ILLINOIS TOOL WORKS (ILT.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ILT - US4523081093 - Common Stock
216.8 EUR
-1.4 (-0.64%)
ILT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 114 industry peers in the Machinery industry. While ILT has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, ILT is valued expensive at the moment. Finally ILT also has an excellent dividend rating. These ratings could make ILT a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
- In the past year ILT was profitable.
- ILT had a positive operating cash flow in the past year.
- In the past 5 years ILT has always been profitable.
- 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 98.25% 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.
- The Average Return On Invested Capital over the past 3 years for ILT 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.
- ILT's Profit Margin has improved in the last couple of years.
- ILT has a better Operating Margin (26.20%) than 97.37% of its industry peers.
- ILT's Operating Margin has improved in the last couple of years.
- The Gross Margin of ILT (43.93%) 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 | 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
- 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
- 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 7.99. This indicates that ILT is financially healthy and has little risk of bankruptcy at the moment.
- ILT's Altman-Z score of 7.99 is amongst the best of the industry. ILT outperforms 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.
- Looking at the Debt to FCF ratio, with a value of 3.14, ILT is in the better half of the industry, outperforming 67.54% of the companies in the same industry.
- ILT has a Debt/Equity ratio of 2.80. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of ILT (2.80) is worse than 92.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.8 | ||
| Debt/FCF | 3.14 | ||
| Altman-Z | 7.99 |
ROIC/WACC2.67
WACC9.16%
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.
- ILT has a Current ratio (1.53) which 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
- The Earnings Per Share has been growing slightly by 2.59% over the past year.
- The Earnings Per Share has been growing slightly by 5.34% on average over the past years.
- The Revenue has decreased by -0.41% 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)2.59%
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.
- Based on estimates for the next years, ILT will show a small growth in Revenue. The Revenue will grow by 3.85% on average per year.
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.
- 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 24.50, ILT is valued on the expensive side.
- ILT's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.33. ILT is around the same levels.
- A Price/Forward Earnings ratio of 22.23 indicates a rather expensive valuation of ILT.
- Based on the Price/Forward Earnings ratio, ILT is valued a bit more expensive than the industry average as 64.04% of the companies are valued more cheaply.
- The average S&P500 Price/Forward Earnings ratio is at 24.12. ILT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.5 | ||
| Fwd PE | 22.23 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ILT is valued a bit more expensive than 69.30% of the companies in the same industry.
- ILT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.76 | ||
| EV/EBITDA | 17.55 |
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)6.42
PEG (5Y)4.59
EPS Next 2Y5.72%
EPS Next 3Y6.23%
5. Dividend
5.1 Amount
- ILT has a Yearly Dividend Yield of 2.54%.
- ILT's Dividend Yield is rather good when compared to the industry average which is at 1.55. ILT pays more dividend than 82.46% of the companies 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
- 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
- 58.20% 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.
DP58.2%
EPS Next 2Y5.72%
EPS Next 3Y6.23%
FRA:ILT (1/12/2026, 7:00:00 PM)
216.8
-1.4 (-0.64%)
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 Cap62.89B
Revenue(TTM)15.88B
Net Income(TTM)3.03B
Analysts52.31
Price Target222.4 (2.58%)
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 | 24.5 | ||
| Fwd PE | 22.23 | ||
| P/S | 4.61 | ||
| P/FCF | 25.76 | ||
| P/OCF | 22.37 | ||
| P/B | 22.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.55 |
EPS(TTM)8.85
EY4.08%
EPS(NY)9.75
Fwd EY4.5%
FCF(TTM)8.42
FCFY3.88%
OCF(TTM)9.69
OCFY4.47%
SpS46.98
BVpS9.49
TBVpS-6.98
PEG (NY)6.42
PEG (5Y)4.59
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 | 7.99 |
F-Score6
WACC9.16%
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 24.5 and the Price/Book (PB) ratio is 22.85.
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%.