ILLINOIS TOOL WORKS (ILT.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ILT - US4523081093 - Common Stock
215.7 EUR
-1.3 (-0.6%)
Taking everything into account, ILT scores 6 out of 10 in our fundamental rating. ILT was compared to 111 industry peers in the Machinery industry. ILT scores excellent on profitability, but there are some minor concerns on its financial health. ILT is quite expensive at the moment. 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
- In the past year ILT was profitable.
- In the past year ILT had a positive cash flow from operations.
- 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
- Looking at the Return On Assets, with a value of 18.75%, ILT belongs to the top of the industry, outperforming 98.20% of the companies in the same industry.
- 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 95.50% 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 9.21%.
| 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 98.20% of the companies in the same industry.
- In the last couple of years the Profit Margin of ILT has grown nicely.
- ILT has a better Operating Margin (26.20%) than 97.30% of its industry peers.
- ILT's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 43.93%, ILT perfoms like the industry average, outperforming 54.05% of the companies in the same 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
- ILT has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for ILT has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 8.05 indicates that ILT is not in any danger for bankruptcy at the moment.
- ILT has a better Altman-Z score (8.05) than 96.40% 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.
- ILT has a better Debt to FCF ratio (3.14) than 66.67% 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.
- The Debt to Equity ratio of ILT (2.80) is worse than 90.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.8 | ||
| Debt/FCF | 3.14 | ||
| Altman-Z | 8.05 |
ROIC/WACC2.63
WACC9.29%
2.3 Liquidity
- A Current Ratio of 1.53 indicates that ILT should not have too much problems paying its short term obligations.
- The Current ratio of ILT (1.53) 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 63.06% 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%.
- 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
- ILT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.58% yearly.
- 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 Y3.83%
EPS Next 2Y5.75%
EPS Next 3Y6.23%
EPS Next 5Y9.58%
Revenue Next Year0.33%
Revenue Next 2Y1.82%
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.
- 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
- The Price/Earnings ratio is 24.97, which indicates a rather expensive current valuation of ILT.
- ILT's Price/Earnings ratio is in line with the industry average.
- ILT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 22.63 indicates a rather expensive valuation of ILT.
- ILT's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ILT is more expensive than 62.16% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of ILT to the average of the S&P500 Index (25.83), we can say ILT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.97 | ||
| Fwd PE | 22.63 |
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 69.37% 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 | 26.24 | ||
| EV/EBITDA | 17.85 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of ILT may justify a higher PE ratio.
PEG (NY)6.51
PEG (5Y)4.67
EPS Next 2Y5.75%
EPS Next 3Y6.23%
5. Dividend
5.1 Amount
- ILT has a Yearly Dividend Yield of 2.48%.
- ILT's Dividend Yield is rather good when compared to the industry average which is at 1.48. ILT pays more dividend than 81.98% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, ILT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
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
- 58.20% of the earnings are spent on dividend by ILT. 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%
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 24.97 and the Price/Book (PB) ratio is 23.27.
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%.