EATON CORP PLC (ETN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ETN - IE00B8KQN827 - Common Stock
322.3 USD
-1.37 (-0.42%)
Overall ETN gets a fundamental rating of 7 out of 10. We evaluated ETN against 91 industry peers in the Electrical Equipment industry. ETN gets an excellent profitability rating and is at the same time showing great financial health properties. ETN is not valued too expensively and it also shows a decent growth rate. This makes ETN very considerable 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.
In the past 5 years ETN has always 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 has a better Return On Equity (20.84%) than 92.31% of its industry peers.
The Return On Invested Capital of ETN (13.15%) is better than 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 3 year average ROIC (10.83%) for ETN is below the current ROIC(13.15%), indicating increased profibility in the last year.
| 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.
In the last couple of years the Profit Margin of ETN has grown nicely.
The Operating Margin of ETN (18.84%) is better than 93.41% of its industry peers.
ETN's Operating Margin has improved in the last couple of years.
ETN's Gross Margin of 38.10% is amongst the best of the industry. ETN outperforms 85.71% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ETN is creating some value.
ETN has less shares outstanding than it did 1 year ago.
ETN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ETN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.95 indicates that ETN is not in any danger for bankruptcy at the moment.
ETN has a Altman-Z score of 4.95. This is in the better half of the industry: ETN outperforms 78.02% of its industry peers.
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.
The Debt to FCF ratio of ETN (3.21) is better 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 | 4.95 |
ROIC/WACC1.65
WACC7.95%
2.3 Liquidity
A Current Ratio of 1.28 indicates that ETN should not have too much problems paying 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 Quick ratio of 0.79. This is in the lower half of the industry: ETN underperforms 64.84% of its industry peers.
ETN does not score too well on the current and quick ratio evaluation. However, as it has 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
ETN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.98%, which is quite good.
The Earnings Per Share has been growing by 13.71% on average over the past years. This is quite good.
The Revenue has grown by 8.24% in the past year. This is quite good.
Measured over the past years, ETN shows a small growth in Revenue. The Revenue has been growing by 3.07% on average per year.
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 9.21% 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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
A Price/Earnings ratio of 27.86 indicates a quite expensive valuation of ETN.
ETN's Price/Earnings ratio is a bit cheaper when compared to the industry. ETN is cheaper than 78.02% 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 26.59, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 23.32 indicates a rather expensive 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.
ETN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.86 | ||
| Fwd PE | 23.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ETN is valued a bit cheaper than 73.63% of the companies 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 | 37.71 | ||
| EV/EBITDA | 22.46 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ETN does not grow enough to justify the current Price/Earnings ratio.
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)2.24
PEG (5Y)2.03
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 1.88.
| 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 paid a dividend for at least 10 years, which is a reliable track record.
ETN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 (12/26/2025, 9:58:03 AM)
322.3
-1.37 (-0.42%)
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 Cap125.18B
Revenue(TTM)26.63B
Net Income(TTM)3.93B
Analysts78.24
Price TargetN/A
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 | 27.86 | ||
| Fwd PE | 23.32 | ||
| P/S | 4.7 | ||
| P/FCF | 37.71 | ||
| P/OCF | 30.52 | ||
| P/B | 6.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.46 |
EPS(TTM)11.57
EY3.59%
EPS(NY)13.82
Fwd EY4.29%
FCF(TTM)8.55
FCFY2.65%
OCF(TTM)10.56
OCFY3.28%
SpS68.57
BVpS48.51
TBVpS-5.4
PEG (NY)2.24
PEG (5Y)2.03
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 | 4.95 |
F-Score8
WACC7.95%
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 2Y13.13%
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%.