ILLINOIS TOOL WORKS (ILT.DE) Stock Fundamental Analysis
Europe - FRA:ILT - US4523081093 - Common Stock
224.7 EUR
+0.4 (+0.18%)
ILT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 106 industry peers in the Machinery industry. While ILT belongs to the best of the industry regarding profitability, 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
ILT had positive earnings in the past year.
ILT had a positive operating cash flow in the past year.
ILT had positive earnings in each of the past 5 years.
Each year in the past 5 years ILT had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 20.97%, ILT belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
With an excellent Return On Equity value of 104.83%, 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 23.99% is amongst the best of the industry. ILT outperforms 95.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ILT is significantly above the industry average of 8.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.97% | ||
| ROE | 104.83% | ||
| ROIC | 23.99% |
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
With an excellent Profit Margin value of 21.31%, ILT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ILT's Profit Margin has improved in the last couple of years.
The Operating Margin of ILT (25.98%) is better than 96.19% of its industry peers.
In the last couple of years the Operating Margin of ILT has grown nicely.
The Gross Margin of ILT (43.74%) 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 | 25.98% | ||
| PM (TTM) | 21.31% | ||
| GM | 43.74% |
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.
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.
The debt/assets ratio for ILT has been reduced compared to a year ago.
2.2 Solvency
ILT has an Altman-Z score of 8.14. This indicates that ILT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.14, ILT belongs to the top of the industry, outperforming 96.19% of the companies in the same industry.
The Debt to FCF ratio of ILT is 3.28, which is a good value as it means it would take ILT, 3.28 years of fcf income to pay off all of its debts.
ILT has a better Debt to FCF ratio (3.28) than 68.57% of its industry peers.
A Debt/Equity ratio of 2.78 is on the high side and indicates that ILT has dependencies on debt financing.
With a Debt to Equity ratio value of 2.78, ILT is not doing good in the industry: 91.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.78 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | 8.14 |
ROIC/WACC2.49
WACC9.65%
2.3 Liquidity
A Current Ratio of 1.59 indicates that ILT should not have too much problems paying its short term obligations.
ILT has a Current ratio (1.59) which is in line with its industry peers.
ILT has a Quick Ratio of 1.15. 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 Quick ratio of 1.15. This is comparable to the rest of the industry: ILT outperforms 59.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.01% 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 -1.40%.
ILT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.42% yearly.
EPS 1Y (TTM)2.01%
EPS 3Y7.79%
EPS 5Y5.34%
EPS Q2Q%1.57%
Revenue 1Y (TTM)-1.4%
Revenue growth 3Y3.22%
Revenue growth 5Y2.42%
Sales Q2Q%0.65%
3.2 Future
ILT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.83% yearly.
Based on estimates for the next years, ILT will show a small growth in Revenue. The Revenue will grow by 3.58% on average per year.
EPS Next Y3.37%
EPS Next 2Y5.72%
EPS Next 3Y6.21%
EPS Next 5Y7.83%
Revenue Next Year0.67%
Revenue Next 2Y2.05%
Revenue Next 3Y2.52%
Revenue Next 5Y3.58%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 25.86 indicates a quite expensive valuation of ILT.
The rest of the industry has a similar Price/Earnings ratio as ILT.
ILT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 23.10, which indicates a rather expensive current valuation of ILT.
61.90% of the companies in the same industry are cheaper than ILT, based on the Price/Forward Earnings ratio.
ILT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.86 | ||
| Fwd PE | 23.1 |
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 69.52% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ILT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.1 | ||
| EV/EBITDA | 18.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ILT does not grow enough to justify the current Price/Earnings ratio.
ILT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)7.67
PEG (5Y)4.84
EPS Next 2Y5.72%
EPS Next 3Y6.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.42%, ILT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.93, ILT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, ILT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
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
51.65% 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.
DP51.65%
EPS Next 2Y5.72%
EPS Next 3Y6.21%
FRA:ILT (9/12/2025, 7:00:00 PM)
224.7
+0.4 (+0.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners83.94%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap65.50B
Analysts52.59
Price Target220.13 (-2.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
Yearly Dividend4.88
Dividend Growth(5Y)6.98%
DP51.65%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.06%
Min EPS beat(2)-0.33%
Max EPS beat(2)0.45%
EPS beat(4)3
Avg EPS beat(4)1.17%
Min EPS beat(4)-0.33%
Max EPS beat(4)3.83%
EPS beat(8)6
Avg EPS beat(8)1.33%
EPS beat(12)10
Avg EPS beat(12)2.79%
EPS beat(16)13
Avg EPS beat(16)2.45%
Revenue beat(2)0
Avg Revenue beat(2)-0.66%
Min Revenue beat(2)-1.06%
Max Revenue beat(2)-0.27%
Revenue beat(4)0
Avg Revenue beat(4)-1.49%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)-0.27%
Revenue beat(8)0
Avg Revenue beat(8)-1.82%
Revenue beat(12)2
Avg Revenue beat(12)-1.16%
Revenue beat(16)5
Avg Revenue beat(16)-0.52%
PT rev (1m)1.94%
PT rev (3m)1.24%
EPS NQ rev (1m)0.31%
EPS NQ rev (3m)-0.78%
EPS NY rev (1m)1.06%
EPS NY rev (3m)1.44%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)3.25%
Revenue NY rev (1m)0.98%
Revenue NY rev (3m)1.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.86 | ||
| Fwd PE | 23.1 | ||
| P/S | 4.85 | ||
| P/FCF | 28.1 | ||
| P/OCF | 24.32 | ||
| P/B | 23.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.5 |
EPS(TTM)8.69
EY3.87%
EPS(NY)9.73
Fwd EY4.33%
FCF(TTM)8
FCFY3.56%
OCF(TTM)9.24
OCFY4.11%
SpS46.36
BVpS9.42
TBVpS-7
PEG (NY)7.67
PEG (5Y)4.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.97% | ||
| ROE | 104.83% | ||
| ROCE | 33.86% | ||
| ROIC | 23.99% | ||
| ROICexc | 25.49% | ||
| ROICexgc | 45.94% | ||
| OM | 25.98% | ||
| PM (TTM) | 21.31% | ||
| GM | 43.74% | ||
| FCFM | 17.25% |
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-Score6
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.78 | ||
| Debt/FCF | 3.28 | ||
| Debt/EBITDA | 1.99 | ||
| Cap/Depr | 105.75% | ||
| Cap/Sales | 2.68% | ||
| Interest Coverage | 15.19 | ||
| Cash Conversion | 69.9% | ||
| Profit Quality | 80.95% | ||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 8.14 |
F-Score6
WACC9.65%
ROIC/WACC2.49
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)2.01%
EPS 3Y7.79%
EPS 5Y5.34%
EPS Q2Q%1.57%
EPS Next Y3.37%
EPS Next 2Y5.72%
EPS Next 3Y6.21%
EPS Next 5Y7.83%
Revenue 1Y (TTM)-1.4%
Revenue growth 3Y3.22%
Revenue growth 5Y2.42%
Sales Q2Q%0.65%
Revenue Next Year0.67%
Revenue Next 2Y2.05%
Revenue Next 3Y2.52%
Revenue Next 5Y3.58%
EBIT growth 1Y-3.23%
EBIT growth 3Y7.04%
EBIT growth 5Y4.62%
EBIT Next Year8.79%
EBIT Next 3Y6.61%
EBIT Next 5Y6.07%
FCF growth 1Y5.3%
FCF growth 3Y7.95%
FCF growth 5Y1.28%
OCF growth 1Y3.45%
OCF growth 3Y8.67%
OCF growth 5Y1.84%