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ITW (Illinois Tool Works) Earnings Yield (Joel Greenblatt) % : 5.65% (As of Mar. 2025)


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What is Illinois Tool Works Earnings Yield (Joel Greenblatt) %?

Illinois Tool Works's Enterprise Value for the quarter that ended in Mar. 2025 was $80,149 Mil. Illinois Tool Works's EBIT for the trailing twelve months (TTM) ended in Mar. 2025 was $4,525 Mil. Illinois Tool Works's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2025 was 5.65%.

The historical rank and industry rank for Illinois Tool Works's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

ITW' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 3.72   Med: 5.62   Max: 8.65
Current: 5.5

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Illinois Tool Works was 8.65%. The lowest was 3.72%. And the median was 5.62%.

ITW's Earnings Yield (Joel Greenblatt) % is ranked better than
64.52% of 3041 companies
in the Industrial Products industry
Industry Median: 3.57 vs ITW: 5.50

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Illinois Tool Works's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2025 was 13.63%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Illinois Tool Works Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for Illinois Tool Works's Earnings Yield (Joel Greenblatt) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Illinois Tool Works Earnings Yield (Joel Greenblatt) % Chart

Illinois Tool Works Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Earnings Yield (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.14 4.22 5.43 4.77 5.76

Illinois Tool Works Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Earnings Yield (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.86 5.52 5.49 5.76 5.65

Competitive Comparison of Illinois Tool Works's Earnings Yield (Joel Greenblatt) %

For the Specialty Industrial Machinery subindustry, Illinois Tool Works's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Illinois Tool Works's Earnings Yield (Joel Greenblatt) % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Illinois Tool Works's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Illinois Tool Works's Earnings Yield (Joel Greenblatt) % falls into.


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Illinois Tool Works Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

Illinois Tool Workss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2024 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=4705/81677.64
=5.76 %

Illinois Tool Works's EBIT for the trailing twelve months (TTM) ended in Mar. 2025 adds up the quarterly data reported by the company within the most recent 12 months, which was $4,525 Mil.



Illinois Tool Works  (NYSE:ITW) Earnings Yield (Joel Greenblatt) % Explanation

Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.

Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.


Be Aware

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


Illinois Tool Works Earnings Yield (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of Illinois Tool Works's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Illinois Tool Works Business Description

Address
155 Harlem Avenue, Glenview, IL, USA, 60025
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. ITW's automotive OEM segment sells vehicle components; its food equipment segment sells commercial kitchen appliances; its test & measurement and electronics segment sells inspection and analysis equipment; its welding segment sells welding equipment and consumables; its polymers & fluids segment sells industrial and consumer adhesives, solvents, and coatings; its construction products segment sells building fasteners and tools; and its specialty products segment sells medical, packaging, HVAC, and airport ground equipment.
Executives
Christopher A O'herlihy officer: Executive Vice President 155 HARLEM AVE., GLENVIEW IL 60025
Michael M Larsen officer: SVP & CFO ILLINOIS TOOL WORKS INC., 155 HARLEM AVE., GLENVIEW IL 60025
Ernest Scott Santi director, officer: President & CEO ILLINOIS TOOL WORKS INC., 155 HARLEM AVE., GLENVIEW IL 60025
Smith David Byron Jr director 155 HARLEM AVE., GLENVIEW IL 60025
Mary Katherine Lawler officer: SVP & Chief HR Officer ILLINOIS TOOL WORKS INC., 155 HARLEM AVE, GLENVIEW IL 60025
Randall J Scheuneman officer: VP & Chief Accounting Officer 155 HARLEM AVE., GLENVIEW IL 60025
Sharon Szafranski officer: Executive Vice President 155 HARLEM AVE., GLENVIEW IL 60025
Kelly J Grier director 155 HARLEM AVE., GLENVIEW IL 60025
Lei Zhang Schlitz officer: Executive Vice President 5757 N. GREENBAY AVENUE, GLENDALE WI 53129
Patricia A. Hartzell officer: Executive Vice President 155 HARLEM AVE., GLENVIEW IL 60025
Javier Gracia Carbonell officer: Executive Vice President 155 HARLEM AVE., GLENVIEW IL 60025
Jay L Henderson director 50 SOUTH LASALLE ST, CHICAGO IL 60603
Jennifer Kaplan Schott officer: SVP, General Counsel & Secy. 155 HARLEM AVE., GLENVIEW IL 60025
Darrell L Ford director 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Finch Norman D. Jr. officer: Sr. VP, General Counsel & Secy C/O ILLINOIS TOOL WORKS INC., 155 HARLEM AVE., GLENVIEW IL 60025