Illinois Tool Works (ITW) Stock Analysis

November 11, 2026

This is a peer-relative look at Illinois Tool Works (ITW): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Capital Goods peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Illinois Tool Works (ITW)
Profile Item	ITW
Name	Illinois Tool Works Inc.
Country/Region	United States
GICS Sector	Industrials
GICS Industry Group	Capital Goods
GICS Industry	Machinery
GICS Sub-Industry	Industrial Machinery & Supplies & Components
Market Capitalization	79.85 billion USD
Currency	USD
Exchange	NYSE
Listing Date	March 13, 1973
Security Type	Common Stock

Price Performance

Cumulative Growth

ITW

GSPC

Illinois Tool Works (ITW) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Illinois Tool Works (ITW) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Illinois Tool Works (ITW) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Illinois Tool Works (ITW) metric values compared with Capital Goods industry-group medians
Metric	Current stock: ITW	Industry group median
Total Return (1Y)	20.29%	6.84%
Total Return (3Y, Annualized)	10.62%	17.66%
Total Return (5Y, Annualized)	6.67%	9.09%

Risk Profile

Drawdown History

ITW

GSPC

Illinois Tool Works (ITW) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Illinois Tool Works (ITW) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Illinois Tool Works (ITW) metric values compared with Capital Goods industry-group medians
Metric	Current stock: ITW	Industry group median
Volatility (1Y, Annualized)	22.16%	44.38%
Beta (5Y)	0.91	1.19
Max Drawdown (5Y)	-28.05%	-49.95%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. ITW is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Illinois Tool Works (ITW) metric values compared with Capital Goods industry-group medians
Metric	Current stock: ITW	Industry group median
Sharpe Ratio (1Y)	0.72	0.06
Sortino Ratio (1Y)	1.12	0.09

Profitability

ROE (TTM)

Illinois Tool Works (ITW) posts ROE of 101.65%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.

ITW

Capital Goods industry group

101.65%

Group distribution

ITW: 101.65%
Max: 40.55%
Q3: 19.29%
Median: 12.12%
Q1: 4.08%
Min: -17.12%

Largest peers

ITW: 101.65%
GEV: 93.04%
CAT: 56.14%
GE: 50.17%
DE: 18.24%
RTX: 12.85%
BA: --

Where Illinois Tool Works (ITW) stands on ROE within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Illinois Tool Works (ITW) keeps 19.39% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

ITW

Capital Goods industry group

19.39%

Group distribution

Max: 27.47%
ITW: 19.39%
Q3: 12.10%
Median: 6.30%
Q1: 1.40%
Min: -12.89%

Largest peers

GEV: 23.54%
ITW: 19.39%
GE: 17.31%
CAT: 15.21%
DE: 10.17%
RTX: 8.75%
BA: 8.07%

Where Illinois Tool Works (ITW) stands on net margin within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Illinois Tool Works (ITW) turns 28.05% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

ITW

Capital Goods industry group

28.05%

Group distribution

Max: 36.60%
ITW: 28.05%
Q3: 18.33%
Median: 11.12%
Q1: 5.14%
Min: -12.63%

Largest peers

ITW: 28.05%
CAT: 20.19%
GE: 18.49%
RTX: 15.54%
DE: 13.37%
GEV: 12.77%
BA: 0.30%

Where Illinois Tool Works (ITW) stands on operating margin within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Illinois Tool Works (ITW) metric values compared with Capital Goods industry-group medians
Metric	Current stock: ITW	Industry group median
ROE (TTM)	101.65%	12.12%
ROA (TTM)	17.13%	5.29%
Net Margin (TTM)	19.39%	6.30%
Operating Margin (TTM)	28.05%	11.12%
Gross Margin (TTM)	44.32%	29.63%

Growth

Revenue Growth

Illinois Tool Works (ITW) grew revenue 0.92%, in the lower peer quartile. The top line is expanding more slowly than at most peers, which can reflect softer demand, lost share, or weaker pricing.

Illinois Tool Works (ITW): Revenue Growth across different time periods, set against Capital Goods industry-group medians.

EPS Growth

Illinois Tool Works (ITW) grew earnings per share -10.42%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

Illinois Tool Works (ITW): EPS Growth across different time periods, set against Capital Goods industry-group medians.

Growth Metrics

Illinois Tool Works (ITW) metric values compared with Capital Goods industry-group medians
Metric	Current stock: ITW	Industry group median
Revenue Growth (YoY)	0.92%	8.11%
Revenue Growth (3Y CAGR)	0.23%	6.45%
EPS Growth (YoY)	-10.42%	5.45%
EPS Growth (3Y CAGR)	2.40%	7.15%

Financial Strength

Current Ratio (MRQ)

Illinois Tool Works (ITW) has current ratio of 1.29, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

ITW

Capital Goods industry group

1.29

Group distribution

Max: 5.22
Q3: 2.95
Median: 2.08
Q1: 1.43
ITW: 1.29
Min: 0.36

Largest peers

DE: 2.13
CAT: 1.42
ITW: 1.29
BA: 1.13
RTX: 1.05
GE: 0.98
GEV: 0.83

Where Illinois Tool Works (ITW) stands on current ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Illinois Tool Works (ITW) has debt-to-equity ratio of 2.98, above the industry benchmark range. Debt sits unusually high against shareholders’ equity, leaving the balance sheet more exposed to rate, refinancing, or earnings shocks.

ITW

Capital Goods industry group

2.98

Group distribution

ITW: 2.98
Max: 2.33
Q3: 1.12
Median: 0.60
Q1: 0.29
Min: 0.00

Largest peers

BA: 7.39
ITW: 2.98
DE: 2.30
CAT: 2.10
GE: 1.16
RTX: 0.55
GEV: 0.30

Where Illinois Tool Works (ITW) stands on debt-to-equity ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Illinois Tool Works (ITW) metric values compared with Capital Goods industry-group medians
Metric	Current stock: ITW	Industry group median
Current Ratio (MRQ)	1.29	2.08
Debt / Equity (MRQ)	2.98	0.60
Net Debt / EBITDA	1.76	1.78

Dividends

Dividend Yield (TTM)

Illinois Tool Works (ITW) has dividend yield of 2.29%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.

ITW

Capital Goods industry group

2.29%

Group distribution

Max: 2.66%
ITW: 2.29%
Q3: 1.14%
Median: 0.24%
Q1: 0.00%
Min: 0.00%

Largest peers

ITW: 2.29%
RTX: 1.47%
CAT: 1.13%
DE: 0.98%
GE: 0.56%
GEV: 0.26%
BA: 0.00%

Where Illinois Tool Works (ITW) stands on dividend yield within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Illinois Tool Works (ITW) has payout ratio of 58.43%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

ITW

Capital Goods industry group

58.43%

Group distribution

Max: 67.39%
ITW: 58.43%
Q3: 28.02%
Median: 6.86%
Q1: 0.00%
Min: 0.00%

Largest peers

ITW: 58.43%
RTX: 45.85%
DE: 36.02%
CAT: 24.18%
GE: 20.23%
GEV: 4.59%
BA: 0.00%

Where Illinois Tool Works (ITW) stands on payout ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Illinois Tool Works (ITW) metric values compared with Capital Goods industry-group medians
Metric	Current stock: ITW	Industry group median
Dividend Yield (TTM)	2.29%	0.24%
Dividend Payout Ratio (TTM)	58.43%	6.86%

Valuation

P/E Ratio (TTM)

Illinois Tool Works (ITW) trades at P/E ratio of 25.06, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

ITW

Capital Goods industry group

25.06

Group distribution

Max: 59.38
Q3: 35.92
Median: 25.41
ITW: 25.06
Q1: 19.47
Min: 3.03

Largest peers

DE: 37.33
GE: 36.94
RTX: 30.82
ITW: 25.06
CAT: 21.92
GEV: 20.32
BA: 17.89

Where Illinois Tool Works (ITW) stands on P/E ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Illinois Tool Works (ITW) trades at 4.80 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

ITW

Capital Goods industry group

4.80

Group distribution

Max: 7.54
ITW: 4.80
Q3: 3.76
Median: 2.15
Q1: 1.03
Min: 0.03

Largest peers

GE: 6.38
ITW: 4.80
GEV: 4.65
DE: 3.78
CAT: 3.29
RTX: 2.66
BA: 1.45

Where Illinois Tool Works (ITW) stands on P/S ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Illinois Tool Works (ITW) trades at 25.42 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.

ITW

Capital Goods industry group

25.42

Group distribution

ITW: 25.42
Max: 9.66
Q3: 5.00
Median: 3.12
Q1: 1.81
Min: -1.08

Largest peers

ITW: 25.42
BA: 20.99
GE: 19.06
GEV: 18.00
CAT: 11.90
DE: 6.47
RTX: 3.69

Where Illinois Tool Works (ITW) stands on P/B ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Illinois Tool Works (ITW) metric values compared with Capital Goods industry-group medians
Metric	Current stock: ITW	Industry group median
P/E Ratio (TTM)	25.06	25.41
P/S Ratio (TTM)	4.80	2.15
P/B Ratio (MRQ)	25.42	3.12
Free Cash Flow Yield (TTM)	2.89%	3.03%