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ITW

ITW- Illinois Tool Works Inc.

Industrials · Specialty Industrial Machinery

Price?
$268.16+1.12%
1Y Change?
-
P/E?
24.27
Last Dividend?
$1.61
Div Yield?
2.57%

Price & Performance

Performance

Analysis & Verdict

Analyst Ratings

Hold

Wall Street consensus from 14 analysts

12-Month Price Target

$301.86

+12.6% upside
Low $249.00High $350.00
Current $268.16 Avg target $301.86

Based on analyst estimates; price targets are opinions, not guarantees.

Fair Value Estimates

Current price: $268.16

Graham Number

√(22.5 × EPS × Book Value)

$50.26

-81.3% downside

Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.

Bazin Ceiling Price

Avg. Annual DPS (5Y) ÷ 6%

$90.73

-66.2% downside

Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.

These are simplified estimates. Not financial advice.

Buy & Hold Checklist

Quality criteria for long-term holding

9/10

90% score

Pays dividends

15Y hist.

15+ years of dividend history

Dividend consistency (5Y+)

15 yrs

Uninterrupted dividend payments for at least 5 years

ROE above 10%

104.6%

Return on equity - measures how efficiently capital is used

Positive profit margin

19.4%

Net profit margin must be positive - company earns more than it spends

Revenue growth (annual)

+6.1%

Annual revenue must be growing compared to the prior year

Earnings growth (annual)

+10.1%

Annual earnings must be growing compared to the prior year

Debt/Equity below 2×

334.85×

Low financial leverage reduces risk of distress

Current ratio above 1

1.11×

Short-term assets must cover short-term liabilities

Daily liquidity above $5M

$357M/day

High trading volume ensures easy entry and exit

Dividend yield above 0%

2.57%

Stock must distribute income to shareholders

Financials

Revenue & Results

Key Statistics

Market Cap$76.37B
P/E Ratio24.27
Forward P/E21.63
P/B Ratio-
PEG Ratio2.45

Earnings

Next Earnings

Oct 23, 2026

41

days

EPS (TTM)

$11.05

P/E (TTM)

24.3

Fwd P/E

21.6

SEC Filings & Reported Financials

Earnings History

SEC EDGAR · official filings

SEC filings

SEC Filings

Official EDGAR documents

All filings

Insider Transactions

SEC Form 4 · officers, directors & 10% owners

Dividends & Income

Dividends

Current DY

2.57%

5Y Avg Annual

$5.1440

Last Payment

$1.6100

Ex-Date

06/30/2026

Annual dividends paid per share

2011
2019
2026
Ex-DatePaymentAmountEst. DY
Latest06/30/2026
07/09/2026$1.61002.40%
03/31/2026
04/09/2026$1.61002.40%
12/31/2025
01/09/2026$1.61002.40%
09/30/2025
10/09/2025$1.61002.40%
06/30/2025
07/09/2025$1.50002.24%
03/31/2025
04/09/2025$1.50002.24%
12/31/2024
01/09/2025$1.50002.24%
09/30/2024
10/09/2024$1.50002.24%

Magic Number

Shares needed to self-fund your next purchase

$268.16

Price

÷

$1.6100

Last div. (quarterly)

=

167

shares

Own 167 ITW shares ($44,782.72) and each quarterly dividend pays for 1 new share - the snowball runs on its own.

Investment target

$44,782.72

New shares / year

+4 shares

Dividend Calculator

2.57% yield

Estimate ITW dividend income at the current rate.

$

Per year

$256.56

Per month

$21.38

37.3 shares at $6.88/share a year. Estimate only - dividends can be cut or raised.

Tools & Simulators

ITW vs Peers, Indexes & Commodities

?

Click a card below to plot it on the chart

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If you had invested
$
you would have:

Parameters

$
$
%

Final value

$426,404.61

Total invested

$130,000.00

Total interest

$296,404.61

Balance over time

Final balanceInvested
Invested - 30.5%Interest earned - 69.5%

Period breakdown

PeriodBalanceInvestedInterest
Start$10,000.00$10,000.00$0.00
Year 1$17,270.27$16,000.00$1,270.27
Year 2$25,267.56$22,000.00$3,267.56
Year 3$34,064.59$28,000.00$6,064.59
Year 4$43,741.32$34,000.00$9,741.32
Year 5$54,385.72$40,000.00$14,385.72
Year 6$66,094.55$46,000.00$20,094.55
Year 7$78,974.28$52,000.00$26,974.28
Year 8$93,141.97$58,000.00$35,141.97
Year 9$108,726.44$64,000.00$44,726.44
Year 10$125,869.35$70,000.00$55,869.35
Year 11$144,726.56$76,000.00$68,726.56
Year 12$165,469.48$82,000.00$83,469.48
Year 13$188,286.70$88,000.00$100,286.70
Year 14$213,385.63$94,000.00$119,385.63
Year 15$240,994.47$100,000.00$140,994.47
Year 16$271,364.18$106,000.00$165,364.18
Year 17$304,770.87$112,000.00$192,770.87
Year 18$341,518.22$118,000.00$223,518.22
Year 19$381,940.31$124,000.00$257,940.31
Year 20$426,404.61$130,000.00$296,404.61

What is compound interest?

Compound interest means that the interest you earn in one period is added to your principal, so in the next period you earn interest on a larger base. This creates exponential growth: the longer your time horizon, the more dramatic the effect.

Which rate should I use?

The S&P 500 has historically returned ~10%/year before inflation over long periods - use this for an all-equity US index fund scenario. A balanced growth portfolio (stocks + bonds) is closer to 7%. High-yield savings accounts (HYSA) are currently paying around 4-5% with FDIC insurance and zero market risk. Bonds historically return ~4% annualized.

Formula used

FV = PV × (1+r)^n + PMT × ((1+r)^n − 1) / rwhere r is the monthly rate, n is the number of months, PV is the initial investment, and PMT is the monthly contribution. Annual rates are converted to monthly viar = (1 + annual%)^(1/12) − 1.

For educational purposes only. Not financial advice. Past returns do not guarantee future results.

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About Illinois Tool Works Inc.

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.

Sector

Industrials

Industry

Specialty Industrial Machinery

Location

Glenview, United States

Employees

43,000

Listed on NYSE

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Illinois Tool Works Inc. (ITW) stock trades at $268.16, up 1.12% on the day. With a market capitalization of $76.37 billion, ITW is a large-cap industrials stock. It trades at a price-to-earnings (P/E) ratio of 24.3, a forward P/E of 21.6 and earnings per share (EPS) of $11.05. Over the most recent period the company reported 6% year-over-year revenue growth and a net profit margin of 19.4%. Below you'll find ITW's full fundamentals, fair-value estimates, dividend history, earnings and our buy, hold or avoid verdict for 2026.

ITW - Frequently Asked Questions

Is Illinois Tool Works Inc. (ITW) a good stock to buy in 2026?

Illinois Tool Works Inc. (ITW) shows strengths such as a strong 19% net margin and a 105% return on equity, while risks include high leverage (debt/equity of 334.9). Whether ITW is a good buy in 2026 depends on your time horizon and risk tolerance - review the full bull case, bear case and fair-value estimates above. This is informational analysis, not financial advice.

What is ITW's stock price today?

Illinois Tool Works Inc. (ITW) trades at $268.16, up 1.12% on the session. Prices on this page update throughout the trading day.

Does ITW pay a dividend?

Yes. Illinois Tool Works Inc. pays an annual dividend of $6.88 per share, a dividend yield of 2.57%. The most recent ex-dividend date was September 30, 2026. Its payout ratio is about 58% of earnings.

Is ITW overvalued?

With a P/E ratio of 24.3×, ITW trades at a roughly market-average valuation for the industrials sector. Its PEG ratio is 2.45. See the Fair Value Estimates section above for Graham Number and dividend-based price targets.

What is ITW's market cap?

Illinois Tool Works Inc. (ITW) has a market capitalization of $76.37 billion, classifying it as a large-cap stock in the Industrials sector.

Disclaimer: This page - including any buy/hold/avoid view, fair value or price estimate - is generated from market data for informational and educational purposes only and does not constitute financial, investment or trading advice. Data may be delayed or inaccurate. Always do your own research and consult a licensed financial advisor before making any investment decision.