Illinois Tool WorksSTU:ILT +0.78%83 Operating Margin % is 25.40% as of Mar. 2026, which is 5% above its 10-year median of 24.08. GuruFocus rates STU:ILT with a GF Score™ of 83/100 and a GF Value™ of €234.19 (Fairly Valued). The stock has 1 warning sign investors should review. Among 3,038 Industrial Products companies, Illinois Tool Works ranks better than 96.81% on this metric.
Illinois Tool Works Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Illinois Tool Works's Operating Margin % or its related term are showing as below:
STU:ILT'
s Operating Margin % Range Over the Past 10 Years
Min: 22.47 Med: 24.08 Max: 26.82
Current: 26.42
STU:ILT's Operating Margin % is ranked better than 96.81% of 3038
companies
in the Industrial Products industry
Industry Median: 6.53
vs STU:ILT: 26.42
Illinois Tool Works's 5-Year Average Operating Margin % Growth Rate was 3.10% per year.
Illinois Tool Works (STU:ILT) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Illinois Tool Works Operating Margin % Related Terms
Illinois Tool Works Operating Margin % Historical Data
* Premium members only.
The historical data trend for Illinois Tool Works's Operating 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.
STU:ILT vs EMR, CMI, AME: Operating Margin % Comparison
For the Specialty Industrial Machinery subindustry, Illinois Tool Works's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Illinois Tool Works's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Illinois Tool Works's Operating Margin % falls into.
Illinois Tool Works Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Illinois Tool Works's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Illinois Tool Works (STU:ILT) has a Operating Margin % of 25.40% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Illinois Tool Works and its competitors. This is near median its historical median of 24.08. Over the past decade, Illinois Tool Works' Operating Margin % has ranged from 22.47 to 26.82. According to the industry distribution chart, Illinois Tool Works ranks #97 out of 3038 companies in the Industrial Products industry, placing it in the top 3.2%.
Is Illinois Tool Works' Operating Margin % too high?
Illinois Tool Works' current Operating Margin % of 25.40% is near median its 10-year median of 24.08. Over the past 10 years, this metric has ranged from a low of 22.47 to a high of 26.82. The Industrial Products industry median Operating Margin % is 6.53. Illinois Tool Works' value of 25.40% is 289% above this industry median. Based on the distribution chart, Illinois Tool Works ranks #97 out of 3038 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 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Illinois Tool Works' Operating Margin % compare to EMR and CMI?
According to the Industrial Products industry distribution chart, Illinois Tool Works ranks #97 out of 3038 companies for Operating Margin %. This places Illinois Tool Works in the top 3% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.53. Illinois Tool Works' value of 25.40% is 289% above this benchmark. Historically, Illinois Tool Works' own Operating Margin % has ranged from 22.47 to 26.82 over the past decade. While the company's 10-year median is 24.08 vs. the industry median of 6.53, 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 Operating Margin % for an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,038 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Illinois Tool Works's current Operating Margin % of 25.40% is 289% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Illinois Tool Works and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Illinois Tool Works's current Operating Margin % is 25.40%, which is near median its own 10-year median of 24.08. 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 (STU:ILT) is currently considered Fairly Valued. The stock's GF Value™ is €234.19, compared to a current price of €232.20 — trading 0.8% below its estimated fair value. The current Operating Margin % is 25.40%, which is near median its 10-year median of 24.08 and 289% above the Industrial Products industry median of 6.53. Illinois Tool Works' overall GF Score™ is 83/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Illinois Tool Works (STU:ILT), the current Operating Margin % is 25.40% 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 (STU:ILT) Overvalued in 2026?
Based on GuruFocus' analysis, Illinois Tool Works stock appears to be undervalued.
The current stock price of €232.20 is trading 0.8% below its estimated GF Value™ of €234.19.
GuruFocus considers Illinois Tool Works to be Fairly Valued.
Key valuation signals for STU:ILT:
Operating Margin %: 25.40% (near median its 10-year median of 24.08)
GF Value™: €234.19 vs. price of €232.20 (0.8% below fair value)
Industry Position: 289% above the Industrial Products median (#97 of 3038)
No single metric tells the full story. See the STU: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.
83GF Score
Get the complete analysis for STU:ILT
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
STU:ILT has been successfully added to your 
