and ability to generate cash flows.

ITW Stock Overview

Market Cap in USD	77,609m
Sub-Industry	Industrial Machinery & Supplies & Components
IPO / Inception	1987-11-05

ITW Stock Ratings

Growth Rating	37.5%
Fundamental	69.7%
Dividend Rating	67.7%
Return 12m vs S&P 500	-7.48%
Analyst Rating	2.85 of 5

ITW Dividends

Dividend Yield 12m	2.94%
Yield on Cost 5y	4.32%
Annual Growth 5y	5.58%
Payout Consistency	99.5%
Payout Ratio	52.6%

ITW Growth Ratios

Growth Correlation 3m	82.3%
Growth Correlation 12m	-7%
Growth Correlation 5y	85.7%
CAGR 5y	8.52%
CAGR/Max DD 5y	0.30
Sharpe Ratio 12m	-0.80
Alpha	-3.80
Beta	0.676
Volatility	19.62%
Current Volume	961.1k
Average Volume 20d	961.1k
Stop Loss	256.7 (-3%)
Signal	-0.36

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

(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) 69.74

1. Piotroski 5.0pt = 0.0

2. FCF Yield 3.18% = 1.59

3. FCF Margin 17.25% = 4.31

4. Debt/Equity 2.78 = -0.44

5. Debt/Ebitda 1.82 = 0.36

6. ROIC - WACC 22.91% = 12.50

7. RoE 102.3% = 2.50

8. Rev. Trend -38.61% = -1.93

9. Rev. CAGR 0.38% = 0.05

10. EPS Trend 18.39% = 0.46

11. EPS CAGR 3.46% = 0.35

What is the price of ITW shares?

As of August 31, 2025, the stock is trading at USD 264.65 with a total of 961,095 shares traded.
Over the past week, the price has changed by -1.77%, over one month by +1.98%, over three months by +8.35% and over the past year by +8.22%.

Is Illinois Tool Works a good stock to buy?

Partly, yes. Based on ValueRay´s Fundamental Analyses, Illinois Tool Works (NYSE:ITW) is currently (August 2025) ok to buy, but has to be watched. It has a ValueRay Fundamental Rating of 69.74 and therefor a somewhat positive outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of ITW is around 259.97 USD . This means that ITW is currently overvalued and has a potential downside of -1.77%.

Is ITW a buy, sell or hold?

Illinois Tool Works has received a consensus analysts rating of 2.85. Therefor, it is recommend to hold ITW.

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	258.9	-2.2%
Analysts Target Price	258.9	-2.2%
ValueRay Target Price	287.8	8.7%

Last update: 2025-08-28 04:42

ITW Fundamental Data Overview

Market Cap USD = 77.61b (77.61b USD * 1.0 USD.USD)
CCE Cash And Equivalents = 788.0m USD (last quarter)
P/E Trailing = 23.3544
P/E Forward = 25.5754
P/S = 4.9151
P/B = 24.1772
P/EG = 4.1013
Beta = 1.108
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 (Calculated: Short Term 1.24b + Long Term 7.70b)
Net Debt = 8.15b USD (from netDebt column, last quarter)
Enterprise Value = 85.76b USD (77.61b + Debt 8.94b - CCE 788.0m)
Interest Coverage Ratio = 16.19 (Ebit TTM 4.52b / Interest Expense TTM 279.0m)
FCF Yield = 3.18% (FCF TTM 2.72b / Enterprise Value 85.76b)
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)
Tobins Q-Ratio = 3.11 (Enterprise Value 85.76b / Book Value Of Equity 27.61b)
Interest Expense / Debt = 0.83% (Interest Expense 74.0m / Debt 8.94b)
Taxrate = 21.12% (from yearly Income Tax Expense: 934.0m / 4.42b)
NOPAT = 3.56b (EBIT 4.52b * (1 - 21.12%))
Current Ratio = 1.59 (Total Current Assets 6.23b / Total Current Liabilities 3.93b)
Debt / Equity = 2.78 (Debt 8.94b / last Quarter total Stockholder Equity 3.21b)
Debt / EBITDA = 1.82 (Net Debt 8.15b / EBITDA 4.92b)
Debt / FCF = 3.28 (Debt 8.94b / FCF TTM 2.72b)
Total Stockholder Equity = 3.29b (last 4 quarters mean)
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 / (Equity 3.29b + L.T.Debt 7.70b))
RoIC = 30.60% (NOPAT 3.56b / Invested Capital 11.64b)
WACC = 7.70% (E(77.61b)/V(86.55b) * Re(8.51%)) + (D(8.94b)/V(86.55b) * Rd(0.83%) * (1-Tc(0.21)))
Shares Correlation 5-Years: -100.0 | Cagr: -1.80%
Discount Rate = 8.51% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 77.10% ; FCFE base≈2.77b ; Y1≈2.86b ; Y5≈3.23b
Fair Price DCF = 178.8 (DCF Value 52.12b / Shares Outstanding 291.5m; 5y FCF grow 3.35% → 3.0% )
Revenue Correlation: -38.61 | Revenue CAGR: 0.38%
Rev Growth-of-Growth: -0.88
EPS Correlation: 18.39 | EPS CAGR: 3.46%
EPS Growth-of-Growth: 0.02

Additional Sources for ITW Stock

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