Illinois Tool Works Inc. (ITW)
Illinois Tool Works is a massive American engineering firm that makes everything from specialised fasteners and welding gear to commercial kitchen equipment.
Is Illinois Tool Works Inc. a good stock for a UK beginner?
The honest version: There's no rating here and nothing for sale. In its favour: Extremely high return on equity shows efficient management. Worth weighing: High price-to-book ratio suggests the shares are not 'cheap' by traditional measures. Below, we lay out what it does, what its numbers mean, and the honest risks, so you can decide for yourself.
Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.
How much has Illinois Tool Works Inc. actually fallen?
Over the last 2 years of daily prices, Illinois Tool Works Inc. fell as much as −22% from a high to a later low. Drops of this size are a normal part of owning a share - worth knowing in advance, so a dip doesn't come as a shock.
Worst peak-to-trough fall in the daily closing price over the period we hold. Past falls are not a forecast - it can fall further, or recover.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
Significant innovation leads to new market dominance.
Long-term decline in traditional industrial manufacturing.
What does Illinois Tool Works Inc. do?
Think of ITW as the 'hidden' engine behind many industries; they design and manufacture the essential components and tools that other businesses rely on to function. The income is generated by selling these high-quality, often patented parts across seven different sectors, ranging from automotive to food service. What sets them apart is their knack for holding profit margins high by selling specialised products customers find hard to replace.
On our factor screen it looks strongest on momentum and quality, and weakest on value.
- ✓Pays a dividend - about 2.2% a year
- ✓Growing - revenue up about 6% over the year
- ✓Very profitable - turns about 19% of sales into profit
- !Carries a lot of debt - roughly 3.3x its equity
- ✓Strong return on shareholder money (ROE 105%)
- Extremely high return on equity shows efficient management
- Strong profit margins indicate a competitive advantage
- Diverse range of industries reduces reliance on one sector
- Value screens low (28/100)
- Global economic downturns typically hit industrial companies hardest
- Rising costs for steel and other raw materials could hurt profits
- Changes in trade policy could disrupt their international supply chains
What do Illinois Tool Works Inc.'s numbers mean?
How much money does Illinois Tool Works Inc. make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Does Illinois Tool Works Inc. pay a dividend?
Yes - Illinois Tool Works Inc. currently pays a dividend of about 2.2% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.
What do the numbers say about Illinois Tool Works Inc.'s dividend?
There's no rating here, and we don't judge whether the dividend will continue - that would be advice. Here are the figures income investors usually look at, and what each one means, so you can weigh it up yourself.
Figures are from the latest available data and can be distorted by one-off results. Past payments don't predict future ones, and a dividend can be cut at any time. This lays out the numbers to help you understand them - it is not a view on what will happen.
When does Illinois Tool Works Inc. report earnings, and how did recent quarters go?
Illinois Tool Works Inc. is next scheduled to report on about 2026-10-23 - dates can move, and we don't predict results; this just tells you when to look.
Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.
| Reported | Expected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number. | Actual EPS | vs expected |
|---|---|---|---|
| 2026-07-28 | $2.80 | $2.84 | Beat +2% |
| 2026-04-30 | $2.56 | $2.66 | Beat +4% |
| 2026-02-03 | $2.69 | $2.72 | Beat +1% |
| 2025-10-24 | $2.72 | $2.81 | Beat +3% |
| 2025-07-30 | $2.56 | $2.58 | In line |
| 2025-04-30 | $2.35 | $2.38 | Beat +1% |
Across the last 6 quarters here, Illinois Tool Works Inc. came in ahead of what analysts expected 5 times. One quarter is noise, not a trend.
See who else reports over the next two weeks →
Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.
More in Industrials
Space Exploration Technologies Corp.
GE Vernova
Global Payments Inc.
Delta Air Lines
Vertiv Holdings Co
Howmet Aerospace Inc.
EMCOR Group, Inc.
Southwest Airlines Co.What are the scenarios for Illinois Tool Works Inc.?
An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of Illinois Tool Works Inc.?
How many points the write-up makes each way — a balance check, not a score or verdict.
- Extremely high return on equity: How much profit the company makes for each £1 shareholders have put in. Higher usually means a more efficient business. shows efficient management
- Strong profit margins indicate a competitive advantage
- Diverse range of industries reduces reliance on one sector
- Consistent history of paying dividends to shareholders
- High price-to-book: The share price versus the company's net assets per share (its book value). Under 1 can look cheap, though it varies a lot by industry. ratio suggests the shares are not 'cheap' by traditional measures
- Growth is tied to the health of the broader industrial economy
- Large size can make it difficult to find rapid new growth opportunities
- Global economic downturns typically hit industrial companies hardest
- Rising costs for steel and other raw materials could hurt profits
- Changes in trade policy could disrupt their international supply chains
The write-up's own warning lights — if these start happening, the case above changes.
- A sustained drop in profit margins would suggest their competitive edge is fading
- A significant cut to their dividend would signal a major change in financial health
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-02 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.