ILLINOIS TOOL WORKS (ILT.DE) Stock Fundamental Analysis
FRA:ILT - US4523081093 - Common Stock
224.1 EUR
-2.3 (-1.02%)
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
ILT had positive earnings in the past year.
In the past year ILT had a positive cash flow from operations.
Each year in the past 5 years ILT has been profitable.
In the past 5 years ILT always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 20.97%, ILT belongs to the best of the industry, outperforming 97.14% 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 has a better Return On Invested Capital (23.99%) than 95.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ILT is significantly above the industry average of 8.67%.
| 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's Profit Margin of 21.31% is amongst the best of the industry. ILT outperforms 100.00% of its industry peers.
ILT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 25.98%, ILT belongs to the best of the industry, outperforming 96.19% of the companies in the same industry.
ILT's Operating Margin has improved in the last couple of years.
The Gross Margin of ILT (43.74%) is comparable to the rest of the 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
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
ILT has less shares outstanding than it did 5 years ago.
ILT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.18 indicates that ILT is not in any danger for bankruptcy at the moment.
ILT's Altman-Z score of 8.18 is amongst the best of the industry. ILT outperforms 96.19% of its industry peers.
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.
With a decent Debt to FCF ratio value of 3.28, ILT is doing good in the industry, outperforming 69.52% of the companies in the same industry.
A Debt/Equity ratio of 2.78 is on the high side and indicates that ILT has dependencies on debt financing.
ILT's Debt to Equity ratio of 2.78 is on the low side compared to the rest of the industry. ILT is outperformed by 91.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.78 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | 8.18 |
ROIC/WACC2.4
WACC10.01%
2.3 Liquidity
A Current Ratio of 1.59 indicates that ILT should not have too much problems paying 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.
ILT has a Quick ratio (1.15) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.01% over the past year.
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.
Looking at the last year, ILT shows a decrease in Revenue. The Revenue has decreased by -1.40% in the last 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)2.01%
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
Based on estimates for the next years, ILT will show a small growth in Earnings Per Share. The EPS will grow by 7.83% on average per year.
The Revenue is expected to grow by 3.58% on average over the next years.
EPS Next Y3.37%
EPS Next 2Y5.72%
EPS Next 3Y6.21%
EPS Next 5Y7.83%
Revenue Next Year0.67%
Revenue Next 2Y2.05%
Revenue Next 3Y2.52%
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
With a Price/Earnings ratio of 25.88, ILT can be considered very expensive at the moment.
ILT's Price/Earnings ratio is in line with the industry average.
ILT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.90.
A Price/Forward Earnings ratio of 23.10 indicates a rather expensive valuation of ILT.
Based on the Price/Forward Earnings ratio, ILT is valued a bit more expensive than 61.90% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.52, ILT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.88 | ||
| Fwd PE | 23.1 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ILT indicates a slightly more expensive valuation: ILT is more expensive than 71.43% of the companies listed in the same industry.
ILT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.09 | ||
| EV/EBITDA | 18.71 |
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)7.68
PEG (5Y)4.84
EPS Next 2Y5.72%
EPS Next 3Y6.21%
5. Dividend
5.1 Amount
ILT has a Yearly Dividend Yield of 2.42%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.87, ILT pays a bit more dividend than its industry peers.
ILT's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
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
51.65% of the earnings are spent on dividend by ILT. 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 2Y5.72%
EPS Next 3Y6.21%
FRA:ILT (9/2/2025, 7:00:00 PM)
224.1
-2.3 (-1.02%)
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 Cap65.33B
Analysts53.33
Price Target224.98 (0.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
Yearly Dividend4.9
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)1.94%
PT rev (3m)1.24%
EPS NQ rev (1m)0.59%
EPS NQ rev (3m)-0.78%
EPS NY rev (1m)1.06%
EPS NY rev (3m)1.44%
Revenue NQ rev (1m)0.68%
Revenue NQ rev (3m)3.25%
Revenue NY rev (1m)0.98%
Revenue NY rev (3m)1.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.88 | ||
| Fwd PE | 23.1 | ||
| P/S | 4.85 | ||
| P/FCF | 28.09 | ||
| P/OCF | 24.32 | ||
| P/B | 23.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.71 |
EPS(TTM)8.66
EY3.86%
EPS(NY)9.7
Fwd EY4.33%
FCF(TTM)7.98
FCFY3.56%
OCF(TTM)9.22
OCFY4.11%
SpS46.24
BVpS9.4
TBVpS-6.99
PEG (NY)7.68
PEG (5Y)4.84
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 | 8.18 |
F-Score6
WACC10.01%
ROIC/WACC2.4
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 Y3.37%
EPS Next 2Y5.72%
EPS Next 3Y6.21%
EPS Next 5Y7.83%
Revenue 1Y (TTM)-1.4%
Revenue growth 3Y3.22%
Revenue growth 5Y2.42%
Sales Q2Q%0.65%
Revenue Next Year0.67%
Revenue Next 2Y2.05%
Revenue Next 3Y2.52%
Revenue Next 5Y3.58%
EBIT growth 1Y-3.23%
EBIT growth 3Y7.04%
EBIT growth 5Y4.62%
EBIT Next Year8.79%
EBIT Next 3Y6.61%
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%