ILLINOIS TOOL WORKS (ILT.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ILT - US4523081093 - Common Stock
212.7 EUR
-2.7 (-1.25%)
Taking everything into account, ILT scores 6 out of 10 in our fundamental rating. ILT was compared to 110 industry peers in the Machinery industry. While ILT has a great profitability rating, 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.
In the past year ILT had a positive cash flow from operations.
Each year in the past 5 years ILT has been profitable.
ILT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ILT has a Return On Assets of 18.75%. This is amongst the best in the industry. ILT outperforms 98.23% of its industry peers.
Looking at the Return On Equity, with a value of 94.33%, ILT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of ILT (24.44%) is better than 95.58% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ILT is significantly above the industry average of 8.83%.
| 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
The Profit Margin of ILT (19.05%) is better than 98.23% of its industry peers.
ILT's Profit Margin has improved in the last couple of years.
ILT has a Operating Margin of 26.20%. This is amongst the best in the industry. ILT outperforms 97.35% 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
ILT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, ILT has less shares outstanding
Compared to 5 years ago, ILT has less shares outstanding
ILT has a better debt/assets ratio than last year.
2.2 Solvency
ILT has an Altman-Z score of 7.94. This indicates that ILT is financially healthy and has little risk of bankruptcy at the moment.
ILT's Altman-Z score of 7.94 is amongst the best of the industry. ILT outperforms 97.35% of its industry peers.
The Debt to FCF ratio of ILT is 3.14, which is a good value as it means it would take ILT, 3.14 years of fcf income to pay off all of its debts.
ILT has a Debt to FCF ratio of 3.14. This is in the better half of the industry: ILT outperforms 69.03% 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.
The Debt to Equity ratio of ILT (2.80) is worse than 91.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.8 | ||
| Debt/FCF | 3.14 | ||
| Altman-Z | 7.94 |
ROIC/WACC2.63
WACC9.28%
2.3 Liquidity
A Current Ratio of 1.53 indicates that ILT should not have too much problems paying its short term obligations.
ILT has a Current ratio of 1.53. This is comparable to the rest of the industry: ILT outperforms 52.21% of its industry peers.
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 61.06% 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.
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 -0.41%.
Measured over the past years, ILT shows a small growth in Revenue. The Revenue has been growing by 2.42% on average per year.
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.
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.
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
With a Price/Earnings ratio of 24.17, ILT is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as ILT.
The average S&P500 Price/Earnings ratio is at 26.39. ILT is around the same levels.
ILT is valuated rather expensively with a Price/Forward Earnings ratio of 21.89.
Based on the Price/Forward Earnings ratio, ILT is valued a bit more expensive than the industry average as 66.37% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of ILT to the average of the S&P500 Index (23.84), we can say ILT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.17 | ||
| Fwd PE | 21.89 |
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 71.68% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ILT indicates a slightly more expensive valuation: ILT is more expensive than 60.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.4 | ||
| EV/EBITDA | 17.33 |
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)6.33
PEG (5Y)4.52
EPS Next 2Y5.78%
EPS Next 3Y6.27%
5. Dividend
5.1 Amount
ILT has a Yearly Dividend Yield of 2.56%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.55, ILT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, ILT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
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 2Y5.78%
EPS Next 3Y6.27%
FRA:ILT (12/19/2025, 7:00:00 PM)
212.7
-2.7 (-1.25%)
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 Cap61.70B
Revenue(TTM)15.88B
Net Income(TTM)3.03B
Analysts53.08
Price Target226.61 (6.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
Yearly Dividend4.88
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)0.25%
PT rev (3m)2.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.92%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.43%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.17 | ||
| Fwd PE | 21.89 | ||
| P/S | 4.55 | ||
| P/FCF | 25.4 | ||
| P/OCF | 22.05 | ||
| P/B | 22.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.33 |
EPS(TTM)8.8
EY4.14%
EPS(NY)9.72
Fwd EY4.57%
FCF(TTM)8.37
FCFY3.94%
OCF(TTM)9.64
OCFY4.53%
SpS46.75
BVpS9.44
TBVpS-6.95
PEG (NY)6.33
PEG (5Y)4.52
Graham Number43.24
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 | 7.94 |
F-Score6
WACC9.28%
ROIC/WACC2.63
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.