ILLINOIS TOOL WORKS INC (ITW) Factsheet
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ILLINOIS TOOL WORKS INC (ITW) Stock Analysis
Analysis from 10-Q filed 2026-10-28. Data as of Q3 2026.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC 27.5%. FCF margin 17.2%. D/E 3.0x. Source: 10-Q filed 2026-10-28.
| Metric | Value | Context |
|---|---|---|
| ROIC | 27.5% | Above industry average |
| FCF Margin | 17.2% | Strong cash generation |
| Debt/Equity | 3.0x | Elevated debt |
ROIC 27.5% — Top 5% of sector peers. FCF margin 17.2% — Top 25%.
Explore ILLINOIS TOOL WORKS INC: Earnings History | Overview
Programmatic access: Available via MCP at mcp.metricduck.com. Tools for ITW: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_section, get_metric_history, compare_companies, screen_filing_signals.
Profitability: ILLINOIS TOOL WORKS INC earns 27.5% ROIC, Top 5% in Industrials
ROIC TTM 27.5%, sector median 7.2%, Top 5%. DuPont: NOPAT margin 20.4% × asset turnover 1.0x. Gross margin 44.3%. Operating margin 26.6%. Source: 10-Q filed 2026-10-28.
| Metric | ITW | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 27.5% | Excellent | Above sector median of 7.2% |
| Return on Equity (ROE) | 103.1% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 44.3% | Good | Strong pricing power |
| Operating Margin | 26.6% | Excellent | Efficient operations |
Cash Flow: ILLINOIS TOOL WORKS INC generates $2.9B FCF at 17.2% margin, positive NaN/8 quarters
FCF TTM $2.9B. FCF margin 17.2%, Top 25%. OCF/Net income 1.0x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2026-10-28.
| Metric | ITW | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 17.2% | Good | Excellent cash conversion |
| Free Cash Flow (TTM) | $2.9B | Good | Positive cash generation |
| OCF/Net Income | 1.0x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: ILLINOIS TOOL WORKS INC at 3.0x leverage, 14.3x interest coverage
Debt/Equity 3.0x. Total debt $9.4B, cash & investments $809.0M. Interest coverage 14.3x. Source: 10-Q filed 2026-10-28.
| Metric | ITW | Rating | Context |
|---|---|---|---|
| Debt to Equity | 3.0x | Warning | Elevated leverage |
| Net Cash Position | $-8.6B | Warning | Net debt position |
| Interest Coverage | 14.3x | Excellent | Comfortable debt service |
Valuation: ILLINOIS TOOL WORKS INC trades at 25.2x earnings
P/E 25.2x. EV/Sales 5.4x. FCF yield 3.5%. Dividend yield 2.3%. Source: 10-Q filed 2026-10-28.
| Metric | ITW | Rating | Context |
|---|---|---|---|
| P/E Ratio | 25.2x | Adequate | Premium valuation |
| EV/Sales | 5.4x | Adequate | Growth premium priced in |
| FCF Yield | 3.5% | Adequate | Lower cash yield |
| Dividend Yield | 2.3% | Adequate | Growth focus over income |
Capital Allocation: ILLINOIS TOOL WORKS INC returns 4.4% shareholder yield, reducing shares 2.0% YoY
Total shareholder yield 4.4% (div 2.3% + buyback 2.1%). Share count -2.0% YoY. Capital returned $3.6B TTM. Source: 10-Q filed 2026-10-28.
| Metric | ITW | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 4.4% | Good | Dividend + buyback yield combined |
| Buyback Yield | 2.1% | Adequate | Active share repurchases |
| Share Count Change (YoY) | -2.0% | Good | Net share reduction (accretive) |
| Total Capital Returned (TTM) | $3.6B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 27.5% | Top 5% | 3.8x above |
| Free Cash Flow Margin | 17.2% | Top 25% | 2.7x above |
| Gross Margin | 44.3% | Top 50% | 1.4x above |
| Operating Margin | 26.6% | Top 5% | 3.9x above |
| Return on Equity (ROE) | 103.1% | Top 5% | 10.4x above |
| P/E Ratio | 25.2x | N/A | - |
Financial Scorecard
| Metric | ITW | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 27.5% | Excellent | Top 5% of sector (median: 7.2%) |
| Free Cash Flow Margin | 17.2% | Good | Top 25% of sector (median: 6.3%) |
| Gross Margin | 44.3% | Good | Top 50% of sector (median: 32.1%) |
| Debt to Equity Ratio | 298.3% | Warning | High financial leverage |
| P/E Ratio (Price-to-Earnings) | 25.2x | Adequate | Growth premium |
| Free Cash Flow Yield | 3.5% | Adequate | Moderate yield |
Frequently Asked Questions
Q: What is ILLINOIS TOOL WORKS INC's Return on Invested Capital (ROIC)?
ILLINOIS TOOL WORKS INC (ITW) has a trailing twelve-month Return on Invested Capital (ROIC) of 27.5%. The 8-quarter median ROIC is 27.5% with a improving trend. Sector median 7.2%. Source: 10-Q filed 2026-10-28.
Q: What is ILLINOIS TOOL WORKS INC's Free Cash Flow Margin?
ILLINOIS TOOL WORKS INC (ITW) has a free cash flow margin of 17.2%, generating $2.9 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2026-10-28.
Q: What is ILLINOIS TOOL WORKS INC's P/E ratio and how does it compare to peers?
ILLINOIS TOOL WORKS INC (ITW) trades at a P/E ratio of 25.2x, which is above the sector median of N/A. EV/Sales 5.4x. FCF yield 3.5%. Source: 10-Q filed 2026-10-28.
Q: Does ILLINOIS TOOL WORKS INC pay a dividend?
ILLINOIS TOOL WORKS INC (ITW) currently pays a dividend yield of 2.3%. Total shareholder yield (dividend + buybacks) 4.4%. Source: 10-Q filed 2026-10-28.
Q: How much debt does ILLINOIS TOOL WORKS INC have?
ILLINOIS TOOL WORKS INC (ITW) has a debt-to-equity ratio of 3.0x with total debt of $9.4 billion. Interest coverage 14.3x. Net debt $8.6 billion. Source: 10-Q filed 2026-10-28.
Q: What is ILLINOIS TOOL WORKS INC's revenue and earnings growth?
ILLINOIS TOOL WORKS INC (ITW) grew revenue by 4.8% year-over-year. EPS +8.8% YoY. Source: 10-Q filed 2026-10-28.
Q: Is ILLINOIS TOOL WORKS INC buying back stock?
ILLINOIS TOOL WORKS INC (ITW) repurchased $1.7 billion of stock over the trailing twelve months. This represents a buyback yield of 2.1%. Share count -2.0% YoY. Source: 10-Q filed 2026-10-28.
Q: How does ILLINOIS TOOL WORKS INC compare to competitors in Industrials?
Compared to other companies in Industrials, ILLINOIS TOOL WORKS INC (ITW) shows: ROIC 27.5%, sector median 7.2% (Top 5%). FCF margin 17.2%, sector median 6.3% (Top 25%). Gross margin 44.3%, 12.3pp above sector median. These rankings are based on MetricDuck's analysis of all Industrials companies with available SEC filings.
Q: What warning signs should I watch for with ILLINOIS TOOL WORKS INC?
Quantitative warning flags for ILLINOIS TOOL WORKS INC (ITW): 1) debt/equity 3.0x (above 1.5x threshold). Source: 10-Q filed 2026-10-28.
Data Source: Data sourced from 10-Q filed 2026-10-28. TTM metrics as of Q3 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.
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