Fundamental analysis · SEC EDGAR · TTM through 31/03/2026
ITW · NYSE · Industrial
Fundamental quality
79
out of 100
Illinois Tool Works Inc runs like a cash machine: it converts about 16.9% of revenue into free cash flow and holds a 19.3% net margin, though it grows at a measured pace. On fundamental quality it scores 79 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its growth (revenue +5%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.
Illinois Tool Works makes everything industrial: welding equipment, auto components, packaging systems, professional kitchen gear. Famous for its management discipline (the 'ITW model') and margins that are rare for an industrial.
EPS growth: 9.7% · Revenue growth: 5%
Net margin: 19.3% · ROE: 97% · ROIC: 29.3%
Net debt/EBITDA: 1.81x · FCF: 16.9%
Source: SEC EDGAR · TTM through 31/03/2026
The score includes +4 for dividend strength: 56 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.
The score combines growth, profitability and financial strength. Here its profitability weighs in its favor, while its growth drags it down the most.
Percentile against the other 69 Industrial companies in our coverage: how far it beats them on each metric (100 = best in sector).
Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.
Key concepts
What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow
| Year | Revenue | Net income | Free cash flow | Net debt |
|---|---|---|---|---|
| 2020 | 12,574 | 2,109 | 2,571 | 5,558 |
| 2021 | 14,455 | 2,694 | 2,261 | 6,160 |
| 2022 | 15,932 | 3,034 | 1,936 | 7,055 |
| 2023 | 16,107 | 2,957 | 3,084 | 7,099 |
| 2024 | 15,898 | 3,488 | 2,844 | 6,915 |
| 2025 | 16,044 | 3,066 | 2,707 | 8,118 |
Between 2020 and 2025, revenue went from $12,574M to $16,044M (+28%) and net income went from $2,109M to $3,066M (+45%).
Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.
Latest results
Figures for the quarter ended March 31, 2026, versus the quarter ended March 31, 2025 (SEC filings):
Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.
$6.22
per share, yearly
58.2% of earnings
Payout
56 straight years raising it
Growth
The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →
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Is Illinois Tool Works Inc cheap or expensive?
That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).
Compute the valuation →Is Illinois Tool Works Inc a good company to invest in?
In terms of business quality, Illinois Tool Works Inc scores 79 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.
Is Illinois Tool Works Inc a profitable company?
Yes. Illinois Tool Works Inc shows a net margin of 19.3% and an ROE of 97%, a sign of a profitable business.
Does Illinois Tool Works Inc have a lot of debt?
A moderate level: its net debt is 1.81 times its EBITDA.
Is Illinois Tool Works Inc growing?
Its revenue has grown 5% annualized in recent years and its earnings per share 9.7%.
Does Illinois Tool Works Inc generate cash?
Yes. It converts about 16.9% of its revenue into free cash flow, and has done so positively year after year.
The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.
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Who's behind the methodology and model · how the score is computed
Data: see Illinois Tool Works Inc's filings on EDGAR
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