Illinois Tool Works Inc. (ITW) — RQD Stock Rating Cockpit

Per the Roarable RQD rating, ITW scores 76 out of 100, a B+ grade, labeled "Roarable Buy — Very Good Cash & Smart-Money Inflow." The five pillars are:

• Fundamental Cash Engine (18 / 20): Per the Roarable RQD rating, this pillar reflects ROIC of 23.4% and an FCF yield of 3.38%. For a prospective investor, the high ROIC indicates strong capital efficiency, while the 3.38% FCF yield signals that the stock's cash generation is meaningful but not cheap on a cash-yield basis relative to the current price of 281.4.
• Whale 13F Flow (15 / 20): Per the Roarable RQD rating, this pillar captures institutional accumulation and options positioning. The underlying 13F detail is not itemized in the source data, so the score is a summary indicator only; investors should note that holder-level confirmation is unavailable here.
• Insider Conviction (15 / 20): Per the Roarable RQD rating, this pillar reflects SEC Form 4 and Congressional PTR cluster flow. Individual transactions are not itemized in the source data.
• Macro Regime Fit (12 / 20): Per the Roarable RQD rating, beta is 0.92, indicating the stock has historically tracked the broader market at slightly lower volatility. This is the lowest-scoring pillar, reflecting sector sensitivity; it implies the stock may not provide strong upside leverage in a risk-on macro regime.
• Forensic Balance Sheet (16 / 20): Per the Roarable RQD rating, this pillar reflects an Altman Z of 10.74, a Piotroski F of 6/9, and Debt/Equity of 0.8. These readings point to a balance sheet with low distress signals, though the Piotroski score leaves room for improvement.

Investor implications: the composite suggests a quality-compounder profile with solid cash economics, tempered by a valuation that the market data shows at 24.3x trailing earnings, and a macro-sensitivity pillar that caps the score. Upside drivers are the cash-engine and balance-sheet pillars; valuation tradeoff is the elevated multiple relative to the cash yield. This is educational analysis, not personalized financial advice.

Illinois Tool Works Inc. is a NYSE-listed issuer in the Industrials sector, operating in the Industrial Machinery/Components industry, per the Profile section. Per the Market Data section, the company reports a gross margin of 52.9%, an operating margin of 26.3%, and a net margin of 20.5%. Customer base and product-line detail are not available in source data. How the company monetizes its products beyond these margin figures is not available in source data.

Per the SEC financials, revenue is broadly flat across the three periods, moving from $16107.0M in FY 2023 to $16044.0M in FY 2025, while operating income has held in a range of $4040.0M to $4264.0M. Net income is reported as $0.0M and EPS as N/A in every period, so earnings trend cannot be assessed from the financials section. Per the Market Data section, ROIC is 23.4%, and per the Roarable RQD rating, the Altman Z-Score is 10.74 and the Piotroski F-Score is 6/9. Debt/Equity is 0.8 per the Roarable RQD rating, and cash declined from $948.0M in FY 2024 to $851.0M in FY 2025 while debt rose from $6308.0M to $6683.0M over the same period.

Per the recent news and catalysts section, six items are tagged to ITW:

• CATALYST (GREEN): A Seeking Alpha headline states that shares "Don't Justify An Upgrade Even With Continued Growth," which is tagged as a catalyst item.
• CATALYST (GREEN): A Yahoo Finance item on "Innovation Gains or an Industrial Upturn?" is tagged as a catalyst.
• RISK WATCH (RED): An Investing.com item reports that JPMorgan downgraded the stock rating on valuation.
• MARKET WIRE (YELLOW): Three items (a Yahoo! Finance Canada quote page, a Yahoo Finance "Mixed Signals" piece, and a Yahoo Finance earnings preview) are tagged as market wire.

Per the Butterfly Supply-Chain Graph, the supply chain is recorded as NONE, with no butterfly links and no proprietary signals.

Analyst consensus, price targets, and holder detail are not available in source data. The only analyst-related headline in the source is the JPMorgan valuation downgrade referenced in the catalysts section; the rating level and target price are not available in source data.

• What is the net income and EPS trajectory, given that the financials section reports $0.0M net income and N/A EPS across all periods?
• What is the basis of the JPMorgan downgrade, and what rating and price target were assigned?
• What is the detailed 13F and Form 4 holder activity behind the whale and insider pillar scores?
• Why did debt rise by roughly $375M from FY 2024 to FY 2025 while cash declined, and what is the debt maturity profile?
• What drives the 0.92 beta and the sector-sensitivity penalty in the macro pillar, given the absence of supply-chain links?