Illinois Tool WorksFRA:ILT -0.67%83 ROC (Joel Greenblatt) % is 84.83% as of Mar. 2026, which is 7% below its 10-year median of 91.55. GuruFocus rates FRA:ILT with a GF Score™ of 83/100 and a GF Value™ of €231.63 (Fairly Valued). The stock has 3 warning signs investors should review. Among 3,058 Industrial Products companies, Illinois Tool Works ranks better than 96.01% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Illinois Tool Works's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 84.83%.
The historical rank and industry rank for Illinois Tool Works's ROC (Joel Greenblatt) % or its related term are showing as below:
FRA:ILT'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 76.47 Med: 91.55 Max: 105.93
Current: 90.36
During the past 13 years, Illinois Tool Works's highest ROC (Joel Greenblatt) % was 105.93%. The lowest was 76.47%. And the median was 91.55%.
FRA:ILT's ROC (Joel Greenblatt) % is ranked better than 96.01% of 3058
companies
in the Industrial Products industry
Industry Median: 11.7
vs FRA:ILT: 90.36
Illinois Tool Works's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 3.90% per year.
Illinois Tool Works (FRA:ILT) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Illinois Tool Works ROC (Joel Greenblatt) % Related Terms
Illinois Tool Works ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Illinois Tool Works's ROC (Joel Greenblatt) % 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.
FRA:ILT vs EMR, CMI, AME: ROC (Joel Greenblatt) % Comparison
For the Specialty Industrial Machinery subindustry, Illinois Tool Works's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Illinois Tool Works's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Illinois Tool Works's ROC (Joel Greenblatt) % falls into.
Illinois Tool Works ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 84.83% mean?
Illinois Tool Works (FRA:ILT) has a ROC (Joel Greenblatt) % of 84.83% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Illinois Tool Works and its competitors. This is near median its historical median of 91.55. Over the past decade, Illinois Tool Works' ROC (Joel Greenblatt) % has ranged from 76.47 to 105.93. According to the industry distribution chart, Illinois Tool Works ranks #122 out of 3058 companies in the Industrial Products industry, placing it in the top 4%.
Is Illinois Tool Works' ROC (Joel Greenblatt) % too high?
Illinois Tool Works' current ROC (Joel Greenblatt) % of 84.83% is near median its 10-year median of 91.55. Over the past 10 years, this metric has ranged from a low of 76.47 to a high of 105.93. The Industrial Products industry median ROC (Joel Greenblatt) % is 11.70. Illinois Tool Works' value of 84.83% is 625% above this industry median. Based on the distribution chart, Illinois Tool Works ranks #122 out of 3058 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 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Illinois Tool Works' ROC (Joel Greenblatt) % compare to EMR and CMI?
According to the Industrial Products industry distribution chart, Illinois Tool Works ranks #122 out of 3058 companies for ROC (Joel Greenblatt) %. This places Illinois Tool Works in the top 4% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 11.70. Illinois Tool Works' value of 84.83% is 625% above this benchmark. Historically, Illinois Tool Works' own ROC (Joel Greenblatt) % has ranged from 76.47 to 105.93 over the past decade. While the company's 10-year median is 91.55 vs. the industry median of 11.70, 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 ROC (Joel Greenblatt) % for an Industrial Products company?
The median ROC (Joel Greenblatt) % among Industrial Products companies is 11.70, based on 3,058 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Illinois Tool Works's current ROC (Joel Greenblatt) % of 84.83% is 625% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Illinois Tool Works and its competitors. For the Industrial Products industry, the median ROC (Joel Greenblatt) % is 11.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Illinois Tool Works's current ROC (Joel Greenblatt) % is 84.83%, which is near median its own 10-year median of 91.55. 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 €231.63, compared to a current price of €237.30 — trading 2.4% above its estimated fair value. The current ROC (Joel Greenblatt) % is 84.83%, which is near median its 10-year median of 91.55 and 625% above the Industrial Products industry median of 11.70. Illinois Tool Works' overall GF Score™ is 83/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Illinois Tool Works (FRA:ILT), the current ROC (Joel Greenblatt) % is 84.83% 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 €237.30 is trading 2.4% above its estimated GF Value™ of €231.63.
GuruFocus considers Illinois Tool Works to be Fairly Valued.
Key valuation signals for FRA:ILT:
ROC (Joel Greenblatt) %: 84.83% (near median its 10-year median of 91.55)
GF Value™: €231.63 vs. price of €237.30 (2.4% above fair value)
Industry Position: 625% above the Industrial Products median (#122 of 3058)
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.
83GF Score
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ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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