ITW Stock Analysis: Illinois Tool Works | NYSE
Specialty Industrial Machinery | NYSE, USA | Market Cap: 84.138m USD | 12M Return: 14.9% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 404M
EPS Trend: 75.6%
Qual. Beats: 2
Rev. Trend: 24.0%
Qual. Beats: 1
Warnings
Tailwinds
No distinct edge detected
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
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: 3.19b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.16 > 0.02 and ΔFCF/TA -0.57 > 1.0 |
| NWC/Revenue: 3.93% < 20% (prev 14.58%; Δ -10.65% < -1%) |
| CFO/TA 0.19 > 3% & CFO 3.13b > Net Income 3.19b |
| Net Debt (9.10b) to EBITDA (4.76b): 1.91 < 3 |
| Current Ratio: 1.11 > 1.5 & < 3 |
| Outstanding Shares: last quarter (287.0m) vs 12m ago -2.01% < -2% |
| Gross Margin: 44.16% > 18% (prev 43.29%; Δ 0.87% > 0.5%) |
| Asset Turnover: 101.2% > 50% (prev 98.39%; Δ 2.81% > 0%) |
| Interest Coverage Ratio: 14.45 > 6 (EBIT TTM 4.36b / Interest Expense TTM 302.0m) |
| A: 0.04 (Total Current Assets 6.60b - Total Current Liabilities 5.95b) / Total Assets 16.5b |
| B: 1.87 (Retained Earnings 30.8b / Total Assets 16.5b) |
| C: 0.27 (EBIT TTM 4.36b / Avg Total Assets 16.3b) |
| D: 0.21 (Book Value of Equity 2.89b / Total Liabilities 13.6b) |
| Altman-Z'' = 8.37 = AAA |
| DSRI: 1.03 (Receivables 3.56b/3.32b, Revenue 16.5b/15.8b) |
| GMI: 0.98 (GM 43.29% / 44.16%) |
| AQI: 0.98 (AQ_t 0.46 / AQ_t-1 0.48) |
| SGI: 1.04 (Revenue 16.5b / 15.8b) |
| TATA: 0.00 (NI 3.19b - CFO 3.13b) / TA 16.5b) |
| Beneish M = -3.00 (Cap -4..+1) = AA |
As of August 01, 2026, the stock is trading at USD 286.95 with a total of 780,550 shares traded. Over the past week, the price has changed by +1.39%, over one month by +6.09%, over three months by +11.89% and over the past year by +14.94%.
Current recommended Stop Loss: 266.50 (which is 7.1% or 2.8 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 | 280.1 | -2.4% |
P/E Trailing = 27.4086
P/E Forward = 25.9067
P/S = 5.1089
P/B = 26.2984
P/EG = 2.9726
Revenue TTM = 16.5b USD
EBIT TTM = 4.36b USD
EBITDA TTM = 4.76b USD
Long Term Debt = 6.68b USD (from longTermDebt, last fiscal year)
Short Term Debt = 3.15b USD (from shortTermDebt, last quarter)
Debt = 9.94b USD (from shortLongTermDebtTotal, last quarter) + Leases 242.0m
Net Debt = 9.10b USD (calculated: Debt 9.94b - CCE 839.0m)
Enterprise Value = 93.2b USD (84.1b + Debt 9.94b - CCE 839.0m)
Interest Coverage Ratio = 14.45 (Ebit TTM 4.36b / Interest Expense TTM 302.0m)
EV/FCF = 34.44x (Enterprise Value 93.2b / FCF TTM 2.71b)
FCF Yield = 2.90% (FCF TTM 2.71b / Enterprise Value 93.2b)
FCF Margin = 16.44% (FCF TTM 2.71b / Revenue TTM 16.5b)
Net Margin = 19.39% (Net Income TTM 3.19b / Revenue TTM 16.5b)
Gross Margin = 44.16% ((Revenue TTM 16.5b - Cost of Revenue TTM 9.20b) / Revenue TTM)
Gross Margin QoQ = 44.13% (prev 43.82%)
Tobins Q-Ratio = 5.65 (Enterprise Value 93.2b / Total Assets 16.5b)
Interest Expense / Debt = 3.04% (Interest Expense 302.0m / Debt 9.94b)
Taxrate = 22.48% (926.0m / 4.12b)
NOPAT = 3.38b (EBIT 4.36b * (1 - 22.48%))
Current Ratio = 1.11 (Total Current Assets 6.60b / Total Current Liabilities 5.95b)
Debt / Equity = 3.43 (Debt 9.94b / totalStockholderEquity, last quarter 2.89b)
Debt / EBITDA = 1.91 (Net Debt 9.10b / EBITDA 4.76b)
Debt / FCF = 3.36 (Net Debt 9.10b / FCF TTM 2.71b)
Total Stockholder Equity = 3.14b (last 4 quarters mean from totalStockholderEquity)
RoA = 19.63% (Net Income 3.19b / Total Assets 16.5b)
RoE = 101.7% (Net Income TTM 3.19b / Total Stockholder Equity 3.14b)
RoCE = 44.43% (EBIT 4.36b / Capital Employed (Equity 3.14b + L.T.Debt 6.68b))
RoIC = 26.29% (NOPAT 3.38b / Invested Capital 12.9b)
WACC = 7.07% (E(84.1b)/V(94.1b) * Re(7.63%) + D(9.94b)/V(94.1b) * Rd(3.04%) * (1-Tc(0.22)))
Discount Rate = 7.63% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -99.90 | Cagr: -1.95%
[DCF] Terminal Value 75.36% ; FCFF base≈2.71b ; Y1≈2.71b ; Y5≈2.84b
[DCF] Fair Price = 122.2 (EV 44.2b - Net Debt 9.10b = Equity 35.2b / Shares 287.7m; r=8.35% [WACC [floored]]; 5y FCF grow -0.62% → 2.50% )
EPS Correlation: 75.63 | EPS CAGR: 2.77% | SUE: 1.06 | # QB: 2
Revenue Correlation: 23.96 | Revenue CAGR: 0.32% | SUE: 2.92 | # QB: 1
EPS current Quarter (2026-09-30): EPS=2.95 | Chg30d=+0.59% | Revisions=-25% | Analysts=4
EPS current Year (2026-12-31): EPS=11.45 | Chg30d=+1.02% | Revisions=-25% | GrowthEPS=+9.2% | GrowthRev=+3.6%
EPS next Year (2027-12-31): EPS=12.20 | Chg30d=+0.21% | Revisions=+0% | GrowthEPS=+6.6% | GrowthRev=+3.4%
[Analyst] Revisions Ratio: -29% (up=1, down=3)