ILLINOIS TOOL WORKS (ILT.DE) Stock Fundamental Analysis
FRA:ILT - Deutsche Boerse Ag - US4523081093 - Common Stock - Currency: EUR
ILT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 105 industry peers in the Machinery industry. ILT scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, ILT is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year ILT was profitable.
ILT had a positive operating cash flow in the past year.
ILT had positive earnings in each of the past 5 years.
Each year in the past 5 years ILT had a positive operating cash flow.
1.2 Ratios
ILT's Return On Assets of 20.97% is amongst the best of the industry. ILT outperforms 97.14% of its industry peers.
ILT's Return On Equity of 104.83% is amongst the best of the industry. ILT outperforms 100.00% of its industry peers.
ILT has a better Return On Invested Capital (23.99%) than 95.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ILT is significantly above the industry average of 8.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.97% | ||
| ROE | 104.83% | ||
| ROIC | 23.99% |
ROA(3y)20.63%
ROA(5y)18.43%
ROE(3y)100.54%
ROE(5y)88.45%
ROIC(3y)27.14%
ROIC(5y)23.98%
1.3 Margins
With an excellent Profit Margin value of 21.31%, ILT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ILT's Profit Margin has improved in the last couple of years.
ILT has a Operating Margin of 25.98%. This is amongst the best in the industry. ILT outperforms 96.19% of its industry peers.
In the last couple of years the Operating Margin of ILT has grown nicely.
Looking at the Gross Margin, with a value of 43.74%, ILT is in line with its industry, outperforming 56.19% of the companies in the same industry.
ILT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.98% | ||
| PM (TTM) | 21.31% | ||
| GM | 43.74% |
OM growth 3Y3.7%
OM growth 5Y2.15%
PM growth 3Y5.59%
PM growth 5Y4.19%
GM growth 3Y2.37%
GM growth 5Y1.08%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ILT is creating value.
The number of shares outstanding for ILT has been reduced compared to 1 year ago.
ILT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ILT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 8.09 indicates that ILT is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 8.09, ILT belongs to the best of the industry, outperforming 96.19% of the companies in the same industry.
ILT has a debt to FCF ratio of 3.28. This is a good value and a sign of high solvency as ILT would need 3.28 years to pay back of all of its debts.
ILT has a Debt to FCF ratio of 3.28. This is in the better half of the industry: ILT outperforms 73.33% of its industry peers.
ILT has a Debt/Equity ratio of 2.78. This is a high value indicating a heavy dependency on external financing.
ILT has a Debt to Equity ratio of 2.78. This is amonst the worse of the industry: ILT underperforms 94.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.78 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | 8.09 |
ROIC/WACC2.51
WACC9.54%
2.3 Liquidity
A Current Ratio of 1.59 indicates that ILT should not have too much problems paying its short term obligations.
ILT's Current ratio of 1.59 is in line compared to the rest of the industry. ILT outperforms 47.62% of its industry peers.
ILT has a Quick Ratio of 1.15. This is a normal value and indicates that ILT is financially healthy and should not expect problems in meeting its short term obligations.
ILT has a Quick ratio of 1.15. This is comparable to the rest of the industry: ILT outperforms 55.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
ILT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.01%.
Measured over the past 5 years, ILT shows a small growth in Earnings Per Share. The EPS has been growing by 5.34% on average per year.
The Revenue has decreased by -1.40% in the past year.
Measured over the past years, ILT shows a small growth in Revenue. The Revenue has been growing by 2.42% on average per year.
EPS 1Y (TTM)2.01%
EPS 3Y7.79%
EPS 5Y5.34%
EPS Q2Q%1.57%
Revenue 1Y (TTM)-1.4%
Revenue growth 3Y3.22%
Revenue growth 5Y2.42%
Sales Q2Q%0.65%
3.2 Future
ILT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.88% yearly.
ILT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.76% yearly.
EPS Next Y2.28%
EPS Next 2Y5.14%
EPS Next 3Y5.73%
EPS Next 5Y9.88%
Revenue Next Year-0.3%
Revenue Next 2Y1.56%
Revenue Next 3Y2.17%
Revenue Next 5Y3.76%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 25.38 indicates a quite expensive valuation of ILT.
ILT's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of ILT to the average of the S&P500 Index (26.41), we can say ILT is valued inline with the index average.
The Price/Forward Earnings ratio is 22.91, which indicates a rather expensive current valuation of ILT.
67.62% of the companies in the same industry are cheaper than ILT, based on the Price/Forward Earnings ratio.
ILT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 33.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.38 | ||
| Fwd PE | 22.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ILT is valued a bit more expensive than 71.43% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ILT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.7 | ||
| EV/EBITDA | 18.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ILT may justify a higher PE ratio.
PEG (NY)11.13
PEG (5Y)4.75
EPS Next 2Y5.14%
EPS Next 3Y5.73%
5. Dividend
5.1 Amount
ILT has a Yearly Dividend Yield of 2.51%. Purely for dividend investing, there may be better candidates out there.
ILT's Dividend Yield is a higher than the industry average which is at 2.82.
Compared to an average S&P500 Dividend Yield of 2.39, ILT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
5.2 History
The dividend of ILT is nicely growing with an annual growth rate of 6.98%!
Dividend Growth(5Y)6.98%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
ILT pays out 51.65% of its income as dividend. This is a bit on the high side, but may be sustainable.
ILT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP51.65%
EPS Next 2Y5.14%
EPS Next 3Y5.73%
FRA:ILT (8/11/2025, 7:00:00 PM)
221.1
+0.6 (+0.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners83.94%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap64.78B
Analysts53.33
Price Target226.3 (2.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
Yearly Dividend4.91
Dividend Growth(5Y)6.98%
DP51.65%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.06%
Min EPS beat(2)-0.33%
Max EPS beat(2)0.45%
EPS beat(4)3
Avg EPS beat(4)1.17%
Min EPS beat(4)-0.33%
Max EPS beat(4)3.83%
EPS beat(8)6
Avg EPS beat(8)1.33%
EPS beat(12)10
Avg EPS beat(12)2.79%
EPS beat(16)13
Avg EPS beat(16)2.45%
Revenue beat(2)0
Avg Revenue beat(2)-0.66%
Min Revenue beat(2)-1.06%
Max Revenue beat(2)-0.27%
Revenue beat(4)0
Avg Revenue beat(4)-1.49%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)-0.27%
Revenue beat(8)0
Avg Revenue beat(8)-1.82%
Revenue beat(12)2
Avg Revenue beat(12)-1.16%
Revenue beat(16)5
Avg Revenue beat(16)-0.52%
PT rev (1m)3.72%
PT rev (3m)3.74%
EPS NQ rev (1m)1.27%
EPS NQ rev (3m)-1.08%
EPS NY rev (1m)0%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)1.38%
Revenue NQ rev (3m)2.95%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.38 | ||
| Fwd PE | 22.91 | ||
| P/S | 4.78 | ||
| P/FCF | 27.7 | ||
| P/OCF | 23.98 | ||
| P/B | 23.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.28 |
EPS(TTM)8.71
EY3.94%
EPS(NY)9.65
Fwd EY4.37%
FCF(TTM)7.98
FCFY3.61%
OCF(TTM)9.22
OCFY4.17%
SpS46.27
BVpS9.41
TBVpS-6.99
PEG (NY)11.13
PEG (5Y)4.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.97% | ||
| ROE | 104.83% | ||
| ROCE | 33.86% | ||
| ROIC | 23.99% | ||
| ROICexc | 25.49% | ||
| ROICexgc | 45.94% | ||
| OM | 25.98% | ||
| PM (TTM) | 21.31% | ||
| GM | 43.74% | ||
| FCFM | 17.25% |
ROA(3y)20.63%
ROA(5y)18.43%
ROE(3y)100.54%
ROE(5y)88.45%
ROIC(3y)27.14%
ROIC(5y)23.98%
ROICexc(3y)29.48%
ROICexc(5y)26.81%
ROICexgc(3y)61.41%
ROICexgc(5y)56.02%
ROCE(3y)37.16%
ROCE(5y)32.24%
ROICexcg growth 3Y8.37%
ROICexcg growth 5Y6.32%
ROICexc growth 3Y9.35%
ROICexc growth 5Y5.29%
OM growth 3Y3.7%
OM growth 5Y2.15%
PM growth 3Y5.59%
PM growth 5Y4.19%
GM growth 3Y2.37%
GM growth 5Y1.08%
F-Score6
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.78 | ||
| Debt/FCF | 3.28 | ||
| Debt/EBITDA | 1.99 | ||
| Cap/Depr | 105.75% | ||
| Cap/Sales | 2.68% | ||
| Interest Coverage | 15.19 | ||
| Cash Conversion | 69.9% | ||
| Profit Quality | 80.95% | ||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 8.09 |
F-Score6
WACC9.54%
ROIC/WACC2.51
Cap/Depr(3y)108.13%
Cap/Depr(5y)90.37%
Cap/Sales(3y)2.72%
Cap/Sales(5y)2.42%
Profit Quality(3y)83.21%
Profit Quality(5y)91.1%
High Growth Momentum
Growth
EPS 1Y (TTM)2.01%
EPS 3Y7.79%
EPS 5Y5.34%
EPS Q2Q%1.57%
EPS Next Y2.28%
EPS Next 2Y5.14%
EPS Next 3Y5.73%
EPS Next 5Y9.88%
Revenue 1Y (TTM)-1.4%
Revenue growth 3Y3.22%
Revenue growth 5Y2.42%
Sales Q2Q%0.65%
Revenue Next Year-0.3%
Revenue Next 2Y1.56%
Revenue Next 3Y2.17%
Revenue Next 5Y3.76%
EBIT growth 1Y-3.23%
EBIT growth 3Y7.04%
EBIT growth 5Y4.62%
EBIT Next Year8.79%
EBIT Next 3Y6.61%
EBIT Next 5Y6.47%
FCF growth 1Y5.3%
FCF growth 3Y7.95%
FCF growth 5Y1.28%
OCF growth 1Y3.45%
OCF growth 3Y8.67%
OCF growth 5Y1.84%