Stock Analysis
Illinois Tool Works Inc.ITW
P/E 24.28×· 5Y range 19.09–28.94×· 55th percentile of history
Sector: Industrials · Industry: General Industrial Machinery & Equipment
AnalystsSell24 analystsP/E 24.3× sits at the 55th percentile of its 5.086926762491444-year history.
Cash covers 9% of debt · Q2 2026.
PMP Verdict
Mixed fundamentals, fairly valued
Strengths
- Profitability95
- Quality77
Risks
- Growth36
Mixed picture — no clear quality or value edge.
Bull Case
- ✓Altman Z 7.1 — safe-zone balance sheet
- ✓ROE 110.3% — efficient capital deployment
- ✓Interest coverage 15.9× — debt well covered
What's happening with ITW
Profile
Strong profitability, moat and earnings quality; growth lags behind.
How is each axis scored?
- Valuation56/100 · Moderate
- P/E vs own history (55th pct)12/25
- FCF yield (3.8%)12/25
- P/S (4.7x)20/25
- EV/EBIT (19.8x)12/25
- Growth36/100 · Weak
- Revenue CAGR (2.6%)6/25
- Net income CAGR (3.3%)6/25
- EPS CAGR 5Y (5.4%)12/25
- Fwd implied growth (8.8%)12/25
- Profitability95/100 · Strong
- ROIC (29.3%)25/25
- ROE (110.3%)25/25
- Net margin (19.4%)20/25
- Operating margin (26.5%)25/25
- Financial Health62/100 · Moderate
- Altman Z (7.06)25/25
- Current ratio (1.11)12/25
- Interest coverage (15.9x)25/25
- Net cash / debt (D/A 54%)0/25
- Quality77/100 · Strong
- Piotroski F (4/9)10/25
- Beneish M (-2.46)20/25
- FCF conversion (91%)22/25
- Margin stability (σ 3.0%)25/25
- Moat88/100 · Strong
- ROIC >12% years (10/10 yrs)25/25
- Median gross margin (41.9%)13/25
- FCF-positive years (10/10 yrs)25/25
- Worst-year net margin (worst 11.8%)25/25
About Illinois Tool Works Inc.
Founded in 1912, Illinois Tool Works has become a diversified industrial manufacturer through acquisitions and innovations that follow customer needs. Show more
ITW operates through seven business segments, with no segment representing more than one-fifth of revenue. ITW's automotive OEM segment sells vehicle components; its food equipment segment sells commercial kitchen appliances; its test and measurement and electronics segment sells inspection and analysis equipment; its welding segment sells welding equipment and consumables; its polymers and fluids segment sells industrial and consumer adhesives, solvents, and coatings; its construction products segment sells building fasteners and tools; and its specialty products segment sells medical, packaging, HVAC, and airport ground equipment.
Headquarters: GLENVIEW, IL · Employees: 43,000 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
56CP/E (TTM)24.3xB
Grade B: FairPrice / TTM EPS (own statements) — vs own 5Y history: 19.1x–28.9x · 55th pct
P/FCF26.5xB
Grade B: FairPrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield3.8%C
Grade C: LowTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 2.5%–4.4% · 73rd pct
P/S (TTM)4.71xB
Grade B: FairPrice / TTM Revenue (own statements) — vs own 5Y history: 3.6x–5.5x · 55th pct
EV/EBIT19.8xC
Grade C: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 17.4x–24.0x · 36th pct
EV/Sales5.2xC
Grade C: ExpensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E22.3xB
Grade B: FairPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio26.79xD
Grade D: Very expensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio2.66C
Grade C: ExpensiveFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield2.37%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio57.4%A
Grade A: SafeDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
95A+ROIC29.3%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE110.3%A
Grade A: StrongReturn on Equity. Neg. equity = heavy buybacks
ROA19.6%A
Grade A: StrongReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin19.4%A
Grade A: HighNet Income / Revenue
Operating Margin26.5%A
Grade A: HighTTM EBIT / TTM Revenue
Gross Margin44.2%C
Grade C: AverageGross Profit / Revenue
FCF Margin17.7%A
Grade A: HighFCF / Revenue
True FCF Margin17.3%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
36DRevenue CAGR2.6%D
Grade D: LowCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR3.3%D
Grade D: LowCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)5.4%C
Grade C: OkCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth8.8%B
Grade B: LowAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)-10.3%A
Grade A: BuybacksShare count change over 5Y
SBC / Net Income2.3%A
Grade A: LowStock-based comp/Net income. >30% = dilution risk
SBC / Revenue0.4%A
Grade A: LowTTM stock-based comp / TTM Revenue
Financial Health
62BAltman Z-Score7.06A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio1.11xC
Grade C: OkCurrent Assets/Liabilities
Quick Ratio0.74xC
Grade C: Ok(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage15.9xA
Grade A: StrongEBIT/Interest. >10 Strong
Debt Repayment3.0yC
Grade C: AverageYears to repay net debt via FCF
Net Debt/EBIT2.0xC
Grade C: MedLeverage. <2x Low, >4x High
Debt/Equity3.35xD
Grade D: HighDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.09xD
Grade D: ThinCash covers how much of total debt. >1 = could repay all debt from cash
Quality
77B+Piotroski F-Score4/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-2.46A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion91.5%A
Grade A: StrongFCF / Net Income
Margin Stability3.0%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue2.5%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover1.01xA
Grade A: HighRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
SANTI ERNEST SCOTT Filed | SANTI ERNEST SCOTT | Option exercise | -41431 | |
SANTI ERNEST SCOTT Filed | SANTI ERNEST SCOTT | SellOpen market sale | -1890 | |
SANTI ERNEST SCOTT Filed | SANTI ERNEST SCOTT | SellOpen market sale | -8928 | |
SANTI ERNEST SCOTT Filed | SANTI ERNEST SCOTT | SellOpen market sale | -8142 | |
SANTI ERNEST SCOTT Filed | SANTI ERNEST SCOTT | SellOpen market sale | -22471 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
SANTI ERNEST SCOTT Filed | SANTI ERNEST SCOTT | Option exercise | +41.4K | |
Pigozzo Matteo C. Filed | Pigozzo Matteo C. | SellOpen market sale | -277 | |
SMITH DAVID BYRON JR Filed | SMITH DAVID BYRON JR | Grant / award | +130 |
Option exercise (M) rows report a derivative leg, not an open-market sale — a paired negative entry is the option position being consumed.
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
88AROIC >12% Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)41.9%C
Grade C: ModerateMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor11.8%A
Grade A: DurableWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$11.21
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$2.92
Cash & short-term investments per share (Finnhub)
Book Value / Share$10.06
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$9.69B
Total debt obligations (short + long term)
Cash & Equiv.$839.00M
Cash and short-term investments
Net Debt$8.86B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$2.90B
Shareholders' equity (book value)
Asset / Liability1.21xC
Grade C: AdequateTotal Assets / Total Liabilities
Market
Market Cap$77.55B
Current Market Capitalization
Beta0.96B
Grade B: MarketPrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: Illinois Tool Works Inc. (ITW)
Piotroski F-Score of 4/9 indicates mixed fundamentals for Illinois Tool Works Inc.. Altman Z-Score of 7.06 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk. Beneish M-Score of -2.46 suggests a low likelihood of earnings manipulation. Illinois Tool Works Inc. converts about 18% of revenue into free cash flow — strong cash generation.
- Takes ~3.0 years to repay net debt from free cash flow.
- Return on equity of 110.3% is well above the market average.
- The stock currently yields 2.4% in dividends.
See how ITW ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all ITW moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 7 | After-hours | 260.35 | -2.54% | -2.11 |
| Sep 30 | Regular | 258.88 | -3.07% | -3.24 |
| Sep 30 | After-hours | 259.41 | -2.87% | -3.03 |
| Sep 29 | Regular | 267.61 | -2.27% | -2.57 |
Frequently Asked Questions about ITW
What is the current Illinois Tool Works Inc. (ITW) stock price?
ITW is trading at $272.28 at the last market close, up 0.40% on the session. PreMarketPrice tracks ITW pre-market, intraday and after-hours prices.
Is ITW stock a buy right now?
PreMarketPrice's quantitative model rates Illinois Tool Works Inc.'s financial health at 62/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is ITW stock overvalued?
Illinois Tool Works Inc. trades at a trailing P/E of 24.3 and our valuation score rates it 56/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Illinois Tool Works Inc. report earnings?
No confirmed earnings date is currently scheduled for ITW. The Earnings section lists recent reports and updates as dates are announced.
What sector does Illinois Tool Works Inc. operate in?
Illinois Tool Works Inc. operates in the Industrials sector, within the General Industrial Machinery & Equipment industry. The Related Stocks section lists sector peers for comparison.
What does Illinois Tool Works Inc. do?
Founded in 1912, Illinois Tool Works has become a diversified industrial manufacturer through acquisitions and innovations that follow customer needs.
About Illinois Tool Works Inc. (ITW) Stock
Illinois Tool Works Inc. (ITW) is a US-listed stock operating in the Industrials sector, specifically the General Industrial Machinery & Equipment industry. As of the latest update, Illinois Tool Works Inc. is trading at $272.28, up 0.40% on the day with a market capitalization of $77.5 billion. The financial health score for ITW is 62/100, which indicates good financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for ITW stock.
ITW Stock Analysis & Key Metrics
On PreMarketPrice, you can track Illinois Tool Works Inc. (ITW) across multiple dimensions:
- Pre-market price & movement: Real-time ITW stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for ITW with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Illinois Tool Works Inc. across multiple reporting periods.
- Financial health score: A composite score of 62/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for ITW.
- Sector peers: Compare ITW against 6 other industrials stocks on key financial metrics.
Is ITW a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Illinois Tool Works Inc. (ITW) as an investment. The financial health score of 62/100 suggests good financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Illinois Tool Works Inc. (ITW) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.