Illinois Tool Works (ITW) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Illinois Tool Works

NYSE•Industrials•Specialty Industrial Machinery

$267.51+0.18(<0.01%)After hours

Market Cap

$76.61B

P/E

24.0x

P/S

4.7x

P/B

26.5x

Illinois Tool Works Inc. provides industrial products and equipment in North America, Europe, the Middle East, Africa, the Asia Pacific, and South America. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM segment offers plastic and metal components, fasteners, and assemblies for automobiles, light trucks, and other industrial uses. The Food Equipment segment provides warewashing, cooking, refrigeration, and food processing equipment; kitchen exhaust, ventilation, and pollution control systems; and food equipment maintenance and repair services. The Test & Measurement and Electronics segment produce and sells test and measurement; and electronic manufacturing and maintenance, repair, and operations solutions. The Welding segment produces arc welding equipment, and metal arc welding consumables and related accessories. The Polymers & Fluids segment produces adhesives, sealants, lubrication and cutting fluids, and fluids and polymers for auto aftermarket maintenance and appearance. The Construction Products segment offers engineered fastening systems and solutions for the residential construction, renovation/remodel, and commercial construction markets. The Specialty Products segment provides beverage packaging equipment and consumables, product coding and marking equipment and consumables, and appliance components and fasteners. The company serves automotive OEM and aftermarket, commercial food equipment, construction, general industrial, industrial capital goods, consumer durables, and other markets, as well as MRO markets. It distributes its products directly to industrial manufacturers, as well as through independent distributors. Illinois Tool Works Inc. was founded in 1912 and is based in Glenview, Illinois.

How this company scores

GoodMetricSide Score: 60/100

Strongest: Cash & Earnings Quality (21/25); weakest: Balance Sheet & Red Flags (8/25).

Profitability19/25

Growth12/25

Balance Sheet & Red Flags8/25

Cash & Earnings Quality21/25

Strengths

Strong marginsHigh ROEConsistent free cash flowImproving margins

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 24.0x5y range 20.8x – 28.6x

Currently near its 20-quarter median.

P/S · 4.7x5y range 3.6x – 5.3x

Currently near its 20-quarter median.

P/B · 26.5x5y range 16.6x – 26.5x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Leverage Risk

Watch

D/E ratio of 2.3 is elevated. Watch for further debt accumulation.

Price & Volume

Market Cap $76.61B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $16.47B
Q. Revenue: $4.30B
TTM EBITDA: $4.69B
TTM Op. Income: $4.36B
Q. Op. Income: $1.15B
TTM Net Income: $3.19B
Q. Net Income: $815.00M
EPS: $2.85
Shares Out.: $286.40M

$16.47B in TTM revenue grew 4.3% YoY, reaching $4.30B last quarter. TTM EBITDA of $4.69B and TTM operating income of $4.36B show growth is flowing through to the bottom line. TTM net income of $3.19B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 5 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 44.1%
EBITDA Margin: 28.9%
Op. Margin: 26.7%
Net Margin: 18.9%

Op. margin of 26.7% is up 0.3% YoY — cost efficiency is improving. Net margin at 18.9% and gross margin of 44.1% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 1% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 24.0x
P/S Ratio: 4.7x
P/B Ratio: 26.5x

At 24.0x P/E, the stock trades within typical market levels. P/S of 4.7x and P/B of 26.5x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is up 12% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $16.49B
Cash: $839.00M
Long-Term Debt: $6.55B
Book Value: $2.90B
D/E Ratio: 2.3
Debt/EBITDA: 5.3

With $16.49B in assets and $6.55B in long-term debt, D/E is 2.3and book value is $2.90B — elevated leverage, meaning significant financial risk in a downturn. Over the past year, debt/equity is down 6% — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $723.00M
TTM Free Cash Flow: $2.92B
FCF Margin: 17.7%
FCF / Net Income: 0.9

TTM FCF of $2.92B on $723.00M in operating cash flow. The FCF / Net Income ratio of 0.9x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 2 consecutive quarters — an improving trend.