ILLINOIS TOOL WORKS (ILT.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:ILT • US4523081093
218.5 EUR
+0.5 (+0.23%)
Last: Jan 30, 2026, 07:00 PM
ILT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 112 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. 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.
- ILT had positive earnings in each of the past 5 years.
- Each year in the past 5 years ILT had a positive operating cash flow.
1.2 Ratios
- ILT has a better Return On Assets (18.75%) than 98.21% of its industry peers.
- ILT has a better Return On Equity (94.33%) than 100.00% of its industry peers.
- With an excellent Return On Invested Capital value of 24.44%, ILT belongs to the best of the industry, outperforming 95.54% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ILT is significantly above the industry average of 8.91%.
| 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 99.11% of its industry peers.
- ILT's Profit Margin has improved in the last couple of years.
- ILT has a better Operating Margin (26.20%) than 98.21% 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 57.14% of its industry peers.
- 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
- ILT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
- The debt/assets ratio for ILT has been reduced compared to a year ago.
2.2 Solvency
- ILT has an Altman-Z score of 8.09. This indicates that ILT is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 8.09, ILT belongs to the top of the industry, outperforming 97.32% of the companies in the same industry.
- 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 66.96% 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.
- ILT's Debt to Equity ratio of 2.80 is on the low side compared to the rest of the industry. ILT is outperformed by 91.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.8 | ||
| Debt/FCF | 3.14 | ||
| Altman-Z | 8.09 |
ROIC/WACC2.61
WACC9.35%
2.3 Liquidity
- A Current Ratio of 1.53 indicates that ILT should not have too much problems paying its short term obligations.
- ILT has a Current ratio (1.53) which is in line with its industry peers.
- A Quick Ratio of 1.11 indicates that ILT should not have too much problems paying its short term obligations.
- With a decent Quick ratio value of 1.11, ILT is doing good in the industry, outperforming 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 2.59% over the past year.
- 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.
- Looking at the last year, ILT shows a decrease in Revenue. The Revenue has decreased by -0.41% in the last year.
- 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
- The Earnings Per Share is expected to grow by 9.58% 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 3.85% 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.
- 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
- Based on the Price/Earnings ratio of 25.26, the valuation of ILT can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as ILT.
- ILT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.41.
- With a Price/Forward Earnings ratio of 22.90, ILT is valued on the expensive side.
- ILT's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ILT is more expensive than 62.50% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.64. ILT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.26 | ||
| Fwd PE | 22.9 |
4.2 Price Multiples
- 70.54% of the companies in the same industry are cheaper than ILT, based on the Enterprise Value to EBITDA ratio.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ILT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.56 | ||
| EV/EBITDA | 18.05 |
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)6.59
PEG (5Y)4.73
EPS Next 2Y5.75%
EPS Next 3Y6.23%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.45%, 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 1.53. ILT pays more dividend than 80.36% of the companies in the same industry.
- ILT's Dividend Yield is a higher than the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
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
- 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 25.26 and the Price/Book (PB) ratio is 23.55.
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%.