Illinois Tool Works Inc. demonstrates strong operational quality and resilience across diverse segments, although facing some challenges in organic revenue growth and external headwinds. The focus on innovation and positive outlook for 2025 indicate potential for continued success.
Analysis Date: February 5, 2025 Last Updated: May 29, 2025
+170%
+10.4% per year
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
CountryUS
ExchangeNYSE
IndustryIndustrial - Machinery
SectorIndustrials
Market Cap$73.93B
CEOMr. Christopher A. O'Herlihy
Illinois Tool Works Inc. (ITW) is a company that makes and sells a variety of products used in different industries around the world. They create parts and tools for cars, equipment for cooking and cleaning in restaurants, and machines that test materials and electronics. ITW also produces welding equipment and adhesives used in construction and automotive maintenance. Basically, they provide essential tools and equipment that help businesses operate smoothly and efficiently.
Streams of revenue
Automotive OEM Segment:19%
Test and Measurement and Electronics Segment:18%
Food Equipment Segment:17%
Construction Products Segment:12%
Welding Segment:12%
Polymers and Fluids Segment:11%
Specialty Products Segment:11%
Geographic Distribution
Other:0%
Europe:0%
Asia Pacific:0%
North America:0%
Estimations for reference only
Core Products
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FastenersIndustrial fasteners
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Food EquipmentFood service tools
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Welding EquipmentWelding solutions
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Automotive ComponentsAuto parts
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Construction ProductsBuilding materials
Business Type
Business to Business
Competitive Advantages
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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Graham Value Metrics
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Income Statement Flow
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About Profitability Metrics
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
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ITW Stock Analysis: Illinois Tool Works Inc. Investment Guide
ITW (Illinois Tool Works Inc.) is a Industrials company listed on New York Stock Exchange. The stock has generated 10.4% annual returns with an overall investment score of None/100.
Illinois Tool Works Inc. demonstrates strong operational quality and resilience across diverse segments, although facing some challenges in organic revenue growth and external headwinds. The focus on innovation and positive outlook for 2025 indicate potential for continued success.
ITW Key Financial Metrics
ITW financial analysis includes comprehensive valuation ratios, profitability metrics, and financial health indicators. The company has a valuation score of 1.0179025357142857/100 and profitability score of 7.5/100 with financial health rated 3.5/100.
About Illinois Tool Works Inc.
Illinois Tool Works Inc. (ITW) is a company that makes and sells a variety of products used in different industries around the world. They create parts and tools for cars, equipment for cooking and cleaning in restaurants, and machines that test materials and electronics. ITW also produces welding equipment and adhesives used in construction and automotive maintenance. Basically, they provide essential tools and equipment that help businesses operate smoothly and efficiently.
ITW Investment Recommendation
Based on our comprehensive analysis of ITW, investors should consider the company's strong performance track record, earnings consistency (10/10 quarters beat expectations), and current valuation metrics when making investment decisions.
Industrials Sector Analysis
ITW operates in the Industrial - Machinery industry within the Industrials sector. This analysis compares Illinois Tool Works Inc. performance against industry and sector benchmarks to provide context for investment decisions.
Frequently Asked Questions about ITW Stock
Is ITW a good investment?
ITW (Illinois Tool Works Inc.) has generated 10.4% annual returns with an overall score of None/100. Illinois Tool Works Inc. demonstrates strong operational quality and resilience across diverse segments, although facing some challenges in organic revenue growth and external headwinds. The focus on innovation and positive … Investors should consider their risk tolerance and investment goals when evaluating ITW.
What is ITW P/E ratio and valuation?
ITW valuation metrics including P/E ratio, price-to-book ratio, and price-to-sales ratio are analyzed on this page with comparisons to Industrial - Machinery industry and Industrials sector benchmarks. The company currently has a valuation score of 1.0179025357142857/100.
Should I buy ITW stock now?
The decision to buy ITW stock should be based on comprehensive analysis of financial metrics, market conditions, and individual investment goals. Our analysis provides profitability score of 7.5/100, financial health score of 3.5/100, and detailed performance metrics to help inform your investment decision.
What are ITW financial health indicators?
ITW financial health analysis includes liquidity ratios, debt levels, cash flow metrics, and profitability indicators. The company has a financial health score of 3.5/100 based on comprehensive analysis of balance sheet strength and operational efficiency.
How does ITW compare to competitors?
ITW performance is benchmarked against Industrial - Machinery industry peers and Industrials sector averages. Our analysis includes comparative valuation ratios, profitability metrics, and growth indicators to provide context for Illinois Tool Works Inc.'s market position.
What are ITW historical returns?
ITW has generated 10.4% annual returns over the 10Y. Historical performance analysis includes price appreciation, dividend yields, and total shareholder returns compared to market benchmarks.
ITW Key Investment Metrics Summary
Annual Return: 10.4%
Valuation Score: 1.0179025357142857/100
Profitability Score: 7.5/100
Financial Health Score: 3.5/100
Growth Score: -7.110291038624497/100
Earnings Beat Rate: 10/10 quarters
Sector: Industrials
Industry: Industrial - Machinery
Exchange: New York Stock Exchange
Market Cap: 73931308000
ITW Investment Thesis
Illinois Tool Works Inc. (ITW) represents a strong investment opportunity in the Industrials sector. With an overall score of None/100, the company demonstrates areas for financial improvement.
Investment Strengths
Moderate Price-to-Earnings Ratio
Strong Price-to-Sales Ratio
Strong Return on Equity
Healthy Profit Margins
Good Liquidity Ratios
Strong Interest Coverage
Strong Operational Performance
Record Free Cash Flow
Diverse Segment Performance
Focus on Customer-Back Innovation
Guidance for 2025
Investment Risks
High Price-to-Free Cash Flow Ratio
Elevated Price-to-Book Ratio
Operating Margin Concerns
High Debt Levels
Declining Organic Revenue
Headwinds from Foreign Currency and Costs
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