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Illinois Tool Works Inc.
ITW: NYSELowest reading is at 27 out of 100. All scores are out of 100.
In Short
About The Company
CEO
Mr. Christopher A. O'Herlihy
Market Cap
78.13 Billion USD
Sector
Industrials
Website
https://www.itw.comLast Update
27/09/2026, 16:59:41
Description
Illinois Tool Works Inc.
Read More
Strongest readings
- ✔Return on capital employed of 38.25% is above the market average of 10.00%
- ✔Altman-Z score of 8.18 sits above the distress range
- ✔Dividend growth averages 5.13% per year
- ✔Financial health is strong (health score 67 out of 100)
- ✔Share count has been falling at 1.66% per year
Weakest readings
- ✘Revenue is growing at 1.10% per year while free cashflow is falling
- ✘Debt is high at 2.38 times equity
- ✘The current price sits above estimated fair value (margin of safety -84.50%)
- ✘Earnings and cashflow growth is weak (growth score 27 out of 100)
- ✘Price-to-earnings of 24.8 is above the market average of 19.6
Key Figures
| Status | Metric | Value | Reading | Market avg |
|---|---|---|---|---|
| ✘ | Price / earnings (TTM) | 24.85x | 19.60x | |
| ✘ | Margin of safety (DCF) | -84.50% | 17.95% | |
| ✘ | Revenue growth (5y average) | 1.10% | 10.97% | |
| ✔ | Dividend yield (TTM) | 2.35% | 1.85% | |
| ✔ | Share count, per year | -1.66% | 0.00% | |
| ✔ | Return on capital employed | 38.25% | 10.00% |
The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.
Valuation
43 / 100Priced above the market on most measures.
| Status | Metric | Value | Reading | Market avg |
|---|---|---|---|---|
| ✘ | Price / earnings | 24.85x | 19.60x | |
| ✘ | Free cashflow yield | 3.74% | 4.70% | |
| Price / earnings growth | N/A | 1.50x | ||
| Price / book | 26.99x | — | ||
| ✘ | Margin of safety | -84.50% | 17.95% |
The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.
- ✘Estimated intrinsic value of 42.53 USD is below the current price of 274.32 USD
Desired Margin Of Safety
0%
▼
Tip: Set your desired Margin Of Safety
Free Cash Flow Type
Annual Cashflow Growth
0%
Discount Rate
0%
Estimated Fair Value: 200.7 USD ✘
Current Price: 274.3 USD
How Does This Work?
Show Advanced Options
This calculator helps investors estimate the Intrinsic Value of a company based on the current value of future cash flows. To use the tool, simply input a desired Margin Of Safety, which is an additional discount applied to the present value of the expected future cash flows. The tool calculates the present value using a discount rate that reflects the risk and time value of money, and provides an estimated fair value for the company based on the selected margin of safety. The calculator defaults to using 5 Year Free Cash Flow Growth % and a discount rate based on the US 10-year treasury bond coupon rate. Use our performance analyser to get a feel for the impact this has on longterm investment returns and find a margin of safety you are comfortable with.
Growth
27 / 100Growing more slowly than the market on most measures.
| Status | Metric | Value | Reading | Market avg |
|---|---|---|---|---|
| ✘ | Revenue growth | 1.10% | 10.97% | |
| ✔ | Earnings growth | 14.62% | 14.48% | |
| ✘ | Cashflow growth | -7.78% | 12.35% |
The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.
- ✔Revenue growth has improved this year (4.30% against a five year average of 1.10%)
- ✘Earnings growth has slowed this year (-3.30% against a five year average of 14.62%)
- ✔Free cashflow growth has improved this year
- ✘Revenue is growing at 1.10% per year while free cashflow is falling at 7.78% per year
Health
67 / 100Balance sheet covers its obligations.
Measured on Leverage and capital, Funding and liquidity, Earnings quality.
| Status | Metric | Value | Reading | Threshold |
|---|---|---|---|---|
| ✔ | Altman-Z score | 8.18 | 3.00 | |
| ✔ | Piotroski score | 6.00 | 5.00 | |
| ✘ | Debt / equity | 2.38x | 0.80x | |
| ✔ | Current ratio | 1.21x | 1.00x | |
| ✔ | Interest coverage | 14.44x | 2.50x | |
| ✔ | Free cashflow / debt | 0.35x | 0.15x | |
| ✔ | Debt / capital | 0.70x | 1.00x |
The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.
Dividend
64 / 100Covered, with limited headroom.
| Status | Metric | Value | Reading | Market avg |
|---|---|---|---|---|
| ✔ | Dividend yield | 2.35% | 1.85% | |
| ✔ | Dividend growth | 5.31% | 0.00% | |
| ✘ | Payout ratio (earnings) | 57.39% | 40.00% | |
| ✔ | Payout ratio (cashflow) | 62.75% | 65.00% | |
| ✔ | Worst year, last 5 years | 6.70% | -2.00% |
The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.
- ✔Dividend growth has been accelerating recently
Management
78 / 100Returns on capital are at or above the market.
| Status | Metric | Value | Reading | Market avg |
|---|---|---|---|---|
| ✔ | Return on equity | 95.04% | 15.00% | |
| ✔ | Return on capital employed | 38.25% | 10.00% | |
| Return on assets | 18.99% | — | ||
| Free cashflow return on capital | 24.56% | — | ||
| ✔ | Return on capital, 5y change | 14.09% | 0.00% | |
| ✔ | Share count, per year | -1.66% | 0.00% | |
| ✔ | Share count, recent | -2.30% | 0.00% | |
| ✘ | Realized buyback return | -12.42% | 0.00% | |
| ✘ | Goodwill erosion / equity | 5.30% | 2.00% | |
| Price volatility, 5 year | 20.58% | — |
The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.
- ✘Shares were repurchased while the value score was only 43 out of 100
Analysts
not enough data| Status | Metric | Value | Reading | Neutral |
|---|---|---|---|---|
| Analyst opinion score | N/A | 50 |
The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.
Financial History
Annual figures across the full reporting history we hold.
Market Peers
ITW
SEC Filings
Find yearly (10-K), quaterly (10-Q) and disclosure (8-K) report here, on the Securities and Exchange Commission's EDGAR database. If reading through reports isn't your cup of tea, don't worry. We've made it easy for you by summarizing all the important bits.
See 35+ Years Annual ReportsOther Information
Company Name
Illinois Tool Works Inc.
Currency
USD
Beta
0.997
Vol Avg
1276750
Ceo
Mr. Christopher A. O'Herlihy
Cik
0000049826
Cusip
Exchange
NYSE
Full Time Employees
43000
Industry
Specialty Industrial Machinery
Sector
Industrials
Ipo Date
Address
155 Harlem Avenue
City
Glenview
State
IL
Country
United States
Zip
60025
Phone
847 724 7500
Analysis Last Updated
27/09/2026, 16:59:41
Financial data compiled from SEC EDGAR filings and Yahoo Finance.