EATON CORP PLC (ETN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ETN - IE00B8KQN827 - Common Stock
321.06 USD
+0.67 (+0.21%)
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. Both the health and profitability get an excellent rating, making ETN a very profitable company, without any liquidiy or solvency issues. ETN is not valued too expensively and it also shows a decent growth rate. These ratings could make ETN a good candidate 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.
Each year in the past 5 years ETN has been profitable.
In the past 5 years ETN always reported a positive cash flow from operatings.
1.2 Ratios
ETN has a Return On Assets of 9.66%. This is amongst the best in the industry. ETN outperforms 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.
ETN has a Return On Invested Capital of 13.15%. This is amongst the best in the industry. ETN outperforms 92.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ETN is in line with the industry average of 9.90%.
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
Looking at the Profit Margin, with a value of 14.74%, ETN belongs to the top of the industry, outperforming 89.01% of the companies in the same industry.
In the last couple of years the Profit Margin of ETN has grown nicely.
With an excellent Operating Margin value of 18.84%, ETN belongs to the best of the industry, outperforming 93.41% of the companies in the same industry.
In the last couple of years the Operating Margin of ETN has grown nicely.
Looking at the Gross Margin, with a value of 38.10%, ETN belongs to the top of the industry, outperforming 85.71% 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
Compared to 5 years ago, ETN has less shares outstanding
Compared to 1 year ago, ETN has an improved debt to assets ratio.
2.2 Solvency
ETN has an Altman-Z score of 4.92. This indicates that ETN is financially healthy and has little risk of bankruptcy at the moment.
ETN has a Altman-Z score of 4.92. This is in the better half of the industry: ETN outperforms 78.02% of its industry peers.
The Debt to FCF ratio of ETN is 3.21, which is a good value as it means it would take ETN, 3.21 years of fcf income to pay off all of its debts.
ETN has a better Debt to FCF ratio (3.21) than 80.22% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that ETN is somewhat dependend on debt financing.
ETN's Debt to Equity ratio of 0.51 is in line compared to the rest of the industry. ETN outperforms 48.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.21 | ||
| Altman-Z | 4.92 |
ROIC/WACC1.69
WACC7.8%
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.
ETN's Current ratio of 1.28 is on the low side compared to the rest of the industry. ETN is outperformed by 64.84% of its industry peers.
A Quick Ratio of 0.79 indicates that ETN may have some problems paying its short term obligations.
ETN has a worse Quick ratio (0.79) than 64.84% 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
Based on estimates for the next years, ETN will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.78% on average per year.
Based on estimates for the next years, ETN will show a quite strong growth in Revenue. The Revenue will grow by 9.21% on average per year.
EPS Next Y12.42%
EPS Next 2Y13.13%
EPS Next 3Y13.17%
EPS Next 5Y10.78%
Revenue Next Year10.02%
Revenue Next 2Y9.89%
Revenue Next 3Y9.49%
Revenue Next 5Y9.21%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.75, ETN can be considered very expensive at the moment.
ETN's Price/Earnings ratio is a bit cheaper when compared to the industry. ETN is cheaper than 79.12% of the companies in the same industry.
ETN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.61.
The Price/Forward Earnings ratio is 23.23, which indicates a rather expensive current valuation of ETN.
Based on the Price/Forward Earnings ratio, ETN is valued a bit cheaper than the industry average as 74.73% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.01, ETN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.75 | ||
| Fwd PE | 23.23 |
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 73.63% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ETN is valued a bit cheaper than 73.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.56 | ||
| EV/EBITDA | 22.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ETN 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)2.23
PEG (5Y)2.02
EPS Next 2Y13.13%
EPS Next 3Y13.17%
5. Dividend
5.1 Amount
ETN has a Yearly Dividend Yield of 1.32%.
Compared to an average industry Dividend Yield of 0.28, ETN pays a better dividend. On top of this ETN pays more dividend than 92.31% of the companies listed in the same industry.
ETN's Dividend Yield is slightly below the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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 2Y13.13%
EPS Next 3Y13.17%
NYSE:ETN (12/23/2025, 9:46:09 AM)
321.06
+0.67 (+0.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners85.7%
Inst Owner Change-4.23%
Ins Owners0.04%
Ins Owner Change-0.1%
Market Cap124.70B
Revenue(TTM)26.63B
Net Income(TTM)3.93B
Analysts78.24
Price Target409.66 (27.6%)
Short Float %1.96%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
Yearly Dividend3.79
Dividend Growth(5Y)5.7%
DP40.54%
Div Incr Years15
Div Non Decr Years34
Ex-Date
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)1.57%
PT rev (3m)3.09%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-0.55%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.75 | ||
| Fwd PE | 23.23 | ||
| P/S | 4.68 | ||
| P/FCF | 37.56 | ||
| P/OCF | 30.4 | ||
| P/B | 6.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.24 |
EPS(TTM)11.57
EY3.6%
EPS(NY)13.82
Fwd EY4.31%
FCF(TTM)8.55
FCFY2.66%
OCF(TTM)10.56
OCFY3.29%
SpS68.57
BVpS48.51
TBVpS-5.4
PEG (NY)2.23
PEG (5Y)2.02
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 | 4.92 |
F-Score8
WACC7.8%
ROIC/WACC1.69
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 2Y13.13%
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 Year10.02%
Revenue Next 2Y9.89%
Revenue Next 3Y9.49%
Revenue Next 5Y9.21%
EBIT growth 1Y9.02%
EBIT growth 3Y24.68%
EBIT growth 5Y10.68%
EBIT Next Year25%
EBIT Next 3Y16.77%
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.
Can you provide the valuation status for EATON CORP PLC?
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.
What is the financial health of EATON CORP PLC (ETN) stock?
The financial health rating of EATON CORP PLC (ETN) is 7 / 10.
How sustainable is the dividend of EATON CORP PLC (ETN) stock?
The dividend rating of EATON CORP PLC (ETN) is 6 / 10 and the dividend payout ratio is 40.54%.