ILLINOIS TOOL WORKS INC (ITW): what the price assumes

In the published model solve dated 2026-Q2, anchored at $280.10, ILLINOIS TOOL WORKS INC (ITW) is priced for +11.7% growth. boothcheck publishes no house fair value, target price, or buy/sell rating; individual model outputs and user-controlled scenarios are analytical inputs, not Boothcheck targets. Narrative composed 2026-06-27.

Generated: 2026-08-31 · Source: https://boothcheck.com/report/ITW

Headline

What The Price Assumes (Inversion)

The assumption today's price embeds, recovered by inverting the valuation.

The operating-margin figure is value-band context at year 12: derived from the framework's value band, a separate calculation — not part of the priced-in solve.

Solve inputs: computed at a 8.4% cost of capital with 4% terminal growth over a 5-year stage.

How unusual the bet is: within-range (limited comparison data)

Valuation X-Ray

Every valuation family lands below the price. The price therefore sits beyond what those standard frames encode.

How the valuation models price the stock relative to the market price. Price/FV above 1.0 means the market pays more than that lens defends (expensive); at or below 1.0 the lens can defend the price.

Families that call it expensive: Asset, Earnings, Relative

The models below discount at their own flat-beta convention rates (cost of equity 9.3%, WACC 8.3%); the inversion above states its own rate.

Per-Model Detail (n=14)

Economic-Unit Decomposition (Sum Of The Parts)

One or more material disclosed units has unresolved economics. Unknown/general is not evidence of homogeneity: segment SOTP is primary but incomplete, consolidated cash flow may remain only a secondary cross-check when every unit shares an enterprise basis, and one sector multiple or target margin is withheld.

No total common-equity value is stated. One or more material units lack a supported unit value. The displayed values are an indicative subtotal; consolidated debt and cash cannot be applied to a fraction of the company.

Solvency

Bullet Takeaways

• Illinois Tool Works is a seven-segment industrial built on a distinctive operating model the company calls the "80/20 Front-to-Back process," which it uses to focus each business on its most important customers and products and to run unusually high margins.
• At $264.04 no valuation family reaches the price: the stock is rich on assets, earnings power, peer multiples, and even forward growth, so the price embeds a large premium for quality and durability.
• First-quarter 2026 results showed the model working, with operating margin expanding 60 basis points to 25.4% and GAAP EPS up 12% to $2.66, and management raised full-year EPS guidance to $11.10 to $11.50 on just 1% to 3% organic growth.

Bull Case

What the standard valuation models miss about ITW is the durability of its margins, which is the whole point of the company. The static methods see a business with a 19% trailing operating margin and roughly flat revenue and conclude the price is high. What they cannot price is why that margin is so high and so stable: the 80/20 Front-to-Back model, which the 10-K describes as an innovation approach where "working from the customer back, ITW businesses position themselves as the go-to problem solver for their" most important customers. By concentrating on the 20% of customers and products that drive 80% of the value, ITW earns segment margins most diversified industrials cannot approach, and the first quarter took company-wide operating margin to 25.4%, up 60 basis points year over year.

The gap between what the numbers show and what the business does is widest in the quality of the earnings. ITW generates these margins across seven unrelated segments, from automotive components to food equipment to welding to test and measurement, which means no single end market can break the company, and the consistency is structural rather than cyclical luck. The filing frames "above-market organic growth" as the core growth engine for delivering world-class financial performance, and the model is designed to keep widening margins even when revenue growth is modest. That is exactly what happened in the first quarter: organic growth was a slim 0.4%, yet EPS rose 12%, because margin expansion and disciplined capital allocation did the heavy lifting.

The capital story compounds the operating story. ITW shrinks its share count about 2% a year through buybacks, pays a well-covered and steadily growing dividend, and converts a high share of earnings into free cash flow. Management raised full-year GAAP EPS guidance to a range of $11.10 to $11.50 while expecting all seven segments to deliver positive organic growth and margin expansion in 2026. A business that can lift EPS double digits on near-zero organic growth, across seven diversified segments, with rising margins and a shrinking share count, is the kind of compounder the static valuation frames systematically undervalue, because they price the present rather than the proven ability to widen returns year after year.

Bear Case

The honest way to weigh ITW is to take the valuation methods that disagree with the price seriously, because here they disagree nearly unanimously, and the conservative ones are usually the more reliable guide. At $264.04 not a single valuation family reaches the price. The zero-growth earnings-power value lands near $99, the perpetual-growth DCF near $142, the peer-multiple methods in the $150s to $190s, and even the forward growth methods fall short. When asset, earnings, relative, and growth frames all say expensive at once, the price is a bet beyond what any standard approach supports, and the burden of proof sits squarely with the believers.

The operating numbers give the cautious models real ammunition. ITW's organic growth was 0.4% in the first quarter, and the full-year organic outlook is just 1% to 3%. Most of the reported revenue growth came from foreign-currency translation, not from selling more product. A company growing organically at a low-single-digit pace, however high its margins, is a slow grower, and paying a premium multiple for a slow grower only works if the multiple holds. The risk is multiple compression: if the market ever decides a 1% to 3% organic grower should trade at an industrial-average multiple rather than a premium one, the de-rating alone would be painful regardless of how well the business executes.

The balance sheet and the margin ceiling round out the caution. ITW carries about $9.4 billion of net debt, net debt near 2.8 times operating income, which is moderate but not trivial against a business whose top line barely grows. More fundamentally, the 80/20 model has already been applied for decades, so the margin expansion that drives EPS growth on flat revenue has a mathematical ceiling, you cannot keep adding 60 basis points a year forever. The model that prices the business as a perpetual margin-expander is extrapolating a finite process. The conservative methods, which value ITW on what it earns today without assuming endless margin gains or a permanently premium multiple, are saying the same thing in different words: this is an excellent company at a demanding price, and excellence is already in the number.

Valuation

ITW is the rare name where every valuation family lands below the price, which is the framework's strongest signal that the market is paying for something the standard methods cannot capture. At $264.04 the zero-growth earnings-power value is near $99, the perpetual-growth DCF near $142, relative valuation near $193, EV/EBITDA near $152, and residual income near $198. The lone exception is the two-stage excess-return method, which reaches far above the price by extrapolating ITW's high return on equity, and that exception is itself the tell: the bull case for ITW lives entirely in the assumption that its superior returns persist for a long time.

The inversion frames the price as a duration-and-margin bet rather than a growth bet. With organic growth running near 1% to 3%, the price is not asking for a revenue surge; it is asking the market to believe ITW sustains its elevated margins and returns on capital for an unusually long runway. The premium is for quality, and quality is not free.

Solvency is not a concern. ITW carries about $9.4 billion of net debt against trailing operating income of roughly $4.3 billion, so net debt is under three times operating income, and interest coverage sits above fourteen times. The business converts earnings to cash efficiently and returns it through a growing dividend and steady buybacks that shrink the share count about 2% a year.

Catalysts

ITW's first quarter of 2026 was a clean demonstration of the model and prompted a guidance raise. Revenue grew 5%, but organic growth was just 0.4%, with foreign currency adding 3.9% and a small acquisition the rest; the real story was margin, which expanded 60 basis points to 25.4% and drove GAAP EPS up 12% to $2.66. Welding and Test & Measurement and Electronics led with organic growth of 6% and 5% respectively. Management raised full-year GAAP EPS guidance by $0.10 to a range of $11.10 to $11.50 while holding the organic growth outlook at 1% to 3% and revenue growth at 2% to 4%.

The forward catalysts are incremental rather than transformative, which suits a company of this profile. The key watch items are whether organic growth accelerates from its low-single-digit pace as management expects all seven segments to deliver positive organic growth, whether margin expansion continues toward the high-twenties, and how the automotive and construction-exposed segments fare against their respective cycles. Capital return is a steady tailwind, with ongoing buybacks and a growing dividend. Because the valuation already prices in continued excellence, the practical catalyst that matters most is any sign of organic-growth reacceleration that would justify the premium multiple, or conversely any stumble that invites the de-rating the conservative methods imply.

Peer Cohorts (Per Segment, With Filing Citations)

Automotive OEM (reported)

• GNTX (GENTEX CORPORATION)
• FY2025 10-K: …to HomeLink technology/functionality integrated into automotive mirrors, is included within the Automotive mirrors & electronics segment Revenue is recognized when obligations under the terms of a contract with the customer are satisfied. Such recognition generally occurs with the transfer of control of the products…
• FY2025 10-K: …The Company produces rearview mirrors and electronics globally for automotive passenger cars, light trucks, pickup trucks, sport utility vehicles, and vans for original equipment manufacturers ("OEMs"), automotive suppliers, and various aftermarket and accessory customers. Automotive rearview mirrors and electronics…
• DORM (Dorman Products, Inc.)
• FY2025 10-K: …and by improvements in the quality of new vehicle parts. The size of the motor vehicle aftermarket industry depends on factors such as the number of vehicles on the road, average vehicle age, change in total miles driven, regulatory changes, pricing of new and used vehicles, vehicle and component quality and…
• FY2025 10-K: , approximately half of our sales of specialty vehicle parts constitute nondiscretionary repair parts. This sector consists of direct-to-consumer and direct-to-dealer channels through both retail and e-commerce platforms. Key purchasing decisions of customers in this sector include ease of ordering, ease of…
• LEA (LEAR CORP)
• FY2025 10-K: …to facilitate these functions. Key components of this portfolio include zonal controllers, body domain control modules, and smart and passive power distribution modules. Our software offerings include embedded control, cybersecurity software and software to control hardware devices. Our customers traditionally have…
• FY2025 10-K: …consolidated financial statements included in this Report. Our customers award business to their suppliers in a number of ways, including the award of complete systems, which allows suppliers either to manufacture components internally or to purchase components from other suppliers at their discretion. Certain of our…
• ADNT (Adient plc)
• FY2025 10-K: …additional information. Customers Adient is a supplier to all of the global OEMs and has longstanding relationships with premier automotive manufacturers, including BMW, Mercedes-Benz Group, Ford Motor Company, General Motors Company, Honda Motor Company, Hyundai Motor Company, Jaguar Land Rover, Kia Corporation,…
• FY2025 10-K: …plants. Adient is a global leader in complete seat assembly and one of the largest in all major seating components including seating foam, metal structures, seat covers and seat mechanisms. Demand for automotive parts in the OEM market is generally a function of the number of new vehicles produced, which is primarily…
• APTV (APTIV PLC)
• FY2025 10-K: …long-term growth. Our ten largest platforms in 2025 were with six different OEMs. In addition, in 2025 our products were found in 18 of the 20 top-selling vehicle models in the United States ("U.S."), 17 of the 20 top-selling vehicle models in Europe and 20 of the 20 top-selling vehicle models in China. We have…
• FY2025 10-K: …and services to the major global OEMs in every region of the world. Our ten largest customers accounted for approximately 56% of our total net sales for the year ended December 31, 2025, which included approximately 10% to an individual Global OEM. Supply Relationships with Our Customers We typically supply products…
• GTX (Garrett Motion Inc.)
• FY2025 10-K: …and continuous pressure on OEMs to reduce costs, including the costs of the products we supply. Our customer supply agreements with automotive OEMs typically require step-downs in component pricing over the period of production. In addition, our customers often reserve the right to terminate their supply contracts at…
• FY2025 10-K: …remain resilient, supported by critical infrastructure needs and hybrid solutions, while marine applications focus on compliance and efficiency. Overall, growth expectations have shifted toward 2026-2027, with near-term conditions characterized by caution and selective investment. Global vehicle fuel efficiency and…
• PHIN (PHINIA INC.)
• FY2025 10-K: …to our customers. We rely on sales to OEMs around the world of varying credit quality and manufacturing demands. Supply to several of these customers requires significant investment by us. We base our growth projections, in part, on commitments made by our customers. These commitments by OEMs generally renew yearly…
• FY2025 10-K: Item 8 of this Form 10-K for additional financial information about geographic areas. Product Lines and Customers During the year ended December 31, 2025, approximately 35% of the Company's net sales were for Service (OES and IAM), approximately 25% were for light passenger vehicle applications, approximately 19% were…
• VC (VISTEON CORPORATION)
• FY2025 10-K: …by each OEM. Although the terms and conditions vary from customer to customer, they typically contemplate a relationship under which customers place orders for their requirements of specific components supplied for particular vehicles but are not required to purchase any minimum quantities. Individual purchase orders…
• FY2025 10-K: …In addition, certain customers have communicated an intent to manufacture components internally that are currently produced by outside suppliers, such as the Company. If the Company's OEM customers successfully insource products currently manufactured by the Company, the discontinuation or loss of business for…

Food Equipment (reported)

• MIDD (THE MIDDLEBY CORPORATION)
• FY2025 10-K: …restaurant chains. The commercial foodservice equipment industry growth opportunities in the United States are driven by the development of new quick-service and casual-theme restaurant chain concepts, the expansion of foodservice into nontraditional locations such as convenience stores and retail outlets, as well as…
• FY2025 10-K: Equipment Group's backlog was $265.3 million at December 28, 2024. The backlog is not necessarily indicative of the level of business expected for the year. Food Processing Equipment Group The backlog of orders for the Food Processing Equipment Group was $409.9 million at January 3, 2026, which is expected to be…
• JBTM (JBT Marel Corporation)
• FY2025 10-K: …energy and water usage, lowering food waste, and enhancing food safety. In the secondary processing space, we supply a broad portfolio of processing solutions for customers producing protein products, such as meat, poultry, and seafood, and liquid food and beverage products, including products used standalone or as…
• FY2025 10-K: …beverage customers by offering high-quality, technologically advanced, and reliable solutions that deliver quality performance while also striving to support customer sustainability objectives. As a result, many of our solutions seek to minimize food and packaging waste, extend food product life, opti mize and reduce…
• DOV (DOVER Corp)
• FY2025 10-K: Climate & Sustainability Technologies. For financial information about our segments and geographic areas, see Note 19 - Segment Information in the consolidated financial statements in Item 8 of this Form 10-K. Engineered Products Our Engineered Products segment provides a wide range of equipment, components, software,…
• FY2025 10-K: , retail fueling and vehicle wash establishments. • Our Imaging & Identification segment supplies precision marking and coding, product traceability, brand protection and digital textile printing equipment, as well as related consumables, software and services to the global packaged and consumer goods, pharmaceutical,…
• ITT (ITT INC.)
• FY2025 10-K: …end-users. IP's customers operate in global infrastructure and natural resource markets such as energy, chemical and petrochemical, pharmaceutical, general industrial, marine, mining, pulp and paper, food and beverage, power generation and biopharmaceutical. IP's marketplace-recognized brands include Goulds Pumps TM…
• FY2025 10-K: …levels. KONI The KONI business services four main end markets: railway rolling stock for freight and passenger trains; car and racing; bus, truck and trailer; and defense. Railway supplies a wide range of equipment for passenger rail, locomotives, freight cars, high speed trains and light rail. Offerings include…

Test & Measurement and Electronics (reported)

• KEYS (KEYSIGHT TECHNOLOGIES, INC.)
• FY2025 10-K: …to design and measurement to enable realization of the design in the fab along with efficient testing at scale to preserve and enhance yield. Our semiconductor customers are primarily design and production teams in semiconductor and semiconductor capital equipment companies who are looking to differentiate their…
• FY2025 10-K: …aerospace, defense, and satellite equipment prime contractors, subcontractors, and related component suppliers. Government customers include a range of government agencies, such as departments and ministries of defense, security agencies, and related government research entities. Our customers need to accelerate the…
• TDY (TELEDYNE TECHNOLOGIES INC)
• FY2025 10-K: …one acquisition which will be included within the Instrumentation segment. See Note 18 for additional information. Our Business Segments Our businesses are aligned in four segments: Digital Imaging, Instrumentation, Aerospace and Defense Electronics, and Engineered Systems. Additional financial information about our…
• FY2025 10-K: …systems engineering and integration, advanced technology application, software development and manufacturing solutions for defense, space, environmental and energy applications. Business segment results include net sales and operating income by segment but excludes corporate office expenses. Corporate expense…
• NDSN (NORDSON CORPORATION)
• FY2025 10-K: …drug infusion, IV & drug delivery, patient care, surgical and biopharma. • Surgical Solutions - Microplegia myocardial protection devices and related consumables used in cardiac surgical procedures. Advanced Technology Solutions This segment integrates our proprietary product technologies into the progressive stages…
• FY2025 10-K: …stages of an electronics customer's production and measurement and control processes, such as surface treatment, precisely controlled dispensing of material and test and inspection to ensure quality and reliability. Applications include, but are not limited to, semiconductors, printed circuit boards, electronic…
• MKSI (MKS INC)
• FY2025 10-K: …Electric Corporation. 9 In MSD, Element Solutions Inc., Qnity Electronics, Inc., Uyemura, JCU International, Inc. and Okuno Chemical Industries Co., Ltd. offer products that compete with our chemistry products. Schmid Group, Process Automation International Limited, Top Creation Machines Co., Ltd., Universal Circuit…
• FY2025 10-K: 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), as soon as reasonably practicable after we electronically file such materials with, or furnish them to, the SEC. Markets and Applications Since our inception, we have focused on satisfying the needs of our customers by establishing…
• ROP (ROPER TECHNOLOGIES INC)
• FY2025 10-K: …used in numerous identity access management applications across a variety of vertical markets. Verathon - medical devices that enable airway management, including bronchoscopes and video laryngoscopes, and bladder volume measurement solutions for healthcare providers. 6 Materials and Suppliers We believe most…
• FY2025 10-K: …primarily in the perishable food sector. MHA - health care services and software solutions to alternate site health care markets. SHP - data analytics and benchmarking information solutions for the post-acute healthcare provider marketplace. SoftWriters - software solutions to pharmacies that primarily serve the…
• FTV (Fortive Corp)
• FY2025 10-K: …and services in our Advanced Healthcare Solutions segment are marketed under a variety of brands, including ADVANCED STERILIZATION PRODUCTS "ASP", CENSIS, FLUKE BIOMEDICAL, LANDAUER, and PROVATION. ************************************ The following discussion includes information common to all of our segments.…
• FY2025 10-K: …to remediate inspectional observations to the satisfaction of these regulatory authorities, and real or perceived efficacy or safety concerns or trends of adverse events with respect to our products (even after obtaining clearance for distribution) can lead to warning letters, notices to customers, declining sales,…
• IEX (IDEX CORP)
• FY2025 10-K: …process. The CODM considers Adjusted EBITDA budget and forecast-to-actual variances when making decisions about the allocation of operating and capital resources to each segment. Adjusted EBITDA is also used in determining the compensation of certain employees. 68 Table of Contents The HST segment designs, produces…
• FY2025 10-K: 2023-01-01 2023-12-31 0000832101 us-gaap:OperatingSegmentsMember iex:MaterialProcessingTechnologiesMember iex:HealthAndScienceTechnologiesMember 2025-01-01 2025-12-31 0000832101 us-gaap:OperatingSegmentsMember iex:MaterialProcessingTechnologiesMember iex:HealthAndScienceTechnologiesMember 2024-01-01 2024-12-31…

Welding (reported)

• PH (PARKER-HANNIFIN CORPORATION)
• FY2025 10-K: …and custom products are also used in the replacement of original products. We market our Diversified Industrial Segment products primarily through field sales employees and independent distributors located throughout the world. Aerospace Systems Segment . Our Aerospace Systems Segment products are used in commercial…
• FY2025 10-K: We offer hundreds of thousands of individual part numbers, and no single product contributed more than one percent to our total net sales for the year ended June 30, 2025. Listed below are some of our principal products. Diversified Industrial Segment . Our Diversified Industrial Segment products consist of a broad…
• IEX (IDEX CORP)
• FY2025 10-K: …cutters, pneumatic lifting and sealing bags for vehicle and aircraft rescue, environmental protection and disaster control and jumping cushions for building rescue for the rescue market. Fire & Safety's customers are original equipment manufacturers as well as public and private fire and rescue organizations. Fire &…
• FY2025 10-K: …process. The CODM considers Adjusted EBITDA budget and forecast-to-actual variances when making decisions about the allocation of operating and capital resources to each segment. Adjusted EBITDA is also used in determining the compensation of certain employees. 68 Table of Contents The HST segment designs, produces…
• NDSN (NORDSON CORPORATION)
• FY2025 10-K: …served as Executive Vice President, Automotive OEM Segment, with Illinois Tool Works Inc. (NYSE: ITW), a global manufacturer of a diversified range of industrial products and equipment, since 2015. Prior to that, Mr. Nagarajan served as Executive Vice President, Welding Segment, with Illinois Tool Works Inc. from…
• FY2025 10-K: …drug infusion, IV & drug delivery, patient care, surgical and biopharma. • Surgical Solutions - Microplegia myocardial protection devices and related consumables used in cardiac surgical procedures. Advanced Technology Solutions This segment integrates our proprietary product technologies into the progressive stages…
• DOV (DOVER Corp)
• FY2025 10-K: …where our companies provide a substantial number of products and services applicable to a broad range of end-use applications. Seasonality In general, while our businesses are not highly seasonal, we do tend to have stronger revenue generation in the second half of the year, which is driven by customer capital…
• FY2025 10-K: …and remote monitoring of clean and traditional fuels, cryogenic gases and other hazardous substances, as well as safe and efficient operation of convenience retail, retail fueling and vehicle wash establishments across the globe. Among solutions supplied by the segment are dispensing equipment and components for…
• ITT (ITT INC.)
• FY2025 10-K: …the priority, price and availability of supply. We evaluate hedging opportunities to mitigate or minimize the risk of margin erosion resulting from the volatility of commodity prices. The challenges associated with supply chain disruptions, geopolitical disruptions, and inflation are expected to continue in 2026, and…
• FY2025 10-K: …including certain product liability claims and environmental matters. Even without ongoing contractual indemnification obligations, we could be exposed to liabilities arising out of such divestitures. Although the counterparties to those divestitures may have agreed to indemnify us or assume certain liabilities…
• EMR (EMERSON ELECTRIC CO.)
• FY2025 10-K: …sustainability and safety. The Discrete Automation segment includes solenoid valves, pneumatic valves, valve position indicators, pneumatic cylinders and actuators, air preparation equipment, pressure and temperature switches, electric linear motion solutions, programmable automation control systems and software,…
• FY2025 10-K: …Discussion and Analysis of Financial Condition and Results of Operations." INTELLIGENT DEVICES Final Control The Final Control segment is a leading global provider of control valves, isolation valves, shutoff valves, pressure relief valves, pressure safety valves, actuators, and regulators for process and hybrid…
• PNR (Pentair plc)
• FY2025 10-K: …separation technologies for the oil and gas industry, residential and municipal wells, water treatment, wastewater solids handling, pressure boosting, circulation and transfer, fire suppression, flood control, agricultural irrigation and crop spray. • Water Solutions - The focus of this segment is to provide great…
• FY2025 10-K: …our consolidated net sales in 2025, and 15 % in both 2024 and 2023. (2) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM, which includes certain corporate overhead allocations directly attributable to each of the segments. (3) Operating…
• LECO (LINCOLN ELECTRIC HOLDINGS INC)
• FY2025 10-K: The Company believes it is the world's largest manufacturer of arc welding solutions and has relatively few global broad-line competitors worldwide, but numerous smaller competitors in specific geographic markets. The Company extends its competitiveness in domestic and international markets through high quality,…
• FY2025 10-K: …by the Board normally for a term of one year and/or until the election of their successors. ITEM 2. PROPERTIES The Company's corporate headquarters and principal United States manufacturing facilities are located in the Cleveland, Ohio area. Total Cleveland area property consists of 250 acres, of which present…

Polymers & Fluids (reported)

• HON (Honeywell International Inc)
• FY2025 10-K: …construction activity (including retrofits and upgrades), lower capital spending and operating expenditures on projects, changes in the competitive landscape, including new market entrants and new technologies, and fluctuations in inventory levels in distribution channels. • Energy and Sustainability Solutions…
• FY2025 10-K: …on Accounting and Financial Disclosure 123 ITEM 9A. Controls and Procedures 124 ITEM 9B. Other Information 125 ITEM 9C . Disclosure Regarding Foreign Jurisdictions that Prevent Inspections Part III. 125 ITEM 10 Directors, Executive Officers, and Corporate Governance 125 ITEM 11 Executive Compensation 126 ITEM 12…
• GE (GENERAL ELECTRIC COMPANY)
• FY2025 10-K: …and Propulsion & Additive Technologies businesses. DPT was approximately 23% of total GE Aerospace revenue for the year ended December 31, 2025, with services representing 51% of total DPT revenue. Defense & Systems - Defense & Systems designs, develops, manufactures and services jet engines and avionics and power…
• FY2025 10-K: …within MD&A for further information about costs excluded from segment profit. The Company does not report total assets by segment for internal or external reporting purposes as the Company's CODM does not assess performance, make strategic decisions, or allocate resources based on assets. 2025 FORM 10-K 71 REVENUE…
• MMM (3M COMPANY)
• FY2025 10-K: …of its water supply due to industrial discharges from several users of PFAS in different industries, including alleged customers of 3M. 3M removed the case to federal court and in August 2025, the plaintiffs' motion to remand was denied. In September 2025, and the case was stayed pending the Eleventh Circuit's…
• FY2025 10-K: …• Automotive and Aerospace • Commercial Branding and Transportation • Display Materials and Systems • Electronics Materials Solutions • Consumer Safety and Well-Being • Home and Auto Care • Home Improvement • Packaging and Expression Representative revenue-generating activities, products or services • Industrial…
• ROP (ROPER TECHNOLOGIES INC)
• FY2025 10-K: …primarily in the perishable food sector. MHA - health care services and software solutions to alternate site health care markets. SHP - data analytics and benchmarking information solutions for the post-acute healthcare provider marketplace. SoftWriters - software solutions to pharmacies that primarily serve the…
• FY2025 10-K: …used in numerous identity access management applications across a variety of vertical markets. Verathon - medical devices that enable airway management, including bronchoscopes and video laryngoscopes, and bladder volume measurement solutions for healthcare providers. 6 Materials and Suppliers We believe most…

Construction Products (reported)

• SSD (Simpson Manufacturing Co., Inc.)
• FY2025 10-K: …specially designed products and services. The Company maintains levels of inventory intended to operate with minimum backlog and fill most customer orders within 24-48 hours. High levels of manufacturing automation and flexibility allow the Company to maintain its high-quality standards while continuing to provide…
• FY2025 10-K: …compete in one or more product categories and/or distribution channels. Since 1956, through the Simpson Strong-Tie® brand, the Company has led the industry in the wood connectors products space and has a growing presence in both the concrete and fastener markets in the U.S. and Europe. The Company has successfully…
• FBIN (Fortune Brands Innovations, Inc.)
• FY2025 10-K: Segment Raw Materials Water Brass, zinc, resins, stainless steel and aluminum Outdoors Wood, aluminum, steel, plastics, resins, glass, vinyl and insulating foam Security Steel, zinc, brass and resins Intellectual property. Product innovation and branding are important to the success of our business. In addition to the…
• FY2025 10-K: …centers and mass merchandisers. This segment is increasingly investing in and developing digital products and "smart" home capabilities. In aggregate, sales to The Home Depot and Lowe's comprised approximately 21% of net sales of the Water segment in 2025. This segment's chief competitors include Masco, Kohler, LIXIL…
• AWI (ARMSTRONG WORLD INDUSTRIES, INC.)
• FY2025 10-K: …taking into account the time-lag effect, provide a reasonable indication of our future revenue opportunity from commercial renovation and new construction. Additionally, we believe that customer preferences for product type, style, color, performance attributes (such as acoustics, energy efficiency, sustainability…
• FY2025 10-K: …Specialties or Unallocated Corporate segment, including all property and related depreciation associated with our Lancaster, Pennsylvania headquarters. Operating results for the Mineral Fiber segment include a significant majority of allocated Corporate administrative expenses that represent a reasonable allocation…
• GGG (GRACO INC.)
• FY2025 10-K: …has been recast to conform to the current organizational structure. The Company has four operating segments which are aggregated into three reportable segments: Contractor, Industrial and Expansion Markets. The Contractor segment markets sprayers and equipment that apply paint to walls and other structures, texture…
• FY2025 10-K: …then supply to their customers. Industrial The Industrial division designs and manufactures liquid finishing and advanced fluid dispensing equipment; pumps to move chemicals, petroleum, food, and other fluids; and systems, components, and accessories for the automatic lubrication of bearings, gears, and generators.…
• WMS (ADVANCED DRAINAGE SYSTEMS, INC.)
• FY2025 10-K: …solution for our clients and customers with this combination forming a key strategy in our sales growth, profitability and market share penetration. The practice of selling a drainage system is attractive to both distributors and end users, by providing a broad package of products that can be sold on individual…
• FY2025 10-K: …us to maintain more customer touch points and interaction than any of our competitors. SEASONALITY Historically, sales of our products have been higher in the first and second quarters of each fiscal year due to favorable weather and longer daylight conditions accelerating construction activity during these periods.…

Specialty Products (reported)

• GGG (GRACO INC.)
• FY2025 10-K: …then supply to their customers. Industrial The Industrial division designs and manufactures liquid finishing and advanced fluid dispensing equipment; pumps to move chemicals, petroleum, food, and other fluids; and systems, components, and accessories for the automatic lubrication of bearings, gears, and generators.…
• FY2025 10-K: …Outside of the U.S., our operations located in Australia, Belgium, Spain, Japan, Italy, Korea, India, the P.R.C., the United Kingdom and Brazil distribute our Company's products and reinforce our commitment to those regions. Our manufacturing capacity is sufficient for current business demand levels. In 2024 and…
• DOV (DOVER Corp)
• FY2025 10-K: …service solutions used in textile, apparel, soft signage and specialty materials markets. Businesses within this segment leverage digital printing capabilities and operate business models that involve initial equipment and software sales followed by consumable, software, and service aftermarket revenue streams. Our…
• FY2025 10-K: …and HVAC industry, food production markets and beverage can-making industries. Our Climate & Sustainability Technologies segment's products are manufactured primarily in North America, Europe and Asia and are sold globally, directly and through a network of distributors. 11 Table of Contents Raw Materials We use a…
• CR (CRANE COMPANY)
• FY2025 10-K: …to Consolidated Financial Statements. Revenue Recognition. We primarily generate revenue through the manufacture and sale of engineered industrial products. Each product within a contract generally represents a separate performance obligation, as we do not provide a significant service of integrating or installing…
• FY2025 10-K: …in the United States, United Kingdom, Taiwan, and France. Process Flow Technologies The Process Flow Technologies segment is a provider of highly engineered fluid handling equipment for mission critical applications that require high reliability. The segment is comprised of Process Valves and Related Products, Pumps…
• ITT (ITT INC.)
• FY2025 10-K: …local firms, depending on the product line and region. CCT's ability to compete successfully depends upon numerous factors including quality, price, lead time, performance, brand recognition, customer service, innovation, application expertise and previous installation history. In addition, collaboration with…
• FY2025 10-K: …dedicated to supporting EPC firms as their needs are often distinct from those of distribution and end-user customers. The pump and valve markets we serve are highly competitive and fragmented. For most of our products, there are many regional competitors and a limited number of larger global peers. Primary customer…
• NDSN (NORDSON CORPORATION)
• FY2025 10-K: …drug infusion, IV & drug delivery, patient care, surgical and biopharma. • Surgical Solutions - Microplegia myocardial protection devices and related consumables used in cardiac surgical procedures. Advanced Technology Solutions This segment integrates our proprietary product technologies into the progressive stages…
• FY2025 10-K: …is the objective to provide opportunities for employee self-fulfillment, growth, security, recognition and equitable compensation. This goal is met through the Human Resources department's facilitation of employee training, leadership training and the creation of on-the-job growth opportunities. The result is a…
• SXI (STANDEX INTERNATIONAL CORP/DE/)
• FY2025 10-K: …for food safety, and energy efficiency. Our key differentiator is the ability to customize products to meet customers' needs within industry standard lead-times. This differentiator is used to target the convenience store, school cafeterias and quick-service restaurant segments. Custom Hoists is a supplier of…
• FY2025 10-K: …investments and resource allocation within each segment. • Electronics - manufacturing and selling of electronic components for applications throughout the end-user market spectrum; • Engineering Technologies - provides net and near net formed single-source customized solutions in the manufacture of engineered…

Methodology Note

• Priced-in inversion: the valuation is inverted on the current price to recover the operating-income growth, duration, and steady-state margin the price embeds (ROE for financials, FFO growth for REITs).
• Valuation x-ray: the valuation models, grouped into four families (asset, earnings, relative, growth). Each model is expressed as a price/FV ratio (distance from price), not a point fair-value estimate. The spread across families is the disagreement.
• Economic-unit decomposition (SOTP): each disclosed business unit is assigned its native valuation basis before any multiple is applied. Operating units are valued on enterprise value; funded financial units are valued on their own common equity, because their borrowings fund earning assets rather than levering the parent. A company total is stated only once every material unit carries a supported value and the parent capital bridge reconciles.
• Solvency: net cash/debt, net-debt-to-NOPAT, interest coverage, and share-count CAGR from EDGAR financials (net debt / FFO and fixed-charge coverage for REITs; regulatory-capital framing for financials).
• Peer cohorts: per-segment comparables with deep-linkable SEC filing citations.

Fundamentals sourced from SEC EDGAR filings. Current price from Databento. The priced-in inversion and valuation x-ray are computed by the boothcheck engine; narrative composed by AI from the structured data.