ILLINOIS TOOL WORKS (ILT.DE) Stock Fundamental Analysis
Europe - FRA:ILT - US4523081093 - Common Stock
211.4 EUR
-1.6 (-0.75%)
ILT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 103 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
ILT had positive earnings in the past year.
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 20.97%, ILT belongs to the top of the industry, outperforming 99.03% of the companies in the same industry.
Looking at the Return On Equity, with a value of 104.83%, ILT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
ILT's Return On Invested Capital of 23.99% is amongst the best of the industry. ILT outperforms 96.12% 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 8.61%.
| 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
ILT has a better Profit Margin (21.31%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of ILT has grown nicely.
With an excellent Operating Margin value of 25.98%, ILT belongs to the best of the industry, outperforming 96.12% of the companies in the same industry.
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 56.31% of the companies in the same industry.
In the last couple of years the Gross Margin of ILT has remained more or less at the same level.
| 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
ILT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for ILT has been reduced compared to 1 year ago.
The number of shares outstanding for ILT has been reduced compared to 5 years ago.
Compared to 1 year ago, ILT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.90 indicates that ILT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.90, ILT belongs to the top of the industry, outperforming 96.12% 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.
The Debt to FCF ratio of ILT (3.28) is better than 67.96% 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 90.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.78 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | 7.9 |
ROIC/WACC2.62
WACC9.15%
2.3 Liquidity
ILT has a Current Ratio of 1.59. 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 (1.59) which is comparable to the rest of the industry.
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.
With a decent Quick ratio value of 1.15, ILT is doing good in the industry, outperforming 60.19% of the companies in the same industry.
| 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%.
ILT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.34% yearly.
ILT shows a decrease in Revenue. In the last year, the revenue decreased by -1.40%.
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
The Earnings Per Share is expected to grow by 7.83% on average over the next years.
Based on estimates for the next years, ILT will show a small growth in Revenue. The Revenue will grow by 3.58% on average per year.
EPS Next Y3.42%
EPS Next 2Y5.77%
EPS Next 3Y6.24%
EPS Next 5Y7.83%
Revenue Next Year0.69%
Revenue Next 2Y2.07%
Revenue Next 3Y2.51%
Revenue Next 5Y3.58%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 24.05, the valuation of ILT can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ILT is on the same level as its industry peers.
When comparing the Price/Earnings ratio of ILT to the average of the S&P500 Index (27.49), we can say ILT is valued inline with the index average.
With a Price/Forward Earnings ratio of 21.47, ILT is valued on the expensive side.
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 63.11% 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 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.05 | ||
| Fwd PE | 21.47 |
4.2 Price Multiples
ILT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ILT is more expensive than 67.96% of the companies in the same industry.
ILT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.14 | ||
| EV/EBITDA | 17.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ILT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)7.02
PEG (5Y)4.5
EPS Next 2Y5.77%
EPS Next 3Y6.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.59%, ILT has a reasonable but not impressive dividend return.
ILT's Dividend Yield is a higher than the industry average which is at 2.44.
Compared to an average S&P500 Dividend Yield of 2.43, ILT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
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 around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP51.65%
EPS Next 2Y5.77%
EPS Next 3Y6.24%
FRA:ILT (10/14/2025, 7:00:00 PM)
211.4
-1.6 (-0.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners84.19%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap61.62B
Analysts52.59
Price Target222.72 (5.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
Yearly Dividend4.94
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)-1%
PT rev (3m)2.08%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)2.04%
EPS NY rev (1m)0.05%
EPS NY rev (3m)1.32%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)1.95%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.05 | ||
| Fwd PE | 21.47 | ||
| P/S | 4.51 | ||
| P/FCF | 26.14 | ||
| P/OCF | 22.62 | ||
| P/B | 22.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.35 |
EPS(TTM)8.79
EY4.16%
EPS(NY)9.85
Fwd EY4.66%
FCF(TTM)8.09
FCFY3.83%
OCF(TTM)9.34
OCFY4.42%
SpS46.89
BVpS9.53
TBVpS-7.08
PEG (NY)7.02
PEG (5Y)4.5
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 | 7.9 |
F-Score6
WACC9.15%
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)2.01%
EPS 3Y7.79%
EPS 5Y5.34%
EPS Q2Q%1.57%
EPS Next Y3.42%
EPS Next 2Y5.77%
EPS Next 3Y6.24%
EPS Next 5Y7.83%
Revenue 1Y (TTM)-1.4%
Revenue growth 3Y3.22%
Revenue growth 5Y2.42%
Sales Q2Q%0.65%
Revenue Next Year0.69%
Revenue Next 2Y2.07%
Revenue Next 3Y2.51%
Revenue Next 5Y3.58%
EBIT growth 1Y-3.23%
EBIT growth 3Y7.04%
EBIT growth 5Y4.62%
EBIT Next Year8.9%
EBIT Next 3Y6.5%
EBIT Next 5Y6.07%
FCF growth 1Y5.3%
FCF growth 3Y7.95%
FCF growth 5Y1.28%
OCF growth 1Y3.45%
OCF growth 3Y8.67%
OCF growth 5Y1.84%