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Upturn AI SWOT - About
Illinois Tool Works Inc (ITW)
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Upturn Advisory Summary
07/16/2025: ITW (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
20 Analysts rated it
Well-followed company, solid analyst reports, reliable data for confident investing.
1 Year Target Price $246.89
1 Year Target Price $246.89
| 2 | Strong Buy |
| 1 | Buy |
| 12 | Hold |
| 2 | Sell |
| 3 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -9.13% | Avg. Invested days 33 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 07/16/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 75.21B USD | Price to earnings Ratio 22.57 | 1Y Target Price 246.89 |
Price to earnings Ratio 22.57 | 1Y Target Price 246.89 | ||
Volume (30-day avg) 20 | Beta 1.12 | 52 Weeks Range 213.36 - 274.76 | Updated Date 07/16/2025 |
52 Weeks Range 213.36 - 274.76 | Updated Date 07/16/2025 | ||
Dividends yield (FY) 2.43% | Basic EPS (TTM) 11.36 |
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 21.37% | Operating Margin (TTM) 25.06% |
Management Effectiveness
Return on Assets (TTM) 16.54% | Return on Equity (TTM) 107.58% |
Valuation
Trailing PE 22.57 | Forward PE 24.69 | Enterprise Value 82966943509 | Price to Sales(TTM) 4.77 |
Enterprise Value 82966943509 | Price to Sales(TTM) 4.77 | ||
Enterprise Value to Revenue 5.26 | Enterprise Value to EBITDA 16.85 | Shares Outstanding 293366016 | Shares Floating 265970750 |
Shares Outstanding 293366016 | Shares Floating 265970750 | ||
Percent Insiders 0.38 | Percent Institutions 84.11 |
Upturn AI SWOT
Illinois Tool Works Inc
Company Overview
History and Background
Illinois Tool Works (ITW) was founded in 1912. It started with a few patents, and has grown through organic growth and acquisitions to become a global diversified industrial manufacturer. ITW operates through decentralized business units, promoting entrepreneurship and innovation.
Core Business Areas
- Automotive OEM: Supplies components and systems to automotive original equipment manufacturers.
- Food Equipment: Manufactures commercial food equipment for restaurants, supermarkets, and institutions.
- Test & Measurement and Electronics: Provides testing and measurement equipment, as well as electronic components and consumables.
- Welding: Offers welding equipment, consumables, and related products.
- Polymers & Fluids: Provides adhesives, sealants, and lubricants.
- Construction Products: Supplies fastening systems and other products for the construction industry.
- Specialty Products: A broad category including various niche industrial products.
Leadership and Structure
ITW is led by its CEO, E. Scott Santi. The company operates with a decentralized structure, empowering individual business units.
Top Products and Market Share
Key Offerings
- Food Equipment: Commercial dishwashers, ovens, refrigerators. Competitors include Middleby Corp, Welbilt. Market share varies by product line, but ITW holds a significant portion of the US market.
- Welding Equipment: Arc welding, MIG welding, TIG welding equipment. Competitors include Lincoln Electric, ESAB. ITW's Miller brand holds a strong position in the US welding market with approx. 20% Market Share.
- Automotive Components: Plastic and metal components for vehicles, like fasteners and structural elements. Competitors include Magna International, Lear Corporation.
- Construction Fasteners: Anchors, screws, and other fasteners for construction. Competitors include Hilti, Stanley Black & Decker.
Market Dynamics
Industry Overview
The industrial manufacturing sector is influenced by economic cycles, technological advancements, and global trade. Demand varies based on end markets such as automotive, construction, and food service.
Positioning
ITW is well-positioned due to its diversified portfolio, strong brands, and decentralized operating model. Its 80/20 business model focuses on high-value customers and products, contributing to higher margins.
Total Addressable Market (TAM)
The total addressable market for ITW's products spans across multiple industries and is estimated in the hundreds of billions of dollars. ITW's diverse portfolio enables it to capture opportunities across these markets.
Upturn SWOT Analysis
Strengths
- Diversified product portfolio
- Strong brands
- Decentralized operating model (80/20)
- Global presence
- Strong cash flow generation
Weaknesses
- Exposure to cyclical industries
- Dependence on acquisitions for growth
- Potential for operational inefficiencies due to decentralization
- Exposure to foreign exchange rate fluctuations
Opportunities
- Expansion in emerging markets
- Acquisitions of complementary businesses
- Increased demand for automation and advanced manufacturing solutions
- Growth in infrastructure spending
Threats
- Economic downturns
- Increased competition
- Rising raw material costs
- Geopolitical instability
- Supply chain disruptions
Competitors and Market Share
Key Competitors
- MMM
- ROP
- DOV
- EMR
Competitive Landscape
ITW competes with a range of industrial companies, based on the many different sectors that ITW competes in. Its competitive advantages include its decentralized operating model, strong brands, and focus on high-value products.
Major Acquisitions
Test & Measurement Division of MTS Systems
- Year: 2021
- Acquisition Price (USD millions): 830
- Strategic Rationale: Expanded ITW's test and measurement capabilities and broadened its customer base.
EAE Elektrik
- Year: 2023
- Acquisition Price (USD millions): 179
- Strategic Rationale: Expands ITW's electrical systems and components business, and is anticipated to grow ITW's existing construction products segment.
Growth Trajectory and Initiatives
Historical Growth: ITW has achieved consistent growth through a combination of organic initiatives and strategic acquisitions.
Future Projections: Analysts project continued growth for ITW, driven by demand in its key end markets and strategic initiatives.
Recent Initiatives: Recent strategic initiatives include focusing on high-growth markets, implementing the 80/20 business model, and expanding its digital capabilities.
Summary
Illinois Tool Works is a strong, diversified industrial manufacturer with a long history of consistent growth and profitability. Its decentralized operating model and focus on high-value products contribute to its success. However, ITW is exposed to cyclical industries and must manage its decentralized operations effectively.
Peer Comparison
Sources and Disclaimers
Data Sources:
- ITW Investor Relations
- SEC Filings
- MarketWatch
- Yahoo Finance
- Company Research Reports
Disclaimers:
This analysis is for informational purposes only and should not be considered investment advice. Market conditions and company performance can change rapidly.
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. manufactures and sells industrial products and equipment in the United States and internationally. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. 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 ware washing, refrigeration, cooking, 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. It serves the automotive OEM and tiers, MRO, commercial food equipment, construction, general industrial, industrial capital goods, consumer durables, automotive aftermarket, and other 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 headquartered in Glenview, Illinois.
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