Illinois Tool Works Inc (ITW)
Fair ValueFundamental
62
Price
$257.28
Market Cap
$77.99B
Part 1 · What the company is worth
Overview
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.
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Direct competitors
Who this company fights with for the same customers
Generated on September 19, 2026 with claude-haiku-4-5 — shared with all users
Named by ITW in its own 10-K as a main competitor in the Welding segment, where both sell arc welding machines and consumables to the same industrial, fabrication and shipbuilding customers.
Head-to-head rival of ITW's Food Equipment segment (Hobart, Vulcan, Baxter), selling commercial cooking, warewashing and food-prep equipment plus service contracts to restaurant chains and institutional kitchens.
Diversified decentralized manufacturer whose niche industrial units overlap with ITW in fluid handling, marking and coding and packaging equipment sold to the same industrial end markets.
Competes with ITW's Construction Products segment for the same builders and contractors on fastening systems, anchors and powder-actuated tools.
The second competitor ITW names in its Welding segment, offering a comparable range of welding equipment, filler metals and cutting products, with a stronger footprint in Europe and emerging markets.
Privately held Italian foodservice-equipment group (Scotsman, Carpigiani, Welbilt) that bids for the same global restaurant and hospitality accounts as ITW's Food Equipment brands.
Balance Sheet & Liquidity
Revenue
$16.47B
Trailing 12 months (through 6/30/2026)
Net Income
$3.19B
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$2.71B
Total Equity
$3.23B
Total Liabilities
$12.92B
Current Ratio
1.11
Interest Coverage
14.45
Debt/EBITDA
2.45
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$251.95
Current Price
$257.28
Margin of Safety
-2.1%
Fair Value Range
$202.83 - $301.07
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
23.33
ROE
95.0%
P/B Ratio
25.31
P/FCF
25.09
Gross Margin
53.0%
ROIC
32.7%
Profitability Radar
Value Creation (Economic Moat)
ROIC
32.7%
WACC
8.7%
ROIC − WACC
+24.0 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (17)
- EPS shows upward trend
- EPS CAGR 6.53%
- Price CAGR 8.15%
- ROIC 32.7%
- Gross Margin 53.0%
- P/FCF 25.09
- Operating Margin 26.5%
- Positive Free Cash Flow
- CapEx intensity
- Current Ratio
- Interest Coverage
- Debt/EBITDA
- Return on Tangible Assets
- ROE 101.8%
- Earnings Quality (OCF/NI) 1.04
- Share Dilution -1.9%
- Piotroski F-Score 5/9
Failed (10)
- P/B Ratio 25.31
- Debt/Equity ratio
- Low reliance on intangibles
- Price below Graham Number
- DCF valuation (Overvalued)
- Revenue Growth 5Y 5.0%
- Analyst Consensus 8% Buy
- Earnings Surprise avg 1.5%
- PEG Ratio 2.53
- Net Margin Trend 19.4% vs 21.3%
Unavailable (1)
- Dividend Payout NaN%
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Christopher A. O'Herlihy | President, CEO & Director | 61 |
| Mr. Michael M. Larsen | Senior VP & CFO | 56 |
| Ms. Mary Katherine Lawler | Senior VP & Chief Human Resources Officer | 59 |
| Mr. Kenneth T. Escoe | Executive Vice President of Specialty Products | 49 |
| Mr. Axel R. J. Beck | Executive Vice President of Food Equipment | 59 |
| Mr. Matteo C. Pigozzo | VP & Chief Accounting Officer | 54 |
| Erin Linnihan | Vice President of Investor Relations | - |
| Mr. Christopher P. Rauch | Senior VP, General Counsel & Secretary | 55 |
| Mr. Randall J. Scheuneman | Advisor | 57 |
| Ms. Sharon A. Szafranski | Executive Vice President of Welding | 58 |
Audit Risk
7
Board Risk
6
Compensation Risk
5
Shareholder Rights Risk
3
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-13
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-08-06
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-08-13
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for ITW, sourced from Markets Gazette.