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Earnings transcript
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ITW
Illinois Tool Works Inc.
$258.21
-2.33
(-0.89%)
| Exchange: | NYSE |
| Market Cap: | 74.416B |
| Shares Outstanding: | 403.264M |
About The Company
| Sector: | Industrials | |||||
| Industry: | Industrial – Machinery | |||||
| CEO: | Christopher A. O’Herlihy | |||||
| Full Time Employees: | 44000 | |||||
| Address: |
| |||||
| Website: | https://www.itw.com |
Illinois Tool Works Inc. manufactures and sells industrial products and equipment worldwide. 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, refrigeration, cooking, and food processing equipment; kitchen exhaust, ventilation, and pollution control systems; and food equipment maintenance and repair services. The Test & Measurement and Electronics segment produces and sells equipment, consumables, and related software for testing and measuring of materials and structures, as well as equipment and consumables used in the production of electronic subassemblies and microelectronics. 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 offers beverage packaging equipment and consumables, product coding and marking equipment and consumables, and appliance components and fasteners. It serves the automotive OEM/tiers, commercial food equipment, construction, general industrial, and automotive aftermarket end markets. The company 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.
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Revenue Segmentation
EPS
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Earnings Call
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Key takeaways
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Login — it's freeIncome Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 16,107,000 | 15,898,000 | 16,044,000 |
| Gross Profit | 6,678,000 | 6,939,000 | 7,075,000 |
| EBITDA | 4,484,000 | 5,107,000 | 4,649,999.902 |
| Operating Income | 4,040,000 | 4,264,000 | 4,216,000 |
| Net Income | 2,957,000 | 3,488,000 | 3,066,000 |
(* All numbers are in thousands)
Balance Sheet
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Total Assets | 15,518,000 | 15,067,000 | 16,148,000 |
| Total Liabilities | 12,505,000 | 11,750,000 | 12,922,000 |
| Total Stockholders Equity | 3,012,000 | 3,317,000 | 3,225,000 |
| Total Debt | 8,370,000 | 8,078,000 | 8,969,000 |
| Cash and Cash Equivalents | 1,065,000 | 948,000 | 851,000 |
(* All numbers are in thousands)
Cash Flow Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Operating Cash Flow | 3,539,000 | 3,281,000 | 0 |
| Capital Expenditure | -455,000 | 0 | 0 |
| Free Cash Flow | 3,084,000 | 3,281,000 | 0 |
| Net Income | 2,957,000 | 3,488,000 | 3,066,000 |
| Net Change in Cash | 357,000 | 0 | -97,000 |
(* All numbers are in thousands)
Analyst Estimates
| Fiscal Year | 2029 | Full Access | Full Access | Full Access | Full Access |
|---|---|---|---|---|---|
| Estimated Revenue (Low) | 18,222,079.295 | Full Access | Full Access | Full Access | Full Access |
| Estimated Revenue (High) | 18,757,079.470 | Full Access | Full Access | Full Access | Full Access |
| Estimated Revenue (Avg) | 18,479,000 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (Low) | 5,960,911.287 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (High) | 6,135,923.618 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (Avg) | 6,044,956.664 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (Low) | 3,877,596.276 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (High) | 4,026,227.903 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (Avg) | 3,948,973.013 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (Low) | 2,772,298.404 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (High) | 2,853,693.074 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (Avg) | 2,811,386.197 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (Avg) | 13.510 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (High) | 13.770 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (Low) | 13.270 | Full Access | Full Access | Full Access | Full Access |
| Number of Analysts (Estimated Revenue) | 7 | Full Access | Full Access | Full Access | Full Access |
| Number of Analysts (Estimated EPS) | 2 | Full Access | Full Access | Full Access | Full Access |
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Current Key Metrics
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Login — it's freeForward P/E Ratios
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Login — it's freeSWOT Analysis
Strengths (preview)
- Strong Financial Performance: ITW demonstrates robust revenue and net income figures as reflected in recent income statements, with consistent growth in operating cash flow and free cash flow. This indicates operational efficiency and the ability to generate cash for reinvestment or shareholder returns.
- High Profit Margins: Key metrics reveal strong gross profit margin and net profit margin TTM, positioning ITW favorably against industry benchmarks. This suggests effective cost management and pricing power within its sector.
- Dividend Yield and Stability: With a competitive dividend yield TTM and a history of consistent dividend payments (lastDiv), ITW offers an attractive option for income-focused investors, supported by solid retained earnings on the balance sheet.
- Diverse Revenue Streams: Revenue product and geographic segments data highlight ITW’s diversified operations across multiple categories and regions, reducing dependency on a single market or product line and enhancing financial stability.
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At what price to buy it? -
Intrinsic Value Calculator
Based on current fundamentals and analyst forecasts, MARKETSnap estimates ITW intrinsic value between $162.55 – $218.97 per share. This depends on revenue growth, margins, and discount rate.
This is an automatic estimate. The most reliable way to know fair value for your own assumptions is to run the calculator below.
Common questions about ITW valuation
Is Illinois Tool Works Inc. (ITW) overvalued or undervalued right now?
MARKETSnap estimates intrinsic value for Illinois Tool Works Inc. (ITW) using its proprietary valuation methodology, which incorporates discounted cash flow (DCF) analysis together with long-term earnings and fundamentals assumptions. By comparing intrinsic value to the current market price, long-term investors can see whether the stock screens as potentially overvalued, fairly valued, or undervalued today.
Is ITW a buy, hold, or sell for long-term investors?
MARKETSnap does not give one-word “buy” or “sell” calls. Instead, it shows whether ITW trades at a premium or discount to its estimated intrinsic value, how sensitive that value is to growth and margin assumptions, and how the stock fits into a diversified, long-term portfolio so investors can make their own buy, hold, or sell decision.
What is ITW’s P/E ratio?
You can see ITW’s trailing P/E (TTM) and forward P/E estimates in the Current Key Metrics and Forward P/E Ratios sections above. The P/E ratio compares the current share price to earnings per share and helps investors gauge valuation relative to earnings.
How is intrinsic value calculated for ITW?
MARKETSnap uses its own valuation framework—not a generic spreadsheet DCF alone. Future cash flows and earnings are projected, discounted, and combined with MARKETSnap’s methodology so intrinsic value reflects fundamentals and long-term assumptions. You can run your own inputs and see the result using the Intrinsic Value Calculator above.
Is ITW a good long-term investment?
Whether ITW fits a long-term portfolio depends on your assumptions about growth, margins, and risk. MARKETSnap provides the metrics, intrinsic value calculator, and SWOT context so you can form your own view rather than rely on a single buy/sell rating.
ITW
1-day price chart preview. Log in for 1W through 5Y ranges and period tabs.
-0.89
Trading Metrics:
| Open: | 258.21 | Previous Close: | 260.54 | |
| Day Low: | 255.44 | Day High: | 261.49 | |
| Year Low: | 214.66 | Year High: | 303.16 | |
| Price Avg 50: | 275.94 | Price Avg 200: | 259.69 | |
| Volume: | 552035 | Average Volume: | 1.432M |
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Login — it's freeITW full analysis
Welcome to MARKETSNAP’s SWOT analysis for Illinois Tool Works, or ITW as it’s known on the ticker. If you’re a long-term investor looking to dig into a solid industrial player, you’ve come to the right place. Today, we’re breaking down the strengths, weaknesses, opportunities, and threats for this company, while weaving in some fresh insights from recent data and performance trends. Let’s get straight into it and see if ITW deserves a spot in your portfolio. First off, for those…
