ILLINOIS TOOL WORKS (ILT.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ILT - US4523081093 - Common Stock
227.1 EUR
+1.6 (+0.71%)
Overall ILT gets a fundamental rating of 6 out of 10. We evaluated ILT against 115 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. 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.
- In the past year ILT had a positive cash flow from operations.
- Each year in the past 5 years ILT has been profitable.
- Each year in the past 5 years ILT had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 18.75%, ILT belongs to the best of the industry, outperforming 98.26% of the companies in the same industry.
- 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.
- ILT has a better Return On Invested Capital (24.44%) than 95.65% 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 8.97%.
| 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 98.26% of its industry peers.
- ILT's Profit Margin has improved in the last couple of years.
- ILT has a Operating Margin of 26.20%. This is amongst the best in the industry. ILT outperforms 97.39% 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 53.91% 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
- 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.
- 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 8.14. This indicates that ILT is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of ILT (8.14) is better than 96.52% 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 67.83% 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.
- The Debt to Equity ratio of ILT (2.80) is worse than 92.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.8 | ||
| Debt/FCF | 3.14 | ||
| Altman-Z | 8.14 |
ROIC/WACC2.65
WACC9.23%
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.
- Looking at the Current ratio, with a value of 1.53, ILT is in line with its industry, outperforming 51.30% 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 61.74% 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%.
- 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.
- The Revenue is expected to grow by 3.85% on average over the next years.
EPS Next Y3.83%
EPS Next 2Y5.75%
EPS Next 3Y6.23%
EPS Next 5Y9.58%
Revenue Next Year0.35%
Revenue Next 2Y1.85%
Revenue Next 3Y2.35%
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
- ILT is valuated quite expensively with a Price/Earnings ratio of 25.60.
- The rest of the industry has a similar Price/Earnings ratio as ILT.
- The average S&P500 Price/Earnings ratio is at 27.38. ILT is around the same levels.
- A Price/Forward Earnings ratio of 23.20 indicates a rather expensive valuation of ILT.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ILT indicates a slightly more expensive valuation: ILT is more expensive than 64.35% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, ILT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.6 | ||
| Fwd PE | 23.2 |
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 70.43% of the companies listed in the same industry.
- ILT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.9 | ||
| EV/EBITDA | 18.27 |
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)6.68
PEG (5Y)4.79
EPS Next 2Y5.75%
EPS Next 3Y6.23%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.46%, ILT has a reasonable but not impressive dividend return.
- ILT's Dividend Yield is rather good when compared to the industry average which is at 1.50. ILT pays more dividend than 80.87% of the companies in the same industry.
- ILT's Dividend Yield is a higher than the S&P500 average which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
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.
- The dividend of ILT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP58.2%
EPS Next 2Y5.75%
EPS Next 3Y6.23%
FRA:ILT (1/16/2026, 7:00:00 PM)
227.1
+1.6 (+0.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)10-24 2025-10-24/bmo
Earnings (Next)02-03 2026-02-03/amc
Inst Owners84.97%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap65.88B
Revenue(TTM)15.88B
Net Income(TTM)3.03B
Analysts52.31
Price Target223.7 (-1.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
Yearly Dividend4.92
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)-1.28%
PT rev (3m)0.44%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)-2.07%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.4%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-0.75%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.6 | ||
| Fwd PE | 23.2 | ||
| P/S | 4.82 | ||
| P/FCF | 26.9 | ||
| P/OCF | 23.36 | ||
| P/B | 23.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.27 |
EPS(TTM)8.87
EY3.91%
EPS(NY)9.79
Fwd EY4.31%
FCF(TTM)8.44
FCFY3.72%
OCF(TTM)9.72
OCFY4.28%
SpS47.13
BVpS9.52
TBVpS-7
PEG (NY)6.68
PEG (5Y)4.79
Graham Number43.59
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 | 8.14 |
F-Score6
WACC9.23%
ROIC/WACC2.65
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 Y3.83%
EPS Next 2Y5.75%
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 3Y2.35%
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 25.6 and the Price/Book (PB) ratio is 23.86.
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%.