A Business at a Glance
0 of 5 daily views used (5 remaining). Sign up free for 10 daily views, or try AAPL for a full preview.
ITEM 1. Business Illinois Tool Works Inc. (the "Company" or "ITW") was founded in 1912 and incorporated in 1915. The Company's ticker symbol is ITW. The Company is a global manufacturer of a diversified range of industrial products and equipment with 88 divisions in 49 countries. As of December 31, 2025, the Company employed approximately 43,000 people. The Company's operations are organized and managed based on similar product offerings and end markets, and are reported to senior management as the following seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The following is a description of the Company's seven segments: Automotive OEM— This segment is a global, niche supplier to top tier OEMs, providing unique innovation to address pain points for sophisticated customers with complex problems.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 16.0B | 16.0B | 15.9B | 16.1B | 15.9B | 14.5B |
| Net Income | 3.1B | 3.1B | 3.5B | 3.0B | 3.0B | 2.7B |
| EPS | $10.49 | $10.49 | $11.71 | $9.74 | $9.77 | $8.51 |
| Free Cash Flow | 2.7B | 2.7B | 2.8B | 3.1B | 1.9B | 2.3B |
| ROIC | 23.9% | 21.4% | 23.6% | 28.7% | 27.1% | 31.2% |
| Gross Margin | 44.1% | 44.1% | 44.3% | 42.2% | 40.8% | 41.3% |
| Debt/Equity | 3.49 | 3.49 | 2.84 | 3.32 | 3.03 | 2.33 |
| Dividends/Share | $6.11 | $6.22 | $5.80 | $5.42 | $5.06 | $4.72 |
| Operating Income | 4.2B | 4.2B | 4.3B | 4.0B | 3.8B | 3.5B |
| Operating Margin | 26.3% | 26.3% | 26.8% | 25.1% | 23.8% | 24.1% |
| ROE | 95.0% | 93.7% | 105.2% | 98.1% | 98.2% | 74.3% |
| Shares Outstanding | 292M | 292M | 298M | 304M | 311M | 317M |
ILLINOIS TOOL WORKS INC passes 6 of 9 quality checks, suggesting mixed fundamentals.
ILLINOIS TOOL WORKS INC trades at 26.2x trailing earnings, compared to its 15-year median P/E of 22.6x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 29.2x vs a median of 23.6x. The company's 5-year average ROIC is 26.4% with a gross margin of 42.5%. Total shareholder yield (dividends + buybacks) is 4.1%. At current prices, the estimated annualized return to fair value is +4.2%.
ILLINOIS TOOL WORKS INC (ITW) has a current P/E ratio of 26.2, compared to its historical median P/E of 22.6. The stock is currently considered Fair based on its historical valuation range.
ILLINOIS TOOL WORKS INC (ITW) has a 5-year average return on invested capital (ROIC) of 26.4%. This indicates strong capital allocation and a potential competitive advantage.
ILLINOIS TOOL WORKS INC (ITW) has a market capitalization of $80.2B. It is classified as a large-cap stock.
Yes, ILLINOIS TOOL WORKS INC (ITW) pays a dividend with a trailing twelve-month yield of 2.22%. The company also returns capital through share buybacks, with a buyback yield of 1.87%.
Based on historical P/E analysis, ILLINOIS TOOL WORKS INC (ITW) appears fair. The current P/E of 26.2 is 16% above its historical median of 22.6. The estimated fair value CAGR (P/E method) is 8.1%.
ILLINOIS TOOL WORKS INC (ITW) operates in the General Industrial Machinery & Equipment industry, within the Industrials sector.
ILLINOIS TOOL WORKS INC (ITW) reported annual revenue of $16.0 billion in its most recent fiscal year, based on SEC EDGAR filings.
ILLINOIS TOOL WORKS INC (ITW) has a net profit margin of 19.1%. This is a healthy margin.
ILLINOIS TOOL WORKS INC (ITW) generated $2.7 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
ILLINOIS TOOL WORKS INC (ITW) has a debt-to-equity ratio of 3.49. This indicates higher leverage, which may increase financial risk.
ILLINOIS TOOL WORKS INC (ITW) reported earnings per share (EPS) of $10.49 in its most recent fiscal year.
ILLINOIS TOOL WORKS INC (ITW) has a return on equity (ROE) of 93.7%. This indicates the company generates strong returns for shareholders.
ILLINOIS TOOL WORKS INC (ITW) has a 5-year average gross margin of 42.5%. This indicates decent pricing power.
The Ledger Terminal provides 19 years of financial data for ILLINOIS TOOL WORKS INC (ITW), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
ILLINOIS TOOL WORKS INC (ITW) has a book value per share of $11.04, based on its most recent annual SEC filing.