ILLINOIS TOOL WORKS (ILT.DE) Stock Fundamental Analysis
Europe - FRA:ILT - US4523081093 - Common Stock
212.1 EUR
-1.4 (-0.66%)
Taking everything into account, ILT scores 6 out of 10 in our fundamental rating. ILT was compared to 109 industry peers in the Machinery industry. ILT scores excellent on profitability, but there are some minor concerns on its financial health. ILT is valied quite expensively at the moment, while it does show a decent growth rate.
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.
In the past 5 years ILT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ILT (18.75%) is better than 98.17% of its industry peers.
ILT has a better Return On Equity (94.33%) than 100.00% of its industry peers.
The Return On Invested Capital of ILT (24.44%) is better than 95.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ILT is significantly above the industry average of 8.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.75% | ||
| ROE | 94.33% | ||
| ROIC | 24.44% |
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 (19.05%) than 98.17% of its industry peers.
ILT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 26.20%, ILT belongs to the best of the industry, outperforming 97.25% of the companies in the same industry.
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 57.80% of its industry peers.
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 | 26.2% | ||
| PM (TTM) | 19.05% | ||
| GM | 43.93% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
ILT has a better debt/assets ratio than last year.
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 96.33% 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.
Looking at the Debt to FCF ratio, with a value of 3.14, ILT is in the better half of the industry, outperforming 69.72% of the companies in the same industry.
A Debt/Equity ratio of 2.80 is on the high side and indicates that ILT has dependencies on debt financing.
ILT has a worse Debt to Equity ratio (2.80) than 89.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.8 | ||
| Debt/FCF | 3.14 | ||
| Altman-Z | 7.9 |
ROIC/WACC2.65
WACC9.21%
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.
Looking at the Current ratio, with a value of 1.53, ILT is in line with its industry, outperforming 53.21% of the companies in the same industry.
A Quick Ratio of 1.11 indicates that ILT should not have too much problems paying its short term obligations.
The Quick ratio of ILT (1.11) is better than 63.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
ILT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.59%.
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.
ILT shows a decrease in Revenue. In the last year, the revenue decreased by -0.41%.
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)2.59%
EPS 3Y7.79%
EPS 5Y5.34%
EPS Q2Q%6.04%
Revenue 1Y (TTM)-0.41%
Revenue growth 3Y3.22%
Revenue growth 5Y2.42%
Sales Q2Q%2.34%
3.2 Future
The Earnings Per Share is expected to grow by 9.58% on average over the next years. This is quite good.
ILT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.85% yearly.
EPS Next Y3.82%
EPS Next 2Y5.76%
EPS Next 3Y6.3%
EPS Next 5Y9.58%
Revenue Next Year0.36%
Revenue Next 2Y1.85%
Revenue Next 3Y2.36%
Revenue Next 5Y3.85%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 23.78, ILT is valued on the expensive side.
ILT's Price/Earnings is on the same level as the industry average.
ILT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.06, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 21.56 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 64.22% of the companies listed in the same industry.
ILT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 32.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.78 | ||
| Fwd PE | 21.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ILT is valued a bit more expensive than 67.89% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ILT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.12 | ||
| EV/EBITDA | 17.16 |
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)6.22
PEG (5Y)4.45
EPS Next 2Y5.76%
EPS Next 3Y6.3%
5. Dividend
5.1 Amount
ILT has a Yearly Dividend Yield of 2.64%. 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 2.60.
Compared to an average S&P500 Dividend Yield of 2.36, ILT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
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.
The dividend of ILT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP58.2%
EPS Next 2Y5.76%
EPS Next 3Y6.3%
FRA:ILT (11/7/2025, 7:00:00 PM)
212.1
-1.4 (-0.66%)
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 Cap61.83B
Revenue(TTM)15.88B
Net Income(TTM)3.03B
Analysts52.31
Price Target226.04 (6.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
Yearly Dividend4.94
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)1.49%
PT rev (3m)2.42%
EPS NQ rev (1m)-1.95%
EPS NQ rev (3m)-0.95%
EPS NY rev (1m)0.39%
EPS NY rev (3m)1.51%
Revenue NQ rev (1m)-0.7%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.78 | ||
| Fwd PE | 21.56 | ||
| P/S | 4.5 | ||
| P/FCF | 25.12 | ||
| P/OCF | 21.81 | ||
| P/B | 22.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.16 |
EPS(TTM)8.92
EY4.21%
EPS(NY)9.84
Fwd EY4.64%
FCF(TTM)8.44
FCFY3.98%
OCF(TTM)9.72
OCFY4.58%
SpS47.13
BVpS9.52
TBVpS-7
PEG (NY)6.22
PEG (5Y)4.45
Graham Number43.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.75% | ||
| ROE | 94.33% | ||
| ROCE | 34.67% | ||
| ROIC | 24.44% | ||
| ROICexc | 26.26% | ||
| ROICexgc | 47.73% | ||
| OM | 26.2% | ||
| PM (TTM) | 19.05% | ||
| GM | 43.93% | ||
| FCFM | 17.91% |
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%
ROICexgc growth 3Y8.37%
ROICexgc 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 | 2.8 | ||
| 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 | 7.9 |
F-Score6
WACC9.21%
ROIC/WACC2.65
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)2.59%
EPS 3Y7.79%
EPS 5Y5.34%
EPS Q2Q%6.04%
EPS Next Y3.82%
EPS Next 2Y5.76%
EPS Next 3Y6.3%
EPS Next 5Y9.58%
Revenue 1Y (TTM)-0.41%
Revenue growth 3Y3.22%
Revenue growth 5Y2.42%
Sales Q2Q%2.34%
Revenue Next Year0.36%
Revenue Next 2Y1.85%
Revenue Next 3Y2.36%
Revenue Next 5Y3.85%
EBIT growth 1Y-1.4%
EBIT growth 3Y7.04%
EBIT growth 5Y4.62%
EBIT Next Year8.9%
EBIT Next 3Y6.5%
EBIT Next 5Y6.59%
FCF growth 1Y0.49%
FCF growth 3Y7.95%
FCF growth 5Y1.28%
OCF growth 1Y-1.03%
OCF growth 3Y8.67%
OCF growth 5Y1.84%
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.
Can you provide the valuation status for ILLINOIS TOOL WORKS?
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 8 / 10.
Can you provide the financial health for ILT stock?
The financial health rating of ILLINOIS TOOL WORKS (ILT.DE) is 6 / 10.
What is the expected EPS growth for ILLINOIS TOOL WORKS (ILT.DE) stock?
The Earnings per Share (EPS) of ILLINOIS TOOL WORKS (ILT.DE) is expected to grow by 3.82% in the next year.