Illinois Tool Works (STU:ILT) ROCE %: 38.14% (As of Mar. 2026)


STU:ILT Illinois Tool Works Inc STU:ILT
83 GF Score
Price €232.20
GF Value €234.19
Valuation Fairly Valued
! 1 Warning Sign
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What is Illinois Tool Works ROCE %?

Illinois Tool Works STU:ILT +0.78% 83 ROCE % is 38.14% as of Mar. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Illinois Tool Works's annualized ROCE % for the quarter that ended in Mar. 2026 was 38.14%.

Illinois Tool Works  (STU:ILT) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Illinois Tool Works ROCE % Related Terms

Illinois Tool Works ROCE % Historical Data

* Premium members only.

The historical data trend for Illinois Tool Works's ROCE % 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.

Illinois Tool Works ROCE % Chart

Illinois Tool Works Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 28.56 35.51 36.96 44.45 36.94

Illinois Tool Works Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % 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 33.80 34.88 36.95 38.23 38.14
STU:ILT
83GF Score
Illinois Tool Works Inc STU:ILT
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Illinois Tool Works ROCE % Calculation

Illinois Tool Works's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=3636.332/( ( (14388.985 - 4114.14) + (13790.392 - 4377.604) )/ 2 )
=3636.332/( (10274.845+9412.788)/ 2 )
=3636.332/9843.8165
=36.94 %

Illinois Tool Works's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=3598.4/( ( (13790.392 - 4377.604) + (14068.36 - 4611.315) )/ 2 )
=3598.4/( ( 9412.788 + 9457.045 )/ 2 )
=3598.4/9434.9165
=38.14 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 38.14% mean?
Illinois Tool Works (STU:ILT) has a ROCE % of 38.14% as of Mar. 2026.
Is Illinois Tool Works' ROCE % too high?
Illinois Tool Works' current ROCE % is 38.14%. The Industrial Products industry median ROCE % is 7.10. Illinois Tool Works' value of 38.14% is 437.2% above this industry median. 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' ROCE % compare to EMR and CMI?
Illinois Tool Works' ROCE % of 38.14% can be compared against companies in the Industrial Products industry. The industry median ROCE % is 7.10. Illinois Tool Works' value of 38.14% is 437.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for an Industrial Products company?
The median ROCE % among Industrial Products companies is 7.10, based on 3,032 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Illinois Tool Works's current ROCE % of 38.14% is 437.2% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Industrial Products industry, the median ROCE % is 7.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Illinois Tool Works's current ROCE % is 38.14%. 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 ROCE % is 38.14% and 437.2% above the Industrial Products industry median of 7.10. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Illinois Tool Works (STU:ILT), the current ROCE % is 38.14% 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:

  • ROCE %: 38.14%
  • GF Value™: €234.19 vs. price of €232.20 (0.8% below fair value)
  • GF Score™: 83/100 with 1 warning sign
  • Industry Position: 437.2% above the Industrial Products median

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.

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 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

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€232.20
Price
€234.19
GF Value