Stock · ITW · Industrials

Illinois Tool Works Inc

United States · Large Cap · listed since 1987 · Revenue 12 mo. $16.5B

Price as of 11/06/2026

StockScorer score
4.5
of 10 5 of 11 points Low Match To the score
Price
$280.95
1 Y +5.4%
Market cap
$76.7B
Phase
Payout
core business profitable, at least half of operating cash flow goes to shareholders
Revenue +0.2% a year (3 years)EBIT margin 26.3%Payout 105.2% of operating cash flow

Illinois Tool Works Inc. provides industrial products and equipment in North America, Europe, the Middle East, Africa, the Asia Pacific, and South America.

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Illinois Tool Works Inc. provides industrial products and equipment in North America, Europe, the Middle East, Africa, the Asia Pacific, and South America. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM segment offers plastic and metal components, fasteners, and assemblies for automobiles, light trucks, and other industrial uses. The Food Equipment segment provides warewashing, cooking, refrigeration, and food processing equipment; kitchen exhaust, ventilation, and pollution control systems; and food equipment maintenance and repair services. The Test & Measurement and Electronics segment produce and sells test and measurement; and electronic manufacturing and maintenance, repair, and operations solutions. The Welding segment produces arc welding equipment, and metal arc welding consumables and related accessories. The Polymers & Fluids segment produces adhesives, sealants, lubrication and cutting fluids, and fluids and polymers for auto aftermarket maintenance and appearance. The Construction Products segment offers engineered fastening systems and solutions for the residential construction, renovation/remodel, and commercial construction markets. The Specialty Products segment provides beverage packaging equipment and consumables, product coding and marking equipment and consumables, and appliance components and fasteners. The company serves automotive OEM and aftermarket, commercial food equipment, construction, general industrial, industrial capital goods, consumer durables, and other markets, as well as MRO markets. It distributes its products directly to industrial manufacturers, as well as through independent distributors. Illinois Tool Works Inc. was founded in 1912 and is based in Glenview, Illinois.

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Summary

Illinois Tool Works Inc is around the middle of the Industrials sector overall

54.0 of 100

Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.

Analysis

What the price requires

The price requires 13.1% FCF growth a year, more than achieved over the last 5 and 10 years.

If free cash flow stays at €2.4B (2025), it supports €27B. The remaining €41.8B of the market value assume it grows 13.1% a year for 10 years and not at all afterwards.

Required FCF growth per year

13.1%

no growth afterwards

Market value breakdown€68.8B market value, price as of 11/06/2026

€27B without growth
€41.8B priced-in growth
  • 5 yrs achieved 8.5%
  • 10 yrs achieved 4.3%
  • priced in 13.1%

Valuation against its own history

Price to operating cash flow 24.2×, within its usual range.

Middle half of 20 quarters: 22.9× to 25.6×, median 23.8×.

Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.

4 signs support the expectation, 2 speak against it.

What supports it

with respect to the priced-in expectation

  • High, stable gross margin median 41.1%, range 3.8 pp (10 years)
  • High return on capital every year ROCE at least 22.1% (10 years)
  • Low capital needs capex median 2.4% of revenue (10 years)
1 more
  • Steady FCF margin at least 12.2%, range 8.3 pp (10 years)

What speaks against it

with respect to the priced-in expectation

  • Expectation above the company's own record priced in 13.1%, achieved at most 8.5%
  • High leverage debt to equity 2.78

Since the last quarter

Q1 → Q2 2026

Mostly better than the previous quarter: 2 of 2 changes for the better.

  • FCF, 12 mo.$2.7B → $2.9B+6.6%better
  • Return on equity97.1% → 110.4%+13.3 ppbetter

6 more unchanged: Revenue, 12 mo., Gross margin, EBIT margin, FCF margin, Net debt, Shares outstanding

Derivation

How the sector comparison is derived

Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.

Price as of 11/06/2026.

Profitability91.2above the middleEarns more than the sector: Return on equity 95.07%, sector 13.10%.
MetricStockSector medianPosition in sector
Return on equity95.07%13.10%Rank 99
Return on capital (Greenblatt)117.18%19.33%Rank 96
EBIT margin26.28%11.28%Rank 91
FCF margin16.87%8.50%Rank 86
Gross margin44.10%28.98%Rank 84
Growth32.4below the middleGrows more slowly than the sector: Revenue growth, 1 year 0.92%, sector 5.15%.
MetricStockSector medianPosition in sector
Revenue growth, 1 year0.92%5.15%Rank 27
Earnings growth, 3 years per year2.41%8.01%Rank 37
Earnings growth, 5 years per year9.62%12.89%Rank 36
Sustainable growth (ROE × retained earnings)2.61%4.02%Rank 31
Valuation36.1below the middleValued higher than the sector: EV/sales 5.29, sector 2.08.
MetricStockSector medianPosition in sector
Earnings yield3.73%4.42%Rank 39
FCF yield3.53%3.98%Rank 42
EV/saleslower is better5.292.08Rank 16
EV/EBITlower is better20.1119.47Rank 48
Momentum66.8above the middleShare price doing better than the sector: Distance from 52-week high −6.22%, sector −16.36%.
MetricStockSector medianPosition in sector
Share price, 1 year5.40%−0.01%Rank 61
Share price, 6 months10.76%−1.43%Rank 75
Share price, 3 months−0.16%0.53%Rank 49
Distance from 52-week high−6.22%−16.36%Rank 83
Quality59.8around the middleQuality about like the sector.
MetricStockSector medianPosition in sector
Accruals (Sloan)lower is better2.95%1.39%Rank 36
Change in share countlower is better−1.85%−0.44%Rank 70
Dividend streak in years305Rank 97
Price reaction to results, market-adjusted−0.77%0.27%Rank 37
Balance sheet & risk37.4below the middleMore risk than the sector: Debt to equity 2.78, sector 0.61.
MetricStockSector medianPosition in sector
Equity ratio19.97%39.65%Rank 12
Net debt/EBITDAlower is better1.741.38Rank 40
Debt to equitylower is better2.780.61Rank 6
Volatility, 1 yearlower is better21.62%32.95%Rank 92

Ten years in figures

Revenue from $13.6B (2016) to $16.0B (2025), 1.9% a year.

Fiscal years, amounts in USD
YearRevenue, $BEBIT marginFCF, $BSharesNet debt, $B
201613.622.5%2.0357M5.4
201714.324.4%2.1347M5.2
201814.824.3%2.4337M5.9
201914.124.1%2.7326M6.0
202012.622.9%2.6318M5.7
202114.524.1%2.3316M6.4
202215.923.8%1.9311M7.2
202316.125.1%3.1304M7.3
202415.926.8%2.8298M7.1
202516.026.3%2.7292M8.1
4.5 / 10Low MatchStockScorer score5 of 11 points

3 of 7 StockScorer Score rules met · How the score is built

Illinois Tool Works Inc mainly meets criteria in the Profitability category. Result from 18 strategies checked.

This stock · Profitability: 100%This stock · Growth: 0%This stock · Valuation: 0%This stock · Momentum: 0%Median of all stocks · Profitability: 33%Median of all stocks · Growth: 0%Median of all stocks · Valuation: 0%Median of all stocks · Momentum: 0%50%100%ProfitabilityGrowthValuationMomentumThis stockMedian of all stocks

How Illinois Tool Works Inc's score is built

Illinois Tool Works Inc is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.

3 of 7 rules met

5 of 11 points

  1. Free cash flow yield above the sector mediannot met0 of 2 points
  2. Return on capital (Greenblatt ROC) above the sector medianmet2 of 2 points
  3. Return on equity above the sector medianmet1 of 1 point
  4. Free cash flow margin above the sector medianmet2 of 2 points
  5. Revenue growth above 15%not met0 of 2 points
  6. 3-year earnings growth above 12% p.a.not met0 of 1 point
  7. 12-month share price more than 20 percentage points ahead of the marketnot met0 of 1 point
  8. Exclusion: financial and real estate stocksdoes not apply

Detail data

How does Illinois Tool Works Inc stock perform across 18 strategies?

Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.

12 more strategies locked

With a free account, you can see the match across all strategies checked in one complete overview.

  • Altman Z-Score: Stress Test
  • Earnings Quality: Accrual Check (Sloan)
  • Growth Momentum (CAN SLIM principle)
  • Dividend Aristocrats & Continuity
  • Magic Formula: Value + Quality
  • Levermann Strategy (13 Criteria)
  • Acquirer's Multiple: EV/EBIT Deep Value
  • Balanced GARP
  • High-Growth / Rule of 40
  • PEG Strategy (inspired by Peter Lynch)
  • Trending Value: Value + Momentum
  • Undervalued Stocks: Multi-Factor Check

Illinois Tool Works Inc key metrics: P/E, P/B and equity ratio

Selected fundamental metrics for Illinois Tool Works Inc.

MetricStockSector
P/E ratio26.822.5
P/B ratio25.52.9
Return on equity (ROE)95.1%13.1%
Equity ratio20.0%39.7%
Debt-to-equity (D/E)2.780.61
Dividend yield2.3%2.0%

Similar stocks in Industrials

How comparable stocks in the same sector score in the StockScorer model.

SymbolCompanyRating
ITWIllinois Tool Works Incthis page
EMREmerson Electric CompanyLow3.6
CMICummins IncLow2.7
AMEAmetek IncLow4.5
ROKRockwell Automation Inclocked
PHParker-Hannifin Corporationlocked

Frequently asked questions about Illinois Tool Works Inc stock

How does Illinois Tool Works Inc stock (ITW) score in the StockScorer model?
Illinois Tool Works Inc stock reaches a StockScorer score of 4.5 out of 10, which is a low match with the rule-based strategies. 3 out of 7 flagship profile rules are met.
What is Illinois Tool Works Inc's P/E ratio?
Illinois Tool Works Inc's P/E ratio is 26.8. The Industrials sector median is 22.5.
What sector is Illinois Tool Works Inc in?
Illinois Tool Works Inc is assigned to the Industrials sector. Its rank within the sector is 54.0 out of 100: 100 means the stock leads its peer group of large and mid-cap sector stocks in every measured area.

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