ILLINOIS TOOL WORKS (ILT.DE) Stock Fundamental Analysis
FRA:ILT - Deutsche Boerse Ag - US4523081093 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to ILT. ILT was compared to 106 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.
1. Profitability
1.1 Basic Checks
In the past year ILT was profitable.
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's Return On Assets of 21.78% is amongst the best of the industry. ILT outperforms 97.17% of its industry peers.
The Return On Equity of ILT (103.95%) is better than 100.00% of its industry peers.
ILT's Return On Invested Capital of 25.21% is amongst the best of the industry. ILT outperforms 98.11% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ILT is significantly above the industry average of 8.48%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.78% | ||
| ROE | 103.95% | ||
| ROIC | 25.21% |
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 Profit Margin of 21.37%. This is amongst the best in the industry. ILT outperforms 99.06% of its industry peers.
In the last couple of years the Profit Margin of ILT has grown nicely.
ILT has a Operating Margin of 25.93%. This is amongst the best in the industry. ILT outperforms 96.23% of its industry peers.
In the last couple of years the Operating Margin of ILT has grown nicely.
ILT has a Gross Margin (43.71%) which is in line with its industry peers.
ILT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.93% | ||
| PM (TTM) | 21.37% | ||
| GM | 43.71% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ILT is creating value.
ILT has less shares outstanding than it did 1 year ago.
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 8.42 indicates that ILT is not in any danger for bankruptcy at the moment.
ILT's Altman-Z score of 8.42 is amongst the best of the industry. ILT outperforms 96.23% of its industry peers.
ILT has a debt to FCF ratio of 2.90. This is a good value and a sign of high solvency as ILT would need 2.90 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.90, ILT is in the better half of the industry, outperforming 78.30% of the companies in the same industry.
A Debt/Equity ratio of 2.55 is on the high side and indicates that ILT has dependencies on debt financing.
With a Debt to Equity ratio value of 2.55, ILT is not doing good in the industry: 93.40% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.55 | ||
| Debt/FCF | 2.9 | ||
| Altman-Z | 8.42 |
ROIC/WACC2.63
WACC9.59%
2.3 Liquidity
A Current Ratio of 1.60 indicates that ILT should not have too much problems paying its short term obligations.
The Current ratio of ILT (1.60) is comparable to the rest of the industry.
A Quick Ratio of 1.16 indicates that ILT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.16, ILT is in line with its industry, outperforming 53.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
ILT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.22%.
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.
The Revenue has decreased by -1.85% 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)2.22%
EPS 3Y7.79%
EPS 5Y5.34%
EPS Q2Q%-2.46%
Revenue 1Y (TTM)-1.85%
Revenue growth 3Y3.22%
Revenue growth 5Y2.42%
Sales Q2Q%-3.37%
3.2 Future
The Earnings Per Share is expected to grow by 9.88% on average over the next years. This is quite good.
Based on estimates for the next years, ILT will show a small growth in Revenue. The Revenue will grow by 3.76% on average per year.
EPS Next Y2.08%
EPS Next 2Y5.08%
EPS Next 3Y5.69%
EPS Next 5Y9.88%
Revenue Next Year-0.76%
Revenue Next 2Y1.28%
Revenue Next 3Y2.01%
Revenue Next 5Y3.76%
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 25.56 indicates a quite expensive 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 27.30, which is the current average of the S&P500 Index.
ILT is valuated rather expensively with a Price/Forward Earnings ratio of 23.02.
ILT's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ILT is more expensive than 66.98% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. ILT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.56 | ||
| Fwd PE | 23.02 |
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 71.70% 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 | 26.61 | ||
| EV/EBITDA | 18.52 |
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)12.3
PEG (5Y)4.79
EPS Next 2Y5.08%
EPS Next 3Y5.69%
5. Dividend
5.1 Amount
ILT has a Yearly Dividend Yield of 2.32%.
ILT's Dividend Yield is a higher than the industry average which is at 2.89.
ILT's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
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 50.96% 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.
DP50.96%
EPS Next 2Y5.08%
EPS Next 3Y5.69%
FRA:ILT (7/8/2025, 7:00:00 PM)
220.6
+2.1 (+0.96%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners84.01%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap64.64B
Analysts54.07
Price Target218.18 (-1.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
Yearly Dividend4.86
Dividend Growth(5Y)6.98%
DP50.96%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.58%
Min EPS beat(2)0.45%
Max EPS beat(2)0.71%
EPS beat(4)4
Avg EPS beat(4)1.61%
Min EPS beat(4)0.45%
Max EPS beat(4)3.83%
EPS beat(8)7
Avg EPS beat(8)1.69%
EPS beat(12)11
Avg EPS beat(12)3.36%
EPS beat(16)13
Avg EPS beat(16)2.45%
Revenue beat(2)0
Avg Revenue beat(2)-1.71%
Min Revenue beat(2)-2.36%
Max Revenue beat(2)-1.06%
Revenue beat(4)0
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)-1.06%
Revenue beat(8)0
Avg Revenue beat(8)-2.09%
Revenue beat(12)3
Avg Revenue beat(12)-1.13%
Revenue beat(16)6
Avg Revenue beat(16)-0.38%
PT rev (1m)-1.82%
PT rev (3m)-10.35%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-1.26%
EPS NY rev (1m)0.17%
EPS NY rev (3m)-1.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.56 | ||
| Fwd PE | 23.02 | ||
| P/S | 4.8 | ||
| P/FCF | 26.61 | ||
| P/OCF | 23.06 | ||
| P/B | 23.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.52 |
EPS(TTM)8.63
EY3.91%
EPS(NY)9.58
Fwd EY4.34%
FCF(TTM)8.29
FCFY3.76%
OCF(TTM)9.56
OCFY4.34%
SpS45.91
BVpS9.44
TBVpS-6.51
PEG (NY)12.3
PEG (5Y)4.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.78% | ||
| ROE | 103.95% | ||
| ROCE | 34.98% | ||
| ROIC | 25.21% | ||
| ROICexc | 27.07% | ||
| ROICexgc | 50.52% | ||
| OM | 25.93% | ||
| PM (TTM) | 21.37% | ||
| GM | 43.71% | ||
| FCFM | 18.05% |
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%
ROICexcg growth 3Y8.37%
ROICexcg 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 Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.55 | ||
| Debt/FCF | 2.9 | ||
| Debt/EBITDA | 1.84 | ||
| Cap/Depr | 109.5% | ||
| Cap/Sales | 2.78% | ||
| Interest Coverage | 18.17 | ||
| Cash Conversion | 73.17% | ||
| Profit Quality | 84.48% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 8.42 |
F-Score6
WACC9.59%
ROIC/WACC2.63
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)2.22%
EPS 3Y7.79%
EPS 5Y5.34%
EPS Q2Q%-2.46%
EPS Next Y2.08%
EPS Next 2Y5.08%
EPS Next 3Y5.69%
EPS Next 5Y9.88%
Revenue 1Y (TTM)-1.85%
Revenue growth 3Y3.22%
Revenue growth 5Y2.42%
Sales Q2Q%-3.37%
Revenue Next Year-0.76%
Revenue Next 2Y1.28%
Revenue Next 3Y2.01%
Revenue Next 5Y3.76%
EBIT growth 1Y-2.55%
EBIT growth 3Y7.04%
EBIT growth 5Y4.62%
EBIT Next Year7.32%
EBIT Next 3Y5.92%
EBIT Next 5Y6.47%
FCF growth 1Y23.63%
FCF growth 3Y7.95%
FCF growth 5Y1.28%
OCF growth 1Y19.29%
OCF growth 3Y8.67%
OCF growth 5Y1.84%