Illinois Tool Works (FRA:ILT) 3-Year RORE % : -0.89% (As of Mar. 2026)


FRA:ILT Illinois Tool Works Inc FRA:ILT
85 GF Score
Price €237.30
GF Value €233.16
Valuation Fairly Valued
! 3 Warning Signs
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What is Illinois Tool Works 3-Year RORE %?

Illinois Tool Works FRA:ILT -0.67% 85 3-Year RORE % is -0.89 as of Mar. 2026. GuruFocus rates FRA:ILT with a GF Score™ of 85/100 and a GF Value™ of €233.16 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,898 Industrial Products companies, Illinois Tool Works ranks worse than 51.14% on this metric.

Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments. Illinois Tool Works's 3-Year RORE % for the quarter that ended in Mar. 2026 was -0.89%.

The industry rank for Illinois Tool Works's 3-Year RORE % or its related term are showing as below:

FRA:ILT's 3-Year RORE % is ranked worse than
51.14% of 2898 companies
in the Industrial Products industry
Industry Median: 5.34 vs FRA:ILT: -0.89

Illinois Tool Works  (FRA:ILT) 3-Year RORE % Explanation

Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.

There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.

Be Aware

Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.


Illinois Tool Works 3-Year RORE % Related Terms


Illinois Tool Works 3-Year RORE % Historical Data

* Premium members only.

The historical data trend for Illinois Tool Works's 3-Year RORE % 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 3-Year RORE % Chart

Illinois Tool Works Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
3-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.55 37.56 15.41 10.78 0.90

Illinois Tool Works Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
3-Year RORE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.69 5.53 -2.77 0.90 -0.89

FRA:ILT vs EMR, CMI, AME: 3-Year RORE % Comparison

For the Specialty Industrial Machinery subindustry, Illinois Tool Works's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 RORE % vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Illinois Tool Works's 3-Year RORE % distribution charts can be found below:

* The bar in red indicates where Illinois Tool Works's 3-Year RORE % falls into.


FRA:ILT
85GF Score
Illinois Tool Works Inc FRA:ILT
3-Year RORE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Illinois Tool Works 3-Year RORE % Calculation

Illinois Tool Works's 3-Year RORE % for the quarter that ended in Mar. 2026 is calculated as:

3-Year RORE %=( Most Recent EPS (Diluted)- First Period EPS (Diluted) )/( Cumulative EPS (Diluted) for 3-year -Cumulative Dividends per Share for 3-year )
=( 9.255-9.372 )/( 29.137-16.006 )
=-0.117/13.131
=-0.89 %

* 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.

Frequently Asked Questions Learn more about 3-Year RORE % →
What does a 3-Year RORE % of -0.89 mean?
Illinois Tool Works (FRA:ILT) has a 3-Year RORE % of -0.89 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Illinois Tool Works and its competitors. According to the industry distribution chart, Illinois Tool Works ranks #1482 out of 2898 companies in the Industrial Products industry, placing it in the top 51.1%.
Is Illinois Tool Works' 3-Year RORE % too high?
Illinois Tool Works' current 3-Year RORE % is -0.89. Based on the distribution chart, Illinois Tool Works ranks #1482 out of 2898 companies in the Industrial Products industry, which is below the industry midpoint. 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' 3-Year RORE % compare to EMR and CMI?
According to the Industrial Products industry distribution chart, Illinois Tool Works ranks #1482 out of 2898 companies for 3-Year RORE %. This places Illinois Tool Works in the lower half of its industry. The industry median 3-Year RORE % is 5.34. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for an Industrial Products company?
The median 3-Year RORE % among Industrial Products companies is 5.34, based on 2,898 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Illinois Tool Works and its competitors. For the Industrial Products industry, the median 3-Year RORE % is 5.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Illinois Tool Works's current 3-Year RORE % is -0.89. 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 €233.16, compared to a current price of €237.30 — trading 1.8% above its estimated fair value. The current 3-Year RORE % is -0.89. Illinois Tool Works' overall GF Score™ is 85/100 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 RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Illinois Tool Works (FRA:ILT), the current 3-Year RORE % is -0.89 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 1.8% above its estimated GF Value™ of €233.16. GuruFocus considers Illinois Tool Works to be Fairly Valued.

Key valuation signals for FRA:ILT:

  • 3-Year RORE %: -0.89
  • GF Value™: €233.16 vs. price of €237.30 (1.8% above fair value)
  • GF Score™: 85/100 with 3 warning signs

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.


Illinois Tool Works Business Description

Address 155 Harlem Avenue, Glenview, IL, USA, 60025
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

Get the complete analysis for FRA:ILT

3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€237.30
Price
€233.16
GF Value