Illinois Tool Works Inc.
Illinois Tool Works Inc. provides industrial products and equipment in North America, Europe, the Middle East, Africa, the Asia Pacific, and South America. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction…
What to know about ITW
Illinois Tool Works Inc. is a large Industrials company with a mixed financial profile. It scores well on profitability and risk, but sentiment is worth keeping an eye on.
Should you consider ITW?
Based on 31 financial metrics and sector comparison. Not financial advice.
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Illinois Tool Works Inc. is a large-cap Industrials company with a mixed overall financial profile — it ranks near the bottom of Industrials stocks (66 of 75).
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The business is both profitable and financially healthy — it keeps a good portion of what it earns and carries its debt comfortably.
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The stock trades at a premium — investors are paying more per dollar of earnings than most S&P 500 companies. That's fine if strong growth justifies it, but leaves little room for disappointment.
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Growth has been slower than most peers. That's not necessarily a dealbreaker, but it means the investment case rests more on current earnings than future expansion.
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This stock pays no dividend — your return depends entirely on the share price rising over time.
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Risk is relatively low — the stock tends to be less volatile than the broader market, which typically means a smoother ride during uncertain periods.
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Analyst sentiment is cautious and short interest is relatively elevated — meaning some professional investors are actively betting the price will fall. Worth understanding why.
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There are several areas of concern. This may suit investors with a higher risk tolerance or a specific contrarian view on the Industrials sector.
At a glance
How it scores
We look at 31 different financial metrics and group them into categories. Here's how ITW compares to the other S&P 500 stocks.
Dive deeper — all 31 metrics 9 categories · valuation, growth, health, dividends & more Show all Hide
Valuation
Is the stock cheap or expensive relative to its earnings, sales, and assets? Lower multiples often mean better value.
| Metric | Value | vs S&P 500 |
|---|---|---|
| P/E Ratio (Trailing) | 24.54 | Above avg |
| Forward P/E | 21.70 | Average |
| PEG Ratio | 2.63 | Below avg |
| Price to Sales | 4.68 | Average |
| Price to Book | 23.53 | Below avg |
| EV/EBITDA | 17.93 | Average |
| Earnings Yield | 4.07% | Above avg |
Profitability
How efficiently does the company turn revenue into profit? Higher margins mean more money kept from each dollar earned.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Gross Margin | 44.12% | Average |
| Operating Margin | 25.67% | Above avg |
| Net Profit Margin | 19.32% | Above avg |
| Return on Equity | 96.85% | Top 25% |
| Return on Invested Capital | 17.04% | Top 25% |
Growth
How fast is the business expanding? Strong growth in revenue and earnings signals increasing market demand.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Revenue Growth (YoY) | 4.60% | Average |
| Revenue Growth (3Y CAGR) | 0.23% | Below avg |
| EPS Growth (YoY) | 11.80% | Average |
| Free Cash Flow Growth | -4.82% | Average |
Health
Can the company cover its debts and obligations? A healthy balance sheet reduces the risk of financial trouble.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Current Ratio | 1.19 | Average |
| Debt to Equity | 2.83 | Below avg |
| Interest Coverage | 14.58 | Above avg |
| Altman Z-Score | 8.09 | Top 25% |
Dividends
Does the company pay shareholders, and is that payment growing and sustainable?
| Metric | Value | vs S&P 500 |
|---|---|---|
| Dividend Yield | — | N/A |
| Payout Ratio | — | N/A |
| Dividend Growth (5Y) | -19.36% | Below avg |
Cash Flow
Is real cash flowing into the business — not just accounting profits? Strong cash flow funds growth and dividends.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Free Cash Flow Yield | 3.60% | Average |
| OCF to Sales | 19.46% | Average |
Risk
How volatile is the stock compared to the broader market? Lower beta and volatility mean a smoother ride.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Beta (1-Year) | 1.03 | Average |
| Volatility (30-Day) | 17.68% | Top 25% |
Sentiment
What do analysts and short-sellers think? High analyst ratings and low short interest signal broad confidence.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Short % of Float | 3.36% | Above avg |
| Avg. Analyst Rating | 3.39 | Below avg |
| Target Upside % | 3.96% | Below avg |
Size
How large is the company by market value? Size affects stability, growth potential, and index inclusion.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Market Capitalization | 75.98B | Above avg |
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