Illinois Tool WorksFRA:ILT -2.27%85 5-Year Yield-on-Cost % is 3.30 as of Jul. 09, 2026, which is 6% above its 10-year median of 3.11. GuruFocus rates FRA:ILT with a GF Score™ of 85/100 and a GF Value™ of €233.72 (Fairly Valued). The stock has 1 warning sign investors should review. Among 1,922 Industrial Products companies, Illinois Tool Works ranks better than 68.11% on this metric.
Illinois Tool Works's yield on cost for the quarter that ended in Mar. 2026 was 3.30.
The historical rank and industry rank for Illinois Tool Works's 5-Year Yield-on-Cost % or its related term are showing as below:
FRA:ILT'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.25 Med: 3.11 Max: 4.64
Current: 3.3
During the past 13 years, Illinois Tool Works's highest Yield on Cost was 4.64. The lowest was 2.25. And the median was 3.11.
FRA:ILT's 5-Year Yield-on-Cost % is ranked better than 68.11% of 1922
companies
in the Industrial Products industry
Industry Median: 1.795
vs FRA:ILT: 3.30
Illinois Tool Works (FRA:ILT) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Illinois Tool Works 5-Year Yield-on-Cost % Related Terms
FRA:ILT vs EMR, CMI, AME: 5-Year Yield-on-Cost % Comparison
For the Specialty Industrial Machinery subindustry, Illinois Tool Works's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Illinois Tool Works's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Illinois Tool Works's 5-Year Yield-on-Cost % falls into.
Illinois Tool Works 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Illinois Tool Works (FRA:ILT) has a 5-Year Yield-on-Cost % of 3.30 as of Jul. 09, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Illinois Tool Works and its competitors. This is near median its historical median of 3.11. Over the past decade, Illinois Tool Works' 5-Year Yield-on-Cost % has ranged from 2.25 to 4.64. According to the industry distribution chart, Illinois Tool Works ranks #613 out of 1922 companies in the Industrial Products industry, placing it in the top 31.9%.
Is Illinois Tool Works' 5-Year Yield-on-Cost % too high?
Illinois Tool Works' current 5-Year Yield-on-Cost % of 3.30 is near median its 10-year median of 3.11. Over the past 10 years, this metric has ranged from a low of 2.25 to a high of 4.64. The Industrial Products industry median 5-Year Yield-on-Cost % is 1.80. Illinois Tool Works' value of 3.30 is 83.8% above this industry median. Based on the distribution chart, Illinois Tool Works ranks #613 out of 1922 companies in the Industrial Products industry, which is above 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' 5-Year Yield-on-Cost % compare to EMR and CMI?
According to the Industrial Products industry distribution chart, Illinois Tool Works ranks #613 out of 1922 companies for 5-Year Yield-on-Cost %. This puts Illinois Tool Works in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 1.80. Illinois Tool Works' value of 3.30 is 83.8% above this benchmark. Historically, Illinois Tool Works' own 5-Year Yield-on-Cost % has ranged from 2.25 to 4.64 over the past decade. While the company's 10-year median is 3.11 vs. the industry median of 1.80, 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 5-Year Yield-on-Cost % for an Industrial Products company?
The median 5-Year Yield-on-Cost % among Industrial Products companies is 1.80, based on 1,922 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Illinois Tool Works's current 5-Year Yield-on-Cost % of 3.30 is 83.8% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Illinois Tool Works and its competitors. For the Industrial Products industry, the median 5-Year Yield-on-Cost % is 1.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Illinois Tool Works's current 5-Year Yield-on-Cost % is 3.30, which is near median its own 10-year median of 3.11. 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 €233.72, compared to a current price of €232.60 — trading 0.5% below its estimated fair value. The current 5-Year Yield-on-Cost % is 3.30, which is near median its 10-year median of 3.11 and 83.8% above the Industrial Products industry median of 1.80. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Illinois Tool Works (FRA:ILT), the current 5-Year Yield-on-Cost % is 3.30 as of Jul. 09, 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 undervalued.
The current stock price of €232.60 is trading 0.5% below its estimated GF Value™ of €233.72.
GuruFocus considers Illinois Tool Works to be Fairly Valued.
Key valuation signals for FRA:ILT:
5-Year Yield-on-Cost %: 3.30 (near median its 10-year median of 3.11)
GF Value™: €233.72 vs. price of €232.60 (0.5% below fair value)
Industry Position: 83.8% above the Industrial Products median (#613 of 1922)
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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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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