Illinois Tool WorksFRA:ILT +2.45%84 Gross Margin % is 43.82% as of Mar. 2026, which is 5% above its 10-year median of 41.91. GuruFocus rates FRA:ILT with a GF Score™ of 84/100 and a GF Value™ of €230.39 (Fairly Valued). The stock has 2 warning signs investors should review. Among 3,003 Industrial Products companies, Illinois Tool Works ranks better than 83.62% on this metric.
The historical rank and industry rank for Illinois Tool Works's Gross Margin % or its related term are showing as below:
FRA:ILT'
s Gross Margin % Range Over the Past 10 Years
Min: 40.82 Med: 41.91 Max: 44.28
Current: 44.12
During the past 13 years, the highestGross Margin % of Illinois Tool Works was 44.28%. The lowest was 40.82%. And the median was 41.91%.
FRA:ILT's Gross Margin % is ranked better than 83.62% of 3003
companies
in the Industrial Products industry
Industry Median: 26.79
vs FRA:ILT: 44.12
Illinois Tool Works had a gross margin of 43.82% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Illinois Tool Works was 1.60% per year.
Illinois Tool Works (FRA:ILT) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Illinois Tool Works had a gross margin of 43.82% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Illinois Tool Works Gross Margin % Related Terms
Illinois Tool Works Gross Margin % Historical Data
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The historical data trend for Illinois Tool Works's Gross Margin % 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.
FRA:ILT vs EMR, CMI, AME: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Illinois Tool Works's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Illinois Tool Works's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Illinois Tool Works's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Illinois Tool Works (FRA:ILT) has a Gross Margin % of 43.82% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Illinois Tool Works and its competitors. This is near median its historical median of 41.91. Over the past decade, Illinois Tool Works' Gross Margin % has ranged from 40.82 to 44.28. According to the industry distribution chart, Illinois Tool Works ranks #492 out of 3003 companies in the Industrial Products industry, placing it in the top 16.4%.
Is Illinois Tool Works' Gross Margin % too high?
Illinois Tool Works' current Gross Margin % of 43.82% is near median its 10-year median of 41.91. Over the past 10 years, this metric has ranged from a low of 40.82 to a high of 44.28. The Industrial Products industry median Gross Margin % is 26.79. Illinois Tool Works' value of 43.82% is 63.6% above this industry median. Based on the distribution chart, Illinois Tool Works ranks #492 out of 3003 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Illinois Tool Works has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Illinois Tool Works' Gross Margin % compare to EMR and CMI?
According to the Industrial Products industry distribution chart, Illinois Tool Works ranks #492 out of 3003 companies for Gross Margin %. This places Illinois Tool Works in the top 16% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.79. Illinois Tool Works' value of 43.82% is 63.6% above this benchmark. Historically, Illinois Tool Works' own Gross Margin % has ranged from 40.82 to 44.28 over the past decade. While the company's 10-year median is 41.91 vs. the industry median of 26.79, Illinois Tool Works has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.79, based on 3,003 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Illinois Tool Works's current Gross Margin % of 43.82% is 63.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Illinois Tool Works and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Illinois Tool Works's current Gross Margin % is 43.82%, which is near median its own 10-year median of 41.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Illinois Tool Works stock overvalued right now?
Based on GuruFocus' analysis, Illinois Tool Works (FRA:ILT) is currently considered Fairly Valued. The stock's GF Value™ is €230.39, compared to a current price of €234.40 — trading 1.7% above its estimated fair value. The current Gross Margin % is 43.82%, which is near median its 10-year median of 41.91 and 63.6% above the Industrial Products industry median of 26.79. Illinois Tool Works' overall GF Score™ is 84/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Illinois Tool Works (FRA:ILT), the current Gross Margin % is 43.82% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Illinois Tool Works (FRA:ILT) Overvalued in 2026?
Based on GuruFocus' analysis, Illinois Tool Works stock appears to be overvalued.
The current stock price of €234.40 is trading 1.7% above its estimated GF Value™ of €230.39.
GuruFocus considers Illinois Tool Works to be Fairly Valued.
Key valuation signals for FRA:ILT:
Gross Margin %: 43.82% (near median its 10-year median of 41.91)
GF Value™: €230.39 vs. price of €234.40 (1.7% above fair value)
Industry Position: 63.6% above the Industrial Products median (#492 of 3003)
No single metric tells the full story. See the FRA:ILT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 and measurement and electronics segment sells inspection and analysis equipment; its welding segment sells welding equipment and consumables; its polymers and 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.
84GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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