Illinois Tool Works vs Stanley Black & Decker
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KIRA’s take AI analyst
I put Illinois Tool Works and Stanley Black & Decker side by side, using each one’s latest annual report. Here is what stands out:
- Illinois Tool Works is the larger business, with $16.0B of revenue in fiscal 2025 against $15.1B for Stanley Black & Decker.
- Illinois Tool Works grew revenue faster (0.9%, against −1.5%).
- Illinois Tool Works turned more of its sales into free cash flow (16.9% FCF margin, against 4.6%).
- Illinois Tool Works earned a higher return on the capital invested in it (30.2%, against 6.2%).
- Investors pay more for each dollar of Illinois Tool Works’s earnings: a P/E of 25.0x against 24.2x for Stanley Black & Decker.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Illinois Tool Works
ITW
9/10
Revenue growth5-year growthGross marginNet marginFCF marginReturn on capitalReturn on equityNet debt / EBITDAShare count change
Stanley Black & Decker
SWK
0/10
Side by side
Best in the row
| Latest fiscal year | ITW FY25 | SWK FY25 |
|---|---|---|
| Size | ||
| Market cap | $79.3B | $15.0B |
| Revenue | $16.0B | $15.1B |
| Free cash flow | $2.7B | $688M |
| Net income | $3.1B | $402M |
| Growth | ||
| Revenue growth | 0.9% | −1.5% |
| 5-year growth | 5.0% | 3.5% |
| Share count change | −1.9% | 0.4% |
| Profitability | ||
| Gross margin | 52.9% | 30.3% |
| Operating margin | 26.3% | — |
| Net margin | 19.1% | 2.7% |
| FCF margin | 16.9% | 4.6% |
| Return on capital | 30.2% | 6.2% |
| Return on equity | 93.7% | 4.5% |
| Balance sheet | ||
| Net debt | $8.1B | $5.6B |
| Net debt / EBITDA | 1.8x | 4.3x |
| Dividends and buybacks | $3.3B | $521M |
| Valuation & quality | ||
| P/E | 25.0x | 24.2x |
| Piotroski F-score | 6 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.