Obermatt

Illinois Tool Works

NYQ:ITW · US4523081093
MachineryX-Large

360

33
EV / EBIT42
Price / Owner Earnings61
Owner Earnings Yield62
Dividend Yield99
Price/Sales24
EV / Gross Profit22
Price/Book1
Return on Capital96
Cash Return on Capital96
Return on Equity100
EBIT Margin97
Gross Profitability87
Cash Conversion18
Accruals34
Owner Earnings Margin84
Sales growth23
Profit Growth98
Long-Term EPS Growth37
Owner Earnings Growth21
Reinvestment12
Price momentum40
Debt load3
Refinancing31
Debt Payback33
Liquidity82
Analyst ratings1
Opinion Changes50
Price Target Upside35
Market mood79
Value Creation12/20creating some value
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Illinois Tool Works clears its cost of capital, but the record is mixed across the five tests. Real value creation, just not yet consistent.

Profile

CountryUSA
IndustryMachinery
SizeX-Large
TypePublic Company
ExchangeNYSE
Founded1915
Employees2,810
Websiteitw.com
ISINUS4523081093
Last UpdateApr 2, 2026
Themes
Industrial AutomationPackaging ServicesInjection MoldingInformation Technology

Description

Illinois Tool Works Inc. manufactures a diversified range of industrial products and equipment with 88 divisions in 49 countries. The company's operations are organized and managed based on similar product offerings and end markets. Segments The co…

Analysis

Quality compounder

Illinois Tool Works Inc. earns the quality_compounder label: good underlying economics priced fairly, with no obvious bargain or excess. Worth noting: the cash the business generates has lagged behind what the income statement shows.

On valuation, the picture is fair. The owner-earnings multiple stands at 23.4×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around 8% a year, against analyst forecasts of 9%. The price, in other words, assumes less than the experts do.

Growth is tepid; the safety picture is adequate. The company scores 12/20 on our value-creation score: creating some value. Analyst sentiment is cautious.

Flags to be aware of: Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
4
2023202420252026

All-time high

24

Jan 2023

All-time low

1

Mar 2026

Average rank

6

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
24
3
9
11
Price/Earnings
41
13
18
22
Price/Book
1
1
1
1
Dividend Yield
99
88
92
88
Value (overall)
40
11
18
22

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →