Illinois Tool Works Inc.ITW

Industrials
Neutral

ASignal's systematic analysis rates ITW as Neutral. Illinois Tool Works Inc. has a market cap of $77.34B, a P/E of 24.64, a 19.3% net margin, and 4.6% year-over-year revenue growth.

Reflects the latest available analysis · analyzed Jul 11, 2026

The case on ITW

Bull vs bear, surfaced by ASignal's framework agents from public market data. The precise verdict: ASignal Rank, confidence, and price targets - is in the app.

Bull case
  • Positive operating margin (25.67%) indicating strong pricing power and cost control
  • Free cash flow of $2.22B supports capital return and reinvestment capacity
  • Forward P/E of 22.07x suggests moderate valuation relative to growth expectations
  • Earnings growth of 11.80% year-over-year outpaces revenue growth, signaling margin expansion
VS
Bear case
  • High debt-to-equity ratio (2.83x) raises financial risk concerns
  • Low current ratio (1.19x) and quick ratio (0.79x) indicate potential liquidity constraints
  • MACD histogram is negative (-0.13), suggesting weakening upward momentum
  • Reddit mentions are zero, indicating lack of retail investor interest or potential data gap

Key facts

Sector
Industrials
Market cap
$77.34B
P/E ratio
24.64
Gross margin
44.1%
Net margin
19.3%
Rev growth YoY
4.6%
Price (Jul 11, 2026)
$268.81

Peers

Clustered with ITW by analysis-profile similarity.

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ASignal Rank (1-4), confidence score, Buffett / Ackman / Dalio grades, price targets, and the full reasoning behind the call.

How ASignal analyzes ITW

Most investors never get a second opinion, let alone several. ASignal runs ITW past a panel of specialized investor-framework agents, each calibrated on a distinct school of investing: Warren Buffett's value discipline, Bill Ackman's activist lens, and Ray Dalio's macro view. They don't just score in isolation, they argue: a dedicated Challenger agent pushes back on every conclusion until the panel settles on a reasoned consensus, weighing fundamentals, macro conditions, market sentiment, and price action together. The kind of cross-examined read that takes a research desk hours, ASignal delivers in under two minutes, refreshed every cycle.

The signal direction and the bull and bear case above are free. The precise read, ASignal Rank, framework grades, price targets, and full reasoning, stays with subscribers.

Illinois Tool Works Inc. (ITW) Stock Analysis - ASignal rates it Neutral