Overview Dividends

(ITW) Illinois Tool Works - Ratings and Ratios

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

Fasteners, Welding, Adhesives, Food Equipment, Test Equipment

Industrial Machinery & Supplies & Components
Market Cap in USD: 73,333m

IPO / Inception: 1987-11-05
Return 12m vs S&P 500: -14.3%

EPS (Earnings per Share)

EPS CAGR: 10.54%
EPS Trend: 66.9%

Last SUE: 0.19
Qual. Beats: 0

Revenue

Rev. CAGR: 2.66%
Rev. Trend: 30.6%

Last SUE: -0.83
Qual. Beats: 0

Dividends

Dividend Yield	3.06%
Yield on Cost 5y	4.22%
Yield CAGR 5y	7.03%
Payout Consistency	96.1%
Payout Ratio	60.3%

Risk via 5d forecast
Volatility	17.2%
Value at Risk 5%th	26.6%
Relative Tail Risk	-5.68%

Reward TTM
Sharpe Ratio	-0.08
Alpha	-13.12
CAGR/Max DD	0.33

Character TTM
Hurst Exponent	0.290
Beta	0.748
Beta Downside	0.731

Drawdowns 3y
Max DD	20.63%
Mean DD	6.51%
Median DD	6.79%

Description: ITW Illinois Tool Works December 03, 2025

Illinois Tool Works (ITW) is a diversified industrial manufacturer operating globally across seven segments: Automotive OEM, Food Equipment, Test & Measurement & Electronics, Welding, Polymers & Fluids, Construction Products, and Specialty Products. Its product portfolio ranges from automotive fasteners and plastic components to food-service equipment, welding consumables, adhesives, and beverage-packaging machinery, serving both OEM and aftermarket customers in sectors such as automotive, construction, foodservice, and general industrial MRO.

In FY 2023 ITW generated approximately $16.2 billion in revenue, posted an operating margin of roughly 15 %, and delivered free cash flow of about $2.5 billion, supporting a dividend yield near 5.2 % and ongoing share-repurchase programs. The company’s earnings have been relatively insulated from cyclical swings due to its broad end-market exposure and a high proportion of recurring maintenance and consumable sales.

Key economic drivers for ITW include: (1) the pace of global vehicle production and the shift toward electric-powertrains, which sustains demand for lightweight fasteners and polymer components; (2) residential and commercial construction activity, which underpins growth in engineered fastening systems; and (3) the recovery of out-of-home dining and food-service operations, boosting sales of commercial kitchen and ware-washing equipment. These macro trends historically correlate with ITW’s segment-level revenue growth rates, which have averaged 3-5 % annually over the past five years.

For a deeper, data-driven view of ITW’s valuation metrics and scenario analysis, you might find the ValueRay platform worth exploring.

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

(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) 77.93

1. Piotroski 6.0pt

2. FCF Yield 3.50%

3. FCF Margin 17.91%

4. Debt/Equity 2.79

5. Debt/Ebitda 1.74

6. ROIC - WACC (= 20.17)%

7. RoE 93.28%

8. Rev. Trend 30.62%

9. EPS Trend 66.89%

What is the price of ITW shares?

As of December 30, 2025, the stock is trading at USD 252.23 with a total of 1,169,023 shares traded.
Over the past week, the price has changed by +0.26%, over one month by +1.92%, over three months by -2.90% and over the past year by +1.41%.

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	259	2.7%
Analysts Target Price	259	2.7%
ValueRay Target Price	272.4	8%

ITW Fundamental Data Overview December 24, 2025

Market Cap USD = 73.33b (73.33b USD * 1.0 USD.USD)
P/E Trailing = 24.4006
P/E Forward = 21.7865
P/S = 4.6171
P/B = 22.6202
P/EG = 3.4507
Beta = 1.151
Revenue TTM = 15.88b USD
EBIT TTM = 4.21b USD
EBITDA TTM = 4.61b USD
Long Term Debt = 7.67b USD (from longTermDebt, last quarter)
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 = 81.35b USD (73.33b + Debt 8.94b - CCE 924.0m)
Interest Coverage Ratio = 14.77 (Ebit TTM 4.21b / Interest Expense TTM 285.0m)
FCF Yield = 3.50% (FCF TTM 2.85b / Enterprise Value 81.35b)
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 = 5.04 (Enterprise Value 81.35b / 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 = 38.56% (EBIT 4.21b / Capital Employed (Equity 3.24b + L.T.Debt 7.67b))
RoIC = 28.05% (NOPAT 3.29b / Invested Capital 11.74b)
WACC = 7.89% (E(73.33b)/V(82.27b) * Re(8.77%) + D(8.94b)/V(82.27b) * Rd(0.84%) * (1-Tc(0.22)))
Discount Rate = 8.77% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -1.57%
[DCF Debug] Terminal Value 76.55% ; FCFE base≈2.81b ; Y1≈2.97b ; Y5≈3.52b
Fair Price DCF = 186.0 (DCF Value 53.97b / Shares Outstanding 290.1m; 5y FCF grow 6.29% → 3.0% )
EPS Correlation: 66.89 | EPS CAGR: 10.54% | SUE: 0.19 | # QB: 0
Revenue Correlation: 30.62 | Revenue CAGR: 2.66% | SUE: -0.83 | # QB: 0
EPS next Quarter (2026-03-31): EPS=2.55 | Chg30d=+0.004 | Revisions Net=+0 | Analysts=9
EPS next Year (2026-12-31): EPS=11.30 | Chg30d=-0.016 | Revisions Net=-1 | Growth EPS=+8.1% | Growth Revenue=+3.4%

Additional Sources for ITW Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle