ILLINOIS TOOL WORKS (ILT.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ILT - US4523081093 - Common Stock
212.6 EUR
-2.1 (-0.98%)
Taking everything into account, ILT scores 6 out of 10 in our fundamental rating. ILT was compared to 109 industry peers in the Machinery industry. ILT has an excellent profitability rating, but there are some minor concerns on its financial health. ILT is quite expensive at the moment. It does show a decent growth rate. Finally ILT also has an excellent dividend rating. These ratings could make ILT a good candidate for dividend investing.
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.
In the past 5 years ILT always reported a positive cash flow from operatings.
1.2 Ratios
ILT has a Return On Assets of 18.75%. This is amongst the best in the industry. ILT outperforms 98.17% of its industry peers.
ILT has a Return On Equity of 94.33%. This is amongst the best in the industry. ILT outperforms 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 95.41% 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 8.86%.
| 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 98.17% of its industry peers.
ILT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 26.20%, ILT belongs to the best of the industry, outperforming 97.25% 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 (43.93%) 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 | 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
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.
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.
With an excellent Altman-Z score value of 7.93, ILT belongs to the best of the industry, outperforming 95.41% of the companies in the same industry.
ILT has a debt to FCF ratio of 3.14. This is a good value and a sign of high solvency as ILT would need 3.14 years to pay back of all of its debts.
ILT's Debt to FCF ratio of 3.14 is fine compared to the rest of the industry. ILT outperforms 67.89% 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 has a worse Debt to Equity ratio (2.80) than 90.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.8 | ||
| Debt/FCF | 3.14 | ||
| Altman-Z | 7.93 |
ROIC/WACC2.62
WACC9.34%
2.3 Liquidity
ILT has a Current Ratio of 1.53. 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 (1.53) which is comparable to the rest of the industry.
A Quick Ratio of 1.11 indicates that ILT should not have too much problems paying its short term obligations.
ILT has a Quick ratio of 1.11. This is in the better half of the industry: ILT outperforms 60.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.11 |
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%.
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 -0.41% in the past 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
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 Y3.82%
EPS Next 2Y5.72%
EPS Next 3Y6.23%
EPS Next 5Y9.58%
Revenue Next Year0.35%
Revenue Next 2Y1.85%
Revenue Next 3Y2.34%
Revenue Next 5Y3.85%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 24.08 indicates a rather expensive valuation of ILT.
ILT's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.19. ILT is around the same levels.
ILT is valuated rather expensively with a Price/Forward Earnings ratio of 21.84.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ILT indicates a slightly more expensive valuation: ILT is more expensive than 61.47% of the companies listed in the same industry.
ILT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.08 | ||
| Fwd PE | 21.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ILT is valued a bit more expensive than 67.89% of the companies 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 | 25.31 | ||
| EV/EBITDA | 17.27 |
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)6.31
PEG (5Y)4.51
EPS Next 2Y5.72%
EPS Next 3Y6.23%
5. Dividend
5.1 Amount
ILT has a Yearly Dividend Yield of 2.61%.
ILT's Dividend Yield is rather good when compared to the industry average which is at 1.55. ILT pays more dividend than 80.73% of the companies in the same industry.
ILT's Dividend Yield is a higher than the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
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
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 2Y5.72%
EPS Next 3Y6.23%
FRA:ILT (1/7/2026, 7:00:00 PM)
212.6
-2.1 (-0.98%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners84.97%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap61.68B
Revenue(TTM)15.88B
Net Income(TTM)3.03B
Analysts53.08
Price Target222.4 (4.61%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
Yearly Dividend4.86
Dividend Growth(5Y)6.98%
DP58.2%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.08%
Min EPS beat(2)-0.33%
Max EPS beat(2)2.48%
EPS beat(4)3
Avg EPS beat(4)0.83%
Min EPS beat(4)-0.33%
Max EPS beat(4)2.48%
EPS beat(8)6
Avg EPS beat(8)1.3%
EPS beat(12)10
Avg EPS beat(12)2.72%
EPS beat(16)14
Avg EPS beat(16)2.82%
Revenue beat(2)0
Avg Revenue beat(2)-0.94%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)-0.27%
Revenue beat(4)0
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)-0.27%
Revenue beat(8)0
Avg Revenue beat(8)-1.71%
Revenue beat(12)1
Avg Revenue beat(12)-1.46%
Revenue beat(16)5
Avg Revenue beat(16)-0.55%
PT rev (1m)-1.33%
PT rev (3m)-0.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.99%
EPS NY rev (1m)0%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.08 | ||
| Fwd PE | 21.84 | ||
| P/S | 4.53 | ||
| P/FCF | 25.31 | ||
| P/OCF | 21.97 | ||
| P/B | 22.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.27 |
EPS(TTM)8.83
EY4.15%
EPS(NY)9.74
Fwd EY4.58%
FCF(TTM)8.4
FCFY3.95%
OCF(TTM)9.68
OCFY4.55%
SpS46.9
BVpS9.47
TBVpS-6.97
PEG (NY)6.31
PEG (5Y)4.51
Graham Number43.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.75% | ||
| ROE | 94.33% | ||
| ROCE | 34.67% | ||
| ROIC | 24.44% | ||
| ROICexc | 26.26% | ||
| ROICexgc | 47.73% | ||
| OM | 26.2% | ||
| PM (TTM) | 19.05% | ||
| GM | 43.93% | ||
| FCFM | 17.91% |
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 | 2.8 | ||
| Debt/FCF | 3.14 | ||
| Debt/EBITDA | 1.97 | ||
| Cap/Depr | 109.09% | ||
| Cap/Sales | 2.72% | ||
| Interest Coverage | 15.13 | ||
| Cash Conversion | 71.9% | ||
| Profit Quality | 94.02% | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 7.93 |
F-Score6
WACC9.34%
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)2.59%
EPS 3Y7.79%
EPS 5Y5.34%
EPS Q2Q%6.04%
EPS Next Y3.82%
EPS Next 2Y5.72%
EPS Next 3Y6.23%
EPS Next 5Y9.58%
Revenue 1Y (TTM)-0.41%
Revenue growth 3Y3.22%
Revenue growth 5Y2.42%
Sales Q2Q%2.34%
Revenue Next Year0.35%
Revenue Next 2Y1.85%
Revenue Next 3Y2.34%
Revenue Next 5Y3.85%
EBIT growth 1Y-1.4%
EBIT growth 3Y7.04%
EBIT growth 5Y4.62%
EBIT Next Year8.67%
EBIT Next 3Y6.4%
EBIT Next 5Y6.59%
FCF growth 1Y0.49%
FCF growth 3Y7.95%
FCF growth 5Y1.28%
OCF growth 1Y-1.03%
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.
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 24.08 and the Price/Book (PB) ratio is 22.45.
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%.