ILLINOIS TOOL WORKS (ILT.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ILT - US4523081093 - Common Stock
215.6 EUR
+1.3 (+0.61%)
We assign a fundamental rating of 6 out of 10 to ILT. ILT was compared to 109 industry peers in the Machinery industry. ILT has an excellent profitability rating, 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. Finally ILT also has an excellent dividend rating. With these ratings, ILT could be worth investigating further for dividend investing!.
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.
Each year in the past 5 years ILT has been profitable.
ILT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ILT has a better Return On Assets (18.75%) than 98.17% of its industry peers.
ILT has a Return On Equity of 94.33%. This is amongst the best in the industry. ILT outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 24.44%, ILT belongs to the top of the industry, outperforming 95.41% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ILT is significantly above the industry average of 8.95%.
| 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.
In the last couple of years the Profit Margin of ILT has grown nicely.
ILT has a better Operating Margin (26.20%) than 97.25% of its industry peers.
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 52.29% 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
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.
Compared to 1 year ago, ILT has an improved debt to assets ratio.
2.2 Solvency
ILT has an Altman-Z score of 8.00. This indicates that ILT is financially healthy and has little risk of bankruptcy at the moment.
ILT's Altman-Z score of 8.00 is amongst the best of the industry. ILT outperforms 96.33% of its industry peers.
The Debt to FCF ratio of ILT is 3.14, which is a good value as it means it would take ILT, 3.14 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ILT (3.14) is better than 69.72% of its industry peers.
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 90.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.8 | ||
| Debt/FCF | 3.14 | ||
| Altman-Z | 8 |
ROIC/WACC2.68
WACC9.13%
2.3 Liquidity
A Current Ratio of 1.53 indicates that ILT should not have too much problems paying 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.
ILT has a Quick ratio of 1.11. This is in the better half of the industry: ILT outperforms 62.39% 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%.
ILT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.34% yearly.
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
Based on estimates for the next years, ILT will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.58% on average per year.
The Revenue is expected to grow by 3.85% on average over the next years.
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
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
With a Price/Earnings ratio of 24.58, ILT is valued on the expensive side.
ILT's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of ILT to the average of the S&P500 Index (26.51), we can say ILT is valued inline with the index average.
A Price/Forward Earnings ratio of 22.29 indicates a rather expensive valuation of ILT.
63.30% of the companies in the same industry are cheaper than ILT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, ILT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.58 | ||
| Fwd PE | 22.29 |
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 69.72% of the companies listed 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 | 25.83 | ||
| EV/EBITDA | 17.6 |
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.
The excellent profitability rating of ILT may justify a higher PE ratio.
PEG (NY)6.44
PEG (5Y)4.6
EPS Next 2Y5.72%
EPS Next 3Y6.23%
5. Dividend
5.1 Amount
ILT has a Yearly Dividend Yield of 2.56%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.56, ILT pays a better dividend. On top of this ILT pays more dividend than 80.73% of the companies listed in the same industry.
ILT's Dividend Yield is a higher than the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
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.
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 (12/30/2025, 7:00:00 PM)
215.6
+1.3 (+0.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners84.95%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap62.55B
Revenue(TTM)15.88B
Net Income(TTM)3.03B
Analysts53.08
Price Target222.4 (3.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
Yearly Dividend4.85
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)-1.33%
PT rev (3m)1.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.92%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.8%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.58 | ||
| Fwd PE | 22.29 | ||
| P/S | 4.63 | ||
| P/FCF | 25.83 | ||
| P/OCF | 22.43 | ||
| P/B | 22.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.6 |
EPS(TTM)8.77
EY4.07%
EPS(NY)9.67
Fwd EY4.49%
FCF(TTM)8.35
FCFY3.87%
OCF(TTM)9.61
OCFY4.46%
SpS46.6
BVpS9.41
TBVpS-6.92
PEG (NY)6.44
PEG (5Y)4.6
Graham Number43.09
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 |
F-Score6
WACC9.13%
ROIC/WACC2.68
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 24.58 and the Price/Book (PB) ratio is 22.91.
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%.