Industrials · Industrial Machinery & Supplies & Components · US stock · price as of 16 Oct 2026
Key indicators
Price
$272.28
52-week range
$232.87 – $299.98
Market cap
$78.1B
P/E (trailing)
24.7×
EV / EBITDA
20.4×
Free-cash-flow yield
3.7%
Dividend yield
2.4%
Revenue (last 12 months)
$16.5B
Revenue growth (3y a year)
0.2%
Operating margin
26.5%
Return on invested capital
24.9%
Net debt / EBITDA
2.5×
Fair value
Blended fair value$273.15 range $259 – $287
Versus priceFair+0% to fair value
Peer multiples
$293.11
Fundamentals-adjusted multiple
$272.51
10-year DCF (market-scaled)
$253.84
Earnings power value (floor, not blended)
$93.33
Model uncertainty
Medium
X-Ray Score
49/ 100 · High confidence · ahead of 44% of sector peers
Valuation53
Growth27
Profitability67
Financial health41
Dividends52
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
A broad mix of industrial products and equipment comes from Illinois Tool Works, a diversified manufacturer. Its businesses make vehicle components, commercial food equipment, welding equipment, test and measurement instruments, polymers and fluids, construction products and other specialty products. It operates through a decentralised structure of many operating units, each focused on its own niche, with customers in automotive, food service, construction, electronics and general industry.
Revenue comes from products and consumables purchased by manufacturers, builders, restaurants and vehicle makers. Sales were $16.5 billion over the last twelve months, essentially flat with growth of 0.2% a year over the last three years. The operating margin is 26.5%, and the business earns a profit of 25% on the capital invested in it. Net debt is 2.5 times EBITDA. A dividend is paid, with a yield of 2.4%.
StocksXray gives Illinois Tool Works Inc an X-Ray Score of 49 out of 100 (high confidence), ahead of 44% of the S&P 500 stocks in its sector. Its strongest lens is profitability (67) and its weakest is growth (27).
Our fair value blend is $273.15 (range $258.69 to $287.06). At $272.28 the stock trades 0% below that blend, so the label is "Fair" with medium model uncertainty. Fair value is a range, not a price target.
XStocksXray
Illinois Tool Works Inc (ITW)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2021
FY2022
FY2023
FY2024
FY2025
Now
Price
$220.26
$201.63
$245.11
$242.74
$241.71
$272.28
Market cap
$69.7B
$62.6B
$74.4B
$72.3B
$70.7B
$78.1B
P/E
25.9×
20.6×
25.2×
20.7×
23.0×
24.7×
EV / revenue
5.3×
4.5×
5.2×
5.0×
4.9×
5.4×
EV / EBITDA
22.0×
18.8×
20.6×
18.6×
18.7×
20.4×
Price / free cash flow
30.8×
32.4×
24.1×
25.4×
26.1×
26.8×
Free-cash-flow yield
3.2%
3.1%
4.1%
3.9%
3.8%
3.7%
Price / book
19.2×
20.3×
24.7×
21.8×
21.9×
27.0×
Dividend yield
2.14%
2.51%
2.21%
2.39%
2.57%
2.41%
Fundamentals checklist ● 4 Good · ● 6 Average · ● 6 Bad · each check graded against the sector
Cash quality
Earnings backed by cash−0.8%Bad
Free-cash-flow yield3.7%Average
Risk models
Altman Z score8.3×Good
Piotroski F-Score5 of 9Bad
Growth
EPS growth (3y)2.4%Average
Free-cash-flow growth (3y)11.8%Average
Revenue growth (3y)0.2%Bad
Growth consistency50%Bad
Balance sheet
Current ratio1.1×Bad
Net debt / EBITDA2.5×Bad
Interest cover14.5×Average
Valuation
Fair value vs price1.0×Average
EBIT / EV yield4.9%Average
Profitability
Return on invested capital24.9%Good
Operating margin26.5%Good
Gross profitability52.9%Good
XStocksXray
Illinois Tool Works Inc (ITW)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY21
FY22
FY23
FY24
FY25
LTM
Revenue
14,455
15,932
16,107
15,898
16,044
16,469
Gross profit
5,966
7,796
8,163
8,294
8,488
8,728
Operating income
3,477
3,790
4,040
4,264
4,216
4,364
Net income
2,694
3,034
2,957
3,488
3,066
3,194
Diluted EPS ($)
8.51
9.77
9.74
11.71
10.49
11.01
Free cash flow
2,261
1,936
3,084
2,844
2,707
2,921
Gross margin
41.3%
48.9%
50.7%
52.2%
52.9%
53.0%
Operating margin
24.1%
23.8%
25.1%
26.8%
26.3%
26.5%
Net margin
18.6%
19.0%
18.4%
21.9%
19.1%
19.4%
Balance sheet
FY21
FY22
FY23
FY24
FY25
LTM
Total assets
16,077
15,422
15,518
15,067
16,148
16,494
Cash
1,527
708
1,065
948
851
839
Total debt
8,465
9,351
9,989
7,863
8,982
11,794
Equity
3,626
3,089
3,013
3,317
3,226
2,895
Dividend per share ($)
4.72
5.06
5.42
5.80
6.22
6.44
Revenue and net income US$ billions: navy revenue, teal net income
Margins blue gross, teal operating, brown net
Latest quarters
Mar 2025
Jun 2025
Sep 2025
Dec 2025
Mar 2026
Jun 2026
Revenue ($M)
3,839
4,053
4,059
4,093
4,016
4,301
Growth vs a year earlier
−3.4%
+0.6%
+2.3%
+4.1%
+4.6%
+6.1%
Net income ($M)
700
755
821
790
768
815
Diluted EPS ($)
2.38
2.58
2.81
–
2.66
2.84
XStocksXray
Illinois Tool Works Inc (ITW)
Peers in Industrial Machinery & Supplies & Components
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value blends three models and carries a typical error of about 40%, so treat it as a range. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.