Illinois Tool Works

ITW

Industrial - Machinery · Industrials

Price

$276.05

-6.92 (-2.45%)

Market Cap

$79.42B

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

−7.6% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 316.4M (2021) → 292.3M (2025)

Illinois Tool Works (ITW) makes industrial tools, equipment, and specialty products used in manufacturing, construction, and everyday life. Its seven business segments cover things like welding equipment, car parts, restaurant cooking equipment, and packaging machinery. The company sells to a wide range of customers, including automakers, food service businesses, and construction companies around the world.

ITW earns revenue by selling physical products and replacement parts across more than 50 countries, with the United States as its largest market. The company runs a focused strategy called "80/20," where it simplifies its product lines to concentrate on its most profitable customers — this approach helps explain its strong operating margin of over 26%, which is well above most industrial peers. The main risk ITW faces is its exposure to cyclical end markets like auto and construction, where demand can drop sharply during economic slowdowns.

Winston Score History

Politician Trades

16 trades / 12mo

9 Congressional buys and 7 sells on ITW in the last 12 months.

Unlock the full Smart Money Map — every trade plotted on the price chart with politicians, amounts and returns since each trade. Founder's Deal is $57/mo locked for life.

Unlock politician trades

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+4.6% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+11.8% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$0/ year

↓ Declining (-100% vs prior year)

0.0% of revenue

Below sector average (4%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

9.4%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$827M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Illinois Tool Works is growing revenue at 5% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

43.8%

Healthy — 43.8% gross margin

Operating Margin

25.4%

Excellent — 25.4% operating margin

ROCE

8.2%

Below par — 8.2% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Growth

Sales YoY

+2.9%

Nearly flat sales (2.9% YoY)

EPS YoY

-5.4%

Earnings shrinking (-5.4% YoY)

Slight earnings drop. Typical near a cyclical low.

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Cash Flow

Cash Conversion

101%

Turns 101% of profit into real cash

FCF Margin

16.9%

Converts sales into free cash efficiently (16.9%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Stability

Debt / Equity

2.83

Heavy debt load (2.83)

Interest Cover

14.43x

Comfortably covers interest (14.4x)

Interest coverage above 8. Profits cover interest many times over.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Valuation

P/E Ratio (TTM)

25.6x

Growth-priced — P/E 25.6

P/E above the market average. People are paying up for expected growth.

P/E vs Forward

+2.2

GROWING

Earnings expected to grow — slightly cheaper on forward P/E

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Dividends

Dividend Yield

2.28%

Moderate income — 2.28% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth

+7.3%

Dividend growing modestly (7.3% YoY)

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

🔒 See full fundamentals and if they are improving or declining — click here for your free trial now.

Start free trial