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Diversified industrial manufacturer making welding, auto OEM parts, food equipment, construction and specialty products via a decentralized model.
Diversified industrial manufacturer making welding, auto OEM parts, food equipment, construction and specialty products via a decentralized model.
Runs as many small, largely autonomous divisions, each selling products to a few large buyers. The 80/20 approach means concentrating on the customers and products that generate most of the profit and dropping the rest. Sold largely to manufacturers and through distributors; growth comes from improving existing divisions rather than big acquisitions.
Moat: narrow (scale, customer qualification, process know-how). An 80/20 decentralized model focuses on niche, high-share product lines with engineered customer solutions.
Headquarters: Glenview, Illinois, US · Founded: 1912 · Employees: 43,000
Size Illinois Tool Works (ITW) is a United States Industrials company (Auto Parts: OEM) with a market value of $79.8B, the 172nd largest of 3,117 United States companies the cockpit tracks. Shares closed at $280.95 on 6 Nov 2026.
Performance Over six months the shares gained 10.9%, against +2.6% for the median peer and -1.1% for the United States market (cap-weighted) — 7th highest of 21 in its peer set.
Growth Revenue grew 4.8% over the last twelve months (peer median +8.2%); the operating margin is 26.6% (peer median 19.3%).
Valuation It trades at 23.4× forward earnings against a peer median of 22.4× (8th most expensive of 21).
Price implies For today's price to make sense, revenue must grow about 10% a year for seven years (Req g). Recent delivered growth is +5%, so the hurdle is +5 pp: the price needs faster growth than the company has been delivering — of companies that just grew 25–50% a year, 93.8% slowed down over the next four years.
Capital Return on invested capital runs 20.8 points above its cost of capital (9.1% WACC).
Credit Illinois Tool Works has 10 bonds outstanding ($8.15B), rated A+ by the agencies and trading like AA- at a weighted spread of 73 bp.
Short interest Short interest is 2.9% of the free float (15 Oct 2026).
Next results Next results expected around 4 Feb 2027 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | $16.6B | $16.0B | $15.9B | $16.1B | $15.9B |
| Revenue growth | — | +1% | -1% | +1% | — |
| Gross profit | $7.31B | $7.00B | $6.94B | $6.68B | $6.37B |
| EBITDA | $4.83B | $4.61B | $4.67B | $4.43B | $4.20B |
| Net income | $3.23B | $3.07B | $3.49B | $2.96B | $3.03B |
| Free cash flow | $2.87B | $2.71B | $2.84B | $3.08B | $1.94B |
| Capital expenditure | $394M | $419M | $437M | $455M | $412M |
| Total debt | $9.37B | $9.21B | $8.08B | $8.37B | $7.95B |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Illinois Tool Works ITW | $79.8B | +11% | +5% | 27% | 23.4× | 9.7% |
| Dover DOV | $27.1B | -7% | +8% | 18% | 17.6× | 12.2% |
| Honeywell Technologies HON | $69.8B | -1% | -17% | 18% | 23.2× | 4.1% |
| Parker Hannifin PH | $116B | +4% | +8% | 22% | 24.4× | 19.0% |
| Emerson Electric EMR | $90.6B | +15% | +5% | 21% | 22.3× | 19.9% |
Peer set: Sector in the same market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | ITW | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | +6.1% | +6.1% | 11th highest of 21 |
| 6-month return | +10.9% | +2.6% | 7th highest of 21 |
| Distance from 52-week high | -7.0% | -11.1% | 7th highest of 21 |
| Revenue growth (TTM) | +4.8% | +8.2% | 5th lowest of 21 |
| Operating margin | 26.6% | 19.3% | 5th highest of 21 |
| Forward P/E | 23.4× | 22.4× | 8th most expensive of 21 |
| Growth the price implies (Req g, 7 yrs) | 9.7% | 12.8% | 9th least demanding of 21 |
| Growth delivered (Del g) | +5.0% | +7.7% | 9th lowest of 21 |
| Hurdle (Req g minus delivered) | +4.7 pp | +4.8 pp | 11th least demanding of 21 |
| ROIC minus cost of capital | +20.8 pp | +5.5 pp | 3rd highest of 21 |
| EV / EBITDA | 18.3× | 16.2× | 10th most expensive of 21 |
| Net debt / EBITDA | 1.8× | 1.9× | 10th least indebted of 21 |
| Bond spread | 73 bp | 68 bp | 8th widest of 21 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Illinois Tool Works ITW | United States | $79.8B | +11% | +5% | 27% | 23.4× | 9.7% | +5.0% |
| Quanta Services PWR | United States | $81.5B | -27% | +37% | 7% | 26.4× | 24.3% | +20.5% |
| Johnson Controls JCI | United States | $81.8B | -3% | +9% | 16% | 21.3× | 17.8% | +1.6% |
| Howmet Aerospace HWM | United States | $81.8B | -24% | +22% | 28% | 32.6× | 24.1% | +9.4% |
| Republic Services RSG | United States | $75.2B | +24% | +4% | 20% | 31.9× | 6.6% | +10.3% |
| Northrop Grumman NOC | United States | $74.6B | -4% | +7% | 11% | 17.8× | 0.2% | +2.7% |
| Trane Technologies TT | United States | $87.9B | -14% | +10% | 18% | 23.4× | 14.7% | +11.4% |
| Cintas CTAS | United States | $88.3B | +34% | +10% | 24% | 38.9× | 18.2% | +9.6% |
| FedEx FDX | United States | $72.2B | +1% | +8% | 7% | 15.4× | 8.3% | +2.5% |
| Norfolk Southern NSC | United States | $71.9B | +3% | +6% | 33% | 22.6× | 16.6% | +4.5% |
| Vertiv VRT | United States | $70.4B | -46% | +35% | 21% | 20.0× | 25.4% | +18.5% |
| CSX CSX | United States | $90.5B | +10% | +6% | 36% | 21.5× | 13.6% | +5.9% |
| Emerson Electric EMR | United States | $90.6B | +15% | +5% | 21% | 22.3× | 19.9% | +0.8% |
| Honeywell Technologies HON | United States | $69.8B | -1% | -17% | 18% | 23.2× | 4.1% | +2.8% |
| United Parcel Service UPS | United States | $92.1B | +9% | 0% | 9% | 13.6× | 3.9% | +1.0% |
| Waste Management WM | United States | $93.9B | +10% | +5% | 19% | 27.4× | 5.8% | +10.6% |
| W. W. Grainger GWW | United States | $67.9B | +17% | +9% | 17% | 28.2× | 11.9% | +8.7% |
| 3M MMM | United States | $95.7B | +30% | +2% | 21% | 19.2× | 11.3% | -5.0% |
| General Dynamics GD | United States | $95.7B | +3% | +10% | 10% | 19.4× | -2.5% | +6.7% |
| TransDigm TDG | United States | $66.2B | -1% | +17% | 47% | 25.5× | 9.7% | +11.6% |
| United Rentals URI | United States | $65.4B | +13% | +9% | 26% | 17.8× | 19.7% | +13.5% |
Illinois Tool Works has 10 bonds outstanding with $8.15B face value. The agencies rate it A+; its bonds trade like AA-. Weighted yield 4.57%, a spread of 73 bp over government bonds.