# Illinois Tool Works Inc. (ITW) — Stock CV

Illinois Tool Works Inc. is a $75.2B industrial company. Revenue grew 4.3% over the last year, it keeps 19¢ of every dollar of sales as profit, and its net debt equals ~2.8 years of free cash flow. It trades at 23.6× earnings — around the middle of its own history.

> Founded in 1912, Illinois Tool Works has become a diversified industrial manufacturer through acquisitions and innovations that follow customer needs. ITW operates through seven business segments, with no segment representing more than one-fifth of revenue.

## Identity

- **Ticker**: ITW
- **Sector**: Industrials
- **Industry**: General Industrial Machinery & Equipment
- **Headquarters**: GLENVIEW, IL
- **Employees**: 43 000
- **Website**: https://www.itw.com
- **Market cap**: $75.2B
- **Last price**: $264.13
- **Financial profile**: Mixed

## Vitals (TTM)

- **Revenue**: $16.5B
- **Net income**: $3.19B
- **Free cash flow**: $2.92B
- **Net debt**: $8.12B
- **P/E**: 23.6
- **Revenue growth (YoY)**: 4.3%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 64 |
| Growth | 36 |
| Profitability | 95 |
| Health | 37 |
| Quality | 77 |
| Moat | 88 |

## Qualifications (beginner checklist) — 10 of 11 passed

- [x] Revenue growing — +4.3% YoY
- [x] Profitable — $3.19B TTM
- [x] Profit growing — +2.4% YoY
- [x] Generates cash — $2.92B TTM
- [x] Debt under control — ~2.8y of cash flow to repay
- [x] Established company — $75.2B market cap
- [x] Not printing shares — -8.1% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [ ] Financially stable — health score 37/100
- [x] Pays a dividend — yield 2.44%
- [x] Valuation not extreme — P/E 23.6

## Experience (career milestones)

- **FY2024** — Best year on record: $3.49B net income
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $10B: $13.6B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **1912** — It was founded in 1912 by Byron L

## Strengths

- High gross margin (44.2%)
- Strong cash conversion — FCF is 17.7% of revenue
- Interest covered 14.8× by operating earnings
- High returns on invested capital (ROIC 27.0%)

## Watch-outs

- None stand out in the data.

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $14.5B | $2.69B | $2.26B |
| FY2022 | $15.9B | $3.03B | $1.94B |
| FY2023 | $16.1B | $2.96B | $3.08B |
| FY2024 | $15.9B | $3.49B | $2.84B |
| FY2025 | $16.0B | $3.07B | $2.71B |

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Source: https://stockcv.com/ITW — derived from company filings; may be delayed or incomplete. Information, not investment advice.