Analyzing NYSE:ETN's Dividend Potential.

Last update: Nov 19, 2024

Take a closer look at EATON CORP PLC (NYSE:ETN), a stock of interest to dividend investors uncovered by our stock screener. NYSE:ETN excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Looking at the Dividend

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:ETN has been awarded a 7 for its dividend quality:

ETN's Dividend Yield is rather good when compared to the industry average which is at 2.19. ETN pays more dividend than 88.89% of the companies in the same industry.
ETN has been paying a dividend for at least 10 years, so it has a reliable track record.
ETN has not decreased their dividend for at least 10 years, which is a reliable track record.
39.12% of the earnings are spent on dividend by ETN. This is a low number and sustainable payout ratio.
The dividend of ETN is growing, but earnings are growing more, so the dividend growth is sustainable.

Assessing Health Metrics for NYSE:ETN

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:ETN scores a 7 out of 10:

ETN has an Altman-Z score of 5.73. This indicates that ETN is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.73, ETN belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
The Debt to FCF ratio of ETN is 2.91, which is a good value as it means it would take ETN, 2.91 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ETN (2.91) is better than 76.67% of its industry peers.
ETN has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
The current and quick ratio evaluation for ETN is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Profitability Insights: NYSE:ETN

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:ETN has achieved a 9:

Looking at the Return On Assets, with a value of 9.60%, ETN belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
ETN has a Return On Equity of 19.71%. This is amongst the best in the industry. ETN outperforms 92.22% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.42%, ETN belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
The 3 year average ROIC (9.14%) for ETN is below the current ROIC(12.42%), indicating increased profibility in the last year.
ETN has a Profit Margin of 15.31%. This is amongst the best in the industry. ETN outperforms 93.33% of its industry peers.
ETN's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 18.71%, ETN belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
In the last couple of years the Operating Margin of ETN has grown nicely.
The Gross Margin of ETN (37.83%) is better than 88.89% of its industry peers.
In the last couple of years the Gross Margin of ETN has grown nicely.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Check the latest full fundamental report of ETN for a complete fundamental analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.