ILLINOIS TOOL WORKS (ILT.DE) Stock Fundamental Analysis
FRA:ILT • US4523081093
245.4 EUR
+1.5 (+0.62%)
Last: Feb 27, 2026, 07:00 PM
ILT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year ILT was profitable.
- ILT had a positive operating cash flow in the past year.
- ILT had positive earnings in each of the past 5 years.
- ILT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ILT's Return On Assets of 18.99% is amongst the best of the industry. ILT outperforms 98.13% of its industry peers.
- ILT's Return On Equity of 95.07% is amongst the best of the industry. ILT outperforms 100.00% of its industry peers.
- ILT has a better Return On Invested Capital (26.75%) than 96.26% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ILT is significantly above the industry average of 8.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.99% | ||
| ROE | 95.07% | ||
| ROIC | 26.75% |
ROA(3y)20.4%
ROA(5y)19.52%
ROE(3y)99.48%
ROE(5y)94.2%
ROIC(3y)27.84%
ROIC(5y)25.87%
1.3 Margins
- With an excellent Profit Margin value of 19.11%, ILT belongs to the best of the industry, outperforming 99.07% of the companies in the same industry.
- In the last couple of years the Profit Margin of ILT has grown nicely.
- Looking at the Operating Margin, with a value of 26.28%, ILT belongs to the top of the industry, outperforming 98.13% of the companies in the same industry.
- In the last couple of years the Operating Margin of ILT has grown nicely.
- The Gross Margin of ILT (44.10%) is comparable to the rest of the industry.
- 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 | 26.28% | ||
| PM (TTM) | 19.11% | ||
| GM | 44.1% |
OM growth 3Y3.37%
OM growth 5Y2.77%
PM growth 3Y0.12%
PM growth 5Y2.64%
GM growth 3Y2.61%
GM growth 5Y1.3%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ILT is creating value.
- The number of shares outstanding for ILT has been reduced compared to 1 year ago.
- The number of shares outstanding for ILT has been reduced compared to 5 years ago.
- ILT has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 8.45 indicates that ILT is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 8.45, ILT belongs to the best of the industry, outperforming 97.20% of the companies in the same industry.
- ILT has a debt to FCF ratio of 3.31. This is a good value and a sign of high solvency as ILT would need 3.31 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 3.31, ILT is doing good in the industry, outperforming 68.22% of the companies in the same industry.
- ILT has a Debt/Equity ratio of 2.47. This is a high value indicating a heavy dependency on external financing.
- ILT has a worse Debt to Equity ratio (2.47) than 89.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.47 | ||
| Debt/FCF | 3.31 | ||
| Altman-Z | 8.45 |
ROIC/WACC3.05
WACC8.78%
2.3 Liquidity
- A Current Ratio of 1.21 indicates that ILT should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.21, ILT is doing worse than 68.22% of the companies in the same industry.
- ILT has a Quick Ratio of 1.21. This is a bad value and indicates that ILT is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.89, ILT perfoms like the industry average, outperforming 43.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
- ILT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.15%.
- ILT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.61% yearly.
- Looking at the last year, ILT shows a small growth in Revenue. The Revenue has grown by 0.92% in the last year.
- The Revenue has been growing slightly by 4.99% on average over the past years.
EPS 1Y (TTM)3.15%
EPS 3Y2.36%
EPS 5Y9.61%
EPS Q2Q%7.09%
Revenue 1Y (TTM)0.92%
Revenue growth 3Y0.23%
Revenue growth 5Y4.99%
Sales Q2Q%4.09%
3.2 Future
- The Earnings Per Share is expected to grow by 8.86% on average over the next years. This is quite good.
- ILT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.41% yearly.
EPS Next Y8.41%
EPS Next 2Y7.81%
EPS Next 3Y8.91%
EPS Next 5Y8.86%
Revenue Next Year3.38%
Revenue Next 2Y3.41%
Revenue Next 3Y3.37%
Revenue Next 5Y4.41%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 27.60 indicates a quite expensive valuation of ILT.
- Compared to the rest of the industry, the Price/Earnings ratio of ILT is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.13. ILT is around the same levels.
- ILT is valuated quite expensively with a Price/Forward Earnings ratio of 25.47.
- Based on the Price/Forward Earnings ratio, ILT is valued a bit more expensive than 69.16% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 28.11. ILT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.6 | ||
| Fwd PE | 25.47 |
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 71.96% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ILT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.05 | ||
| EV/EBITDA | 19.7 |
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)3.28
PEG (5Y)2.87
EPS Next 2Y7.81%
EPS Next 3Y8.91%
5. Dividend
5.1 Amount
- ILT has a Yearly Dividend Yield of 2.22%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.45, ILT pays a bit more dividend than its industry peers.
- 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 | 2.22% |
5.2 History
- On average, the dividend of ILT grows each year by 7.19%, which is quite nice.
Dividend Growth(5Y)7.19%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- ILT pays out 58.22% 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.
DP58.22%
EPS Next 2Y7.81%
EPS Next 3Y8.91%
FRA:ILT (2/27/2026, 7:00:00 PM)
245.4
+1.5 (+0.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-03 2026-02-03/bmo
Earnings (Next)04-28 2026-04-28/bmo
Inst Owners84.97%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap71.19B
Revenue(TTM)16.04B
Net Income(TTM)3.07B
Analysts52.31
Price Target236.79 (-3.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
Yearly Dividend5.19
Dividend Growth(5Y)7.19%
DP58.22%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.41%
Min EPS beat(2)0.34%
Max EPS beat(2)2.48%
EPS beat(4)3
Avg EPS beat(4)0.74%
Min EPS beat(4)-0.33%
Max EPS beat(4)2.48%
EPS beat(8)7
Avg EPS beat(8)1.43%
EPS beat(12)10
Avg EPS beat(12)1.64%
EPS beat(16)14
Avg EPS beat(16)2.75%
Revenue beat(2)0
Avg Revenue beat(2)-0.99%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)-0.39%
Revenue beat(4)0
Avg Revenue beat(4)-0.83%
Min Revenue beat(4)-1.6%
Max Revenue beat(4)-0.27%
Revenue beat(8)0
Avg Revenue beat(8)-1.56%
Revenue beat(12)0
Avg Revenue beat(12)-1.59%
Revenue beat(16)4
Avg Revenue beat(16)-0.75%
PT rev (1m)5.85%
PT rev (3m)5.05%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)0.59%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.6 | ||
| Fwd PE | 25.47 | ||
| P/S | 5.24 | ||
| P/FCF | 31.05 | ||
| P/OCF | 26.88 | ||
| P/B | 26.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.7 |
EPS(TTM)8.89
EY3.62%
EPS(NY)9.63
Fwd EY3.93%
FCF(TTM)7.9
FCFY3.22%
OCF(TTM)9.13
OCFY3.72%
SpS46.85
BVpS9.42
TBVpS-7.19
PEG (NY)3.28
PEG (5Y)2.87
Graham Number43.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.99% | ||
| ROE | 95.07% | ||
| ROCE | 38.25% | ||
| ROIC | 26.75% | ||
| ROICexc | 28.73% | ||
| ROICexgc | 57.07% | ||
| OM | 26.28% | ||
| PM (TTM) | 19.11% | ||
| GM | 44.1% | ||
| FCFM | 16.87% |
ROA(3y)20.4%
ROA(5y)19.52%
ROE(3y)99.48%
ROE(5y)94.2%
ROIC(3y)27.84%
ROIC(5y)25.87%
ROICexc(3y)30.33%
ROICexc(5y)28.24%
ROICexgc(3y)63.03%
ROICexgc(5y)58.4%
ROCE(3y)38.38%
ROCE(5y)35.46%
ROICexgc growth 3Y3.05%
ROICexgc growth 5Y4.81%
ROICexc growth 3Y3.16%
ROICexc growth 5Y5.95%
OM growth 3Y3.37%
OM growth 5Y2.77%
PM growth 3Y0.12%
PM growth 5Y2.64%
GM growth 3Y2.61%
GM growth 5Y1.3%
F-Score5
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.47 | ||
| Debt/FCF | 3.31 | ||
| Debt/EBITDA | 1.73 | ||
| Cap/Depr | 105.54% | ||
| Cap/Sales | 2.61% | ||
| Interest Coverage | 15.11 | ||
| Cash Conversion | 67.77% | ||
| Profit Quality | 88.29% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 8.45 |
F-Score5
WACC8.78%
ROIC/WACC3.05
Cap/Depr(3y)109.81%
Cap/Depr(5y)100.42%
Cap/Sales(3y)2.73%
Cap/Sales(5y)2.56%
Profit Quality(3y)91.37%
Profit Quality(5y)84.37%
High Growth Momentum
Growth
EPS 1Y (TTM)3.15%
EPS 3Y2.36%
EPS 5Y9.61%
EPS Q2Q%7.09%
EPS Next Y8.41%
EPS Next 2Y7.81%
EPS Next 3Y8.91%
EPS Next 5Y8.86%
Revenue 1Y (TTM)0.92%
Revenue growth 3Y0.23%
Revenue growth 5Y4.99%
Sales Q2Q%4.09%
Revenue Next Year3.38%
Revenue Next 2Y3.41%
Revenue Next 3Y3.37%
Revenue Next 5Y4.41%
EBIT growth 1Y-1.13%
EBIT growth 3Y3.61%
EBIT growth 5Y7.9%
EBIT Next Year15.3%
EBIT Next 3Y8.07%
EBIT Next 5Y7.1%
FCF growth 1Y-4.82%
FCF growth 3Y11.82%
FCF growth 5Y1.04%
OCF growth 1Y-4.72%
OCF growth 3Y10.01%
OCF growth 5Y2.18%
ILLINOIS TOOL WORKS / ILT.DE FAQ
What is the fundamental rating for ILT stock?
ChartMill assigns a fundamental rating of 5 / 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 27.6 and the Price/Book (PB) ratio is 26.06.
Is the dividend of ILLINOIS TOOL WORKS sustainable?
The dividend rating of ILLINOIS TOOL WORKS (ILT.DE) is 6 / 10 and the dividend payout ratio is 58.22%.