FUNDAMENTAL ANALYSIS
ITW
Illinois Tool Works
FUNDAMENTAL RATING
FUNDAMENTAL SCORE
77 / 100
Summary
Illinois Tool Works reported a meaningful annual net income decline: latest annual net income fell 12.1% YoY (year-over-year) while the three-year net income compound annual growth rate (CAGR (compound annual growth rate)) is essentially flat at about 0.4% a year. The most recent quarter showed $815M in net income and improved QoQ (quarter-over-quarter) direction, which runs against the weaker annual result. Revenue has compounded at about 0.2% a year, indicating a flat top line. Assets clearly exceed liabilities per the Altman Z-score of 8.2, which sits in the safe zone (safe threshold 2.99; distress below 1.81). The Piotroski F-Score of 5 on a 0 to 9 quality scale is a mixed earnings-quality reading, and the price-to-earnings ratio of 26.3 is roughly in line with the S&P 500 average. The next earnings report must show whether quarterly net income improvement sustains and reverses the yearly net income decline.
Revenue — Annual Comparison
Net Income — Annual Comparison
Quarterly Detail Charts
Quarterly Revenue
Quarterly Net Income
Piotroski F-Score Breakdown
5/9 · Neutral
Profitability — Net income positive this fiscal year
Pass
Return on Assets — Return on Assets improved year-over-year
Fail
Cash flow positive — Cash from operations positive this fiscal year
Pass
Earnings quality — Cash from operations exceeds net income
Pass
Leverage down — Long-term debt / total assets improved
Pass
Liquidity up — Current ratio improved year-over-year
Fail
No share dilution — Share count did not increase year-over-year
Pass
Margin up — Gross margin expanded year-over-year
N/A
Asset efficiency — Asset turnover improved year-over-year
Fail
Data Source
This dashboard applies a modified 9-signal Piotroski F-Score (Piotroski, 2000) and Altman Z-Score models. Fundamental filing data is sourced from the SEC's EDGAR XBRL database (primary), with API Ninjas as backup for freshly-filed 10-Ks not yet in SEC. Live price, market cap, and EPS display use Tiingo end-of-day data. This page is informational analysis, not investment advice. See Financial Disclaimer.
Recent Filings
Formula & Methodology
Trend inputAnnual revenue and net income year-over-year direction contributes 20% of the score.
Piotroski inputModified 9-test Piotroski F-Score (Quality) contributes 40% of the score.
Altman inputAltman Z-Score (Distress) contributes 40% of the score.
Rating ruleFormula: Trend (20%) + Piotroski F-Score (40%) + Altman Z-Score (40%). Trend blends annual revenue and net income year-over-year direction. Piotroski is the modified 9-test variant (7 classic + 2 cash-flow tests). Altman uses the 1968 Z-Score with Safe/Grey/Distress zones. Combined blend uses ±0.45 thresholds: Bullish at +0.45 or higher, Bearish at -0.45 or lower, Neutral in between. Missing sub-signals count as Neutral (0) and weights are not re-normalized — a company with fewer available signals must earn its rating from stronger reads on the remaining pillars.