ILLINOIS TOOL WORKS (ILT.DE) Stock Fundamental Analysis
FRA:ILT - Deutsche Boerse Ag - US4523081093 - Common Stock - Currency: EUR
Taking everything into account, ILT scores 6 out of 10 in our fundamental rating. ILT was compared to 107 industry peers in the Machinery industry. While ILT has a great profitability rating, 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
ILT had positive earnings in the past year.
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 (21.78%) is better than 97.20% of its industry peers.
ILT's Return On Equity of 103.95% is amongst the best of the industry. ILT outperforms 100.00% of its industry peers.
ILT's Return On Invested Capital of 25.21% is amongst the best of the industry. ILT outperforms 97.20% 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 8.98%.
| 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 Profit Margin of 21.37%. This is amongst the best in the industry. ILT outperforms 99.07% of its industry peers.
ILT's Profit Margin has improved in the last couple of years.
ILT has a better Operating Margin (25.93%) than 96.26% of its industry peers.
In the last couple of years the Operating Margin of ILT has grown nicely.
ILT has a Gross Margin (43.71%) which is comparable to the rest of the 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 | 25.93% | ||
| 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.
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.
Compared to 1 year ago, ILT has an improved debt to assets ratio.
2.2 Solvency
ILT has an Altman-Z score of 8.38. This indicates that ILT is financially healthy and has little risk of bankruptcy at the moment.
ILT has a Altman-Z score of 8.38. This is amongst the best in the industry. ILT outperforms 96.26% 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.
With a decent Debt to FCF ratio value of 2.90, ILT is doing good in the industry, outperforming 77.57% of the companies in the same industry.
A Debt/Equity ratio of 2.55 is on the high side and indicates that ILT has dependencies on debt financing.
ILT has a worse Debt to Equity ratio (2.55) than 92.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.55 | ||
| Debt/FCF | 2.9 | ||
| Altman-Z | 8.38 |
ROIC/WACC2.65
WACC9.52%
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.
With a Quick ratio value of 1.16, ILT perfoms like the industry average, outperforming 57.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.22% 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.
The Revenue has decreased by -1.85% in the past year.
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)2.22%
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 9.88% yearly.
ILT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.76% yearly.
EPS Next Y2.28%
EPS Next 2Y5.14%
EPS Next 3Y5.73%
EPS Next 5Y9.88%
Revenue Next Year-0.45%
Revenue Next 2Y1.41%
Revenue Next 3Y2.07%
Revenue Next 5Y3.76%
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
Based on the Price/Earnings ratio of 25.26, the valuation of ILT can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as ILT.
ILT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.46, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 22.73, the valuation of ILT can be described as rather expensive.
64.49% of the companies in the same industry are cheaper than ILT, based on the Price/Forward Earnings ratio.
ILT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.26 | ||
| Fwd PE | 22.73 |
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 71.03% 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 | 26.3 | ||
| EV/EBITDA | 18.33 |
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)11.07
PEG (5Y)4.73
EPS Next 2Y5.14%
EPS Next 3Y5.73%
5. Dividend
5.1 Amount
ILT has a Yearly Dividend Yield of 2.33%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.84, ILT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, ILT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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.
ILT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP50.96%
EPS Next 2Y5.14%
EPS Next 3Y5.73%
FRA:ILT (7/18/2025, 7:00:00 PM)
219.3
-2.4 (-1.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners84.01%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap64.25B
Analysts54.07
Price Target220.69 (0.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
Yearly Dividend4.9
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)0.35%
PT rev (3m)-9.32%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-0.47%
EPS NY rev (1m)0.2%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)1.27%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.26 | ||
| Fwd PE | 22.73 | ||
| P/S | 4.75 | ||
| P/FCF | 26.3 | ||
| P/OCF | 22.79 | ||
| P/B | 23.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.33 |
EPS(TTM)8.68
EY3.96%
EPS(NY)9.65
Fwd EY4.4%
FCF(TTM)8.34
FCFY3.8%
OCF(TTM)9.62
OCFY4.39%
SpS46.18
BVpS9.49
TBVpS-6.54
PEG (NY)11.07
PEG (5Y)4.73
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 | 8.38 |
F-Score6
WACC9.52%
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)2.22%
EPS 3Y7.79%
EPS 5Y5.34%
EPS Q2Q%-2.46%
EPS Next Y2.28%
EPS Next 2Y5.14%
EPS Next 3Y5.73%
EPS Next 5Y9.88%
Revenue 1Y (TTM)-1.85%
Revenue growth 3Y3.22%
Revenue growth 5Y2.42%
Sales Q2Q%-3.37%
Revenue Next Year-0.45%
Revenue Next 2Y1.41%
Revenue Next 3Y2.07%
Revenue Next 5Y3.76%
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%