ITW
IndustrialsIllinois Tool Works Inc. · Industrial - Machinery · $73B
What is Illinois Tool Works Inc.?
Illinois Tool Works is a large-cap industrial manufacturer operating across seven distinct business segments worldwide. Headquartered in Glenview, Illinois, the company serves customers in automotive, food service, construction, electronics, and welding markets.
ITW generates revenue by designing and selling specialized industrial products and equipment through a decentralized, segment-based structure. Each segment targets a distinct end market — from automotive components and food service equipment to welding systems and construction fasteners. The company's 80/20 business simplification strategy focuses resources on the highest-value product lines and customer relationships, allowing each division to operate with a high degree of autonomy while contributing to the broader enterprise.
Illinois Tool Works was incorporated in its current form in 1973 and is headquartered in Glenview, Illinois.
- Automotive plastic and metal components, fasteners, and assemblies
- Commercial food equipment including warewashing, refrigeration, and cooking systems
- Arc welding equipment and metal welding consumables
- Engineered fastening systems for residential and commercial construction
- Test and measurement equipment for materials, structures, and electronics production
Is ITW a Good Stock to Buy?
UQS Score rates ITW as Good overall, reflecting a balanced profile across its five analytical pillars.
The Quality pillar stands out as ITW's clearest strength, consistent with the company's long track record of operational discipline and cash generation. The Risk and Valuation pillars both register as Neutral, suggesting the stock does not carry outsized financial or pricing concerns relative to peers in the [Industrials sector](/sector/industrials).
Growth is rated Weak, which reflects the mature, cyclical nature of ITW's end markets and limited near-term revenue expansion catalysts. The Moat pillar is Neutral, indicating competitive advantages exist but are not dominant across all segments.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does ITW pay dividends?
Yes — Illinois Tool Works Inc. pays a dividend.
ITW pays a regular dividend, consistent with its long history of returning capital to shareholders. The company has maintained and grown its dividend over many years, reflecting the cash-generative nature of its diversified industrial business model. Income-oriented investors often view ITW as a reliable dividend payer within the industrials sector.
When does ITW report earnings?
Illinois Tool Works reports earnings on a quarterly cadence, typical for US-listed large-cap equities.
ITW's results tend to reflect broader industrial demand trends across its seven segments, with Automotive OEM and Food Equipment often acting as key revenue drivers. Segment-level margin discipline has historically been a defining feature of quarterly performance.
For the most recent quarter's results and upcoming reporting dates, visit Illinois Tool Works' official investor relations page.
ITW Price History
+31.4% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Illinois Tool Works Inc.?
Based on Illinois Tool Works Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
ITW Long-term Outlook
ITW's fundamental outlook is shaped by its Weak Growth pillar and Neutral Risk profile. Revenue expansion is likely to remain modest given the mature nature of its core end markets, including automotive and construction. However, the company's operational discipline and diversified segment structure provide a degree of resilience against cyclical downturns. Valuation is rated Neutral, suggesting the market is pricing ITW in line with its quality characteristics rather than at a significant premium or discount.
Growth drivers
- Ongoing 80/20 simplification strategy improving segment-level profitability
- Exposure to global infrastructure and construction spending trends
- Steady demand for food equipment maintenance and replacement cycles
Key risks
- Cyclical exposure to automotive production volumes and consumer demand
- Limited organic revenue growth given mature end-market positioning
- Input cost pressures across manufacturing-intensive segments
ITW vs Peers
ITW competes with several large-cap industrial manufacturers, each with a distinct strategic focus and end-market mix.
Emerson focuses heavily on automation and process control technology, giving it deeper exposure to energy and industrial automation end markets compared to ITW's broader multi-segment approach.
Cummins concentrates on power solutions including diesel and alternative-fuel engines, making it more directly tied to commercial vehicle and power generation cycles than ITW's diversified portfolio.
Howmet specializes in engineered components for aerospace and defense, giving it a more concentrated end-market profile versus ITW's seven-segment industrial diversification.
Frequently Asked Questions
What does Illinois Tool Works do?
Illinois Tool Works manufactures and sells industrial products and equipment across seven business segments: Automotive OEM, Food Equipment, Test & Measurement and Electronics, Welding, Polymers & Fluids, Construction Products, and Specialty Products. The company serves a wide range of industrial and commercial customers worldwide through a decentralized operating model.
Does ITW pay dividends?
Yes, ITW pays a regular dividend. The company has a long history of maintaining and growing its dividend, which reflects the cash-generative nature of its diversified industrial operations. It is widely regarded as a consistent dividend payer within the large-cap industrials space.
When does ITW report earnings?
Illinois Tool Works reports earnings on a quarterly cadence, in line with standard practice for US-listed large-cap companies. For the most current reporting schedule and recent results, check the investor relations section of the Illinois Tool Works website directly.
Is ITW a good stock to buy?
UQS Score rates ITW as Good overall. Its Quality pillar is rated Strong, while Growth is rated Weak and both Risk and Valuation are Neutral. Whether it fits your portfolio depends on your goals — the full pillar breakdown is available to UQS Pro members.
Is ITW overvalued?
ITW's Valuation pillar is rated Neutral, suggesting the stock is not dramatically overpriced or underpriced relative to its quality profile. Investors looking for a deeper look at the underlying valuation metrics can access the complete analysis through a UQS Pro account.
How does ITW compare to its competitors?
ITW's seven-segment diversification distinguishes it from more focused peers like Emerson Electric, Cummins, and Howmet Aerospace. While those companies concentrate on automation, power solutions, and aerospace respectively, ITW spreads its exposure across automotive, food service, welding, and construction markets.
What is ITW's market cap bracket?
Illinois Tool Works is classified as a large-cap company, reflecting its scale and long-established position in the global industrials sector. Large-cap industrials like ITW are often held for their combination of dividend income and relative operational stability.
Who founded Illinois Tool Works?
Illinois Tool Works has roots going back to the early twentieth century, though it was incorporated in its current structure in 1973. Detailed founding history is widely available through public sources and the company's own corporate history pages.
Is ITW a long-term quality stock?
As a long-term quality indicator, ITW's Strong Quality pillar suggests durable operational characteristics. However, the Weak Growth rating signals that investors seeking rapid revenue expansion may find limited near-term catalysts. The full UQS pillar profile helps contextualize ITW's long-term positioning within the [Industrials sector](/sector/industrials).
What is the main competitive advantage of Illinois Tool Works?
ITW's primary structural advantage is its 80/20 business simplification model, which focuses resources on the most profitable products and customers within each segment. This operational discipline has historically supported above-average margins and consistent cash generation across business cycles.
Is ITW a growth stock or value stock?
Based on its UQS pillar profile, ITW leans toward the value and quality end of the spectrum. Its Growth pillar is rated Weak, while Valuation is Neutral — suggesting the market prices it for its established cash flows rather than for rapid earnings expansion.
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Pro Analysis
ITW — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 22, 2026 | 53.6 | 91.2 | 42.0 | 28.2 | 41.5 | 56.2 | -0.2 |
| May 17, 2026 | 53.8 | 91.3 | 42.0 | 28.0 | 41.5 | 57.4 | +0.6 |
| May 7, 2026 | 53.2 | 90.5 | 42.0 | 28.0 | 42.0 | 54.3 | -0.1 |
| May 4, 2026 | 53.3 | 90.5 | 42.0 | 28.0 | 42.0 | 55.1 | 0.0 |
| May 3, 2026 | 53.3 | 90.5 | 42.0 | 27.9 | 42.0 | 55.1 | +0.4 |
| May 2, 2026 | 52.9 | 90.5 | 42.0 | 27.9 | 42.0 | 52.9 | +0.1 |
| Apr 26, 2026 | 52.8 | 90.5 | 42.0 | 27.4 | 42.0 | 52.5 | +0.2 |
| Apr 19, 2026 | 52.6 | 90.5 | 42.0 | 27.4 | 42.0 | 51.6 | -0.1 |
| Apr 18, 2026 | 52.7 | 90.7 | 42.0 | 27.4 | 42.0 | 51.9 | -0.4 |
| Apr 16, 2026 | 53.1 | 90.7 | 42.0 | 27.4 | 42.0 | 54.6 | 0.0 |
ITW — Pillar Breakdown
Quality
— 91.2/100 (25%)Illinois Tool Works Inc. demonstrates outstanding capital efficiency and profitability, placing it among the highest-quality businesses in the market.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 28.2/100 (20%)Illinois Tool Works Inc. faces growth headwinds with declining or stagnant revenue trends.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 41.5/100 (15%)Illinois Tool Works Inc. has some risk factors including moderate leverage or solvency concerns.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 56.2/100 (15%)Illinois Tool Works Inc. trades at a reasonable valuation with decent earnings yield and FCF multiples.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 42/100 (25%)Illinois Tool Works Inc. possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for ITW.
Score Composition
Financial Data
More Stock Analysis
How is the ITW UQS Score Calculated?
The UQS (Unified Quality Score) for Illinois Tool Works Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Illinois Tool Works Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Illinois Tool Works Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.