Illinois Tool Works Inc ITW

IndustrialsConsumer Goods ConglomeratesUnited States of America

Last close 278.55 USD on Nov 1, 2026, +15.2% year to date

Quant rating

Quant rating B Rank 158 of 486 in Industrials

Growth D 350 of 486
Valuation C 304 of 486
Quality A 22 of 486
Revisions C 284 of 486
Momentum B 157 of 486

Wall Street consensus Hold (3.12)Average target 293.77 USD +5.5%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 79.2B
Enterprise value: 87.7B
52-week range: 238.83 – 303.06
3-year range: 218.41 – 303.06
Dividend yield: 2.47%
Beta (5 years): 0.95
Shares outstanding: 284M
Next earnings: Feb 4, 2027

About the company

Illinois Tool Works Inc. is a global manufacturer of a diversified range of industrial products and equipment. The Company's segments include Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products, and Specialty Products. The Automotive OEM segment produces components and fasteners for automotive-related applications. The Food Equipment segment produces warewashing equipment, cooking equipment, refrigeration equipment, food processing equipment, ventilation and pollution control systems, and others. Its Welding segment produces arc welding equipment and metal arc welding consumables and related accessories. The Construction segment is a supplier of engineered fastening systems and solutions. The Specialty Products segment includes conveyor systems and line automation for the food and beverage industries; plastic consumables such as multipack cans and bottles and related equipment; components for medical devices, and others.

Growth and profitability fiscal year ends December 31

Growth and profitability by fiscal year
	2025	2024	2023	2022	2021	5Y avg
Revenue (mil)	16,044	15,898	16,107	15,932	14,455	–
Revenue growth	0.9%	−1.3%	1.1%	10.2%	15.0%	5.0%
EPS (basic, normalized)	10.49	11.71	9.78	9.77	8.53	–
EPS growth	−10.4%	19.7%	0.1%	14.5%	–	–
Gross margin	44.1%	44.3%	42.2%	40.8%	41.3%	42.5%
Net margin	19.1%	21.9%	18.4%	19.0%	18.6%	19.4%
ROE	93.7%	110.2%	97.0%	90.4%	79.2%	94.1%

Balance sheet, last quarter
Cash & short-term investments (mil)	809
Current ratio	1.29x
Long-term debt (mil)	7,153
Net debt (mil)	8,564
Total equity (mil)	3,141
Net debt / equity	2.73x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			Book value per share			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	P/B	Mean est.	Growth	P/E
2025 actual	16,044	+0.9%	5.5x	11.18	+8.8%	24.9x	10.49	−10.4%	26.6x
2026	16,834	+4.9%	5.2x	9.89	−11.5%	28.2x	11.48	+9.5%	24.3x
2027	17,441	+3.6%	5.0x	9.58	−3.2%	29.1x	12.32	+7.3%	22.6x
2028	18,013	+3.3%	4.9x	9.97	+4.1%	27.9x	13.14	+6.7%	21.2x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2026	16,834	+0.1%	+0.2%	+1.5%	11.48	+0.3%	+0.5%	+1.5%
2027	17,441	−0.1%	+0.2%	+1.6%	12.32	−0.3%	−0.1%	+1.6%
2028	18,013	−0.3%	−0.1%	+1.6%	13.14	−0.3%	0.0%	+1.7%

Earnings surprises EPS beat in 4 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	3,973	4,027	3,966	3,932	3,839	4,053	4,059	4,093	4,016	4,301
Sales mean (mil)	4,025	4,080	4,017	3,987	3,841	4,024	4,084	4,068	4,008	4,189
Surprise	−1.3%	−1.3%	−1.3%	−1.4%	−0.1%	+0.7%	−0.6%	+0.6%	+0.2%	+2.7%
EPS reported	2.44	2.54	2.65	2.54	2.38	2.58	2.81	2.72	2.66	2.84
EPS mean	2.36	2.48	2.53	2.50	2.35	2.56	2.71	2.68	2.56	2.79
Surprise	+3.5%	+2.4%	+4.9%	+1.7%	+1.5%	+0.7%	+3.5%	+1.3%	+3.7%	+1.6%

Peer comparison Consumer Goods Conglomerates

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
ITW Illinois Tool Works Inc	79.2B	1.86x	19.1%	25.20x	24.3x	22.6x	17.8x	16.9x
MMM 3M Company	90.1B	1.55x	13.0%	21.83x	19.1x	17.6x	13.4x	12.4x
HON Honeywell International Inc.	69.3B	1.10x	11.8%	3.09x	25.9x	22.1x	18.0x	15.6x
Mean		1.50x	14.7%	16.71x	23.1x	20.8x	16.4x	15.0x
Median		1.55x	13.0%	21.83x	24.3x	22.1x	17.8x	15.6x

Technical analysis

1M+2.4%
3M−5.0%
1Y+16.2%
3Y+34.0%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, Illinois Tool Works Inc, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Total revenue	16,044	15,898	16,107	15,932	14,455	12,574
Cost of revenue	8,969	8,858	9,316	9,429	8,489	7,375
Gross profit	7,075	7,040	6,791	6,503	5,966	5,199
Selling, general & administrative expenses	2,779	2,675	2,638	2,579	2,356	2,163
Research & development	–	–	–	–	–	–
Depreciation/amortization	80.0	101	113	134	133	154
Interest expense (income), operating	–	–	–	–	–	–
Unusual expense (income)	0	−363	−1.0	−191	0	0
Other operating expenses	0	0	0	0	0	0
Operating income	4,216	4,627	4,041	3,981	3,477	2,882
Net interest income (expense)	−287	−232	−252	−179	−170	−186
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	37.0	27.0	34.0	40.0	19.0	8.0
Net income before taxes	3,966	4,422	3,823	3,842	3,326	2,704
Provision for taxes	900	934	866	808	632	595
Minority interest	–	–	–	–	–	–
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	3,066	3,488	2,957	3,034	2,694	2,109
Extraordinary items	–	–	–	–	–	–
Net income	3,066	3,488	2,957	3,034	2,694	2,109
EBIT, normalized	4,216	4,264	4,040	3,790	3,477	2,882
EBITDA, normalized	4,613	4,666	4,435	4,200	3,887	3,309
Basic EPS, normalized	10.49	11.71	9.78	9.77	8.53	–

Balance sheet in millions of USD, fiscal years

Balance sheet, Illinois Tool Works Inc, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Assets
Cash & short-term investments	851	948	1,065	708	1,527	2,564
Receivables	3,404	3,096	3,251	3,273	2,942	2,621
Total inventory	1,659	1,605	1,707	2,054	1,694	1,189
Prepaid expenses	286	207	212	227	211	149
Other current assets	0	0	0	8.0	0	0
Total current assets	6,200	5,856	6,235	6,270	6,374	6,523
Property, plant & equipment	2,524	2,302	2,224	2,060	2,031	1,993
Goodwill	5,098	4,839	4,909	4,864	4,965	4,690
Intangibles	591	592	657	768	972	781
Long-term investments	–	–	–	–	–	–
Note receivable	–	–	–	–	–	–
Other long-term assets	1,735	1,478	1,493	1,460	1,735	1,625
Total assets	16,148	15,067	15,518	15,422	16,077	15,612
Liabilities
Accounts payable	522	519	581	594	585	534
Payable/accrued	–	–	–	–	–	–
Accrued expenses	1,296	1,216	1,268	1,301	1,254	1,062
Short-term debt	1,287	778	464	1,053	210	0
Current portion of long-term debt	999	777	1,361	537	568	350
Other current liabilities	1,022	1,018	1,001	975	853	643
Total current liabilities	5,126	4,308	4,675	4,460	3,470	2,589
Long-term debt	6,683	6,308	6,339	6,173	6,909	7,772
Minority interest	1.0	1.0	1.0	1.0	1.0	1.0
Other liabilities	1,113	1,134	1,491	1,700	2,072	2,069
Total liabilities	12,923	11,751	12,506	12,334	12,452	12,431
Shareholders' equity
Preferred stock	–	–	–	–	–	–
Common stock	6.0	6.0	6.0	6.0	6.0	6.0
Additional paid-in capital	1,771	1,669	1,588	1,501	1,432	1,362
Retained earnings (accumulated deficit)	30,150	28,893	27,122	25,799	24,325	23,114
Treasury stock	−26,875	−25,375	−23,870	−22,377	−20,636	−19,659
Other equity	−1,827	−1,877	−1,834	−1,841	−1,502	−1,642
Total equity	3,225	3,316	3,012	3,088	3,625	3,181
Total liabilities & shareholders' equity	16,148	15,067	15,518	15,422	16,077	15,612

Cash flow statement in millions of USD, fiscal years

Cash flow statement, Illinois Tool Works Inc, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Operating activities
Net income	3,066	3,488	2,957	3,034	2,694	2,109
Depreciation, depletion & amortization	397	402	395	410	410	427
Deferred taxes	−17.0	−176	−88.0	−150	−148	−30.0
Non-cash items	86.0	−414	67.0	−128	40.0	51.0
Changes in working capital	−406	−19.0	208	−818	−439	250
Cash from operations	3,126	3,281	3,539	2,348	2,557	2,807
Investing activities
Capital expenditures	−419	−437	−455	−412	−296	−236
Other investing cash flows	−102	293	52.0	302	−688	22.0
Cash from investing	−521	−144	−403	−110	−984	−214
Financing activities
Financing cash flow items	−32.0	−38.0	−14.0	−13.0	−10.0	−26.0
Cash dividends paid	−1,785	−1,695	−1,615	−1,542	−1,463	−1,379
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	−927	−1,456	−1,153	−1,445	−1,091	−644
Cash from financing	−2,744	−3,189	−2,782	−3,000	−2,564	−2,049
Foreign exchange effects	42.0	−65.0	3.0	−57.0	−46.0	39.0
Net change in cash	−97.0	−117	357	−819	−1,037	583
Free cash flow	2,707	2,844	3,084	1,936	2,261	2,571

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 1, 2026 after market close.