ITW official logo ITW
ITW 1-star rating from Upturn Advisory
Illinois Tool Works Inc (ITW) company logo

Illinois Tool Works Inc (ITW)

Illinois Tool Works Inc (ITW) 1-star rating from Upturn Advisory
$253.73
Last Close (24-hour delay)
Profit since last BUY-1.03%
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BUY since 18 days
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Upturn Advisory Summary

01/08/2026: ITW (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

Upturn 1 star rating for performance

Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

Number of Analysts

4 star rating from financial analysts

20 Analysts rated it

Well-followed company, solid analyst reports, reliable data for confident investing.

1 Year Target Price $259.59

1 Year Target Price $259.59

Analysts Price Target For last 52 week
$259.59 Target price
52w Low $210.69
Current$253.73
52w High $271.32

Analysis of Past Performance

Type Stock
Historic Profit -12.5%
Avg. Invested days 37
Today’s Advisory WEAK BUY
Upturn Star Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 01/08/2026

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

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI SWOT

Illinois Tool Works Inc

Illinois Tool Works Inc(ITW) company logo displayed in Upturn AI summary

Company Overview

Company history and background logo 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.

Company business area logo 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 logo 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

Product Key Offerings logo 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 logo 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 competitor logo 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.

Information icon for Upturn AI Summarization accuracy disclaimer AI Summarization is directionally correct and might not be accurate.

Information icon for Upturn AI Summarization data freshness disclaimer Summarized information shown could be a few years old and not current.

Information icon warning about Upturn AI Fundamental Rating based on potentially old data Fundamental Rating based on AI could be based on old data.

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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
Full time employees 44000

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.