ITW
ILLINOIS TOOL WORKS INC
Industrials • CIK: 0000049826
Loading...
Market Cap
$76.34B
P/E (TTM)
25.2x
Rev Growth (TTM)
-0.4%
Net Margin (TTM)
19.1%
FCF Yield (TTM)
3.7%
FCF Margin (TTM)
17.9%
Cash Flow Health
Free Cash Flow8/8 positive
TTM$2.8B
Q3 '25
$904M+101%
Q2 '25
$449M-9%
FCF Margin
TTM17.9%
Q3 '2522.3%+101%
Sector: 7.3%Top 25%
OCF Margin20.6%
OCF/NI1.08x
CapEx Coverage7.6x
FCF Yield3.7%
FCF Growth (2Y)+13%
Cash Conversion Cycle
118 days
DSO: 73+DIO: 69−DPO: 24
Capital Allocation & Returns
Shareholder Friendly
Total Shareholder YieldTTM
TTM4.3%
Div Yield2.3%
+Buyback (TTM)2.0%
Strong capital returns to shareholders
Dividend & Payout Metrics
Dividend Yield (TTM)2.3%
FCF Payout Ratio62.9%
Free Cash Flow (TTM)$2.8B
Stock Repurchases (TTM)$1.5B
Capital Return / FCF115.4%
Est. Dividends Paid (TTM)$1.8B
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
33.1%
Stable
-0.1% YoY-1.9%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
20.2%
8Q: 20.0%
Asset Turnover
1.02x
8Q: 1.02x
Leverage (1+D/E)
–
Asset & CapEx Efficiency
Fixed Asset Turn
7.53x
8Q:7.72x
-81.8%
Invested Cap Turn
1.64x
8Q:1.68x
-11.6%
CapEx Intensity
4.5%
8Q:4.7%
CapEx/Depreciation
1.39x
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $15.9B | $4.1B↑0.1% | $4.1B↑5.6% | $3.8B↓2.4% | $3.9B↓0.9% | $4.0B↓1.5% | $4.0B↑1.4% | $4.0B↓0.3% | $4.0B |
Operating Income | $4.2B | $1.1B↑4.1% | $1.1B↑12.3% | $951.0M↓7.8% | $1.0B↓2.0% | $1.1B↓0.2% | $1.1B↓6.5% | $1.1B↑14.1% | $988.0M |
Net Income | $3.0B | $821.0M↑8.7% | $755.0M↑7.9% | $700.0M↓6.7% | $750.0M↓35.3% | $1.2B↑52.8% | $759.0M↓7.3% | $819.0M↑14.2% | $717.0M |
Operating Cash Flow | $3.3B | $1.0B↑85.6% | $550.0M↓7.1% | $592.0M↓46.9% | $1.1B↑25.0% | $891.0M↑29.7% | $687.0M↑16.6% | $589.0M↓43.3% | $1.0B |
Free Cash Flow | $2.8B | $904.0M↑101.3% | $449.0M↓9.5% | $496.0M↓50.2% | $996.0M↑27.2% | $783.0M↑37.1% | $571.0M↑15.6% | $494.0M↓45.6% | $908.0M |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
25.2x
Volatile
8Q: 96.9x-544%
Valuation Lenses
Earnings
25.2x
vs – sector
Cash Flow
28.6x
EV/FCF vs –
Growth-Adj
–PEG
N/A
Quality-Adj
0.8P/E per %ROIC
ROIC: 33.1%
Shareholder Returns
Dividend
2.3%
Buyback
2.0%
Total Yield
4.3%
Market Cap$76.34B
EV–
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
96/100
Exceptional
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)
–
8Q:–
Return on Invested Capital (ROIC)Top 25%
33.1%
8Q:–
Flat
vs Sector:0.1%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 20.2%
Asset Turnover: 1.02x
Earnings Quality
Cash Conversion
1.08x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin43.9%
Capital Efficiency
Invested Capital Turnover1.64x
Working Capital
Cash Conversion Cycle118 days
Growth Quality & Momentum
Moderate Growth
Growth Quality Score
56/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
-0.4%
OpInc Growth YoY
5.7%
EPS Growth YoY
-10.8%
FCF 3Y CAGR
12.9%
Growth Quality Analysis
✓Efficient Growth: Free cash flow growing faster than revenue
Margin Quality & Sustainability
High Quality
Profitability Cascade
Gross
43.9%
Operating
26.2%
Top 25% in sector
Net
19.1%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
-1.1 pts
FCF: 17.9% | Net: 19.1%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Net Debt / EBITDA
–Net Debt: $8.02B
Interest Coverage
–
Leverage Metrics
Debt-to-Equity
–x
Balance sheet risk & solvency analysis