Illinois Tool WorksFRA:ILT +2.45%84 Pretax Margin % is 24.08% as of Mar. 2026, which is 4% above its 10-year median of 23.16. 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 3,038 Industrial Products companies, Illinois Tool Works ranks better than 94.37% on this metric.
The historical rank and industry rank for Illinois Tool Works's Pretax Margin % or its related term are showing as below:
FRA:ILT'
s Pretax Margin % Range Over the Past 10 Years
Min: 21.38 Med: 23.16 Max: 27.81
Current: 24.89
FRA:ILT's Pretax Margin % is ranked better than 94.37% of 3038
companies
in the Industrial Products industry
Industry Median: 5.85
vs FRA:ILT: 24.89
Illinois Tool Works (FRA:ILT) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Illinois Tool Works Pretax Margin % Related Terms
Illinois Tool Works Pretax Margin % Historical Data
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The historical data trend for Illinois Tool Works's Pretax 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: Pretax Margin % Comparison
For the Specialty Industrial Machinery subindustry, Illinois Tool Works's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Illinois Tool Works's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Illinois Tool Works's Pretax 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.
Illinois Tool Works (FRA:ILT) has a Pretax Margin % of 24.08% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Illinois Tool Works and its competitors. This is near median its historical median of 23.16. Over the past decade, Illinois Tool Works' Pretax Margin % has ranged from 21.38 to 27.81. According to the industry distribution chart, Illinois Tool Works ranks #171 out of 3038 companies in the Industrial Products industry, placing it in the top 5.6%.
Is Illinois Tool Works' Pretax Margin % too high?
Illinois Tool Works' current Pretax Margin % of 24.08% is near median its 10-year median of 23.16. Over the past 10 years, this metric has ranged from a low of 21.38 to a high of 27.81. The Industrial Products industry median Pretax Margin % is 5.85. Illinois Tool Works' value of 24.08% is 311.6% above this industry median. Based on the distribution chart, Illinois Tool Works ranks #171 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 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Illinois Tool Works' Pretax Margin % compare to EMR and CMI?
According to the Industrial Products industry distribution chart, Illinois Tool Works ranks #171 out of 3038 companies for Pretax Margin %. This places Illinois Tool Works in the top 6% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 5.85. Illinois Tool Works' value of 24.08% is 311.6% above this benchmark. Historically, Illinois Tool Works' own Pretax Margin % has ranged from 21.38 to 27.81 over the past decade. While the company's 10-year median is 23.16 vs. the industry median of 5.85, 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 Pretax Margin % for an Industrial Products company?
The median Pretax Margin % among Industrial Products companies is 5.85, based on 3,038 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Illinois Tool Works's current Pretax Margin % of 24.08% is 311.6% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Illinois Tool Works and its competitors. For the Industrial Products industry, the median Pretax Margin % is 5.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Illinois Tool Works's current Pretax Margin % is 24.08%, which is near median its own 10-year median of 23.16. 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 Pretax Margin % is 24.08%, which is near median its 10-year median of 23.16 and 311.6% above the Industrial Products industry median of 5.85. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Illinois Tool Works (FRA:ILT), the current Pretax Margin % is 24.08% 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:
Pretax Margin %: 24.08% (near median its 10-year median of 23.16)
GF Value™: €230.39 vs. price of €234.40 (1.7% above fair value)
Industry Position: 311.6% above the Industrial Products median (#171 of 3038)
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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