Illinois Tool Works Inc

Industrials
Industrial Machinery/Components
www.itw.com

Earnings Score
Safety Score

Market Cap $70.25B
PE 21
Debt $8.26B
Cash $873.00M
EV $77.64B
FCF $2.85B

Earnings

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Sales & Net Margins

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Earnings	$3.37B
EBIT	$4.09B
ROE	104%
ROA	26%
FCF	$2.85B
Equity	$3.24B
Growth Stability	93%
PE	20.85
PEG	2
PB	21.67
P/FCF	24.68
P/S	4.46
Price/Cash	0.01
Debt/Equity	2.55
Debt/FCF	2.9
Net Margins	18%
Gross Margins	44%
Op. Margins	26%
Earnings CAGR	7%
Sales Growth YoY	-3%
Sales Growth QoQ	-2%
Sales CAGR	2%
FCF CAGR	3%
Equity CAGR	-5%
Earnings Stability	0.78
Earnings Growth YoY	-15%
Earnings Growth QoQ	-7%

Earnings CAGR 5Y	10%
Sales CAGR 5Y	6%
FCF CAGR 5Y	4%
Equity CAGR 5Y	1%
Earnings CAGR 3Y	1%
Sales CAGR 3Y	1%
FCF CAGR 3Y	18%
Equity CAGR 3Y	1%
Market Cap	$70.25B
Revenue	$15.76B
Dividend Yield	2%
Payout Ratio	52%
Assets	$15.47B
Total Debt	$8.26B
Cash	$873.00M
Shares Outstanding	292.89M
EV	77.64B
Earnings Score	88%
Safety Score	83%
Working Capital	2.26B
Current Ratio	1.6
Gross Profit	$6.89B
Shares Growth 3y	-2%
Equity Growth QoQ	-2%
Equity Growth YoY	7%

Assets & ROA

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Stockholders Equity & ROE

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Illinois Tool Works is a diversified global manufacturer that produces specialized industrial equipment, consumables, and related services. The firm operates 87 global divisions through seven distinct operating segments: automotive OEM, construction products, food equipment, specialty products, test/measurement and electronics, polymers and fluids, and welding. About half of its revenue comes from its operations in North America, with the remainder originating from international markets. ITW takes a bottom-up and decentralized approach to portfolio management, with the exception that each segment must apply its 80/20 operating process modeled on the Pareto principle.

SEC Filings

Direct access to Illinois Tool Works Inc (ITW) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2025
- 10-Q Mar 31
2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Illinois Tool Works Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Illinois Tool Works Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 7%

Stability 78%

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Illinois Tool Works Inc Discounted Cash Flow

Fully customizable DCF calculator online for Illinois Tool Works Inc.

Years

Calculation mode

= $35B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$2.8B	$2.9B	$3B	$3.1B	$3.2B	$3.3B	$3.4B	$3.5B	$3.6B	$3.7B	$3.8B	$38B
DCF		$2.7B	$2.5B	$2.3B	$2.2B	$2B	$1.9B	$1.8B	$1.7B	$1.6B	$1.5B	$15B
Value	$35B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	14%	15%	12%	17%	18%	17%	19%	19%	18%	22%	18%
ROA	-	21%	21%	25%	23%	19%	22%	26%	26%	28%	26%
ROE	-	48%	37%	79%	83%	66%	74%	98%	98%	105%	104%

Good Net Margins (18.23%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	4.18	3.96	3.57	2.91	3.3	3.65	4.29	3.09	3.04	2.9
Debt over Equity	1.42	1.99	1.81	2.68	2.56	2.66	2.28	2.69	3.16	2.6	2.55
Growth Stability	-	-	-	100%	100%	93%	100%	100%	100%	100%	93%

Neutral Debt/FCF ratio (2.9)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Bad Debt/Equity ratio (2.55)

The company is overleveraged and has a bad balance between equity and debt.

Good Graham’s Stability (93%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	1%	5%	3%	-4%	-11%	15%	10%	1%	-1%	6%
Earnings YoY growth	-	7%	-17%	52%	-2%	-16%	28%	13%	-3%	18%	10%
Equity YoY growth	-	-19%	8%	-29%	-7%	5%	14%	-15%	-2%	10%	1%
FCF YoY growth	-	1%	4%	16%	9%	-4%	-12%	-14%	59%	-8%	4%