ILLINOIS TOOL WORKS (ILT.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ILT - US4523081093 - Common Stock
222.7 EUR
+5.9 (+2.72%)
Taking everything into account, ILT scores 6 out of 10 in our fundamental rating. ILT was compared to 114 industry peers in the Machinery industry. While ILT belongs to the best of the industry regarding profitability, 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. ILT also has an excellent dividend rating. These ratings would make ILT suitable for dividend investing!
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.
- In the past 5 years ILT has always been profitable.
- Each year in the past 5 years ILT had a positive operating cash flow.
1.2 Ratios
- ILT's Return On Assets of 18.75% is amongst the best of the industry. ILT outperforms 98.25% of its industry peers.
- The Return On Equity of ILT (94.33%) is better than 100.00% of its industry peers.
- ILT has a Return On Invested Capital of 24.44%. This is amongst the best in the industry. ILT outperforms 95.61% 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 9.14%.
| 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 98.25% of its industry peers.
- In the last couple of years the Profit Margin of ILT has grown nicely.
- The Operating Margin of ILT (26.20%) is better than 97.37% of its industry peers.
- ILT's Operating Margin has improved in the last couple of years.
- ILT has a Gross Margin of 43.93%. This is comparable to the rest of the industry: ILT outperforms 54.39% 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 3Y3.7%
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.
- ILT has less shares outstanding than it did 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
- ILT has an Altman-Z score of 8.08. This indicates that ILT is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of ILT (8.08) is better than 96.49% of its industry peers.
- 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 67.54% of its industry peers.
- ILT has a Debt/Equity ratio of 2.80. This is a high value indicating a heavy dependency on external financing.
- ILT has a Debt to Equity ratio of 2.80. This is amonst the worse of the industry: ILT underperforms 92.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.8 | ||
| Debt/FCF | 3.14 | ||
| Altman-Z | 8.08 |
ROIC/WACC2.67
WACC9.17%
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.
- The Current ratio of ILT (1.53) is comparable to the rest of the industry.
- ILT has a Quick Ratio of 1.11. This is a normal value and indicates that ILT is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of ILT (1.11) is better than 62.28% 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%.
- The Revenue has been growing slightly by 2.42% on average over the past years.
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
- ILT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.58% yearly.
- 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 2Y5.72%
EPS Next 3Y6.23%
EPS Next 5Y9.58%
Revenue Next Year0.35%
Revenue Next 2Y1.85%
Revenue Next 3Y2.34%
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.
- 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 25.16, ILT can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Earnings ratio as ILT.
- ILT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.33.
- The Price/Forward Earnings ratio is 22.83, which indicates a rather expensive current valuation of ILT.
- Based on the Price/Forward Earnings ratio, ILT is valued a bit more expensive than 64.04% of the companies in the same industry.
- ILT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.16 | ||
| Fwd PE | 22.83 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ILT is valued a bit more expensive than the industry average as 70.18% of the companies are valued more cheaply.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ILT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.46 | ||
| EV/EBITDA | 17.99 |
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)6.59
PEG (5Y)4.71
EPS Next 2Y5.72%
EPS Next 3Y6.23%
5. Dividend
5.1 Amount
- ILT has a Yearly Dividend Yield of 2.54%.
- Compared to an average industry Dividend Yield of 1.55, ILT pays a better dividend. On top of this ILT pays more dividend than 82.46% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.91, ILT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
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 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 2Y5.72%
EPS Next 3Y6.23%
FRA:ILT (1/14/2026, 7:00:00 PM)
222.7
+5.9 (+2.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)10-24 2025-10-24/bmo
Earnings (Next)01-29 2026-01-29/amc
Inst Owners84.97%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap64.61B
Revenue(TTM)15.88B
Net Income(TTM)3.03B
Analysts52.31
Price Target222.4 (-0.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
Yearly Dividend4.91
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)-1.85%
PT rev (3m)-0.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.99%
EPS NY rev (1m)0%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.16 | ||
| Fwd PE | 22.83 | ||
| P/S | 4.74 | ||
| P/FCF | 26.46 | ||
| P/OCF | 22.97 | ||
| P/B | 23.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.99 |
EPS(TTM)8.85
EY3.97%
EPS(NY)9.76
Fwd EY4.38%
FCF(TTM)8.42
FCFY3.78%
OCF(TTM)9.7
OCFY4.35%
SpS46.99
BVpS9.49
TBVpS-6.98
PEG (NY)6.59
PEG (5Y)4.71
Graham Number43.47
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 | 8.08 |
F-Score6
WACC9.17%
ROIC/WACC2.67
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 2Y5.72%
EPS Next 3Y6.23%
EPS Next 5Y9.58%
Revenue 1Y (TTM)-0.41%
Revenue growth 3Y3.22%
Revenue growth 5Y2.42%
Sales Q2Q%2.34%
Revenue Next Year0.35%
Revenue Next 2Y1.85%
Revenue Next 3Y2.34%
Revenue Next 5Y3.85%
EBIT growth 1Y-1.4%
EBIT growth 3Y7.04%
EBIT growth 5Y4.62%
EBIT Next Year8.67%
EBIT Next 3Y6.4%
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.
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 8 / 10.
Can you provide the PE and PB ratios for ILT stock?
The Price/Earnings (PE) ratio for ILLINOIS TOOL WORKS (ILT.DE) is 25.16 and the Price/Book (PB) ratio is 23.46.
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%.