Illinois Tool WorksFRA:ILT -0.67%83 3-Year ROIIC % is 50.36 as of Dec. 2025, which is 133% above its 10-year median of 21.61. 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 2,937 Industrial Products companies, Illinois Tool Works ranks better than 87.44% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Illinois Tool Works's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 50.36%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Illinois Tool Works's 3-Year ROIIC % or its related term are showing as below:
FRA:ILT's 3-Year ROIIC % is ranked better than 87.44% of 2937
companies
in the Industrial Products industry
Industry Median: 3.4
vs FRA:ILT: 50.36
Illinois Tool Works (FRA:ILT) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Illinois Tool Works 3-Year ROIIC % Related Terms
Illinois Tool Works 3-Year ROIIC % Historical Data
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The historical data trend for Illinois Tool Works's 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the Specialty Industrial Machinery subindustry, Illinois Tool Works's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Illinois Tool Works's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Illinois Tool Works's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Illinois Tool Works (FRA:ILT) has a 3-Year ROIIC % of 50.36 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Illinois Tool Works and its competitors. This is 133% above median its historical median of 21.61. According to the industry distribution chart, Illinois Tool Works ranks #369 out of 2937 companies in the Industrial Products industry, placing it in the top 12.6%.
Is Illinois Tool Works' 3-Year ROIIC % too high?
Illinois Tool Works' current 3-Year ROIIC % of 50.36 is 133% above median its 10-year median of 21.61. The Industrial Products industry median 3-Year ROIIC % is 3.40. Illinois Tool Works' value of 50.36 is 1381.2% above this industry median. Based on the distribution chart, Illinois Tool Works ranks #369 out of 2937 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' 3-Year ROIIC % compare to EMR and CMI?
According to the Industrial Products industry distribution chart, Illinois Tool Works ranks #369 out of 2937 companies for 3-Year ROIIC %. This places Illinois Tool Works in the top 13% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 3.40. Illinois Tool Works' value of 50.36 is 1381.2% above this benchmark. While the company's 10-year median is 21.61 vs. the industry median of 3.40, 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 3-Year ROIIC % for an Industrial Products company?
The median 3-Year ROIIC % among Industrial Products companies is 3.40, based on 2,937 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Illinois Tool Works's current 3-Year ROIIC % of 50.36 is 1381.2% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Illinois Tool Works and its competitors. For the Industrial Products industry, the median 3-Year ROIIC % is 3.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Illinois Tool Works's current 3-Year ROIIC % is 50.36, which is 133% above median its own 10-year median of 21.61. 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 3-Year ROIIC % is 50.36, which is 133% above median its 10-year median of 21.61 and 1381.2% above the Industrial Products industry median of 3.40. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Illinois Tool Works (FRA:ILT), the current 3-Year ROIIC % is 50.36 as of Dec. 2025. 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:
3-Year ROIIC %: 50.36 (133% above median its 10-year median of 21.61)
GF Value™: €231.63 vs. price of €237.30 (2.4% above fair value)
Industry Position: 1381.2% above the Industrial Products median (#369 of 2937)
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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