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 104 industry peers in the Machinery industry. ILT has an excellent profitability rating, 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
In the past year ILT was profitable.
In the past year ILT had a positive cash flow from operations.
In the past 5 years ILT has always been profitable.
In the past 5 years ILT always reported a positive cash flow from operatings.
1.2 Ratios
ILT has a better Return On Assets (23.15%) than 98.08% of its industry peers.
With an excellent Return On Equity value of 105.19%, ILT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ILT's Return On Invested Capital of 28.87% is amongst the best of the industry. ILT outperforms 99.04% 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 8.40%.
The 3 year average ROIC (27.14%) for ILT is below the current ROIC(28.87%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.15% | ||
| ROE | 105.19% | ||
| ROIC | 28.87% |
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
Looking at the Profit Margin, with a value of 21.94%, ILT belongs to the top of the industry, outperforming 99.04% of the companies in the same industry.
ILT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 26.82%, ILT belongs to the top of the industry, outperforming 99.04% of the companies in the same industry.
In the last couple of years the Operating Margin of ILT has grown nicely.
ILT has a Gross Margin of 44.28%. This is comparable to the rest of the industry: ILT outperforms 58.65% 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 | 26.82% | ||
| PM (TTM) | 21.94% | ||
| GM | 44.28% |
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.
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 8.74 indicates that ILT is not in any danger for bankruptcy at the moment.
ILT has a Altman-Z score of 8.74. This is amongst the best in the industry. ILT outperforms 99.04% of its industry peers.
The Debt to FCF ratio of ILT is 2.76, which is a good value as it means it would take ILT, 2.76 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.76, ILT is doing good in the industry, outperforming 75.00% of the companies in the same industry.
ILT has a Debt/Equity ratio of 2.14. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ILT (2.14) is worse than 85.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 2.76 | ||
| Altman-Z | 8.74 |
ROIC/WACC2.62
WACC11.01%
2.3 Liquidity
A Current Ratio of 1.36 indicates that ILT should not have too much problems paying its short term obligations.
ILT's Current ratio of 1.36 is on the low side compared to the rest of the industry. ILT is outperformed by 61.54% of its industry peers.
A Quick Ratio of 0.99 indicates that ILT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.99, ILT is in line with its industry, outperforming 50.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
ILT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.99%.
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 -1.30%.
ILT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.42% yearly.
EPS 1Y (TTM)3.99%
EPS 3Y7.79%
EPS 5Y5.34%
EPS Q2Q%4.96%
Revenue 1Y (TTM)-1.3%
Revenue growth 3Y3.22%
Revenue growth 5Y2.42%
Sales Q2Q%-1.28%
3.2 Future
The Earnings Per Share is expected to grow by 7.84% on average over the next years.
The Revenue is expected to grow by 3.70% on average over the next years.
EPS Next Y3.21%
EPS Next 2Y5.82%
EPS Next 3Y6.27%
EPS Next 5Y7.84%
Revenue Next Year-1.36%
Revenue Next 2Y1.01%
Revenue Next 3Y1.79%
Revenue Next 5Y3.7%
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
ILT is valuated quite expensively with a Price/Earnings ratio of 25.87.
ILT's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.35, ILT is valued at the same level.
A Price/Forward Earnings ratio of 25.07 indicates a quite expensive valuation of ILT.
65.38% of the companies in the same industry are cheaper than ILT, based on the Price/Forward Earnings ratio.
ILT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.87 | ||
| Fwd PE | 25.07 |
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 67.31% of the companies 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 | 27.16 | ||
| EV/EBITDA | 17.87 |
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)8.06
PEG (5Y)4.84
EPS Next 2Y5.82%
EPS Next 3Y6.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.26%, ILT has a reasonable but not impressive dividend return.
ILT's Dividend Yield is a higher than the industry average which is at 2.63.
Compared to an average S&P500 Dividend Yield of 2.33, ILT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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
48.60% of the earnings are spent on dividend by ILT. 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.
DP48.6%
EPS Next 2Y5.82%
EPS Next 3Y6.27%
FRA:ILT (3/7/2025, 7:00:00 PM)
242.4
+4.7 (+1.98%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners83.88%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap71.14B
Analysts55
Price Target255.97 (5.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
Yearly Dividend5.26
Dividend Growth(5Y)6.98%
DP48.6%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.27%
Min EPS beat(2)0.71%
Max EPS beat(2)3.83%
EPS beat(4)4
Avg EPS beat(4)2.11%
Min EPS beat(4)0.71%
Max EPS beat(4)3.83%
EPS beat(8)7
Avg EPS beat(8)2.09%
EPS beat(12)11
Avg EPS beat(12)3.42%
EPS beat(16)13
Avg EPS beat(16)3.05%
Revenue beat(2)0
Avg Revenue beat(2)-2.31%
Min Revenue beat(2)-2.36%
Max Revenue beat(2)-2.27%
Revenue beat(4)0
Avg Revenue beat(4)-2.29%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)-2.26%
Revenue beat(8)0
Avg Revenue beat(8)-1.97%
Revenue beat(12)4
Avg Revenue beat(12)-0.72%
Revenue beat(16)7
Avg Revenue beat(16)-0.18%
PT rev (1m)-0.19%
PT rev (3m)2.05%
EPS NQ rev (1m)-6.73%
EPS NQ rev (3m)-8.02%
EPS NY rev (1m)-2.28%
EPS NY rev (3m)-2.98%
Revenue NQ rev (1m)-3.72%
Revenue NQ rev (3m)-4.99%
Revenue NY rev (1m)-3.08%
Revenue NY rev (3m)-4.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.87 | ||
| Fwd PE | 25.07 | ||
| P/S | 4.86 | ||
| P/FCF | 27.16 | ||
| P/OCF | 23.54 | ||
| P/B | 23.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.87 |
EPS(TTM)9.37
EY3.87%
EPS(NY)9.67
Fwd EY3.99%
FCF(TTM)8.93
FCFY3.68%
OCF(TTM)10.3
OCFY4.25%
SpS49.89
BVpS10.41
TBVpS-6.64
PEG (NY)8.06
PEG (5Y)4.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.15% | ||
| ROE | 105.19% | ||
| ROCE | 39.63% | ||
| ROIC | 28.87% | ||
| ROICexc | 31.45% | ||
| ROICexgc | 64.57% | ||
| OM | 26.82% | ||
| PM (TTM) | 21.94% | ||
| GM | 44.28% | ||
| FCFM | 17.89% |
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-Score7
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 2.76 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 108.71% | ||
| Cap/Sales | 2.75% | ||
| Interest Coverage | 17.19 | ||
| Cash Conversion | 70.32% | ||
| Profit Quality | 81.54% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 8.74 |
F-Score7
WACC11.01%
ROIC/WACC2.62
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)3.99%
EPS 3Y7.79%
EPS 5Y5.34%
EPS Q2Q%4.96%
EPS Next Y3.21%
EPS Next 2Y5.82%
EPS Next 3Y6.27%
EPS Next 5Y7.84%
Revenue 1Y (TTM)-1.3%
Revenue growth 3Y3.22%
Revenue growth 5Y2.42%
Sales Q2Q%-1.28%
Revenue Next Year-1.36%
Revenue Next 2Y1.01%
Revenue Next 3Y1.79%
Revenue Next 5Y3.7%
EBIT growth 1Y5.54%
EBIT growth 3Y7.04%
EBIT growth 5Y4.62%
EBIT Next Year11.26%
EBIT Next 3Y7.44%
EBIT Next 5Y6.51%
FCF growth 1Y-7.78%
FCF growth 3Y7.95%
FCF growth 5Y1.28%
OCF growth 1Y-7.29%
OCF growth 3Y8.67%
OCF growth 5Y1.84%