ILLINOIS TOOL WORKS INC
$287.52
+0.77 (+0.27%) · delayed · Nov 13, 2026
Five-year price
52w $238.82 to $303.16
- Market cap
- $81.7B
- Enterprise value
- $88.5B
- P/E
- 27.4×
- 27.0× on 3y avg EPS
- EV / EBIT
- 21.0×
- FCF yield
- 3.3%
- ROIC
- 33.1%
- Debt / equity
- 2.38
- Piotroski F
- 5/9
Value scorecard · FY2025
Does it pass the value tests?
Quality
100
- ●ROIC > 12% (5y avg)5y avg ROIC 32.7%
- ●ROE > 15% (5y avg)5y avg ROE 94.2%
- ●Stable operating marginsMargin volatility 1.2% (σ, 5y)
- ●Earnings convert to cashFCF / net income 84% (5y avg)
- ●Growing revenueRevenue CAGR 5y 5.0%
- ●Shrinking share countDiluted shares -8.2% over 5y
Value
0
- ○P/E below 15P/E 27.4
- ○EV/EBIT below 12EV/EBIT 21.0
- ○FCF yield above 6%FCF yield 3.3%
- ○Price below Graham NumberGraham Number $51.76
- ○P/B below 3P/B 25.3
Safety
40
- ○Debt / equity below 0.5D/E 2.38
- ●Debt payable in < 4 yrs of earningsNet debt $6.8B
- ●Interest coverage > 8xCoverage 14.4x
- ○Current ratio > 1.5Current ratio 1.21
- ○Piotroski F-score ≥ 6F-score 5/9
Graham Defensive
57
- ●Adequate size (revenue > $2B)Revenue $16.0B
- ○Strong condition (current ratio ≥ 2)Current ratio 1.21
- ●Earnings stability (no loss, 10y)10 years of data
- ●Uninterrupted dividendsDividends paid every year on record
- ●Earnings growth ≥ 33% (10y, 3y avgs)EPS growth 76%
- ○Moderate P/E (≤ 15 on 3y avg EPS)P/E (3y avg) 27.0
- ○P/E × P/B ≤ 22.5Product 684.0
Valuation lab
What do you have to believe?
At $287.52, the market is pricing in about 12.2% annual free-cash-flow growth for the next decade (9% discount rate, 2.5% terminal growth).
Starting cash flow
Net debt $6.8B · 284M shares · 5y revenue CAGR 5.0%
Intrinsic value
$157.31
Price
$287.52
Premium paid
83%
What the price implies
The market is paying for 12.2% annual cash-flow growth for 10 years at a 9.0% discount rate.
Terminal value share
57% of the value sits beyond year 10.
Financial statements
A decade of the record.
USD millions · fiscal years · source: SEC 10-K XBRL
| Line item | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 13,599 | 14,314 | 14,768 | 14,109 | 12,574 | 14,455 | 15,932 | 16,107 | 15,898 | 16,044 |
| Gross profit | — | — | — | — | — | — | — | — | — | — |
| Operating income | 3,056 | 3,485 | 3,584 | 3,402 | 2,882 | 3,477 | 3,790 | 4,040 | 4,264 | 4,216 |
| Operating margin | 22.5% | 24.3% | 24.3% | 24.1% | 22.9% | 24.1% | 23.8% | 25.1% | 26.8% | 26.3% |
| Pre-tax income | 2,908 | 3,270 | 3,394 | 3,288 | 2,704 | 3,326 | 3,842 | 3,823 | — | — |
| Income tax | 873 | 1,583 | 831 | 767 | 595 | 632 | 808 | 866 | 934 | 900 |
| Net income | 2,035 | 1,687 | 2,563 | 2,521 | 2,109 | 2,694 | 3,034 | 2,957 | 3,488 | 3,066 |
| EPS (diluted) | 5.70 | 4.86 | 7.60 | 7.74 | 6.63 | 8.51 | 9.77 | 9.74 | 11.71 | 10.49 |
| Diluted shares | 357 | 347 | 337 | 326 | 318 | 316 | 311 | 304 | 298 | 292 |
Who owns it