ILLINOIS TOOL WORKS (ILT.DE) Stock Fundamental Analysis
FRA:ILT - Deutsche Boerse Ag - US4523081093 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to ILT. ILT was compared to 110 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.
In the past year ILT had a positive cash flow from operations.
ILT had positive earnings in each of the past 5 years.
ILT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 21.78%, ILT belongs to the top of the industry, outperforming 98.18% of the companies in the same industry.
ILT's Return On Equity of 103.95% is amongst the best of the industry. ILT outperforms 100.00% of its industry peers.
ILT has a better Return On Invested Capital (25.21%) than 99.09% of its industry peers.
ILT had an Average Return On Invested Capital over the past 3 years of 27.14%. This is significantly above the industry average of 8.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.78% | ||
| ROE | 103.95% | ||
| ROIC | 25.21% |
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
ILT has a better Profit Margin (21.37%) than 99.09% of its industry peers.
ILT's Profit Margin has improved in the last couple of years.
ILT's Operating Margin of 25.93% is amongst the best of the industry. ILT outperforms 97.27% 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 43.71%, ILT is in line with its industry, outperforming 56.36% 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 | 25.93% | ||
| PM (TTM) | 21.37% | ||
| GM | 43.71% |
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
ILT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, ILT has less shares outstanding
The number of shares outstanding for ILT has been reduced compared to 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 8.22 indicates that ILT is not in any danger for bankruptcy at the moment.
ILT has a Altman-Z score of 8.22. This is amongst the best in the industry. ILT outperforms 97.27% of its industry peers.
The Debt to FCF ratio of ILT is 2.90, which is a good value as it means it would take ILT, 2.90 years of fcf income to pay off all of its debts.
ILT has a better Debt to FCF ratio (2.90) than 75.45% of its industry peers.
ILT has a Debt/Equity ratio of 2.55. This is a high value indicating a heavy dependency on external financing.
ILT has a worse Debt to Equity ratio (2.55) than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.55 | ||
| Debt/FCF | 2.9 | ||
| Altman-Z | 8.22 |
ROIC/WACC2.62
WACC9.62%
2.3 Liquidity
ILT has a Current Ratio of 1.60. This is a normal value and indicates that ILT is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ILT (1.60) is comparable to the rest of the industry.
A Quick Ratio of 1.16 indicates that ILT should not have too much problems paying its short term obligations.
ILT has a Quick ratio (1.16) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
ILT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.22%.
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 -1.85% in the past year.
ILT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.42% yearly.
EPS 1Y (TTM)2.22%
EPS 3Y7.79%
EPS 5Y5.34%
EPS Q2Q%-2.46%
Revenue 1Y (TTM)-1.85%
Revenue growth 3Y3.22%
Revenue growth 5Y2.42%
Sales Q2Q%-3.37%
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 9.85% yearly.
The Revenue is expected to grow by 3.75% on average over the next years.
EPS Next Y1.9%
EPS Next 2Y4.99%
EPS Next 3Y5.67%
EPS Next 5Y9.85%
Revenue Next Year-0.76%
Revenue Next 2Y1.28%
Revenue Next 3Y2.01%
Revenue Next 5Y3.75%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.98, ILT is valued on the expensive side.
ILT's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.25. ILT is around the same levels.
A Price/Forward Earnings ratio of 21.62 indicates a rather expensive valuation of ILT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ILT indicates a slightly more expensive valuation: ILT is more expensive than 60.91% of the companies listed in the same industry.
ILT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.98 | ||
| Fwd PE | 21.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ILT is valued a bit more expensive than the industry average as 70.00% of the companies are valued more cheaply.
ILT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.96 | ||
| EV/EBITDA | 17.61 |
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)12.61
PEG (5Y)4.49
EPS Next 2Y4.99%
EPS Next 3Y5.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.45%, ILT has a reasonable but not impressive dividend return.
ILT's Dividend Yield is a higher than the industry average which is at 3.25.
Compared to an average S&P500 Dividend Yield of 2.40, ILT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
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
50.96% of the earnings are spent on dividend by ILT. This is a bit on the high side, but may be sustainable.
The dividend of ILT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP50.96%
EPS Next 2Y4.99%
EPS Next 3Y5.67%
FRA:ILT (5/29/2025, 7:00:00 PM)
214.9
-1.9 (-0.88%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners83.88%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap62.97B
Analysts54.81
Price Target222.22 (3.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
Yearly Dividend5.06
Dividend Growth(5Y)6.98%
DP50.96%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.58%
Min EPS beat(2)0.45%
Max EPS beat(2)0.71%
EPS beat(4)4
Avg EPS beat(4)1.61%
Min EPS beat(4)0.45%
Max EPS beat(4)3.83%
EPS beat(8)7
Avg EPS beat(8)1.69%
EPS beat(12)11
Avg EPS beat(12)3.36%
EPS beat(16)13
Avg EPS beat(16)2.45%
Revenue beat(2)0
Avg Revenue beat(2)-1.71%
Min Revenue beat(2)-2.36%
Max Revenue beat(2)-1.06%
Revenue beat(4)0
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)-1.06%
Revenue beat(8)0
Avg Revenue beat(8)-2.09%
Revenue beat(12)3
Avg Revenue beat(12)-1.13%
Revenue beat(16)6
Avg Revenue beat(16)-0.38%
PT rev (1m)-8.69%
PT rev (3m)-13.35%
EPS NQ rev (1m)-0.83%
EPS NQ rev (3m)-1.14%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-1.27%
Revenue NQ rev (1m)0.87%
Revenue NQ rev (3m)0.77%
Revenue NY rev (1m)0.95%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.98 | ||
| Fwd PE | 21.62 | ||
| P/S | 4.51 | ||
| P/FCF | 24.96 | ||
| P/OCF | 21.63 | ||
| P/B | 21.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.61 |
EPS(TTM)8.96
EY4.17%
EPS(NY)9.94
Fwd EY4.62%
FCF(TTM)8.61
FCFY4.01%
OCF(TTM)9.94
OCFY4.62%
SpS47.69
BVpS9.81
TBVpS-6.76
PEG (NY)12.61
PEG (5Y)4.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.78% | ||
| ROE | 103.95% | ||
| ROCE | 34.98% | ||
| ROIC | 25.21% | ||
| ROICexc | 27.07% | ||
| ROICexgc | 50.52% | ||
| OM | 25.93% | ||
| PM (TTM) | 21.37% | ||
| GM | 43.71% | ||
| FCFM | 18.05% |
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 Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.55 | ||
| Debt/FCF | 2.9 | ||
| Debt/EBITDA | 1.84 | ||
| Cap/Depr | 109.5% | ||
| Cap/Sales | 2.78% | ||
| Interest Coverage | 18.17 | ||
| Cash Conversion | 73.17% | ||
| Profit Quality | 84.48% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 8.22 |
F-Score6
WACC9.62%
ROIC/WACC2.62
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)2.22%
EPS 3Y7.79%
EPS 5Y5.34%
EPS Q2Q%-2.46%
EPS Next Y1.9%
EPS Next 2Y4.99%
EPS Next 3Y5.67%
EPS Next 5Y9.85%
Revenue 1Y (TTM)-1.85%
Revenue growth 3Y3.22%
Revenue growth 5Y2.42%
Sales Q2Q%-3.37%
Revenue Next Year-0.76%
Revenue Next 2Y1.28%
Revenue Next 3Y2.01%
Revenue Next 5Y3.75%
EBIT growth 1Y-2.55%
EBIT growth 3Y7.04%
EBIT growth 5Y4.62%
EBIT Next Year7.32%
EBIT Next 3Y5.92%
EBIT Next 5Y6.47%
FCF growth 1Y23.63%
FCF growth 3Y7.95%
FCF growth 5Y1.28%
OCF growth 1Y19.29%
OCF growth 3Y8.67%
OCF growth 5Y1.84%