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Upturn AI SWOT - About
Illinois Tool Works Inc (ITW)

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Upturn Advisory Summary
10/31/2025: ITW (1-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $259
1 Year Target Price $259
| 2 | Strong Buy |
| 1 | Buy |
| 12 | Hold |
| 2 | Sell |
| 3 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -11.6% | Avg. Invested days 39 | Today’s Advisory PASS |
Upturn Star Rating ![]() | Upturn Advisory Performance | Stock Returns Performance |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 70.76B USD | Price to earnings Ratio 23.64 | 1Y Target Price 259 |
Price to earnings Ratio 23.64 | 1Y Target Price 259 | ||
Volume (30-day avg) 20 | Beta 1.11 | 52 Weeks Range 212.05 - 273.07 | Updated Date 11/2/2025 |
52 Weeks Range 212.05 - 273.07 | Updated Date 11/2/2025 | ||
Dividends yield (FY) 2.51% | Basic EPS (TTM) 10.32 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-10-24 | When Before Market | Estimate 2.72 | Actual 2.81 |
Profitability
Profit Margin 19.05% | Operating Margin (TTM) 27.67% |
Management Effectiveness
Return on Assets (TTM) 16.42% | Return on Equity (TTM) 91.68% |
Valuation
Trailing PE 23.64 | Forward PE 22.73 | Enterprise Value 84151795000 | Price to Sales(TTM) 4.46 |
Enterprise Value 84151795000 | Price to Sales(TTM) 4.46 | ||
Enterprise Value to Revenue 5.33 | Enterprise Value to EBITDA 17.11 | Shares Outstanding 290100000 | Shares Floating 263100393 |
Shares Outstanding 290100000 | Shares Floating 263100393 | ||
Percent Insiders 0.38 | Percent Institutions 84.66 |
Upturn AI SWOT
Illinois Tool Works Inc

Company Overview
History and Background
Illinois Tool Works Inc. (ITW) was founded in 1912. Initially, it focused on developing and manufacturing cutting tools. Over time, ITW expanded through organic growth and acquisitions, diversifying into a multi-industrial corporation with a global presence.
Core Business Areas
- Automotive OEM: Provides fasteners, components, and assemblies for automotive manufacturers.
- Food Equipment: Manufactures commercial food equipment, including cooking, refrigeration, and warewashing systems.
- Test & Measurement and Electronics: Offers equipment and consumables used to test and measure materials and electronics.
- Welding: Produces welding equipment, consumables, and related products.
- Polymers & Fluids: Develops and manufactures specialty chemicals, adhesives, sealants and lubricants.
- Construction Products: Provides fastening systems and other construction-related products.
- Specialty Products: A collection of diverse businesses, including barcode printers and related equipment.
Leadership and Structure
E. Scott Santi serves as the Chairman and CEO. ITW operates with a decentralized structure, empowering individual business units while maintaining overall corporate governance.
Top Products and Market Share
Key Offerings
- Zip-Pak resealable packaging: Zip-Pak is a resealable packaging technology used across various food and consumer goods sectors. Market share is significant but varies by specific application. Competitors include Bemis (Amcor) and Velcro Companies.
- Hobart commercial dishwashers: Hobart is a leading brand of commercial dishwashers used in restaurants, hotels, and other foodservice establishments. Hobart holds a substantial portion of the market. Competitors include Meiko, Champion and Winterhalter.
- Miller welding equipment: Miller is a major brand of welding equipment including welding machines and accessories, serving a broad range of industries. Competitors include Lincoln Electric and ESAB.
Market Dynamics
Industry Overview
The industries ITW operates in (automotive, food equipment, welding, polymers, construction, etc.) are subject to economic cycles, technological advancements, and regulatory changes. Demand fluctuates with macroeconomic conditions and industry-specific trends.
Positioning
ITW is a diversified industrial manufacturer with a strong reputation for innovation, operational efficiency, and customer service. Its decentralized structure allows it to adapt to specific market needs. ITW's '80/20' business strategy concentrates on the 20% of customers and products that generate 80% of revenue.
Total Addressable Market (TAM)
TAM estimates vary depending on which industries are included but represents hundreds of billions of dollars. ITW's TAM is massive due to their diverse product range. They are well-positioned to capture continued growth with continuous improvements and efficiency gains.
Upturn SWOT Analysis
Strengths
- Diversified revenue streams
- Strong brand reputation
- Decentralized business model
- Focus on innovation
- Operational efficiency (80/20 principle)
Weaknesses
- Exposure to cyclical industries
- Potential for decentralized units to underperform if not managed well
- Reliance on acquisitions for growth
- Complexity in managing diverse businesses
Opportunities
- Expanding into emerging markets
- Developing new products and technologies
- Acquiring complementary businesses
- Leveraging digital technologies to improve operations
Threats
- Economic downturns
- Increased competition
- Fluctuations in raw material prices
- Changes in government regulations
Competitors and Market Share
Key Competitors
- MMM
- ROP
- DOV
Competitive Landscape
ITW's diversified portfolio, decentralized structure, and 80/20 principle provide it with a competitive advantage. However, competitors like 3M have greater scale in certain markets.
Major Acquisitions
Instron ITW
- Year: 2018
- Acquisition Price (USD millions): 900
- Strategic Rationale: Expanding material testing capabilities and broadening customer base in high-growth markets.
Growth Trajectory and Initiatives
Historical Growth: ITW has achieved steady growth through a combination of organic initiatives and strategic acquisitions.
Future Projections: Analysts project continued revenue and earnings growth for ITW, driven by its diversified business portfolio and focus on operational efficiency.
Recent Initiatives: Recent initiatives include investments in digital technologies, expansion into new markets, and acquisitions of complementary businesses.
Summary
Illinois Tool Works is a very strong, diversified industrial manufacturer. The decentralized structure helps in being agile and provides growth. The 80/20 principles allows them to concentrate efforts. Areas of concern would be the reliance on acquisitions and the economic down turn could negatively impact the business.
Similar Stocks
Sources and Disclaimers
Data Sources:
- ITW Investor Relations
- Company Filings (SEC)
- Analyst Reports
- Industry Reports
Disclaimers:
This analysis is based on available information and represents a general overview. It is not financial advice. Market conditions and company performance can change over time. The financial metrics provided are estimations, not real-time data.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Illinois Tool Works Inc
Exchange NYSE | Headquaters Glenview, IL, United States | ||
IPO Launch date 1987-11-05 | President, CEO & Director Mr. Christopher A. O'Herlihy | ||
Sector Industrials | Industry Specialty Industrial Machinery | Full time employees 44000 | Website https://www.itw.com |
Full time employees 44000 | Website https://www.itw.com | ||
Illinois Tool Works Inc. provides industrial products and equipment in North America, Europe, the Middle East, Africa, the Asia Pacific, and South America. It operates through Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products segments. The Automotive OEM segment offers plastic and metal components, fasteners, and assemblies for automobiles, light trucks, and other industrial uses. The Food Equipment segment provides warewashing, cooking, refrigeration, and food processing equipment; kitchen exhaust, ventilation, and pollution control systems; and food equipment maintenance and repair services. The Test & Measurement and Electronics segment produces and sells equipment, consumables, and related software for testing and measuring of materials and structures, as well as equipment and consumables used in the production of electronic subassemblies and microelectronics. The Welding segment produces arc welding equipment, and metal arc welding consumables and related accessories. The Polymers & Fluids segment produces adhesives, sealants, lubrication and cutting fluids, and fluids and polymers for auto aftermarket maintenance and appearance. The Construction Products segment offers engineered fastening systems and solutions for the residential construction, renovation/remodel, and commercial construction markets. The Specialty Products segment provides beverage packaging equipment and consumables, product coding and marking equipment and consumables, and appliance components and fasteners. The company serves automotive OEM and aftermarket, commercial food equipment, construction, general industrial, industrial capital goods, consumer durables, and other markets, as well as MRO markets. The company distributes its products directly to industrial manufacturers, as well as through independent distributors. Illinois Tool Works Inc. was founded in 1912 and is based in Glenview, Illinois.

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