ILLINOIS TOOL WORKS (ITW) Stock Fundamental Analysis

NYSE:ITW • US4523081093

294.11 USD
+0.89 (+0.3%)
Last: Feb 24, 2026, 11:52 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Overall ITW gets a fundamental rating of 6 out of 10. We evaluated ITW against 130 industry peers in the Machinery industry. While ITW has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, ITW is valued expensive at the moment. ITW also has an excellent dividend rating. This makes ITW very considerable for dividend investing!


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

  • In the past year ITW was profitable.
  • In the past year ITW had a positive cash flow from operations.
  • In the past 5 years ITW has always been profitable.
  • Of the past 5 years ITW 4 years had a positive operating cash flow.
ITW Yearly Net Income VS EBIT VS OCF VS FCFITW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

1.2 Ratios

  • ITW has a better Return On Assets (18.75%) than 97.69% of its industry peers.
  • ITW's Return On Equity of 94.33% is amongst the best of the industry. ITW outperforms 100.00% of its industry peers.
  • ITW has a Return On Invested Capital of 24.43%. This is amongst the best in the industry. ITW outperforms 97.69% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ITW is significantly above the industry average of 10.17%.
  • The 3 year average ROIC (28.88%) for ITW is well above the current ROIC(24.43%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 18.75%
ROE 94.33%
ROIC 24.43%
ROA(3y)20.4%
ROA(5y)19.52%
ROE(3y)99.48%
ROE(5y)94.2%
ROIC(3y)28.88%
ROIC(5y)26.49%
ITW Yearly ROA, ROE, ROICITW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80 100

1.3 Margins

  • Looking at the Profit Margin, with a value of 19.05%, ITW belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
  • In the last couple of years the Profit Margin of ITW has grown nicely.
  • ITW's Operating Margin of 26.20% is amongst the best of the industry. ITW outperforms 97.69% of its industry peers.
  • ITW's Operating Margin has improved in the last couple of years.
  • With an excellent Gross Margin value of 43.93%, ITW belongs to the best of the industry, outperforming 83.08% of the companies in the same industry.
  • ITW's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 26.2%
PM (TTM) 19.05%
GM 43.93%
OM growth 3Y3.37%
OM growth 5Y2.77%
PM growth 3Y0.12%
PM growth 5Y2.64%
GM growth 3Y2.61%
GM growth 5Y1.3%
ITW Yearly Profit, Operating, Gross MarginsITW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ITW is creating value.
  • The number of shares outstanding for ITW has been reduced compared to 1 year ago.
  • Compared to 5 years ago, ITW has less shares outstanding
  • ITW has a worse debt/assets ratio than last year.
ITW Yearly Shares OutstandingITW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
ITW Yearly Total Debt VS Total AssetsITW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • ITW has an Altman-Z score of 8.53. This indicates that ITW is financially healthy and has little risk of bankruptcy at the moment.
  • ITW has a Altman-Z score of 8.53. This is amongst the best in the industry. ITW outperforms 92.31% of its industry peers.
  • The Debt to FCF ratio of ITW is 3.14, which is a good value as it means it would take ITW, 3.14 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of ITW (3.14) is better than 66.15% of its industry peers.
  • A Debt/Equity ratio of 2.80 is on the high side and indicates that ITW has dependencies on debt financing.
  • The Debt to Equity ratio of ITW (2.80) is worse than 86.92% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.8
Debt/FCF 3.14
Altman-Z 8.53
ROIC/WACC2.72
WACC8.99%
ITW Yearly LT Debt VS Equity VS FCFITW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 1.53 indicates that ITW should not have too much problems paying its short term obligations.
  • ITW's Current ratio of 1.53 is on the low side compared to the rest of the industry. ITW is outperformed by 73.08% of its industry peers.
  • A Quick Ratio of 1.11 indicates that ITW should not have too much problems paying its short term obligations.
  • ITW has a Quick ratio (1.11) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.53
Quick Ratio 1.11
ITW Yearly Current Assets VS Current LiabilitesITW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • The Earnings Per Share has been growing slightly by 3.15% over the past year.
  • ITW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.61% yearly.
  • Looking at the last year, ITW shows a small growth in Revenue. The Revenue has grown by 0.92% in the last year.
  • The Revenue has been growing slightly by 4.99% on average over the past years.
EPS 1Y (TTM)3.15%
EPS 3Y2.36%
EPS 5Y9.61%
EPS Q2Q%7.09%
Revenue 1Y (TTM)0.92%
Revenue growth 3Y0.23%
Revenue growth 5Y4.99%
Sales Q2Q%4.09%

3.2 Future

  • ITW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.86% yearly.
  • Based on estimates for the next years, ITW will show a small growth in Revenue. The Revenue will grow by 4.41% on average per year.
EPS Next Y8.41%
EPS Next 2Y7.81%
EPS Next 3Y8.91%
EPS Next 5Y8.86%
Revenue Next Year3.38%
Revenue Next 2Y3.41%
Revenue Next 3Y3.37%
Revenue Next 5Y4.41%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
ITW Yearly Revenue VS EstimatesITW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B
ITW Yearly EPS VS EstimatesITW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15

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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 28.04, which means the current valuation is very expensive for ITW.
  • ITW's Price/Earnings ratio is in line with the industry average.
  • ITW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.64, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 25.86, which means the current valuation is very expensive for ITW.
  • ITW's Price/Forward Earnings is on the same level as the industry average.
  • ITW is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 27.75, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 28.04
Fwd PE 25.86
ITW Price Earnings VS Forward Price EarningsITW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as ITW.
  • ITW's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 29.99
EV/EBITDA 20.14
ITW Per share dataITW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • ITW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.33
PEG (5Y)2.92
EPS Next 2Y7.81%
EPS Next 3Y8.91%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

8

5. Dividend

5.1 Amount

  • ITW has a Yearly Dividend Yield of 2.19%.
  • Compared to an average industry Dividend Yield of 1.18, ITW pays a better dividend. On top of this ITW pays more dividend than 90.00% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.80, ITW pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.19%

5.2 History

  • The dividend of ITW is nicely growing with an annual growth rate of 6.98%!
  • ITW has been paying a dividend for at least 10 years, so it has a reliable track record.
  • ITW has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.98%
Div Incr Years29
Div Non Decr Years29
ITW Yearly Dividends per shareITW Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

5.3 Sustainability

  • ITW pays out 58.20% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • The dividend of ITW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP58.2%
EPS Next 2Y7.81%
EPS Next 3Y8.91%
ITW Yearly Income VS Free CF VS DividendITW Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B
ITW Dividend Payout.ITW Dividend Payout, showing the Payout Ratio.ITW Dividend Payout.PayoutRetained Earnings

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ILLINOIS TOOL WORKS

NYSE:ITW (2/24/2026, 11:52:41 AM)

294.11

+0.89 (+0.3%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-03
Earnings (Next)04-28
Inst Owners84.97%
Inst Owner Change0.34%
Ins Owners0.24%
Ins Owner Change-5.89%
Market Cap85.32B
Revenue(TTM)16.04B
Net Income(TTM)3.03B
Analysts52.31
Price Target264.95 (-9.91%)
Short Float %2.75%
Short Ratio5.65
Dividend
Industry RankSector Rank
Dividend Yield 2.19%
Yearly Dividend5.71
Dividend Growth(5Y)6.98%
DP58.2%
Div Incr Years29
Div Non Decr Years29
Ex-Date03-31
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.08%
Min EPS beat(2)-0.33%
Max EPS beat(2)2.48%
EPS beat(4)3
Avg EPS beat(4)0.83%
Min EPS beat(4)-0.33%
Max EPS beat(4)2.48%
EPS beat(8)6
Avg EPS beat(8)1.3%
EPS beat(12)10
Avg EPS beat(12)2.72%
EPS beat(16)14
Avg EPS beat(16)2.82%
Revenue beat(2)0
Avg Revenue beat(2)-0.94%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)-0.27%
Revenue beat(4)0
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)-0.27%
Revenue beat(8)0
Avg Revenue beat(8)-1.71%
Revenue beat(12)1
Avg Revenue beat(12)-1.46%
Revenue beat(16)5
Avg Revenue beat(16)-0.55%
PT rev (1m)0.88%
PT rev (3m)1.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.13%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.01%
Valuation
Industry RankSector Rank
PE 28.04
Fwd PE 25.86
P/S 5.37
P/FCF 29.99
P/OCF 26.04
P/B 26.6
P/tB N/A
EV/EBITDA 20.14
EPS(TTM)10.49
EY3.57%
EPS(NY)11.37
Fwd EY3.87%
FCF(TTM)9.81
FCFY3.33%
OCF(TTM)11.3
OCFY3.84%
SpS54.75
BVpS11.06
TBVpS-8.14
PEG (NY)3.33
PEG (5Y)2.92
Graham Number51.09
Profitability
Industry RankSector Rank
ROA 18.75%
ROE 94.33%
ROCE 34.67%
ROIC 24.43%
ROICexc 26.26%
ROICexgc 47.72%
OM 26.2%
PM (TTM) 19.05%
GM 43.93%
FCFM 17.91%
ROA(3y)20.4%
ROA(5y)19.52%
ROE(3y)99.48%
ROE(5y)94.2%
ROIC(3y)28.88%
ROIC(5y)26.49%
ROICexc(3y)31.54%
ROICexc(5y)28.97%
ROICexgc(3y)68.5%
ROICexgc(5y)61.67%
ROCE(3y)38.38%
ROCE(5y)35.46%
ROICexgc growth 3Y12.09%
ROICexgc growth 5Y10.24%
ROICexc growth 3Y7.34%
ROICexc growth 5Y8.51%
OM growth 3Y3.37%
OM growth 5Y2.77%
PM growth 3Y0.12%
PM growth 5Y2.64%
GM growth 3Y2.61%
GM growth 5Y1.3%
F-Score6
Asset Turnover0.98
Health
Industry RankSector Rank
Debt/Equity 2.8
Debt/FCF 3.14
Debt/EBITDA 1.97
Cap/Depr 109.09%
Cap/Sales 2.72%
Interest Coverage 15.13
Cash Conversion 71.9%
Profit Quality 94.02%
Current Ratio 1.53
Quick Ratio 1.11
Altman-Z 8.53
F-Score6
WACC8.99%
ROIC/WACC2.72
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.15%
EPS 3Y2.36%
EPS 5Y9.61%
EPS Q2Q%7.09%
EPS Next Y8.41%
EPS Next 2Y7.81%
EPS Next 3Y8.91%
EPS Next 5Y8.86%
Revenue 1Y (TTM)0.92%
Revenue growth 3Y0.23%
Revenue growth 5Y4.99%
Sales Q2Q%4.09%
Revenue Next Year3.38%
Revenue Next 2Y3.41%
Revenue Next 3Y3.37%
Revenue Next 5Y4.41%
EBIT growth 1Y-1.4%
EBIT growth 3Y3.61%
EBIT growth 5Y7.9%
EBIT Next Year15.58%
EBIT Next 3Y8.5%
EBIT Next 5Y7.1%
FCF growth 1Y3.23%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2.21%
OCF growth 3YN/A
OCF growth 5YN/A

ILLINOIS TOOL WORKS / ITW FAQ

What is the ChartMill fundamental rating of ILLINOIS TOOL WORKS (ITW) stock?

ChartMill assigns a fundamental rating of 6 / 10 to ITW.


Can you provide the valuation status for ILLINOIS TOOL WORKS?

ChartMill assigns a valuation rating of 3 / 10 to ILLINOIS TOOL WORKS (ITW). This can be considered as Overvalued.


How profitable is ILLINOIS TOOL WORKS (ITW) stock?

ILLINOIS TOOL WORKS (ITW) has a profitability rating of 9 / 10.


What is the valuation of ILLINOIS TOOL WORKS based on its PE and PB ratios?

The Price/Earnings (PE) ratio for ILLINOIS TOOL WORKS (ITW) is 28.04 and the Price/Book (PB) ratio is 26.6.


Is the dividend of ILLINOIS TOOL WORKS sustainable?

The dividend rating of ILLINOIS TOOL WORKS (ITW) is 8 / 10 and the dividend payout ratio is 58.2%.