ILLINOIS TOOL WORKS (ITW) Stock Fundamental Analysis

NYSE:ITW • US4523081093

299.6 USD
+1.09 (+0.37%)
At close: Feb 13, 2026
299.6 USD
0 (0%)
After Hours: 2/13/2026, 8:18:10 PM
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 131 industry peers in the Machinery industry. ITW scores excellent on profitability, but 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. These ratings could make ITW a good candidate 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.
  • Each year in the past 5 years ITW has been profitable.
  • ITW had a positive operating cash flow in 4 of the past 5 years.
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

  • Looking at the Return On Assets, with a value of 18.75%, ITW belongs to the top of the industry, outperforming 97.71% of the companies in the same industry.
  • ITW has a better Return On Equity (94.33%) than 100.00% of its industry peers.
  • ITW's Return On Invested Capital of 24.43% is amongst the best of the industry. ITW outperforms 97.71% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ITW is significantly above the industry average of 10.17%.
  • The last Return On Invested Capital (24.43%) for ITW is well below the 3 year average (28.88%), which needs to be investigated, but indicates that ITW had better years and this may not be a problem.
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

  • With an excellent Profit Margin value of 19.05%, ITW belongs to the best of the industry, outperforming 96.18% of the companies in the same industry.
  • In the last couple of years the Profit Margin of ITW has grown nicely.
  • Looking at the Operating Margin, with a value of 26.20%, ITW belongs to the top of the industry, outperforming 98.47% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ITW has grown nicely.
  • ITW has a better Gross Margin (43.93%) than 83.21% of its industry peers.
  • 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

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ITW is creating value.
  • The number of shares outstanding for ITW has been reduced compared to 1 year ago.
  • The number of shares outstanding for ITW has been reduced compared to 5 years ago.
  • 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 8.62. This indicates that ITW is financially healthy and has little risk of bankruptcy at the moment.
  • ITW has a better Altman-Z score (8.62) than 92.37% 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.
  • ITW has a better Debt to FCF ratio (3.14) than 67.18% of its industry peers.
  • ITW has a Debt/Equity ratio of 2.80. This is a high value indicating a heavy dependency on external financing.
  • ITW's Debt to Equity ratio of 2.80 is on the low side compared to the rest of the industry. ITW is outperformed by 86.26% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.8
Debt/FCF 3.14
Altman-Z 8.62
ROIC/WACC2.75
WACC8.88%
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 73.28% 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

  • ITW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.15%.
  • The Earnings Per Share has been growing by 9.61% on average over the past years. This is quite good.
  • The Revenue has been growing slightly by 0.92% in the past year.
  • ITW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.99% yearly.
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

  • Based on estimates for the next years, ITW will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.86% on average per year.
  • ITW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.41% yearly.
EPS Next Y8.41%
EPS Next 2Y7.81%
EPS Next 3Y8.91%
EPS Next 5Y8.86%
Revenue Next Year3.33%
Revenue Next 2Y3.36%
Revenue Next 3Y3.89%
Revenue Next 5Y4.41%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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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3

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 28.56, ITW can be considered very expensive at the moment.
  • ITW's Price/Earnings is on the same level as the industry average.
  • ITW's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.19.
  • With a Price/Forward Earnings ratio of 26.34, ITW can be considered very expensive at the moment.
  • The rest of the industry has a similar Price/Forward Earnings ratio as ITW.
  • When comparing the Price/Forward Earnings ratio of ITW to the average of the S&P500 Index (28.06), we can say ITW is valued inline with the index average.
Industry RankSector Rank
PE 28.56
Fwd PE 26.34
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

  • ITW's Enterprise Value to EBITDA is on the same level as the industry average.
  • ITW's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 30.55
EV/EBITDA 20.54
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 ITW does not grow enough to justify the current Price/Earnings ratio.
  • The excellent profitability rating of ITW may justify a higher PE ratio.
PEG (NY)3.39
PEG (5Y)2.97
EPS Next 2Y7.81%
EPS Next 3Y8.91%

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

7

5. Dividend

5.1 Amount

  • ITW has a Yearly Dividend Yield of 2.16%.
  • ITW's Dividend Yield is rather good when compared to the industry average which is at 1.17. ITW pays more dividend than 90.08% of the companies in the same industry.
  • ITW's Dividend Yield is comparable with the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.16%

5.2 History

  • The dividend of ITW is nicely growing with an annual growth rate of 6.98%!
  • ITW has paid a dividend for at least 10 years, which is a reliable track record.
  • ITW has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 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 (2/13/2026, 8:18:10 PM)

After market: 299.6 0 (0%)

299.6

+1.09 (+0.37%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-03
Earnings (Next)04-28
Inst Owners84.97%
Inst Owner Change0.25%
Ins Owners0.24%
Ins Owner Change-8.28%
Market Cap86.91B
Revenue(TTM)16.04B
Net Income(TTM)3.03B
Analysts52.31
Price Target264.95 (-11.57%)
Short Float %2.75%
Short Ratio5.65
Dividend
Industry RankSector Rank
Dividend Yield 2.16%
Yearly Dividend5.71
Dividend Growth(5Y)6.98%
DP58.2%
Div Incr Years29
Div Non Decr Years29
Ex-DateN/A
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)1.3%
PT rev (3m)1.27%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-0.13%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.05%
Valuation
Industry RankSector Rank
PE 28.56
Fwd PE 26.34
P/S 5.47
P/FCF 30.55
P/OCF 26.52
P/B 27.09
P/tB N/A
EV/EBITDA 20.54
EPS(TTM)10.49
EY3.5%
EPS(NY)11.37
Fwd EY3.8%
FCF(TTM)9.81
FCFY3.27%
OCF(TTM)11.3
OCFY3.77%
SpS54.75
BVpS11.06
TBVpS-8.14
PEG (NY)3.39
PEG (5Y)2.97
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 8.62
F-Score6
WACC8.88%
ROIC/WACC2.75
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 Year3.33%
Revenue Next 2Y3.36%
Revenue Next 3Y3.89%
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 28.56 and the Price/Book (PB) ratio is 27.09.


Is the dividend of ILLINOIS TOOL WORKS sustainable?

The dividend rating of ILLINOIS TOOL WORKS (ITW) is 7 / 10 and the dividend payout ratio is 58.2%.