ITW
Illinois Tool Works
$265.31
▲ 0.5%Updated Today 7:15 PM ET
▲ Up 9.4% over the last 12 months
Market Cap
$75.98B
P/E
24.23x
Forward P/E (est.)
25.55x
ROE
97.4%
Revenue Growth
2.9%
EPS Growth
-5.2%
Profit Margin
19.3%
FCF Yield
4.4%
Debt / Equity
2.78x
ROIC
21.0%
Interest Coverage
15.85x
Current Ratio
1.19x
Dividend Yield
2.5%
Implied Growth (rev. DCF)
5.3%
Rating Score
51/100
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what ITW's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. ITW trades near $265.31, above its 50-day average ($258.38) and 200-day average ($260.05). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 65 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. ITW's is $4.77 (~1.8% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month ITW found buyers near $242.05 (support) and sellers near $269.12 (resistance); its 52-week range is $238.82–$303.16. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 1.2× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
Illinois Tool Works (ITW) is a large-cap company in the Industrial Machinery & Supplies & Components industry, part of the Industrials sector of the S&P 500, with a market value around $75.98B.
In its latest reported year it generated about $16.04B in revenue.
Our model rates ITW Neutral (51/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
4Y CAGR
2.6%
Revenue moved from $14.46B in 2021 to $16.04B in 2025, a 2.6% compound annual growth rate. The most recent year was roughly flat (2.9%) year over year. Slower, mature growth is common for established businesses.
Gross Margin
44.1%
Operating Margin
26.3%
Net Margin
19.3%
ROE
97.4%
Illinois Tool Works keeps about 19.3% of each sales dollar as net profit, with a 44.1% gross margin and 26.3% operating margin. Return on equity is 97.4% and return on invested capital about 21.0%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$7.68B
Net Debt
$6.86B
Net Debt / EBITDA
1.63x
Debt / Equity
2.78x
Leverage: debt-to-equity is 2.8x, and operating profit covers interest about 15.8x, with a current ratio of 1.2x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $7.68B of total debt against $827.00M of cash.
Operating CF
$3.13B
Free Cash Flow
$2.71B
FCF Margin
16.9%
In the latest year Illinois Tool Works produced about $3.13B of operating cash flow and $2.71B of free cash flow after capital spending. That is a free-cash-flow yield of about 4.4% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
P/E
24.23x
P/S
4.76x
P/B
22.01x
EV / EBITDA
—
ITW trades at 24.2x trailing earnings (about 25.6x on estimated forward earnings), 4.8x sales, and 22.0x book value. Reverse-engineering today's price implies the market expects roughly 5.3% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.
How ITW stacks up against its Industrials peers — valuation, profitability, and growth versus the sector median.
In the Industrials sector (80 S&P 500 companies), ITW ranks #43 of 80 by our overall rating. It trades at a discount versus the sector on earnings (24.2x P/E vs. 30x median) with a higher return on equity (97.4% vs. 24.7%) and slower revenue growth (2.9% vs. 5.0%).
P/E vs sector
24.2x
median 30x
ROE vs sector
97.4%
median 24.7%
Growth vs sector
2.9%
median 5.0%
Sector rank
#43
of 80 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Industrials companies by sub-industry and size. Sector median is across all 80 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$171.97 – $294.80
vs. $265.31 today · expected CAGR -8% – 2%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $16.53B | $17.02B | $17.53B | $18.06B | $18.60B |
| Net income | $3.14B | $3.23B | $3.33B | $3.43B | $3.53B |
| EPS | $10.91 | $11.24 | $11.58 | $11.93 | $12.28 |
| Share price (low) | $152.79 | $157.37 | $162.09 | $166.96 | $171.97 |
| Share price (high) | $261.92 | $269.78 | $277.87 | $286.21 | $294.80 |
| CAGR (low–high) | -42% / -1% | -23% / 1% | -15% / 2% | -11% / 2% | -8% / 2% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for ITW:
- High net margins (19.3%) point to pricing power or efficiency.
- Strong return on equity (97.4%) shows capital is put to work well.
- Healthy free-cash-flow yield (~4.4%) funds buybacks and dividends.
- Pays a 2.5% dividend on top of any price gains.
The case against ITW:
- Revenue growth is slow (2.9%), limiting the upside engine.
- Elevated leverage (debt/equity 2.8x) adds financial risk.
Balance-sheet risk — debt/equity of 2.8x magnifies the impact of higher rates or weaker earnings.
Growth risk — sluggish revenue (2.9%) leaves little margin for execution missteps.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the picture is mixed: Illinois Tool Works is a large-cap industrials business growing at a mature pace, with solid profitability, and a heavier debt load to watch. It trades at 24.2x earnings, which our model scores Neutral (51/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.