ITW Industrials

Illinois Tool Works Inc.

$286.64-1.18%

Price as of close on Nov 3, 2026 · Financials updated Oct 9, 2026

Basics

Sector: Industrials
Industry: Specialty Industrial Machinery
Country: United States
Market cap: 81.6B USD
Enterprise value: 86.4B USD
Full-time employees: 43,000

Overall health

Drawback: growing more slowly than most peersgrowing more slowly than peers
Drawback: higher risk than most peers: its share price swings more than most peers’ (beta 0.97 vs a peer median of 0.64), though less than the overall market, less short-term liquidity (current ratio 1.11 vs a peer median of 1.62) and more debt relative to equity (3.35× vs a peer median of 0.40×)higher risk: bigger price swings (beta 0.97 vs peers 0.64), less liquidity (current ratio 1.11 vs peers 1.62) and more debt vs equity (3.35× vs peers 0.40×)
About average: valuation

Ranks #1,405 of 2,308 industrials companies (bottom 40%)

See how it ranks against its peers

Worth knowing

Much more borrowing than peers. Debt is 3.3× equity vs a peer median of 0.4×.Debt is 3.3× equity vs peers 0.4×.
Debt is 3.3× shareholders' equity, against a peer median of 0.4×, among the highest 10% of its peer group.Debt is 3.3× shareholders' equity, vs peers 0.4×, among the highest 10% of its peer group.
Share count shrinking. Shares outstanding down 6.6% from December 2022 to June 2026.
Illinois Tool Works had 6.6% fewer shares at June 2026 than at December 2022, mainly through buybacks, so each remaining share owns a larger slice of the business.
Profit is backed by cash. Free cash flow is 91% of reported profit.
Illinois Tool Works's free cash flow is 91% of its reported profit, so its earnings are turning into cash it can reinvest, pay out or use to reduce debt.
Wide margins. Operating margin 26% (12 months to Jun 2026) vs a peer median of 7.7%.Operating margin 26% vs peers 7.7%.
Illinois Tool Works keeps 26% of revenue as operating profit, more than 94% of peers (median 7.7%).

StockQuotient Score

46/ 100

Oct 5 47 → Nov 4 46 (-1)

Valuation

Is the price right?

41/100

Moderate▼ 2 since Oct 27 close

3/3 inputs reported · High confidence

Since last quarter: No major changeValuation also moves with the share price every day.

Why it changed since the Oct 27, 2026 close: Score 43 → 41

Share price +3.9%-1
Peer companies moved-1

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Held back by:

▼ EBITDA yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield3.9%

SEC filings · 12 months to Jun 2026Reported value30% base weight · Z-score 0.05Sector median: 0.0377 · MAD: 0.0294

EBITDA yield5.2%

SEC filings · 12 months to Jun 2026Reported value50% base weight · Z-score -0.41Sector median: 0.0695 · MAD: 0.0425

Free cash flow yield3.6%

SEC filings · 12 months to Jun 2026 · operating cash flow − capital spendingReported value20% base weight · Z-score -0.03Sector median: 0.0370 · MAD: 0.0370

Other data (not scored)

Book yield3.5%

SEC filings · latest balance sheetOutlier capped at sector 5th/95th percentileInformational · 0% composite weightSector median: 0.5027 · MAD: 0.2823

Growth

Is it growing?

39/100

Weak

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Weaker than most peers on:

▼ 3-yr revenue
▼ EPS growth

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growth-2.8%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -0.40Sector median: 0.0709 · MAD: 0.2481

3-year revenue growth0.8%

SEC filings · 3 years to Jun 2026Reported value33% base weight · Z-score -0.54Sector median: 0.0421 · MAD: 0.0625

Revenue growth4.3%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -0.01Sector median: 0.0439 · MAD: 0.0766

Profitability

Does it earn well?

99/100

Strong

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Stronger than most peers on:

▲ ROA
▲ Operating margin
▲ ROIC

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin26.5%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 3.70Sector median: 0.0773 · MAD: 0.0507

Return on assets19.4%

SEC filings · 12 months to Jun 2026Outlier capped at sector 5th/95th percentile33% base weight · Z-score 3.33Sector median: 0.0311 · MAD: 0.0241

Return on invested capital29.3%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 3.98Sector median: 0.0715 · MAD: 0.0558

Other data (not scored)

Gross margin53.0%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.2573 · MAD: 0.1038

Return on equity110.3%

SEC filings · 12 months to Jun 2026Outlier capped at sector 5th/95th percentileInformational · 0% composite weightSector median: 0.0802 · MAD: 0.0639

Risk

Debt, liquidity, price swings

Higher

Higher relative risk

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Weaker than most peers on:

▼ Debt / equity
▼ Current ratio
▼ Beta

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta0.97

Yahoo Finance · 5-year monthly beta vs the marketReported value33% base weight · Z-score -1.21Sector median: 0.6440 · MAD: 0.2745

Current ratio1.11×

SEC filings · latest balance sheetReported value33% base weight · Z-score -0.95Sector median: 1.6180 · MAD: 0.5360

Debt / equity3.35×

SEC filings · latest balance sheetOutlier capped at sector 5th/95th percentile33% base weight · Z-score -6.37Sector median: 0.4019 · MAD: 0.3378

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about Illinois Tool Works

Is Illinois Tool Works getting weaker?: Its latest SEC filing (Aug 6, 2026) showed no major changes. Its overall score is unchanged at 46/100 since Oct 28, 2026.
How is Illinois Tool Works valued vs its peers?: Priced about in line with its peers. Valuation scores 41/100 against 2,459 industrials peers. EBITDA yield 5.2% vs a peer median of 6.9% (weaker than 63% of peers).EBITDA yield 5.2% vs peers 6.9% (weaker than 63% of peers).
Is Illinois Tool Works growing?: More slowly than most of its peers. Growth scores 39/100 against 2,459 industrials peers. 3-year revenue growth 0.8% vs a peer median of 4.2% (weaker than 65% of peers).3-year revenue growth 0.8% vs peers 4.2% (weaker than 65% of peers).
How profitable is Illinois Tool Works?: More profitable than most of its peers. Profitability scores 99/100 against 2,459 industrials peers. Return on assets 19.4% vs a peer median of 3.1% (stronger than 95% of peers).Return on assets 19.4% vs peers 3.1% (stronger than 95% of peers).
How risky is Illinois Tool Works?: Higher risk relative to 2,459 industrials peers, judged on debt, liquidity and share-price swings. Debt / equity 3.35× vs a peer median of 0.40× (weaker than 100% of peers).Debt / equity 3.35× vs peers 0.40× (weaker than 100% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended Jun 30, 2026 · filed Aug 6, 2026 · compared with the quarter ended Mar 31, 2026

No major changes

	Previous quarter	Latest quarter	Change
Revenue (12 months)	16.2B USD	16.5B USD	+1.5%
Net income (12 months)	3.1B USD	3.2B USD	+1.9%
Operating margin	26.4%	26.5%	+0.1 pts
Free cash flow (12 months)	2.7B USD	2.9B USD	+6.6%
Debt	9.1B USD	9.7B USD	+6.0%
Cash	827.0M USD	839.0M USD	+1.5%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Industry valuation context

Industry: Specialty Industrial Machinery · 42 companies

Valuations in Specialty Industrial Machinery are above their usual range since 2016.

75% of months since 2016 were valued lower than now.
46% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values +21% and earnings +11% (medians): prices and earnings moved broadly together.
Median price-to-sales is +32% vs the whole market, against a usual −5%.

2016Shaded: most expensive fifth of its range2026

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025	Change
Gross margin	41.3%	48.9%	50.7%	52.2%	52.9%	▲ 0.7 pts
Operating margin	24.1%	23.8%	25.1%	26.8%	26.3%	▼ 0.5 pts
Net margin	18.6%	19.0%	18.4%	21.9%	19.1%	▼ 2.8 pts
Return on assets (ROA)	16.8%	19.7%	19.1%	23.1%	19.0%	▼ 4.2 pts
Return on equity (ROE)	74.3%	98.2%	98.1%	105.2%	95.0%	▼ 10 pts
Free cash flow margin	15.6%	12.2%	19.1%	17.9%	16.9%	▼ 1.0 pts
Current ratio	1.84×	1.41×	1.33×	1.36×	1.21×	▼ 11%
Quick ratio	1.35×	0.95×	0.97×	0.99×	0.89×	▼ 10%
Debt to equity	2.28×	2.69×	3.16×	2.37×	2.78×	▲ 17%
Interest coverage	17.21×	18.67×	15.19×	15.07×	14.44×	▼ 4.2%

ITW price history

Price history is added with the daily price update and will appear after the next one.

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Bringing the fundamentals into focus…

Overall health

Drawback: growing more slowly than most peersgrowing more slowly than peers

Drawback: higher risk than most peers: its share price swings more than most peers’ (beta 0.97 vs a peer median of 0.64), though less than the overall market, less short-term liquidity (current ratio 1.11 vs a peer median of 1.62) and more debt relative to equity (3.35× vs a peer median of 0.40×)higher risk: bigger price swings (beta 0.97 vs peers 0.64), less liquidity (current ratio 1.11 vs peers 1.62) and more debt vs equity (3.35× vs peers 0.40×)

About average: valuation

Ranks #1,405 of 2,308 industrials companies (bottom 40%)

See how it ranks against its peers

Worth knowing

Much more borrowing than peers. Debt is 3.3× equity vs a peer median of 0.4×.Debt is 3.3× equity vs peers 0.4×.

Debt is 3.3× shareholders' equity, against a peer median of 0.4×, among the highest 10% of its peer group.Debt is 3.3× shareholders' equity, vs peers 0.4×, among the highest 10% of its peer group.

Share count shrinking. Shares outstanding down 6.6% from December 2022 to June 2026.

Illinois Tool Works had 6.6% fewer shares at June 2026 than at December 2022, mainly through buybacks, so each remaining share owns a larger slice of the business.

Profit is backed by cash. Free cash flow is 91% of reported profit.

Illinois Tool Works's free cash flow is 91% of its reported profit, so its earnings are turning into cash it can reinvest, pay out or use to reduce debt.

Wide margins. Operating margin 26% (12 months to Jun 2026) vs a peer median of 7.7%.Operating margin 26% vs peers 7.7%.

Illinois Tool Works keeps 26% of revenue as operating profit, more than 94% of peers (median 7.7%).

Questions investors ask about Illinois Tool Works

Is Illinois Tool Works getting weaker?

Its latest SEC filing (Aug 6, 2026) showed no major changes. Its overall score is unchanged at 46/100 since Oct 28, 2026.

How is Illinois Tool Works valued vs its peers?

Priced about in line with its peers. Valuation scores 41/100 against 2,459 industrials peers. EBITDA yield 5.2% vs a peer median of 6.9% (weaker than 63% of peers).EBITDA yield 5.2% vs peers 6.9% (weaker than 63% of peers).

Is Illinois Tool Works growing?

More slowly than most of its peers. Growth scores 39/100 against 2,459 industrials peers. 3-year revenue growth 0.8% vs a peer median of 4.2% (weaker than 65% of peers).3-year revenue growth 0.8% vs peers 4.2% (weaker than 65% of peers).

How profitable is Illinois Tool Works?

More profitable than most of its peers. Profitability scores 99/100 against 2,459 industrials peers. Return on assets 19.4% vs a peer median of 3.1% (stronger than 95% of peers).Return on assets 19.4% vs peers 3.1% (stronger than 95% of peers).

How risky is Illinois Tool Works?

Higher risk relative to 2,459 industrials peers, judged on debt, liquidity and share-price swings. Debt / equity 3.35× vs a peer median of 0.40× (weaker than 100% of peers).Debt / equity 3.35× vs peers 0.40× (weaker than 100% of peers). A relative measure, not a bankruptcy probability.

Previous quarter

Latest quarter

Change

Revenue (12 months)

16.2B USD

16.5B USD

+1.5%

Net income (12 months)

3.1B USD

3.2B USD

+1.9%

Operating margin

26.4%

26.5%

+0.1 pts

Free cash flow (12 months)

2.7B USD

2.9B USD

+6.6%

Debt

9.1B USD

9.7B USD

+6.0%

Cash

827.0M USD

839.0M USD

+1.5%

Key ratios

FY 2021

FY 2022

FY 2023

FY 2024

FY 2025

Change

Gross margin

41.3%

48.9%

50.7%

52.2%

52.9%

▲ 0.7 pts

Operating margin

24.1%

23.8%

25.1%

26.8%

26.3%

▼ 0.5 pts

Net margin

18.6%

19.0%

18.4%

21.9%

19.1%

▼ 2.8 pts

Return on assets (ROA)

16.8%

19.7%

19.1%

23.1%

19.0%

▼ 4.2 pts

Return on equity (ROE)

74.3%

98.2%

98.1%

105.2%

95.0%

▼ 10 pts

Free cash flow margin

15.6%

12.2%

19.1%

17.9%

16.9%

▼ 1.0 pts

Current ratio

1.84×

1.41×

1.33×

1.36×

1.21×

▼ 11%

Quick ratio

1.35×

0.95×

0.97×

0.99×

0.89×

▼ 10%

Debt to equity

2.28×

2.69×

3.16×

2.37×

2.78×

▲ 17%

Interest coverage

17.21×

18.67×

15.19×

15.07×

14.44×

▼ 4.2%