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 scores excellent on profitability, but 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. 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 Return On Assets of 18.75%. This is amongst the best in the industry. ILT outperforms 98.17% of its industry peers.
Looking at the Return On Equity, with a value of 94.33%, ILT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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 8.95%.
| 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
With an excellent Profit Margin value of 19.05%, ILT belongs to the best of the industry, outperforming 98.17% of the companies in the same industry.
In the last couple of years the Profit Margin of ILT has grown nicely.
ILT has a Operating Margin of 26.20%. This is amongst the best in the industry. ILT outperforms 97.25% of its industry peers.
In the last couple of years the Operating Margin of ILT has grown nicely.
ILT has a Gross Margin (43.93%) which 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ILT is creating value.
The number of shares outstanding for ILT has been reduced compared to 1 year ago.
Compared to 5 years ago, ILT has less shares outstanding
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 has a Altman-Z score of 8.00. This is amongst the best in 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.
With a decent Debt to FCF ratio value of 3.14, ILT is doing good in 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 90.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.8 | ||
| Debt/FCF | 3.14 | ||
| Altman-Z | 8 |
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's Current ratio of 1.53 is in line compared to the rest of the industry. ILT outperforms 53.21% of its industry peers.
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.
Looking at the Quick ratio, with a value of 1.11, ILT is in the better half of the industry, outperforming 62.39% of the companies in the same industry.
| 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%.
ILT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.42% yearly.
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.
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
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.
ILT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 22.29, the valuation of ILT can be described as rather expensive.
Based on the Price/Forward Earnings ratio, ILT is valued a bit more expensive than the industry average as 63.30% of the companies are valued more cheaply.
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.
ILT has an outstanding profitability rating, which 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
With a Yearly Dividend Yield of 2.56%, ILT has a reasonable but not impressive dividend return.
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
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.
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
WACC9.16%
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 24.58 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%.