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Illinois Tool Works Inc (ITW)

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Upturn Advisory Summary
01/08/2026: ITW (1-star) has a low Upturn Star Rating. Not recommended to BUY.
1 Year Target Price $259.59
1 Year Target Price $259.59
| 2 | Strong Buy |
| 1 | Buy |
| 12 | Hold |
| 2 | Sell |
| 3 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -12.5% | Avg. Invested days 37 | Today’s Advisory WEAK BUY |
Upturn Star Rating ![]() | Upturn Advisory Performance | Stock Returns Performance |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 72.00B USD | Price to earnings Ratio 23.98 | 1Y Target Price 259.59 |
Price to earnings Ratio 23.98 | 1Y Target Price 259.59 | ||
Volume (30-day avg) 20 | Beta 1.17 | 52 Weeks Range 210.69 - 271.32 | Updated Date 01/8/2026 |
52 Weeks Range 210.69 - 271.32 | Updated Date 01/8/2026 | ||
Dividends yield (FY) 2.40% | Basic EPS (TTM) 10.3 |
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 - | When - | Estimate - | Actual - |
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 23.98 | Forward PE 21.55 | Enterprise Value 79669799000 | Price to Sales(TTM) 4.53 |
Enterprise Value 79669799000 | Price to Sales(TTM) 4.53 | ||
Enterprise Value to Revenue 5.02 | Enterprise Value to EBITDA 17.3 | Shares Outstanding 290100000 | Shares Floating 263120700 |
Shares Outstanding 290100000 | Shares Floating 263120700 | ||
Percent Insiders 0.34 | Percent Institutions 85.01 |
Upturn AI SWOT
Illinois Tool Works Inc

Company Overview
History and Background
Illinois Tool Works Inc. (ITW) was founded in 1912 by Elmer Sperry. Initially focused on manufacturing metal-cutting tools, ITW has evolved into a diversified global manufacturer of highly engineered fasteners, components, consumables, and specialty products. Over its history, ITW has grown through strategic acquisitions and organic expansion, becoming a Fortune 200 company known for its decentralized operating model and focus on innovation and customer solutions.
Core Business Areas
- Automotive OEM: Designs and manufactures a wide range of highly engineered components and fasteners for automotive original equipment manufacturers (OEMs), including interior and exterior plastic trim, powertrain components, and fluid management systems.
- Industrial: Provides a broad spectrum of highly engineered industrial products, consumables, and services to various industries, including welding and safety equipment, food equipment, and specialized industrial tools and components.
- Food Equipment: Offers a comprehensive portfolio of cooking, refrigeration, and food processing equipment for commercial food service operations, including ovens, fryers, and refrigerators.
- Construction: Manufactures specialized fasteners, anchors, and building envelope solutions for commercial and residential construction, including insulation and sealing products.
- Specialty Products: Delivers a diverse range of engineered solutions, including specialty automotive aftermarket products, test and measurement equipment, and packaging equipment.
Leadership and Structure
ITW operates with a decentralized management structure, empowering its business units to make decisions closer to the customer. The company is led by a Board of Directors and an executive leadership team, including a Chief Executive Officer (CEO), Chief Financial Officer (CFO), and divisional presidents.
Top Products and Market Share
Key Offerings
- Automotive Fasteners and Components: ITW is a leading supplier of highly engineered fasteners and components for the automotive industry, used in various applications from interior trim to powertrain systems. Competitors include Stanley Engineered Fastening, Acco, and various specialized automotive suppliers. Market share data is proprietary but ITW holds significant positions in key segments.
- Welding and Safety Equipment: Under brands like Miller Electric and Hobart, ITW offers a wide range of welding equipment, consumables, and safety products. Competitors include Lincoln Electric and ESAB. ITW is a significant player in the global welding market.
- Commercial Food Equipment: Through brands like Hobart, Traulsen, and Vulcan, ITW provides a broad array of cooking, refrigeration, and warewashing equipment for the food service industry. Major competitors include Middleby Corporation, Welbilt, and Manitowoc Foodservice.
- Specialty Adhesives and Sealants: ITW manufactures a variety of industrial adhesives, sealants, and tapes for diverse applications across multiple industries. Competitors include 3M, Henkel, and Sika AG.
Market Dynamics
Industry Overview
ITW operates in diverse industrial and consumer markets. The automotive sector is influenced by global vehicle production trends and the shift towards electric vehicles. The construction market is tied to housing starts and infrastructure spending. The food equipment sector is driven by commercial food service demand and evolving kitchen technologies. The industrial segment benefits from general manufacturing activity and MRO spending.
Positioning
ITW is positioned as a leading diversified manufacturer of highly engineered products and solutions. Its competitive advantages include a strong decentralized operating model, a focus on innovation and customer-specific solutions, a broad product portfolio, and a global manufacturing footprint. The company's ability to deliver specialized, high-performance products in niche markets is a key differentiator.
Total Addressable Market (TAM)
The Total Addressable Market for ITW's diverse product lines is vast, encompassing global markets for automotive components, industrial equipment, food service equipment, construction materials, and specialty products. While specific TAM figures are difficult to aggregate due to ITW's diversification, the company is a significant player in each of its served markets, often holding leading positions in niche segments. ITW's strategy focuses on capturing share within these large and fragmented markets through specialized offerings and strong customer relationships.
Upturn SWOT Analysis
Strengths
- Diversified business segments, reducing reliance on any single industry.
- Strong brand recognition and established customer relationships.
- Decentralized operating model fostering agility and innovation.
- Global manufacturing and distribution network.
- Focus on highly engineered, value-added products.
Weaknesses
- Exposure to cyclical industries like automotive and construction.
- Integration challenges with acquired companies.
- Potential for supply chain disruptions impacting production.
- Relatively high reliance on raw material costs.
Opportunities
- Growth in emerging markets.
- Increasing demand for specialized and sustainable products.
- Expansion in the electric vehicle component market.
- Further consolidation through strategic acquisitions.
- Leveraging advanced manufacturing technologies.
Threats
- Intensifying competition from domestic and international players.
- Economic downturns affecting industrial and consumer spending.
- Fluctuations in raw material prices.
- Changing regulatory environments and trade policies.
- Disruptive technologies impacting existing product lines.
Competitors and Market Share
Key Competitors
- 3M Company (MMM)
- Stanley Black & Decker, Inc. (SWK)
- Honeywell International Inc. (HON)
- Middleby Corporation (MIDD)
- Lincoln Electric Holdings, Inc. (LECO)
Competitive Landscape
ITW benefits from its diversification and specialization in niche, high-margin product areas. Its decentralized structure allows for rapid response to market changes. However, it faces intense competition from larger conglomerates with broader product lines (e.g., 3M, Honeywell) and from specialized players in specific segments (e.g., Lincoln Electric in welding, Middleby in food equipment). ITW's advantage lies in its ability to deliver tailored engineering solutions that meet specific customer needs, often with a premium attached.
Major Acquisitions
Global Parts Network
- Year: 2023
- Acquisition Price (USD millions): 230
- Strategic Rationale: To enhance ITW's capabilities in providing aftermarket parts and services for its food equipment segment, expanding its service offerings and customer reach.
Certain businesses from Daikin Industries, Ltd.
- Year: 2022
- Acquisition Price (USD millions): 1100
- Strategic Rationale: To strengthen ITW's automotive OEM segment, particularly in the area of thermal management solutions for vehicles, aligning with industry trends towards electrification.
Growth Trajectory and Initiatives
Historical Growth: ITW has demonstrated consistent historical growth, driven by organic expansion, new product development, and strategic acquisitions. The company has successfully integrated businesses across various industrial sectors, expanding its market reach and product offerings.
Future Projections: Analyst estimates for ITW's future growth are generally positive, projecting continued revenue expansion and profit improvement. Projections often consider ITW's ongoing innovation, market penetration in key segments, and benefits from macroeconomic trends. Specific growth rates will vary based on analyst consensus.
Recent Initiatives: Recent strategic initiatives by ITW often include ongoing operational excellence programs, investments in R&D to develop innovative solutions, targeted acquisitions to strengthen existing segments or enter new growth areas, and a continued focus on sustainability across its operations.
Summary
Illinois Tool Works Inc. is a robust and diversified industrial conglomerate with a strong history of innovation and consistent financial performance. Its decentralized operating model, focus on highly engineered products, and commitment to shareholder returns are key strengths. The company operates in varied markets, benefiting from its broad reach but also facing cyclicality. ITW needs to remain vigilant against intense competition and supply chain risks while capitalizing on growth opportunities in emerging technologies and markets.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Illinois Tool Works Inc. Investor Relations
- Company Annual Reports (10-K)
- Quarterly Reports (10-Q)
- Financial News and Analysis Websites
- Market Research Reports
Disclaimers:
The information provided is for informational purposes only and does not constitute financial advice. Market share data is an estimation based on publicly available information and industry analysis. Financial metrics and projections are subject to change. Investors should conduct their own due diligence before making any investment decisions.
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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