ITW Gross Margin Analysis

Gross margin measures the percentage of revenue a company keeps after paying direct production costs, so 44.1% means ITW retains $0.441 from each dollar of sales before other expenses.

That level sits below the sector median of 46.4%, placing ITW in the 46th percentile among peers, so the company earns less from its products than the typical competitor. The trend data is incomplete: the year-over-year change is N/A, but the most recent quarter improved by +0.7%, moving from 43.8% to 44.1%, with no historical values for the prior eight quarters. The combination of a margin below the sector median and only a one-quarter uptick offers a modest sign of recovery but no confirmed momentum. For an investor, this suggests limited pricing power or higher input costs compared to peers, with the slight quarterly gain reducing but not removing downside risk. This metric supports the overall CAUTIOUS verdict because ITW has not demonstrated a sustained margin advantage, and the single quarterly improvement is too short to shift the risk picture.

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