ILLINOIS TOOL WORKS (ILT.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ILT - US4523081093 - Common Stock
216.8 EUR
-1.4 (-0.64%)
Overall ILT gets a fundamental rating of 6 out of 10. We evaluated ILT against 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 quite expensive at the moment. It does show a decent growth rate. ILT also has an excellent dividend rating. This makes ILT very considerable 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.
- 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.
- ILT's Return On Equity of 94.33% is amongst the best of the industry. ILT outperforms 100.00% of its industry peers.
- ILT has a better Return On Invested Capital (24.44%) than 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
- With an excellent Profit Margin value of 19.05%, ILT belongs to the best of the industry, outperforming 98.25% of the companies in the same industry.
- 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.
- 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.
- 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ILT is creating value.
- Compared to 1 year ago, ILT has less shares outstanding
- ILT has less shares outstanding than it did 5 years ago.
- ILT has a better debt/assets ratio than last year.
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.
- The Altman-Z score of ILT (7.99) is better than 96.49% 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.
- 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.
- 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 | 7.99 |
ROIC/WACC2.67
WACC9.17%
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 51.75% of the companies in the same 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.
- ILT has a better Quick ratio (1.11) 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%.
- ILT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.34% yearly.
- Looking at the last year, ILT shows a decrease in Revenue. The Revenue has decreased by -0.41% in the last 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
- 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.
- 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
- 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
- A Price/Earnings ratio of 24.50 indicates a rather expensive valuation of ILT.
- Compared to the rest of the industry, the Price/Earnings ratio of ILT is on the same level as its industry peers.
- ILT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 22.23, 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 64.04% of the companies are valued more cheaply.
- ILT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.5 | ||
| Fwd PE | 22.23 |
4.2 Price Multiples
- ILT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ILT is more expensive than 69.30% of the companies in the same industry.
- 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 | 25.76 | ||
| EV/EBITDA | 17.55 |
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)6.42
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%. Purely for dividend investing, there may be better candidates out there.
- 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.
- ILT's Dividend Yield is a higher than the S&P500 average which is at 1.92.
| 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.
- 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
WACC9.17%
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 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%.