# Illinois Tool Works Inc. (ITW) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Industrials / Machinery. Price $270.12, market value $76.9 billion.

## Valuation
- **P/E (trailing): 24.4×** (5-yr avg 23.2×, 3-yr avg 23.1×). Illinois Tool Works Inc. trades at 24.4× trailing earnings, close to its own five-year average of 23.2×. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 21.8×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 4.7×**. Each dollar of revenue is priced at 4.7×.
- **Price / book: 26.6×**. The shares trade at 26.6× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **Free-cash-flow yield: 3.8%** (5-yr avg 3.6%). Free cash flow equals 3.8% of the market value, in line with its five-year average of 3.6%.
- **Earnings yield: 4.1%**. The inverse of the P/E: 4.1% of the price is earned each year.

## Profitability
- **Operating margin: 26.5%**. 26.5% of revenue is left after running the business, an exceptional level.
- **Net margin: 19.1%**. 19.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 95.0%**. A 95.0% return on equity is extremely high; check whether buybacks or debt have shrunk the equity base, which flatters the ratio.
- **Return on invested capital: 30.4%**. Return on all capital, debt included, is 30.4%: comfortably above what that capital costs.
- **Return on assets: 19.8%**. Each dollar of assets produces 19.8% of profit.

## Growth
- **Revenue growth (1 yr): 0.9%** (3-yr 0.2%/yr, 5-yr 5.0%/yr). Revenue grew 0.9% over the last year, against 5.0% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -10.4%** (3-yr 2.4%/yr, 5-yr 9.6%/yr). Earnings per share fell 10.4%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 11.8%/yr**. Free cash flow has compounded at 11.8% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 2.78**. Debt is 2.78 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.55%** ($6.44 per share, trailing). Illinois Tool Works Inc. yields 2.55%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 58%** (63% of free cash flow). 58% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 26**. 26 straight years of increases (the data covers 26 years, so this may be longer): a record very few companies hold.
- **Dividend growth (5 yr): 7.1%/yr** (1-yr 7.2%). The dividend has grown 7.1% a year over five years.

## Analyst view
- **Analyst consensus: hold** (14 analysts). 14 analysts cover Illinois Tool Works Inc.; the consensus is hold, with an average price target of $301.86 (+12% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 4.2%** (YTD 11.0%, 3-mo 7.5%). The shares are up 4.2% over twelve months including dividends.
- **From 52-week high: -10.9%** (13.1% above the low). Trading 11% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 36**. An RSI of 36 is neutral.
- **Beta (1 yr): 0.53** (volatility 21%). Beta of 0.53 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=ITW · Page: https://foliofundamentals.com/stocks/itw

Not investment advice.