ILLINOIS TOOL WORKS (ILT.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ILT - US4523081093 - Common Stock
220.1 EUR
+7.3 (+3.43%)
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. While ILT has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, ILT is valued expensive at the moment.
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.
In the past 5 years ILT always reported a positive cash flow from operatings.
1.2 Ratios
ILT's Return On Assets of 18.75% is amongst the best of the industry. ILT outperforms 98.17% of its industry peers.
The Return On Equity of ILT (94.33%) is better than 100.00% of its industry peers.
ILT has a better Return On Invested Capital (24.44%) than 95.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ILT is significantly above the industry average of 8.88%.
| 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.
In the last couple of years the Profit Margin of ILT has grown nicely.
The Operating Margin of ILT (26.20%) is better than 97.25% of its industry peers.
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.
ILT has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ILT has been reduced compared to 5 years ago.
The debt/assets ratio for ILT has been reduced compared to a year ago.
2.2 Solvency
ILT has an Altman-Z score of 8.04. This indicates that ILT is financially healthy and has little risk of bankruptcy at the moment.
ILT has a better Altman-Z score (8.04) than 96.33% of its industry peers.
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.
The Debt to FCF ratio of ILT (3.14) is better than 69.72% of its industry peers.
A Debt/Equity ratio of 2.80 is on the high side and indicates that ILT has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.80, ILT is doing worse than 89.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.8 | ||
| Debt/FCF | 3.14 | ||
| Altman-Z | 8.04 |
ROIC/WACC2.64
WACC9.25%
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.
The Current ratio of ILT (1.53) is comparable to the rest of the industry.
ILT has a Quick Ratio of 1.11. This is a normal value and indicates that ILT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.11, ILT is in the better half of the industry, outperforming 60.55% 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.
ILT shows a decrease in Revenue. In the last year, the revenue decreased by -0.41%.
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
Based on estimates for the next years, ILT will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.58% on average per year.
The Revenue is expected to grow by 3.85% on average over the next years.
EPS Next Y3.82%
EPS Next 2Y5.78%
EPS Next 3Y6.27%
EPS Next 5Y9.58%
Revenue Next Year0.36%
Revenue Next 2Y1.87%
Revenue Next 3Y2.36%
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.
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 25.01, ILT can be considered very expensive at the moment.
ILT's Price/Earnings ratio is in line with the industry average.
ILT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 22.66 indicates a rather expensive valuation of ILT.
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 64.22% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ILT to the average of the S&P500 Index (23.78), we can say ILT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.01 | ||
| Fwd PE | 22.66 |
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 69.72% of the companies listed 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 | 26.29 | ||
| EV/EBITDA | 17.8 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ILT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.55
PEG (5Y)4.68
EPS Next 2Y5.78%
EPS Next 3Y6.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.58%, ILT has a reasonable but not impressive dividend return.
ILT's Dividend Yield is a higher than the industry average which is at 2.37.
ILT's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
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
ILT pays out 58.20% of its income as dividend. This is a bit on the high side, but may be sustainable.
ILT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP58.2%
EPS Next 2Y5.78%
EPS Next 3Y6.27%
FRA:ILT (12/12/2025, 7:00:00 PM)
220.1
+7.3 (+3.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners84.95%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap63.85B
Revenue(TTM)15.88B
Net Income(TTM)3.03B
Analysts53.08
Price Target226.61 (2.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
Yearly Dividend4.91
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)0.22%
PT rev (3m)0.73%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-1.92%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.01 | ||
| Fwd PE | 22.66 | ||
| P/S | 4.71 | ||
| P/FCF | 26.29 | ||
| P/OCF | 22.82 | ||
| P/B | 23.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.8 |
EPS(TTM)8.8
EY4%
EPS(NY)9.71
Fwd EY4.41%
FCF(TTM)8.37
FCFY3.8%
OCF(TTM)9.64
OCFY4.38%
SpS46.74
BVpS9.44
TBVpS-6.94
PEG (NY)6.55
PEG (5Y)4.68
Graham Number43.23
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 | 8.04 |
F-Score6
WACC9.25%
ROIC/WACC2.64
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 2Y5.78%
EPS Next 3Y6.27%
EPS Next 5Y9.58%
Revenue 1Y (TTM)-0.41%
Revenue growth 3Y3.22%
Revenue growth 5Y2.42%
Sales Q2Q%2.34%
Revenue Next Year0.36%
Revenue Next 2Y1.87%
Revenue Next 3Y2.36%
Revenue Next 5Y3.85%
EBIT growth 1Y-1.4%
EBIT growth 3Y7.04%
EBIT growth 5Y4.62%
EBIT Next Year8.69%
EBIT Next 3Y6.44%
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.
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 3.82% in the next year.