Stock AnalizIllinois Tool Works Inc. ITW
Industrial Machinery/Components · data as of November 13, 2026
Illinois Tool Works Inc. (ITW) is a industrial company listed in the US with a market value of about $81.7B. In the twelve months to September 30, 2026 it had revenue of $16.6B and net income of $3.2B, a net margin of 19.4%.
Its overall Stock Analiz score is 2.2 out of 5 (weak). The strongest part is shareholder returns (4/5); the weakest is value (1/5).
Key numbers: a P/E of 25.6, a price to free cash flow of 28.5, 5-year revenue growth of 5% a year, a 5-year average ROIC of 27%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 30% below the current price.
Score: 2.2 / 5
Checks passed
- P/E below the industry median
- 3-year free cash flow growth above 10% a year
- 5-year average ROIC above 12%
- Profitable 5 years in a row
- ROE above 15%
- Positive free cash flow
- Interest covered more than 5 times
- Pays a dividend
Checks not passed
- P/E below 25
- P/FCF below 20
- Price below intrinsic value (DCF, moderate assumptions)
- PEG below 1.5
- Revenue growth above 10% last year
- 3-year revenue growth above 10% a year
- Profit margin improving
- Strong R&D investment or growth above 20%
Valuation
Growth and quality
Financials, last 10 years
| Fiscal year | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $16.6B | $16.0B | $15.9B | $16.1B | $15.9B | $14.5B | $12.6B | $14.1B | $14.8B | $14.3B | $13.6B |
| Net income | $3.2B | $3.1B | $3.5B | $3.0B | $3.0B | $2.7B | $2.1B | $2.5B | $2.6B | $1.7B | $2.0B |
| Free cash flow | $2.9B | $2.7B | $2.8B | $3.1B | $1.9B | $2.3B | $2.6B | $2.7B | $2.4B | $2.1B | $2.0B |
| EPS (diluted) | $11.22 | $10.49 | $11.71 | $9.74 | $9.77 | $8.51 | $6.63 | $7.74 | $7.60 | $4.86 | $5.70 |
| Net margin | 19.4% | 19.1% | 21.9% | 18.4% | 19.0% | 18.6% | 16.8% | 17.9% | 17.4% | 11.8% | 15.0% |
| ROIC | — | 26.8% | 29.6% | 27.5% | 27.1% | 24.5% | 19.6% | 23.8% | 25.4% | 14.9% | 17.7% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 14 analysts is $294.14, 2% above the current price; targets range from $253.00 to $326.00; the consensus rating is “Hold”; expected EPS is $11.49 for the fiscal year ending December 31, 2026.
Frequently asked questions
What is Illinois Tool Works’s P/E ratio?
About 25.6, based on the last twelve months of diluted earnings per share (forward P/E about 24.1).
Is Illinois Tool Works stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 30% below the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Illinois Tool Works pay a dividend?
Yes. The dividend yield is about 2.38%, and it has paid dividends for 10 years in our data.
Is Illinois Tool Works a good stock to buy?
We do not give buy or sell advice. Illinois Tool Works scores 2.2 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.