EATON CORP PLC (ETN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ETN - IE00B8KQN827 - Common Stock
329.31 USD
-3.07 (-0.92%)
Taking everything into account, ETN scores 7 out of 10 in our fundamental rating. ETN was compared to 91 industry peers in the Electrical Equipment industry. ETN has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ETN is not valued too expensively and it also shows a decent growth rate. With these ratings, ETN could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
- In the past year ETN was profitable.
- ETN had a positive operating cash flow in the past year.
- ETN had positive earnings in each of the past 5 years.
- ETN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ETN has a better Return On Assets (9.66%) than 91.21% of its industry peers.
- ETN's Return On Equity of 20.84% is amongst the best of the industry. ETN outperforms 92.31% of its industry peers.
- With an excellent Return On Invested Capital value of 13.15%, ETN belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ETN is in line with the industry average of 9.92%.
- The last Return On Invested Capital (13.15%) for ETN is above the 3 year average (10.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.66% | ||
| ROE | 20.84% | ||
| ROIC | 13.15% |
ROA(3y)8.43%
ROA(5y)7.2%
ROE(3y)17.29%
ROE(5y)14.88%
ROIC(3y)10.83%
ROIC(5y)9.09%
1.3 Margins
- ETN has a better Profit Margin (14.74%) than 89.01% of its industry peers.
- ETN's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 18.84%, ETN belongs to the top of the industry, outperforming 93.41% of the companies in the same industry.
- ETN's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 38.10%, ETN belongs to the top of the industry, outperforming 86.81% of the companies in the same industry.
- ETN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.84% | ||
| PM (TTM) | 14.74% | ||
| GM | 38.1% |
OM growth 3Y15.21%
OM growth 5Y7.39%
PM growth 3Y11.77%
PM growth 5Y8.09%
GM growth 3Y5.78%
GM growth 5Y2.99%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ETN is still creating some value.
- Compared to 1 year ago, ETN has less shares outstanding
- ETN has less shares outstanding than it did 5 years ago.
- ETN has a better debt/assets ratio than last year.
2.2 Solvency
- ETN has an Altman-Z score of 5.04. This indicates that ETN is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 5.04, ETN is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
- ETN has a debt to FCF ratio of 3.21. This is a good value and a sign of high solvency as ETN would need 3.21 years to pay back of all of its debts.
- ETN's Debt to FCF ratio of 3.21 is amongst the best of the industry. ETN outperforms 81.32% of its industry peers.
- A Debt/Equity ratio of 0.51 indicates that ETN is somewhat dependend on debt financing.
- ETN has a Debt to Equity ratio (0.51) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.21 | ||
| Altman-Z | 5.04 |
ROIC/WACC1.65
WACC7.99%
2.3 Liquidity
- ETN has a Current Ratio of 1.28. This is a normal value and indicates that ETN is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.28, ETN is not doing good in the industry: 63.74% of the companies in the same industry are doing better.
- ETN has a Quick Ratio of 1.28. This is a bad value and indicates that ETN is not financially healthy enough and could expect problems in meeting its short term obligations.
- ETN has a worse Quick ratio (0.79) than 63.74% of its industry peers.
- 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 9.98% over the past year.
- The Earnings Per Share has been growing by 13.71% on average over the past years. This is quite good.
- ETN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.24%.
- ETN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.07% yearly.
EPS 1Y (TTM)9.98%
EPS 3Y17.66%
EPS 5Y13.71%
EPS Q2Q%8.1%
Revenue 1Y (TTM)8.24%
Revenue growth 3Y8.22%
Revenue growth 5Y3.07%
Sales Q2Q%10.13%
3.2 Future
- ETN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.78% yearly.
- Based on estimates for the next years, ETN will show a quite strong growth in Revenue. The Revenue will grow by 9.27% on average per year.
EPS Next Y12.42%
EPS Next 2Y13.03%
EPS Next 3Y13.17%
EPS Next 5Y10.78%
Revenue Next Year10.01%
Revenue Next 2Y9.82%
Revenue Next 3Y9.55%
Revenue Next 5Y9.27%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 28.46, ETN can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, ETN is valued a bit cheaper than 79.12% of the companies in the same industry.
- ETN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 23.87, the valuation of ETN can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ETN indicates a somewhat cheap valuation: ETN is cheaper than 75.82% of the companies listed in the same industry.
- ETN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.46 | ||
| Fwd PE | 23.87 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ETN indicates a somewhat cheap valuation: ETN is cheaper than 75.82% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ETN indicates a somewhat cheap valuation: ETN is cheaper than 73.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.53 | ||
| EV/EBITDA | 23.02 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- ETN has an outstanding profitability rating, which may justify a higher PE ratio.
- ETN's earnings are expected to grow with 13.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.29
PEG (5Y)2.08
EPS Next 2Y13.03%
EPS Next 3Y13.17%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.30%, ETN has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.27, ETN pays a better dividend. On top of this ETN pays more dividend than 92.31% of the companies listed in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.92, ETN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
5.2 History
- The dividend of ETN has a limited annual growth rate of 5.70%.
- 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.
Dividend Growth(5Y)5.7%
Div Incr Years15
Div Non Decr Years34
5.3 Sustainability
- ETN pays out 40.54% of its income as dividend. This is a bit on the high side, but may be sustainable.
- ETN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP40.54%
EPS Next 2Y13.03%
EPS Next 3Y13.17%
NYSE:ETN (1/14/2026, 10:35:09 AM)
329.31
-3.07 (-0.92%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)11-04 2025-11-04/bmo
Earnings (Next)01-30 2026-01-30/amc
Inst Owners85.75%
Inst Owner Change0.25%
Ins Owners0.04%
Ins Owner Change-0.1%
Market Cap127.90B
Revenue(TTM)26.63B
Net Income(TTM)3.93B
Analysts78.24
Price Target405.2 (23.05%)
Short Float %1.79%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
Yearly Dividend3.79
Dividend Growth(5Y)5.7%
DP40.54%
Div Incr Years15
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.2%
Min EPS beat(2)-0.42%
Max EPS beat(2)0.03%
EPS beat(4)1
Avg EPS beat(4)-0.29%
Min EPS beat(4)-0.48%
Max EPS beat(4)0.03%
EPS beat(8)5
Avg EPS beat(8)1.09%
EPS beat(12)8
Avg EPS beat(12)1.75%
EPS beat(16)10
Avg EPS beat(16)1.39%
Revenue beat(2)1
Avg Revenue beat(2)-0.78%
Min Revenue beat(2)-2.25%
Max Revenue beat(2)0.69%
Revenue beat(4)2
Avg Revenue beat(4)-0.78%
Min Revenue beat(4)-2.45%
Max Revenue beat(4)0.92%
Revenue beat(8)2
Avg Revenue beat(8)-0.73%
Revenue beat(12)5
Avg Revenue beat(12)-0.18%
Revenue beat(16)6
Avg Revenue beat(16)-0.42%
PT rev (1m)-1.09%
PT rev (3m)1.77%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)-0.76%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-0.16%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.46 | ||
| Fwd PE | 23.87 | ||
| P/S | 4.8 | ||
| P/FCF | 38.53 | ||
| P/OCF | 31.18 | ||
| P/B | 6.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.02 |
EPS(TTM)11.57
EY3.51%
EPS(NY)13.8
Fwd EY4.19%
FCF(TTM)8.55
FCFY2.6%
OCF(TTM)10.56
OCFY3.21%
SpS68.57
BVpS48.51
TBVpS-5.4
PEG (NY)2.29
PEG (5Y)2.08
Graham Number112.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.66% | ||
| ROE | 20.84% | ||
| ROCE | 16.1% | ||
| ROIC | 13.15% | ||
| ROICexc | 13.39% | ||
| ROICexgc | 40.27% | ||
| OM | 18.84% | ||
| PM (TTM) | 14.74% | ||
| GM | 38.1% | ||
| FCFM | 12.47% |
ROA(3y)8.43%
ROA(5y)7.2%
ROE(3y)17.29%
ROE(5y)14.88%
ROIC(3y)10.83%
ROIC(5y)9.09%
ROICexc(3y)11.53%
ROICexc(5y)9.59%
ROICexgc(3y)38.67%
ROICexgc(5y)33.99%
ROCE(3y)12.98%
ROCE(5y)10.88%
ROICexgc growth 3Y6.49%
ROICexgc growth 5Y11.09%
ROICexc growth 3Y21.4%
ROICexc growth 5Y9.81%
OM growth 3Y15.21%
OM growth 5Y7.39%
PM growth 3Y11.77%
PM growth 5Y8.09%
GM growth 3Y5.78%
GM growth 5Y2.99%
F-Score8
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.21 | ||
| Debt/EBITDA | 1.59 | ||
| Cap/Depr | 79.39% | ||
| Cap/Sales | 2.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.33% | ||
| Profit Quality | 84.54% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 5.04 |
F-Score8
WACC7.99%
ROIC/WACC1.65
Cap/Depr(3y)77.39%
Cap/Depr(5y)68.5%
Cap/Sales(3y)3.13%
Cap/Sales(5y)2.9%
Profit Quality(3y)86.8%
Profit Quality(5y)103.14%
High Growth Momentum
Growth
EPS 1Y (TTM)9.98%
EPS 3Y17.66%
EPS 5Y13.71%
EPS Q2Q%8.1%
EPS Next Y12.42%
EPS Next 2Y13.03%
EPS Next 3Y13.17%
EPS Next 5Y10.78%
Revenue 1Y (TTM)8.24%
Revenue growth 3Y8.22%
Revenue growth 5Y3.07%
Sales Q2Q%10.13%
Revenue Next Year10.01%
Revenue Next 2Y9.82%
Revenue Next 3Y9.55%
Revenue Next 5Y9.27%
EBIT growth 1Y9.02%
EBIT growth 3Y24.68%
EBIT growth 5Y10.68%
EBIT Next Year25.01%
EBIT Next 3Y16.66%
EBIT Next 5Y12.95%
FCF growth 1Y19.04%
FCF growth 3Y30.36%
FCF growth 5Y4.2%
OCF growth 1Y16.8%
OCF growth 3Y25.99%
OCF growth 5Y4.62%
EATON CORP PLC / ETN FAQ
Can you provide the ChartMill fundamental rating for EATON CORP PLC?
ChartMill assigns a fundamental rating of 7 / 10 to ETN.
What is the valuation status of EATON CORP PLC (ETN) stock?
ChartMill assigns a valuation rating of 4 / 10 to EATON CORP PLC (ETN). This can be considered as Fairly Valued.
How profitable is EATON CORP PLC (ETN) stock?
EATON CORP PLC (ETN) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for ETN stock?
The Price/Earnings (PE) ratio for EATON CORP PLC (ETN) is 28.46 and the Price/Book (PB) ratio is 6.79.
What is the earnings growth outlook for EATON CORP PLC?
The Earnings per Share (EPS) of EATON CORP PLC (ETN) is expected to grow by 12.42% in the next year.