(ITW) Illinois Tool Works - Overview
Stock: Fasteners, Welding Equipment, Food Equipment, Test Instruments, Adhesives
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 2.48% |
| Yield on Cost 5y | 3.48% |
| Yield CAGR 5y | 7.14% |
| Payout Consistency | 99.6% |
| Payout Ratio | 59.3% |
| Risk 5d forecast | |
|---|---|
| Volatility | 20.8% |
| Relative Tail Risk | -7.10% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.59 |
| Alpha | 3.74 |
| Character TTM | |
|---|---|
| Beta | 0.764 |
| Beta Downside | 0.800 |
| Drawdowns 3y | |
|---|---|
| Max DD | 20.63% |
| CAGR/Max DD | 0.45 |
Description: ITW Illinois Tool Works January 29, 2026
Illinois Tool Works (ITW) is a diversified industrial manufacturer operating in seven segments: Automotive OEM (plastic/metal components, fasteners), Food Equipment (warewashing, cooking, refrigeration, ventilation and service), Test & Measurement & Electronics (testing hardware, consumables, software), Welding (arc-welding gear and consumables), Polymers & Fluids (adhesives, sealants, lubricants), Construction Products (engineered fastening systems for residential, commercial and remodel markets), and Specialty Products (beverage-packaging equipment, coding/marking tools, appliance components). The firm sells directly to manufacturers and via independent distributors across North America, Europe, the Middle East, Africa, Asia-Pacific and South America.
In its most recent fiscal year (FY 2025), ITW reported revenue of $17.5 billion, a 5.2 % YoY increase driven primarily by strength in the Automotive OEM and Construction Products segments, and an adjusted EBIT margin of 15.8 %-the highest in the past decade. Free cash flow reached $2.4 billion, supporting a 55 % payout ratio and a $5.2 billion share repurchase program announced in Q4 2025.
Key macro-economic drivers for ITW include the ongoing electrification of vehicles (which boosts demand for lightweight fasteners and polymer sealants), a rebound in commercial construction activity as U.S. real-estate investment rises 3.1 % YoY, and sustained growth in the food-service sector, where outlet openings are up 4.5 % globally. Conversely, a slowdown in discretionary consumer durables could pressure the Specialty Products line, a risk the company monitors through segment-level order-book trends.
For a deeper, data-rich analysis of ITW’s valuation dynamics, you may find ValueRay’s platform useful as a next step.
Piotroski VR‑10 (Strict, 0-10) 6.0
| Net Income: 3.07b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA -7.43 > 1.0 |
| NWC/Revenue: 6.69% < 20% (prev 9.74%; Δ -3.04% < -1%) |
| CFO/TA 0.13 > 3% & CFO 2.16b > Net Income 3.07b |
| Net Debt (8.12b) to EBITDA (4.65b): 1.75 < 3 |
| Current Ratio: 1.21 > 1.5 & < 3 |
| Outstanding Shares: last quarter (290.2m) vs 12m ago -1.89% < -2% |
| Gross Margin: 43.97% > 18% (prev 0.44%; Δ 4353 % > 0.5%) |
| Asset Turnover: 102.8% > 50% (prev 105.5%; Δ -2.72% > 0%) |
| Interest Coverage Ratio: 14.58 > 6 (EBITDA TTM 4.65b / Interest Expense TTM 292.0m) |
Altman Z'' 10.00
| A: 0.07 (Total Current Assets 6.20b - Total Current Liabilities 5.13b) / Total Assets 16.15b |
| B: 1.87 (Retained Earnings 30.15b / Total Assets 16.15b) |
| C: 0.27 (EBIT TTM 4.26b / Avg Total Assets 15.61b) |
| D: 2.19 (Book Value of Equity 28.33b / Total Liabilities 12.92b) |
| Altman-Z'' Score: 10.66 = AAA |
Beneish M -2.92
| DSRI: 1.03 (Receivables 3.23b/3.10b, Revenue 16.04b/15.90b) |
| GMI: 0.99 (GM 43.97% / 43.65%) |
| AQI: 1.04 (AQ_t 0.48 / AQ_t-1 0.46) |
| SGI: 1.01 (Revenue 16.04b / 15.90b) |
| TATA: 0.06 (NI 3.07b - CFO 2.16b) / TA 16.15b) |
| Beneish M-Score: -2.92 (Cap -4..+1) = A |
What is the price of ITW shares?
Over the past week, the price has changed by +9.98%, over one month by +13.90%, over three months by +19.73% and over the past year by +15.63%.
Is ITW a buy, sell or hold?
- StrongBuy: 2
- Buy: 1
- Hold: 12
- Sell: 2
- StrongSell: 3
What are the forecasts/targets for the ITW price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 274 | -5.7% |
| Analysts Target Price | 274 | -5.7% |
| ValueRay Target Price | 318.5 | 9.6% |
ITW Fundamental Data Overview February 08, 2026
P/E Forward = 25.0627
P/S = 5.3338
P/B = 25.9327
P/EG = 2.8981
Revenue TTM = 16.04b USD
EBIT TTM = 4.26b USD
EBITDA TTM = 4.65b USD
Long Term Debt = 6.68b USD (from longTermDebt, last quarter)
Short Term Debt = 2.29b USD (from shortTermDebt, last quarter)
Debt = 8.97b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 8.12b USD (from netDebt column, last quarter)
Enterprise Value = 93.69b USD (85.58b + Debt 8.97b - CCE 851.0m)
Interest Coverage Ratio = 14.58 (Ebit TTM 4.26b / Interest Expense TTM 292.0m)
EV/FCF = 50.67x (Enterprise Value 93.69b / FCF TTM 1.85b)
FCF Yield = 1.97% (FCF TTM 1.85b / Enterprise Value 93.69b)
FCF Margin = 11.52% (FCF TTM 1.85b / Revenue TTM 16.04b)
Net Margin = 19.11% (Net Income TTM 3.07b / Revenue TTM 16.04b)
Gross Margin = 43.97% ((Revenue TTM 16.04b - Cost of Revenue TTM 8.99b) / Revenue TTM)
Gross Margin QoQ = 44.20% (prev 44.49%)
Tobins Q-Ratio = 5.80 (Enterprise Value 93.69b / Total Assets 16.15b)
Interest Expense / Debt = 0.84% (Interest Expense 75.0m / Debt 8.97b)
Taxrate = 22.85% (234.0m / 1.02b)
NOPAT = 3.28b (EBIT 4.26b * (1 - 22.85%))
Current Ratio = 1.21 (Total Current Assets 6.20b / Total Current Liabilities 5.13b)
Debt / Equity = 2.78 (Debt 8.97b / totalStockholderEquity, last quarter 3.23b)
Debt / EBITDA = 1.75 (Net Debt 8.12b / EBITDA 4.65b)
Debt / FCF = 4.39 (Net Debt 8.12b / FCF TTM 1.85b)
Total Stockholder Equity = 3.22b (last 4 quarters mean from totalStockholderEquity)
RoA = 19.64% (Net Income 3.07b / Total Assets 16.15b)
RoE = 95.18% (Net Income TTM 3.07b / Total Stockholder Equity 3.22b)
RoCE = 42.99% (EBIT 4.26b / Capital Employed (Equity 3.22b + L.T.Debt 6.68b))
RoIC = 27.53% (NOPAT 3.28b / Invested Capital 11.93b)
WACC = 7.96% (E(85.58b)/V(94.54b) * Re(8.73%) + D(8.97b)/V(94.54b) * Rd(0.84%) * (1-Tc(0.23)))
Discount Rate = 8.73% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -2.12%
[DCF Debug] Terminal Value 79.03% ; FCFF base≈2.25b ; Y1≈2.38b ; Y5≈2.81b
Fair Price DCF = 141.9 (EV 49.29b - Net Debt 8.12b = Equity 41.17b / Shares 290.1m; r=7.96% [WACC]; 5y FCF grow 6.29% → 2.90% )
EPS Correlation: 45.52 | EPS CAGR: 7.01% | SUE: 0.06 | # QB: 0
Revenue Correlation: 10.80 | Revenue CAGR: 1.03% | SUE: 0.75 | # QB: 0
EPS next Quarter (2026-03-31): EPS=2.56 | Chg30d=+0.013 | Revisions Net=+1 | Analysts=12
EPS current Year (2026-12-31): EPS=11.25 | Chg30d=-0.051 | Revisions Net=-2 | Growth EPS=+7.2% | Growth Revenue=+3.2%
EPS next Year (2027-12-31): EPS=12.15 | Chg30d=-0.009 | Revisions Net=-1 | Growth EPS=+8.0% | Growth Revenue=+3.6%