EATON CORP PLC (1ETN.MI) Stock Fundamental Analysis
Europe - BIT:1ETN - IE00B8KQN827 - Common Stock
324.65 EUR
+324.65 (+Infinity%)
Taking everything into account, 1ETN scores 6 out of 10 in our fundamental rating. 1ETN was compared to 61 industry peers in the Electrical Equipment industry. While 1ETN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1ETN is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
1ETN had positive earnings in the past year.
In the past year 1ETN had a positive cash flow from operations.
In the past 5 years 1ETN has always been profitable.
1ETN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1ETN has a Return On Assets of 9.69%. This is amongst the best in the industry. 1ETN outperforms 90.63% of its industry peers.
1ETN has a Return On Equity of 21.10%. This is amongst the best in the industry. 1ETN outperforms 82.81% of its industry peers.
The Return On Invested Capital of 1ETN (12.83%) is better than 87.50% of its industry peers.
1ETN had an Average Return On Invested Capital over the past 3 years of 10.83%. This is in line with the industry average of 9.35%.
The 3 year average ROIC (10.83%) for 1ETN is below the current ROIC(12.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.69% | ||
| ROE | 21.1% | ||
| ROIC | 12.83% |
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 15.11%, 1ETN belongs to the top of the industry, outperforming 95.31% of the companies in the same industry.
In the last couple of years the Profit Margin of 1ETN has grown nicely.
Looking at the Operating Margin, with a value of 18.89%, 1ETN belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
In the last couple of years the Operating Margin of 1ETN has grown nicely.
1ETN has a Gross Margin (38.16%) which is in line with its industry peers.
In the last couple of years the Gross Margin of 1ETN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.89% | ||
| PM (TTM) | 15.11% | ||
| GM | 38.16% |
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 1ETN is still creating some value.
The number of shares outstanding for 1ETN has been reduced compared to 1 year ago.
1ETN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1ETN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.50 indicates that 1ETN is not in any danger for bankruptcy at the moment.
1ETN has a Altman-Z score of 5.50. This is amongst the best in the industry. 1ETN outperforms 89.06% of its industry peers.
The Debt to FCF ratio of 1ETN is 3.36, which is a good value as it means it would take 1ETN, 3.36 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.36, 1ETN is doing good in the industry, outperforming 78.13% of the companies in the same industry.
1ETN has a Debt/Equity ratio of 0.53. This is a neutral value indicating 1ETN is somewhat dependend on debt financing.
1ETN has a Debt to Equity ratio of 0.53. This is comparable to the rest of the industry: 1ETN outperforms 51.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 5.5 |
ROIC/WACC1.76
WACC7.27%
2.3 Liquidity
A Current Ratio of 1.24 indicates that 1ETN should not have too much problems paying its short term obligations.
1ETN has a worse Current ratio (1.24) than 60.94% of its industry peers.
1ETN has a Quick Ratio of 1.24. This is a bad value and indicates that 1ETN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of 1ETN (0.76) is worse than 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
1ETN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.72%, which is quite good.
1ETN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.71% yearly.
1ETN shows a small growth in Revenue. In the last year, the Revenue has grown by 7.66%.
Measured over the past years, 1ETN shows a small growth in Revenue. The Revenue has been growing by 3.07% on average per year.
EPS 1Y (TTM)11.72%
EPS 3Y17.66%
EPS 5Y13.71%
EPS Q2Q%8.06%
Revenue 1Y (TTM)7.66%
Revenue growth 3Y8.22%
Revenue growth 5Y3.07%
Sales Q2Q%10.68%
3.2 Future
The Earnings Per Share is expected to grow by 14.69% on average over the next years. This is quite good.
1ETN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.27% yearly.
EPS Next Y12.6%
EPS Next 2Y13.31%
EPS Next 3Y12.73%
EPS Next 5Y14.69%
Revenue Next Year9.98%
Revenue Next 2Y9.55%
Revenue Next 3Y8.81%
Revenue Next 5Y9.27%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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
1ETN is valuated quite expensively with a Price/Earnings ratio of 33.43.
Based on the Price/Earnings ratio, 1ETN is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.77. 1ETN is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 27.35, the valuation of 1ETN can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as 1ETN.
When comparing the Price/Forward Earnings ratio of 1ETN to the average of the S&P500 Index (23.23), we can say 1ETN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.43 | ||
| Fwd PE | 27.35 |
4.2 Price Multiples
1ETN's Enterprise Value to EBITDA is on the same level as the industry average.
1ETN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.11 | ||
| EV/EBITDA | 26.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1ETN has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 1ETN's earnings are expected to grow with 12.73% in the coming years.
PEG (NY)2.65
PEG (5Y)2.44
EPS Next 2Y13.31%
EPS Next 3Y12.73%
5. Dividend
5.1 Amount
1ETN has a Yearly Dividend Yield of 1.11%.
1ETN's Dividend Yield is a higher than the industry average which is at 2.00.
With a Dividend Yield of 1.11, 1ETN pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
The dividend of 1ETN has a limited annual growth rate of 5.70%.
Dividend Growth(5Y)5.7%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
39.79% of the earnings are spent on dividend by 1ETN. This is a low number and sustainable payout ratio.
The dividend of 1ETN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP39.79%
EPS Next 2Y13.31%
EPS Next 3Y12.73%
BIT:1ETN (10/6/2025, 7:00:00 PM)
324.65
+324.65 (+Infinity%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners86.86%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap126.39B
Analysts77.89
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
Yearly Dividend3.24
Dividend Growth(5Y)5.7%
DP39.79%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.23%
Min EPS beat(2)-0.48%
Max EPS beat(2)0.03%
EPS beat(4)2
Avg EPS beat(4)-0.09%
Min EPS beat(4)-0.48%
Max EPS beat(4)0.37%
EPS beat(8)6
Avg EPS beat(8)1.73%
EPS beat(12)8
Avg EPS beat(12)1.76%
EPS beat(16)11
Avg EPS beat(16)1.42%
Revenue beat(2)2
Avg Revenue beat(2)0.8%
Min Revenue beat(2)0.69%
Max Revenue beat(2)0.92%
Revenue beat(4)2
Avg Revenue beat(4)-0.57%
Min Revenue beat(4)-2.45%
Max Revenue beat(4)0.92%
Revenue beat(8)2
Avg Revenue beat(8)-0.59%
Revenue beat(12)5
Avg Revenue beat(12)-0.07%
Revenue beat(16)6
Avg Revenue beat(16)-0.46%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.43 | ||
| Fwd PE | 27.35 | ||
| P/S | 5.68 | ||
| P/FCF | 45.11 | ||
| P/OCF | 36.36 | ||
| P/B | 7.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.7 |
EPS(TTM)9.71
EY2.99%
EPS(NY)11.87
Fwd EY3.66%
FCF(TTM)7.2
FCFY2.22%
OCF(TTM)8.93
OCFY2.75%
SpS57.15
BVpS40.92
TBVpS-5.3
PEG (NY)2.65
PEG (5Y)2.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.69% | ||
| ROE | 21.1% | ||
| ROCE | 15.88% | ||
| ROIC | 12.83% | ||
| ROICexc | 13.07% | ||
| ROICexgc | 39.42% | ||
| OM | 18.89% | ||
| PM (TTM) | 15.11% | ||
| GM | 38.16% | ||
| FCFM | 12.59% |
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%
ROICexcg growth 3Y6.49%
ROICexcg 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 Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 3.36 | ||
| Debt/EBITDA | 1.68 | ||
| Cap/Depr | 81.81% | ||
| Cap/Sales | 3.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.15% | ||
| Profit Quality | 83.37% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 5.5 |
F-Score8
WACC7.27%
ROIC/WACC1.76
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)11.72%
EPS 3Y17.66%
EPS 5Y13.71%
EPS Q2Q%8.06%
EPS Next Y12.6%
EPS Next 2Y13.31%
EPS Next 3Y12.73%
EPS Next 5Y14.69%
Revenue 1Y (TTM)7.66%
Revenue growth 3Y8.22%
Revenue growth 5Y3.07%
Sales Q2Q%10.68%
Revenue Next Year9.98%
Revenue Next 2Y9.55%
Revenue Next 3Y8.81%
Revenue Next 5Y9.27%
EBIT growth 1Y9.53%
EBIT growth 3Y24.68%
EBIT growth 5Y10.68%
EBIT Next Year24.92%
EBIT Next 3Y15.55%
EBIT Next 5Y12.5%
FCF growth 1Y20.86%
FCF growth 3Y30.36%
FCF growth 5Y4.2%
OCF growth 1Y21.63%
OCF growth 3Y25.99%
OCF growth 5Y4.62%