Is Illinois Tool Works (ITW) overvalued or fairly valued?

MarketChacha shows Illinois Tool Works's valuation in context — a trailing P/E of about 25.2, a forward P/E of about 21.9, a price-to-book of about 26.6 — alongside its revenue and profit growth and whether reported profit converts into operating cash, so you can judge value for yourself. MarketChacha does not issue ratings, price targets, or buy/sell advice.

Does Illinois Tool Works's reported profit turn into cash?

Over 3 years, operating cash flow fully covered reported profit — earnings are backed by real cash. MarketChacha computes this cash-conversion check (1.05×) from reported figures — education, not a rating.

What is Illinois Tool Works's revenue?

Illinois Tool Works reported revenue of $16.0B for FY2025, with net profit of $3.1B, per official filings.

What is the share price of Illinois Tool Works (ITW)?

Illinois Tool Works last traded at $274.71 (+1.7% on the day), as of 10/20/2026 — a delayed quote shown for education, not investment advice.

Illinois Tool Works

ITW · NYSE · Industrials · United States

Snapshot

TickerITW

ExchangeNYSE

SectorIndustrials

IndustrySpecialty Industrial Machinery

CountryUnited States

Employees43,000

HeadquartersGlenview, United States

Websitewww.itw.com

Filings tracked14

About Illinois Tool Works

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 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 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 produce and sells test and measurement; and electronic manufacturing and maintenance, repair, and operations solutions. 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. It 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.

Who owns it

Insiders0.4%
Institutions87.0%
Public & other12.7%

2,497 institutional holders

Ownership breakdown from public market data.

Top holders

Briar Hall Management LLC9.06%
Blackrock Inc.8.17%
State Farm Mutual Automobile Insurance Co7.38%
Vanguard Capital Management LLC6.14%
State Street Corporation4.49%
Northern Trust Corporation3.88%
Geode Capital Management, LLC2.49%
Vanguard Portfolio Management LLC2.44%

Largest institutional holders — last updated 6/30/2026.

Forensic scorecard

No major accounting red flags in the fundamentals we have — profit is backed by cash and returns look healthy.

Cash conversion1.05×

Over 3 years, operating cash flow fully covered reported profit — earnings are backed by real cash.

Net margin trend18.4% → 19.1%

Margin has held broadly steady over the period — stable profitability.

Return on equity95.0%

Latest ROE of 95.0% — capital is generating a healthy return.

Growth qualityrev -0% · PAT 2%

Profit growth is broadly tracking revenue growth — the earnings trend looks operational rather than one-off.

Computed by MarketChacha from reported figures (SEC XBRL). Education, not a rating or recommendation.

What's expected next

Next quarter

Rev $4.3B · EPS 2.96

Est. earnings growth +8.9%

Next fiscal year

Rev $17.4B · EPS 12.35

Est. earnings growth +8.0%

Analyst consensus estimates — not the company's own guidance.

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Financials at a glance

Source: SEC XBRL

Annual

Quarterly · last 8

Revenue (FY2025)

$16.0B

Net margin

19.1%

ROE

95.0%

Revenue CAGR (2y)

-0.2%

Profit CAGR (2y)

+1.8%

EPS (FY2025)

10.49

Net profit (FY2025)

$3.1B

Ask MarketChacha about ITW

Get a cited, plain-English answer — the “why”, not just data. Finance research only, never buy/sell advice.

Financials

Yearly

Period	Revenue	Net profit	EPS	Net margin	ROE
FY2025	$16.0B	$3.1B	10.49	19.1%	95.0%
FY2024	$15.9B	$3.5B	11.71	21.9%	105.2%
FY2023	$16.1B	$3.0B	9.74	18.4%	98.1%

Quarterly

Period	Revenue	Net profit	EPS	Net margin
2026Q2	$4.3B	$815.0M	2.84	18.9%
2026Q1	$4.0B	$768.0M	2.66	19.1%
2025Q3	$4.1B	$821.0M	2.81	20.2%
2025Q2	$4.1B	$755.0M	2.58	18.6%
2025Q1	$3.8B	$700.0M	2.38	18.2%
2024Q3	$4.0B	$1.2B	3.91	29.2%
2024Q2	$4.0B	$759.0M	2.54	18.8%
2024Q1	$4.0B	$819.0M	2.73	20.6%
2023Q3	$4.0B	$772.0M	2.55	19.2%
2023Q2	$4.1B	$754.0M	2.48	18.5%
2023Q1	$4.0B	$714.0M	2.33	17.8%

Figures as reported, in reporting currency. Source: SEC XBRL.

Filings & announcements

2026

8-K — Other events, Exhibits
SEC8/13/2026material
10-Q filing
SEC8/6/2026
8-K — Results of operations, Exhibits
SEC7/28/2026material
8-K — Executive/director change
SEC5/22/2026material
8-K — Shareholder vote results
SEC5/12/2026material
10-Q filing
SEC5/7/2026
8-K — Results of operations, Exhibits
SEC4/30/2026material
8-K — Material agreement, Termination of agreement, Material financial obligation, Exhibits
SEC2/23/2026material
10-K filing
SEC2/13/2026
8-K — Results of operations, Exhibits
SEC2/3/2026material

2025

8-K — Results of operations, Exhibits
SEC10/24/2025material
10-Q filing
SEC10/24/2025
10-Q filing
SEC8/1/2025
8-K — Results of operations, Exhibits
SEC7/30/2025material

In the news

Education and discussion only — not investment advice. Financials from official filings (SEC/BSE) and reported company statements; market figures (delayed market data) are delayed and shown for reference only. Verify with the linked sources before acting.