Quality score · ITW · Industrials

Is Illinois Tool Works Inc. a quality business?

Illinois Tool Works Inc. (ITW) scored on five pillars from its reported financial statements, and ranked against 270 Industrials companies.

7.0/ 10
High quality
as of October 18, 2026
Profitability
9.2 Strong
Solvency
7.0 Strong
Growth
4.3 Average
Efficiency
6.5 Average
Predictability
7.6 Strong
Strongest pillar: Profitability · Weakest: Growth

Illinois Tool Works Inc. (ITW) scores 7.0 out of 10 as of , computed from its reported financial statements. That reads as high quality. The reading rests on profitability, and growth is what holds it back.

Data provided by Twelve Data. Scores are computed by Lemma Analysis from reported financials.

Does Illinois Tool Works Inc. have an economic moat?

Not enough data

We cannot judge Illinois Tool Works Inc. yet, because fewer than five years had both a return on capital and a cost of capital we could measure. This is not a “no”.

Quantitative signs of a moat, read from the filed statements. This is not a judgement of where it comes from (brand, network effects, switching costs). How Lemma measures a moat →

How Illinois Tool Works Inc. scores

On the filings behind it, Illinois Tool Works Inc. earns 7.0 out of 10 for business quality as of October 18, 2026. That is high quality on our scale. A high reading means most of the pillars are strong, with no serious weakness pulling the average down. The figure is a weighted average of five pillars, each scored from 0 to 10 against sector-aware benchmarks from reported statements.

Set against 270 Industrials companies, Illinois Tool Works Inc. lands at the 86th percentile, in the top quarter of its peers. The median across the group is 5.6, and the top quarter begins at 6.5, so Illinois Tool Works Inc. is above the typical company here.

Pillar by pillar

Profitability

On profitability, Illinois Tool Works Inc. scores 9.2, a strong reading. Its peers have a median of 4.9 across 262 Industrials companies, which places it well above them, at the 99th percentile. Returns and margins at this level leave room to reinvest, absorb a bad year or return cash to shareholders without straining the business.

Solvency

Solvency scores 7.0 out of 10, which reads as strong. The median across 241 Industrials companies is 7.1, so Illinois Tool Works Inc. is in line with its peers on this pillar and ranks at the 49th percentile. A high solvency score means leverage is modest relative to earnings and cash flow, which gives management room to act in a bad year.

Growth

On growth, Illinois Tool Works Inc. scores 4.3, an average reading. Its peers have a median of 5.4 across 216 Industrials companies, which places it below them, at the 35th percentile. Average growth reflects a business expanding at roughly the pace of its sector, without a clear acceleration or decline.

Efficiency

Efficiency scores 6.5 out of 10, which reads as average. The median across 264 Industrials companies is 6.2, so Illinois Tool Works Inc. is in line with its peers on this pillar and ranks at the 58th percentile. Middling efficiency is unremarkable on its own, though improvements here tend to show up in free cash flow first.

Predictability

Illinois Tool Works Inc.’s predictability score is 7.6 out of 10 (strong). Against a median of 5.0 among 267 Industrials companies, that is well above the group and the 90th percentile. Steady results like these are what make a long term view of the business easier to hold.

Strongest and weakest pillar

This is a lopsided profile. Profitability scores 9.2 but growth only 4.3, a gap of 4.9 points, so the overall hides a business that is excellent in one respect and weak in another. Leading with profitability is the most valuable kind of strength, because margins and returns are what the other pillars ultimately feed. A growth shortfall often comes with size or a maturing market, and is less of a concern if the other pillars are strong.

What would move the score

The pillar with the most room to move the score is growth. If it rose to the median of Industrials companies, 5.4, Illinois Tool Works Inc.’s overall score would go from 7.0 to about 7.2. All five pillars could be scored, so the overall uses the full set of weights out of 100: profitability 25, solvency 20, growth 20, efficiency 15, predictability 20.

Illinois Tool Works Inc. and similar companies

These are the Industrials companies closest to Illinois Tool Works Inc. in market value. Each has its own page scored on the same five pillars, so the comparison is like for like.

What each pillar measures

Profitability

9.2 / 10

How much profit the company generates from its capital and sales.

Solvency

7.0 / 10

The company’s ability to service debt and meet its obligations.

Growth

4.3 / 10

How fast revenue, earnings and cash flow are compounding.

Efficiency

6.5 / 10

How well assets and earnings convert into cash and output.

Predictability

7.6 / 10

How stable and consistent results have been over time.

How this score is calculated

Each metric is scored from 0 to 10 against sector-aware benchmarks, where higher is better. Metrics roll up into five pillars, and the pillars combine into the overall score using the weights shown. Sector-sensitive metrics are judged relative to peers in the same sector.

Limitations

This score is a systematic, backward-looking read of reported fundamentals. It does not judge valuation, management quality, competitive moat, or future prospects, and can be distorted by one-off items or unusual accounting. Treat it as a starting point, not a recommendation.

Educational only. Not investment advice.

FAQ

Is Illinois Tool Works Inc. a quality business?

On this reading Illinois Tool Works Inc. scores 7.0 out of 10, which reads as high quality. Its strongest pillar is profitability, its weakest is growth. Quality is not the same as a good investment: the score says nothing about the price you would pay.

How does Illinois Tool Works Inc. compare with other Industrials companies?

Illinois Tool Works Inc. ranks at the 86th percentile of the 270 Industrials companies Lemma publishes a score for. The median there is 5.6 and the top quarter starts at 6.5, against Illinois Tool Works Inc.’s 7.0.

What does the ITW quality score measure?

Five pillars, each scored from 0 to 10 against sector-aware benchmarks and then weighted into one overall reading: profitability, solvency, growth, efficiency and predictability. Everything comes from reported financials, and nothing comes from price, sentiment or forecasts.

How current is this score?

This page last changed on October 18, 2026. The score moves with the financial statements, so the page changes when a new filing moves the reading rather than on a schedule. Live figures for ITW are in the app.

Does a high score mean the stock is cheap?

No. Quality and valuation are separate questions, and a good business at the wrong price is still a bad purchase. Score the business here, then price it with a DCF you control.

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