Is the business good?
How good a business is ITW?
Illinois Tool Works earns 25% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
25%
Return on invested capital · cost of capital 9.0% · 16 points above what the capital costs: growth creates value
- Operating margin
- 27%
Operating margin · Specialty Industrial Machinery median 15% · 12 months to Q2 2026
- Cash conversion
- 0.92×
Cash conversion · 0.81× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −2.0%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 23% |
| FY2021 | 24% |
| FY2022 | 24% |
| FY2023 | 25% |
| FY2024 | 27% |
| FY2025 | 26% |
Details›
- Gross margin12 months to Q2 2026
- 44%
- Operating margin12 months to Q2 2026
- 27%
- Net margin12 months to Q2 2026
- 19%
- Free cash flow margin
- 18%
- Revenue, trailing twelve months
- $16.5B
- Free cash flow, trailing twelve months
- $2.92B
- Net income, trailing twelve months
- $3.19B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 25%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Specialty Industrial Machinery
Ranks #6 of 44 by Smart Score