ILLINOIS TOOL WORKS (ILT.DE) Stock Fundamental Analysis
FRA:ILT • US4523081093
253 EUR
+1.1 (+0.44%)
Last: Feb 12, 2026, 07:00 PM
ILT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 112 industry peers in the Machinery industry. ILT scores excellent on profitability, but there are some minor concerns on its financial health. ILT is quite expensive at the moment. It does show a decent growth rate. ILT also has an excellent dividend rating. This makes ILT very considerable for dividend investing!
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.
- Each year in the past 5 years ILT has been profitable.
- ILT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- ILT has a better Return On Assets (18.75%) than 98.21% of its industry peers.
- With an excellent Return On Equity value of 94.33%, ILT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- ILT has a better Return On Invested Capital (24.43%) than 96.43% of its industry peers.
- ILT had an Average Return On Invested Capital over the past 3 years of 28.88%. This is significantly above the industry average of 8.65%.
- The 3 year average ROIC (28.88%) for ILT is well above the current ROIC(24.43%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.75% | ||
| ROE | 94.33% | ||
| ROIC | 24.43% |
ROA(3y)20.4%
ROA(5y)19.52%
ROE(3y)99.48%
ROE(5y)94.2%
ROIC(3y)28.88%
ROIC(5y)26.49%
1.3 Margins
- ILT has a better Profit Margin (19.05%) than 99.11% of its industry peers.
- In the last couple of years the Profit Margin of ILT has grown nicely.
- ILT has a Operating Margin of 26.20%. This is amongst the best in the industry. ILT outperforms 98.21% of its industry peers.
- In the last couple of years the Operating Margin of ILT has grown nicely.
- ILT's Gross Margin of 43.93% is in line compared to the rest of the industry. ILT outperforms 54.46% of its industry peers.
- ILT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.2% | ||
| PM (TTM) | 19.05% | ||
| GM | 43.93% |
OM growth 3Y3.37%
OM growth 5Y2.77%
PM growth 3Y0.12%
PM growth 5Y2.64%
GM growth 3Y2.61%
GM growth 5Y1.3%
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.
- ILT has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ILT has less shares outstanding
- Compared to 1 year ago, ILT has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 8.62 indicates that ILT is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 8.62, ILT belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
- ILT has a debt to FCF ratio of 3.14. This is a good value and a sign of high solvency as ILT would need 3.14 years to pay back of all of its debts.
- ILT's Debt to FCF ratio of 3.14 is fine compared to the rest of the industry. ILT outperforms 68.75% of its industry peers.
- A Debt/Equity ratio of 2.80 is on the high side and indicates that ILT has dependencies on debt financing.
- The Debt to Equity ratio of ILT (2.80) is worse than 91.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.8 | ||
| Debt/FCF | 3.14 | ||
| Altman-Z | 8.62 |
ROIC/WACC2.62
WACC9.31%
2.3 Liquidity
- ILT has a Current Ratio of 1.53. 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 Current ratio (1.53) which is in line with its industry peers.
- A Quick Ratio of 1.11 indicates that ILT should not have too much problems paying its short term obligations.
- ILT's Quick ratio of 1.11 is fine compared to the rest of the industry. ILT outperforms 61.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 3.15% over the past year.
- Measured over the past years, ILT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.61% on average per year.
- Looking at the last year, ILT shows a small growth in Revenue. The Revenue has grown by 0.92% in the last year.
- ILT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.99% yearly.
EPS 1Y (TTM)3.15%
EPS 3Y2.36%
EPS 5Y9.61%
EPS Q2Q%7.09%
Revenue 1Y (TTM)0.92%
Revenue growth 3Y0.23%
Revenue growth 5Y4.99%
Sales Q2Q%4.09%
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 11.25% yearly.
- Based on estimates for the next years, ILT will show a small growth in Revenue. The Revenue will grow by 4.75% on average per year.
EPS Next Y8.41%
EPS Next 2Y7.81%
EPS Next 3Y8.91%
EPS Next 5Y11.25%
Revenue Next Year3.33%
Revenue Next 2Y3.36%
Revenue Next 3Y3.89%
Revenue Next 5Y4.75%
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 stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 28.68, ILT can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of ILT is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.67. ILT is around the same levels.
- ILT is valuated quite expensively with a Price/Forward Earnings ratio of 26.47.
- Based on the Price/Forward Earnings ratio, ILT is valued a bit more expensive than 69.64% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 27.69, ILT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.68 | ||
| Fwd PE | 26.47 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ILT is valued a bit more expensive than the industry average as 75.89% of the companies are valued more cheaply.
- ILT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.7 | ||
| EV/EBITDA | 20.55 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ILT does not grow enough to justify the current Price/Earnings ratio.
- ILT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.41
PEG (5Y)2.98
EPS Next 2Y7.81%
EPS Next 3Y8.91%
5. Dividend
5.1 Amount
- ILT has a Yearly Dividend Yield of 2.23%. Purely for dividend investing, there may be better candidates out there.
- ILT's Dividend Yield is rather good when compared to the industry average which is at 1.45. ILT pays more dividend than 80.36% of the companies in the same industry.
- ILT's Dividend Yield is a higher than the S&P500 average which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
5.2 History
- On average, the dividend of ILT grows each year by 6.98%, which is quite nice.
Dividend Growth(5Y)6.98%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- ILT pays out 58.20% 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.
DP58.2%
EPS Next 2Y7.81%
EPS Next 3Y8.91%
FRA:ILT (2/12/2026, 7:00:00 PM)
253
+1.1 (+0.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-03 2026-02-03/bmo
Earnings (Next)04-28 2026-04-28/bmo
Inst Owners84.97%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap73.40B
Revenue(TTM)16.04B
Net Income(TTM)3.03B
Analysts52.31
Price Target223.32 (-11.73%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
Yearly Dividend4.84
Dividend Growth(5Y)6.98%
DP58.2%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.08%
Min EPS beat(2)-0.33%
Max EPS beat(2)2.48%
EPS beat(4)3
Avg EPS beat(4)0.83%
Min EPS beat(4)-0.33%
Max EPS beat(4)2.48%
EPS beat(8)6
Avg EPS beat(8)1.3%
EPS beat(12)10
Avg EPS beat(12)2.72%
EPS beat(16)14
Avg EPS beat(16)2.82%
Revenue beat(2)0
Avg Revenue beat(2)-0.94%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)-0.27%
Revenue beat(4)0
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)-0.27%
Revenue beat(8)0
Avg Revenue beat(8)-1.71%
Revenue beat(12)1
Avg Revenue beat(12)-1.46%
Revenue beat(16)5
Avg Revenue beat(16)-0.55%
PT rev (1m)0.41%
PT rev (3m)-1.24%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)-0.22%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.68 | ||
| Fwd PE | 26.47 | ||
| P/S | 5.5 | ||
| P/FCF | 30.7 | ||
| P/OCF | 26.65 | ||
| P/B | 27.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.55 |
EPS(TTM)8.82
EY3.49%
EPS(NY)9.56
Fwd EY3.78%
FCF(TTM)8.24
FCFY3.26%
OCF(TTM)9.49
OCFY3.75%
SpS46.01
BVpS9.29
TBVpS-6.84
PEG (NY)3.41
PEG (5Y)2.98
Graham Number42.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.75% | ||
| ROE | 94.33% | ||
| ROCE | 34.67% | ||
| ROIC | 24.43% | ||
| ROICexc | 26.26% | ||
| ROICexgc | 47.72% | ||
| OM | 26.2% | ||
| PM (TTM) | 19.05% | ||
| GM | 43.93% | ||
| FCFM | 17.91% |
ROA(3y)20.4%
ROA(5y)19.52%
ROE(3y)99.48%
ROE(5y)94.2%
ROIC(3y)28.88%
ROIC(5y)26.49%
ROICexc(3y)31.54%
ROICexc(5y)28.97%
ROICexgc(3y)68.5%
ROICexgc(5y)61.67%
ROCE(3y)38.38%
ROCE(5y)35.46%
ROICexgc growth 3Y12.09%
ROICexgc growth 5Y10.24%
ROICexc growth 3Y7.34%
ROICexc growth 5Y8.51%
OM growth 3Y3.37%
OM growth 5Y2.77%
PM growth 3Y0.12%
PM growth 5Y2.64%
GM growth 3Y2.61%
GM growth 5Y1.3%
F-Score6
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.8 | ||
| Debt/FCF | 3.14 | ||
| Debt/EBITDA | 1.97 | ||
| Cap/Depr | 109.09% | ||
| Cap/Sales | 2.72% | ||
| Interest Coverage | 15.13 | ||
| Cash Conversion | 71.9% | ||
| Profit Quality | 94.02% | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 8.62 |
F-Score6
WACC9.31%
ROIC/WACC2.62
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.15%
EPS 3Y2.36%
EPS 5Y9.61%
EPS Q2Q%7.09%
EPS Next Y8.41%
EPS Next 2Y7.81%
EPS Next 3Y8.91%
EPS Next 5Y11.25%
Revenue 1Y (TTM)0.92%
Revenue growth 3Y0.23%
Revenue growth 5Y4.99%
Sales Q2Q%4.09%
Revenue Next Year3.33%
Revenue Next 2Y3.36%
Revenue Next 3Y3.89%
Revenue Next 5Y4.75%
EBIT growth 1Y-1.4%
EBIT growth 3Y3.61%
EBIT growth 5Y7.9%
EBIT Next Year15.58%
EBIT Next 3Y8.5%
EBIT Next 5Y8.45%
FCF growth 1Y3.23%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2.21%
OCF growth 3YN/A
OCF growth 5YN/A
ILLINOIS TOOL WORKS / ILT.DE FAQ
What is the fundamental rating for ILT stock?
ChartMill assigns a fundamental rating of 6 / 10 to ILT.DE.
What is the valuation status of ILLINOIS TOOL WORKS (ILT.DE) stock?
ChartMill assigns a valuation rating of 2 / 10 to ILLINOIS TOOL WORKS (ILT.DE). This can be considered as Overvalued.
What is the profitability of ILT stock?
ILLINOIS TOOL WORKS (ILT.DE) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for ILT stock?
The Price/Earnings (PE) ratio for ILLINOIS TOOL WORKS (ILT.DE) is 28.68 and the Price/Book (PB) ratio is 27.23.
Is the dividend of ILLINOIS TOOL WORKS sustainable?
The dividend rating of ILLINOIS TOOL WORKS (ILT.DE) is 7 / 10 and the dividend payout ratio is 58.2%.