(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 | 3.42% |
| Yield CAGR 5y | 7.14% |
| Payout Consistency | 99.6% |
| Payout Ratio | 80.1% |
| Risk 5d forecast | |
|---|---|
| Volatility | 22.8% |
| Relative Tail Risk | -6.87% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.64 |
| Alpha | 5.43 |
| Character TTM | |
|---|---|
| Beta | 0.765 |
| Beta Downside | 0.800 |
| Drawdowns 3y | |
|---|---|
| Max DD | 20.63% |
| CAGR/Max DD | 0.50 |
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) 6.5
| Net Income: 3.03b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.18 > 0.02 and ΔFCF/TA 0.22 > 1.0 |
| NWC/Revenue: 13.78% < 20% (prev 10.51%; Δ 3.26% < -1%) |
| CFO/TA 0.20 > 3% & CFO 3.28b > Net Income 3.03b |
| Net Debt (8.02b) to EBITDA (4.61b): 1.74 < 3 |
| Current Ratio: 1.53 > 1.5 & < 3 |
| Outstanding Shares: last quarter (291.7m) vs 12m ago -1.78% < -2% |
| Gross Margin: 43.64% > 18% (prev 0.43%; Δ 4321 % > 0.5%) |
| Asset Turnover: 99.40% > 50% (prev 100.8%; Δ -1.39% > 0%) |
| Interest Coverage Ratio: 14.77 > 6 (EBITDA TTM 4.61b / Interest Expense TTM 285.0m) |
Altman Z'' 10.00
| A: 0.14 (Total Current Assets 6.32b - Total Current Liabilities 4.13b) / Total Assets 16.14b |
| B: 1.85 (Retained Earnings 29.82b / Total Assets 16.14b) |
| C: 0.26 (EBIT TTM 4.21b / Avg Total Assets 15.98b) |
| D: 2.16 (Book Value of Equity 27.95b / Total Liabilities 12.93b) |
| Altman-Z'' Score: 10.96 = AAA |
Beneish M -3.04
| DSRI: 1.01 (Receivables 3.25b/3.23b, Revenue 15.88b/15.95b) |
| GMI: 0.99 (GM 43.64% / 43.26%) |
| AQI: 1.00 (AQ_t 0.47 / AQ_t-1 0.47) |
| SGI: 1.00 (Revenue 15.88b / 15.95b) |
| TATA: -0.02 (NI 3.03b - CFO 3.28b) / TA 16.14b) |
| Beneish M-Score: -3.04 (Cap -4..+1) = AA |
What is the price of ITW shares?
Over the past week, the price has changed by +12.37%, over one month by +15.51%, over three months by +20.94% and over the past year by +17.97%.
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 | 263 | -10.4% |
| Analysts Target Price | 263 | -10.4% |
| ValueRay Target Price | 324 | 10.4% |
ITW Fundamental Data Overview February 04, 2026
P/E Forward = 22.8833
P/S = 4.849
P/B = 23.6258
P/EG = 3.623
Revenue TTM = 15.88b USD
EBIT TTM = 4.21b USD
EBITDA TTM = 4.61b USD
Long Term Debt = 7.67b USD (from longTermDebt, last quarter)
Short Term Debt = 1.27b USD (from shortTermDebt, last quarter)
Debt = 8.94b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 8.02b USD (from netDebt column, last quarter)
Enterprise Value = 85.04b USD (77.02b + Debt 8.94b - CCE 924.0m)
Interest Coverage Ratio = 14.77 (Ebit TTM 4.21b / Interest Expense TTM 285.0m)
EV/FCF = 29.89x (Enterprise Value 85.04b / FCF TTM 2.85b)
FCF Yield = 3.35% (FCF TTM 2.85b / Enterprise Value 85.04b)
FCF Margin = 17.91% (FCF TTM 2.85b / Revenue TTM 15.88b)
Net Margin = 19.05% (Net Income TTM 3.03b / Revenue TTM 15.88b)
Gross Margin = 43.64% ((Revenue TTM 15.88b - Cost of Revenue TTM 8.95b) / Revenue TTM)
Gross Margin QoQ = 44.49% (prev 43.97%)
Tobins Q-Ratio = 5.27 (Enterprise Value 85.04b / Total Assets 16.14b)
Interest Expense / Debt = 0.84% (Interest Expense 75.0m / Debt 8.94b)
Taxrate = 21.73% (228.0m / 1.05b)
NOPAT = 3.29b (EBIT 4.21b * (1 - 21.73%))
Current Ratio = 1.53 (Total Current Assets 6.32b / Total Current Liabilities 4.13b)
Debt / Equity = 2.79 (Debt 8.94b / totalStockholderEquity, last quarter 3.21b)
Debt / EBITDA = 1.74 (Net Debt 8.02b / EBITDA 4.61b)
Debt / FCF = 2.82 (Net Debt 8.02b / FCF TTM 2.85b)
Total Stockholder Equity = 3.24b (last 4 quarters mean from totalStockholderEquity)
RoA = 18.94% (Net Income 3.03b / Total Assets 16.14b)
RoE = 93.28% (Net Income TTM 3.03b / Total Stockholder Equity 3.24b)
RoCE = 38.56% (EBIT 4.21b / Capital Employed (Equity 3.24b + L.T.Debt 7.67b))
RoIC = 28.05% (NOPAT 3.29b / Invested Capital 11.74b)
WACC = 7.89% (E(77.02b)/V(85.96b) * Re(8.73%) + D(8.94b)/V(85.96b) * Rd(0.84%) * (1-Tc(0.22)))
Discount Rate = 8.73% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -1.57%
[DCF Debug] Terminal Value 79.29% ; FCFF base≈2.81b ; Y1≈2.97b ; Y5≈3.51b
Fair Price DCF = 187.9 (EV 62.53b - Net Debt 8.02b = Equity 54.51b / Shares 290.1m; r=7.89% [WACC]; 5y FCF grow 6.29% → 2.90% )
EPS Correlation: 66.89 | EPS CAGR: 10.54% | SUE: 0.19 | # QB: 0
Revenue Correlation: 30.62 | Revenue CAGR: 2.66% | SUE: -0.83 | # QB: 0
EPS next Quarter (2026-03-31): EPS=2.56 | Chg30d=+0.010 | Revisions Net=+1 | Analysts=10
EPS next Year (2026-12-31): EPS=11.26 | Chg30d=-0.039 | Revisions Net=-2 | Growth EPS=+7.7% | Growth Revenue=+3.3%