Illinois Tool Works Inc. Website

Illinois Tool Works Inc.

NYSE-ITW

Company Overview

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.

  • Name

    Illinois Tool Works Inc.

  • CEO

    Christopher A. O'Herlihy

  • Website

    www.itw.com

  • Sector

    Machinery

  • Year Founded

    1912

Company Statistics

Profile

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Bulls Say

  • ITW’s long-term incentive plan is based partially on the company’s return on invested capital, a metric we think encourages management to grow the business responsibly and efficiently.

  • ITW’s entrepreneurial culture permeates the firm and would take considerable effort for a competitor to replicate. ITW focuses heavily on internal promotions as learning the ins and outs of its operating framework takes considerable training.

  • The firm has sold off many low-growth, low-returning businesses in the last decade, positioning itself to experience growth above its historical norm.

Bears Say

  • ITW’s growth profile has not meaningfully improved from a decade ago, a period during which ITW’s organic top line grew below GDP.

  • ITW’s hyperfocus on margins and returns on invested capital have hampered the company’s spending for growth. Some returns have to be sacrificed in the short term to grow the business, otherwise the business risks lagging behind competitors.

  • ITW still has too many business units even after a decade of divestitures. Operating disparate businesses can hide the growth of its stronger units.

Source: Morningstar Analysis - Oct 24, 2025

What's happening

Nov 4, 2025 - Dec 4, 2025

Illinois Tool Works Inc. Shows Resilience Amid Market Challenges

  • ITW's stock price increased by 1.36% over the past month, reflecting a positive movement of 2.1%.
  • Analysts upgraded ITW from Underperform to Neutral, boosting investor confidence.
  • Despite gains, concerns linger regarding ITW's lower P/E ratio compared to industry averages.

Over the past month, Illinois Tool Works Inc. (ITW) demonstrated a positive movement of 2.1%, significantly outperforming the S&P 500, which experienced a decline of 0.3%. During this period, ITW’s stock price rose approximately 1.36%, despite facing challenges with a year-over-year decline of nearly 9.71%. The current trading price for ITW stands at $243.00, indicating resilience in its market position.

A significant factor influencing ITW's recent performance was an upgrade from BofA Securities on November 18th when analysts raised their rating from Underperform to Neutral. This change likely reflects improved expectations regarding ITW’s operational prospects and overall market positioning, which can lead to increased investor confidence and buying activity that positively affects stock performance.

However, bearish sentiments emerged towards the end of November as scrutiny arose due to ITW's lower P/E ratio compared to the Machinery industry average of 38.22. While this may suggest potential undervaluation for investors seeking value opportunities, it also raises concerns about growth expectations among shareholders—an essential consideration for evaluating long-term investment viability.

Overall trends indicate that while ITW achieved modest gains recently and outperformed both the broader S&P index and its sector peers within Industrials (XLI), underlying issues such as valuation metrics remain critical points for investors' considerations moving forward into future assessments. Notably, Illinois Tool Works Inc.'s performance exceeded that of both the S&P by approximately 2.4% and outperformed the Industrials (XLI) sector by 2.3%.

NYSE:ITW