Illinois Tool WorksFRA:ILT +1.86%85 Return-on-Tangible-Asset is 29.35% as of Mar. 2026, which is 10% above its 10-year median of 26.64. GuruFocus rates FRA:ILT with a GF Score™ of 85/100 and a GF Value™ of €231.51 (Fairly Valued). The stock has 1 warning sign investors should review. Among 3,070 Industrial Products companies, Illinois Tool Works ranks better than 99.25% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Illinois Tool Works's annualizedNet Income for the quarter that ended in Mar. 2026 was €2,657 Mil. Illinois Tool Works's average total tangible assets for the quarter that ended in Mar. 2026 was €9,054 Mil. Therefore, Illinois Tool Works's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 29.35%.
The historical rank and industry rank for Illinois Tool Works's Return-on-Tangible-Asset or its related term are showing as below:
FRA:ILT'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 16.92 Med: 26.64 Max: 35.61
Current: 30.09
During the past 13 years, Illinois Tool Works's highest Return-on-Tangible-Asset was 35.61%. The lowest was 16.92%. And the median was 26.64%.
FRA:ILT's Return-on-Tangible-Asset is ranked better than 99.25% of 3070
companies
in the Industrial Products industry
Industry Median: 3.245
vs FRA:ILT: 30.09
Illinois Tool Works (FRA:ILT) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Illinois Tool Works Return-on-Tangible-Asset Related Terms
Illinois Tool Works Return-on-Tangible-Asset Historical Data
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The historical data trend for Illinois Tool Works's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Illinois Tool Works Return-on-Tangible-Asset Chart
FRA:ILT vs EMR, CMI, AME: Return-on-Tangible-Asset Comparison
For the Specialty Industrial Machinery subindustry, Illinois Tool Works's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Illinois Tool Works Return-on-Tangible-Asset vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Illinois Tool Works's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Illinois Tool Works's Return-on-Tangible-Asset falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 29.35% mean?
Illinois Tool Works (FRA:ILT) has a Return-on-Tangible-Asset of 29.35% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Illinois Tool Works and its competitors. This is 10% above median its historical median of 26.64. Over the past decade, Illinois Tool Works' Return-on-Tangible-Asset has ranged from 16.92 to 35.61. According to the industry distribution chart, Illinois Tool Works ranks #23 out of 3070 companies in the Industrial Products industry, placing it in the top 0.7%.
Is Illinois Tool Works' Return-on-Tangible-Asset too high?
Illinois Tool Works' current Return-on-Tangible-Asset of 29.35% is 10% above median its 10-year median of 26.64. Over the past 10 years, this metric has ranged from a low of 16.92 to a high of 35.61. The Industrial Products industry median Return-on-Tangible-Asset is 3.25. Illinois Tool Works' value of 29.35% is 804.5% above this industry median. Based on the distribution chart, Illinois Tool Works ranks #23 out of 3070 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Illinois Tool Works has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Illinois Tool Works' Return-on-Tangible-Asset compare to EMR and CMI?
According to the Industrial Products industry distribution chart, Illinois Tool Works ranks #23 out of 3070 companies for Return-on-Tangible-Asset. This places Illinois Tool Works in the top 1% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.25. Illinois Tool Works' value of 29.35% is 804.5% above this benchmark. Historically, Illinois Tool Works' own Return-on-Tangible-Asset has ranged from 16.92 to 35.61 over the past decade. While the company's 10-year median is 26.64 vs. the industry median of 3.25, Illinois Tool Works has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for an Industrial Products company?
The median Return-on-Tangible-Asset among Industrial Products companies is 3.25, based on 3,070 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Illinois Tool Works's current Return-on-Tangible-Asset of 29.35% is 804.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Illinois Tool Works and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Asset is 3.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Illinois Tool Works's current Return-on-Tangible-Asset is 29.35%, which is 10% above median its own 10-year median of 26.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Illinois Tool Works stock overvalued right now?
Based on GuruFocus' analysis, Illinois Tool Works (FRA:ILT) is currently considered Fairly Valued. The stock's GF Value™ is €231.51, compared to a current price of €235.00 — trading 1.5% above its estimated fair value. The current Return-on-Tangible-Asset is 29.35%, which is 10% above median its 10-year median of 26.64 and 804.5% above the Industrial Products industry median of 3.25. Illinois Tool Works' overall GF Score™ is 85/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Illinois Tool Works (FRA:ILT), the current Return-on-Tangible-Asset is 29.35% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Illinois Tool Works (FRA:ILT) Overvalued in 2026?
Based on GuruFocus' analysis, Illinois Tool Works stock appears to be overvalued.
The current stock price of €235.00 is trading 1.5% above its estimated GF Value™ of €231.51.
GuruFocus considers Illinois Tool Works to be Fairly Valued.
Key valuation signals for FRA:ILT:
Return-on-Tangible-Asset: 29.35% (10% above median its 10-year median of 26.64)
GF Value™: €231.51 vs. price of €235.00 (1.5% above fair value)
Industry Position: 804.5% above the Industrial Products median (#23 of 3070)
No single metric tells the full story. See the FRA:ILT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1912, Illinois Tool Works has become a diversified industrial manufacturer through acquisitions and innovations that follow customer needs. ITW operates through seven business segments, with no segment representing more than one-fifth of revenue. ITW's automotive OEM segment sells vehicle components; its food equipment segment sells commercial kitchen appliances; its test and measurement and electronics segment sells inspection and analysis equipment; its welding segment sells welding equipment and consumables; its polymers and fluids segment sells industrial and consumer adhesives, solvents, and coatings; its construction products segment sells building fasteners and tools; and its specialty products segment sells medical, packaging, HVAC, and airport ground equipment.
85GF Score
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