ILLINOIS TOOL WORKS (ILT.DE) Stock Fundamental Analysis
Europe - FRA:ILT - US4523081093 - Common Stock
212.1 EUR
-0.2 (-0.09%)
Overall ILT gets a fundamental rating of 6 out of 10. We evaluated ILT against 107 industry peers in the Machinery industry. ILT scores excellent on profitability, but there are some minor concerns on its financial health. ILT is valied quite expensively at the moment, while it does show a decent growth rate.
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 20.97%, ILT belongs to the best of the industry, outperforming 99.07% of the companies in the same industry.
With an excellent Return On Equity value of 104.83%, ILT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ILT has a better Return On Invested Capital (23.99%) than 95.33% 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 8.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.97% | ||
| ROE | 104.83% | ||
| ROIC | 23.99% |
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 (21.31%) than 100.00% of its industry peers.
ILT's Profit Margin has improved in the last couple of years.
ILT has a better Operating Margin (25.98%) than 96.26% of its industry peers.
In the last couple of years the Operating Margin of ILT has grown nicely.
With a Gross Margin value of 43.74%, ILT perfoms like the industry average, outperforming 57.01% 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 | 25.98% | ||
| PM (TTM) | 21.31% | ||
| GM | 43.74% |
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.
ILT has less shares outstanding than it did 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
An Altman-Z score of 7.93 indicates that ILT is not in any danger for bankruptcy at the moment.
ILT's Altman-Z score of 7.93 is amongst the best of the industry. ILT outperforms 96.26% of its industry peers.
The Debt to FCF ratio of ILT is 3.28, which is a good value as it means it would take ILT, 3.28 years of fcf income to pay off all of its debts.
ILT has a better Debt to FCF ratio (3.28) than 71.03% of its industry peers.
A Debt/Equity ratio of 2.78 is on the high side and indicates that ILT has dependencies on debt financing.
The Debt to Equity ratio of ILT (2.78) is worse than 88.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.78 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | 7.93 |
ROIC/WACC2.61
WACC9.19%
2.3 Liquidity
ILT has a Current Ratio of 1.59. 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 Current ratio (1.59) which is in line with its industry peers.
A Quick Ratio of 1.15 indicates that ILT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.15, ILT is in the better half of the industry, outperforming 62.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.15 |
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.
Looking at the last year, ILT shows a decrease in Revenue. The Revenue has decreased by -0.41% in the last year.
The Revenue has been growing slightly by 2.42% on average over the past years.
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 a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.83% yearly.
ILT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.58% yearly.
EPS Next Y3.4%
EPS Next 2Y5.76%
EPS Next 3Y6.25%
EPS Next 5Y7.83%
Revenue Next Year0.68%
Revenue Next 2Y2.08%
Revenue Next 3Y2.48%
Revenue Next 5Y3.58%
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
With a Price/Earnings ratio of 23.72, ILT is valued on the expensive side.
ILT's Price/Earnings is on the same level as the industry average.
ILT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.51, which indicates a rather expensive current valuation of ILT.
65.42% of the companies in the same industry are cheaper than ILT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, ILT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.72 | ||
| Fwd PE | 21.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ILT is valued a bit more expensive than the industry average as 67.29% of the companies are valued more cheaply.
ILT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.18 | ||
| EV/EBITDA | 17.48 |
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)6.98
PEG (5Y)4.44
EPS Next 2Y5.76%
EPS Next 3Y6.25%
5. Dividend
5.1 Amount
ILT has a Yearly Dividend Yield of 2.64%.
ILT's Dividend Yield is a higher than the industry average which is at 2.62.
ILT's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
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 51.65% of its income as dividend. This is a bit on the high side, but may be sustainable.
ILT's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP51.65%
EPS Next 2Y5.76%
EPS Next 3Y6.25%
FRA:ILT (11/7/2025, 7:00:00 PM)
212.1
-0.2 (-0.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners84.19%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap61.83B
Revenue(TTM)15.88B
Net Income(TTM)3.37B
Analysts52.59
Price Target226.12 (6.61%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
Yearly Dividend4.95
Dividend Growth(5Y)6.98%
DP51.65%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.06%
Min EPS beat(2)-0.33%
Max EPS beat(2)0.45%
EPS beat(4)3
Avg EPS beat(4)1.17%
Min EPS beat(4)-0.33%
Max EPS beat(4)3.83%
EPS beat(8)6
Avg EPS beat(8)1.33%
EPS beat(12)10
Avg EPS beat(12)2.79%
EPS beat(16)13
Avg EPS beat(16)2.45%
Revenue beat(2)0
Avg Revenue beat(2)-0.66%
Min Revenue beat(2)-1.06%
Max Revenue beat(2)-0.27%
Revenue beat(4)0
Avg Revenue beat(4)-1.49%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)-0.27%
Revenue beat(8)0
Avg Revenue beat(8)-1.82%
Revenue beat(12)2
Avg Revenue beat(12)-1.16%
Revenue beat(16)5
Avg Revenue beat(16)-0.52%
PT rev (1m)2.72%
PT rev (3m)2.46%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)1.27%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)1.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.4%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.72 | ||
| Fwd PE | 21.51 | ||
| P/S | 4.52 | ||
| P/FCF | 26.18 | ||
| P/OCF | 22.66 | ||
| P/B | 22.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.48 |
EPS(TTM)8.94
EY4.21%
EPS(NY)9.86
Fwd EY4.65%
FCF(TTM)8.1
FCFY3.82%
OCF(TTM)9.36
OCFY4.41%
SpS46.97
BVpS9.55
TBVpS-7.1
PEG (NY)6.98
PEG (5Y)4.44
Graham Number43.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.97% | ||
| ROE | 104.83% | ||
| ROCE | 33.86% | ||
| ROIC | 23.99% | ||
| ROICexc | 25.49% | ||
| ROICexgc | 45.94% | ||
| OM | 25.98% | ||
| PM (TTM) | 21.31% | ||
| GM | 43.74% | ||
| FCFM | 17.25% |
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 | 2.78 | ||
| Debt/FCF | 3.28 | ||
| Debt/EBITDA | 1.99 | ||
| Cap/Depr | 105.75% | ||
| Cap/Sales | 2.68% | ||
| Interest Coverage | 15.19 | ||
| Cash Conversion | 69.9% | ||
| Profit Quality | 80.95% | ||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 7.93 |
F-Score6
WACC9.19%
ROIC/WACC2.61
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 Y3.4%
EPS Next 2Y5.76%
EPS Next 3Y6.25%
EPS Next 5Y7.83%
Revenue 1Y (TTM)-0.41%
Revenue growth 3Y3.22%
Revenue growth 5Y2.42%
Sales Q2Q%2.34%
Revenue Next Year0.68%
Revenue Next 2Y2.08%
Revenue Next 3Y2.48%
Revenue Next 5Y3.58%
EBIT growth 1Y-3.23%
EBIT growth 3Y7.04%
EBIT growth 5Y4.62%
EBIT Next Year8.9%
EBIT Next 3Y6.5%
EBIT Next 5Y6.07%
FCF growth 1Y5.3%
FCF growth 3Y7.95%
FCF growth 5Y1.28%
OCF growth 1Y3.45%
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.
Can you provide the valuation status for ILLINOIS TOOL WORKS?
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 financial health for ILT stock?
The financial health rating of ILLINOIS TOOL WORKS (ILT.DE) is 6 / 10.
What is the expected EPS growth for ILLINOIS TOOL WORKS (ILT.DE) stock?
The Earnings per Share (EPS) of ILLINOIS TOOL WORKS (ILT.DE) is expected to grow by 3.4% in the next year.