EATON CORP PLC (ETN) Fundamental Analysis & Valuation

NYSE:ETN • IE00B8KQN827

Current stock price

357.67 USD
+14.14 (+4.12%)
At close:
361 USD
+3.33 (+0.93%)
Pre-Market:

This ETN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. ETN Profitability Analysis

1.1 Basic Checks

  • ETN had positive earnings in the past year.
  • 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.
ETN Yearly Net Income VS EBIT VS OCF VS FCFETN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 9.91%, ETN belongs to the top of the industry, outperforming 88.04% of the companies in the same industry.
  • ETN's Return On Equity of 21.05% is amongst the best of the industry. ETN outperforms 90.22% of its industry peers.
  • ETN has a Return On Invested Capital of 13.48%. This is amongst the best in the industry. ETN outperforms 92.39% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ETN is above the industry average of 9.33%.
  • The last Return On Invested Capital (13.48%) for ETN is above the 3 year average (12.34%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 9.91%
ROE 21.05%
ROIC 13.48%
ROA(3y)9.39%
ROA(5y)8.3%
ROE(3y)19.49%
ROE(5y)17.2%
ROIC(3y)12.34%
ROIC(5y)10.64%
ETN Yearly ROA, ROE, ROICETN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

1.3 Margins

  • ETN has a Profit Margin of 14.89%. This is amongst the best in the industry. ETN outperforms 86.96% of its industry peers.
  • ETN's Profit Margin has improved in the last couple of years.
  • ETN's Operating Margin of 18.85% is amongst the best of the industry. ETN outperforms 93.48% of its industry peers.
  • In the last couple of years the Operating Margin of ETN has grown nicely.
  • Looking at the Gross Margin, with a value of 37.59%, ETN belongs to the top of the industry, outperforming 88.04% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ETN has grown nicely.
Industry RankSector Rank
OM 18.85%
PM (TTM) 14.89%
GM 37.59%
OM growth 3Y8.86%
OM growth 5Y14.99%
PM growth 3Y7.87%
PM growth 5Y13.53%
GM growth 3Y4.24%
GM growth 5Y4.25%
ETN Yearly Profit, Operating, Gross MarginsETN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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7

2. ETN Health Analysis

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.
  • Compared to 5 years ago, ETN has less shares outstanding
  • The debt/assets ratio for ETN is higher compared to a year ago.
ETN Yearly Shares OutstandingETN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
ETN Yearly Total Debt VS Total AssetsETN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.2 Solvency

  • ETN has an Altman-Z score of 5.34. This indicates that ETN is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of ETN (5.34) is better than 80.43% of its industry peers.
  • ETN has a debt to FCF ratio of 2.78. This is a good value and a sign of high solvency as ETN would need 2.78 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 2.78, ETN belongs to the top of the industry, outperforming 84.78% of the companies in the same industry.
  • A Debt/Equity ratio of 0.45 indicates that ETN is not too dependend on debt financing.
  • ETN has a Debt to Equity ratio (0.45) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.45
Debt/FCF 2.78
Altman-Z 5.34
ROIC/WACC1.61
WACC8.38%
ETN Yearly LT Debt VS Equity VS FCFETN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.3 Liquidity

  • A Current Ratio of 1.32 indicates that ETN should not have too much problems paying its short term obligations.
  • ETN has a Current ratio (1.32) which is in line with its industry peers.
  • ETN has a Quick Ratio of 1.32. This is a bad value and indicates that ETN is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Quick ratio of ETN (0.81) is worse than 65.22% 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 RankSector Rank
Current Ratio 1.32
Quick Ratio 0.81
ETN Yearly Current Assets VS Current LiabilitesETN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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7

3. ETN Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 11.76% over the past year.
  • The Earnings Per Share has been growing by 23.22% on average over the past years. This is a very strong growth
  • Looking at the last year, ETN shows a quite strong growth in Revenue. The Revenue has grown by 10.33% in the last year.
  • ETN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.98% yearly.
EPS 1Y (TTM)11.76%
EPS 3Y16.83%
EPS 5Y23.22%
EPS Q2Q%17.67%
Revenue 1Y (TTM)10.33%
Revenue growth 3Y9.77%
Revenue growth 5Y8.98%
Sales Q2Q%13.06%

3.2 Future

  • The Earnings Per Share is expected to grow by 10.25% on average over the next years. This is quite good.
  • Based on estimates for the next years, ETN will show a quite strong growth in Revenue. The Revenue will grow by 9.41% on average per year.
EPS Next Y11.2%
EPS Next 2Y13.11%
EPS Next 3Y12.97%
EPS Next 5Y10.25%
Revenue Next Year10.37%
Revenue Next 2Y9.92%
Revenue Next 3Y9.8%
Revenue Next 5Y9.41%

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 stable.
ETN Yearly Revenue VS EstimatesETN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B
ETN Yearly EPS VS EstimatesETN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15 20

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4

4. ETN Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 29.63, which means the current valuation is very expensive for ETN.
  • Compared to the rest of the industry, the Price/Earnings ratio of ETN indicates a somewhat cheap valuation: ETN is cheaper than 76.09% of the companies listed in the same industry.
  • ETN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.35.
  • With a Price/Forward Earnings ratio of 26.65, ETN can be considered very expensive at the moment.
  • Based on the Price/Forward Earnings ratio, ETN is valued a bit cheaper than the industry average as 71.74% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 22.61. ETN is around the same levels.
Industry RankSector Rank
PE 29.63
Fwd PE 26.65
ETN Price Earnings VS Forward Price EarningsETN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ETN is valued a bit cheaper than the industry average as 77.17% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, ETN is valued a bit cheaper than 78.26% of the companies in the same industry.
Industry RankSector Rank
P/FCF 39.06
EV/EBITDA 23.9
ETN Per share dataETN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

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.
  • A more expensive valuation may be justified as ETN's earnings are expected to grow with 12.97% in the coming years.
PEG (NY)2.64
PEG (5Y)1.28
EPS Next 2Y13.11%
EPS Next 3Y12.97%

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7

5. ETN Dividend Analysis

5.1 Amount

  • ETN has a Yearly Dividend Yield of 1.23%.
  • Compared to an average industry Dividend Yield of 0.26, ETN pays a better dividend. On top of this ETN pays more dividend than 92.39% of the companies listed in the same industry.
  • Compared to the average S&P500 Dividend Yield of 1.89, ETN is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.23%

5.2 History

  • The dividend of ETN is nicely growing with an annual growth rate of 7.53%!
  • ETN has paid a dividend for at least 10 years, which is a reliable track record.
  • ETN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.53%
Div Incr Years15
Div Non Decr Years34
ETN Yearly Dividends per shareETN Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

5.3 Sustainability

  • 39.77% 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.
DP39.77%
EPS Next 2Y13.11%
EPS Next 3Y12.97%
ETN Yearly Income VS Free CF VS DividendETN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B
ETN Dividend Payout.ETN Dividend Payout, showing the Payout Ratio.ETN Dividend Payout.PayoutRetained Earnings

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ETN Fundamentals: All Metrics, Ratios and Statistics

EATON CORP PLC

NYSE:ETN (3/31/2026, 8:04:00 PM)

Premarket: 361 +3.33 (+0.93%)

357.67

+14.14 (+4.12%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)02-03
Earnings (Next)04-30
Inst Owners85.27%
Inst Owner Change18.84%
Ins Owners0.05%
Ins Owner Change0.16%
Market Cap138.77B
Revenue(TTM)27.45B
Net Income(TTM)4.09B
Analysts79.43
Price Target411.3 (14.99%)
Short Float %1.92%
Short Ratio2.5
Dividend
Industry RankSector Rank
Dividend Yield 1.23%
Yearly Dividend4.17
Dividend Growth(5Y)7.53%
DP39.77%
Div Incr Years15
Div Non Decr Years34
Ex-Date03-10
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.17%
Min EPS beat(2)-0.42%
Max EPS beat(2)0.09%
EPS beat(4)2
Avg EPS beat(4)-0.2%
Min EPS beat(4)-0.48%
Max EPS beat(4)0.09%
EPS beat(8)5
Avg EPS beat(8)0.83%
EPS beat(12)9
Avg EPS beat(12)1.8%
EPS beat(16)11
Avg EPS beat(16)1.44%
Revenue beat(2)0
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-2.25%
Max Revenue beat(2)-1.6%
Revenue beat(4)2
Avg Revenue beat(4)-0.56%
Min Revenue beat(4)-2.25%
Max Revenue beat(4)0.92%
Revenue beat(8)2
Avg Revenue beat(8)-0.92%
Revenue beat(12)4
Avg Revenue beat(12)-0.32%
Revenue beat(16)6
Avg Revenue beat(16)-0.34%
PT rev (1m)0.65%
PT rev (3m)1.51%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)-11.04%
EPS NY rev (1m)-1.43%
EPS NY rev (3m)-2.72%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.5%
Valuation
Industry RankSector Rank
PE 29.63
Fwd PE 26.65
P/S 5.06
P/FCF 39.06
P/OCF 31.03
P/B 7.14
P/tB N/A
EV/EBITDA 23.9
EPS(TTM)12.07
EY3.37%
EPS(NY)13.42
Fwd EY3.75%
FCF(TTM)9.16
FCFY2.56%
OCF(TTM)11.53
OCFY3.22%
SpS70.74
BVpS50.07
TBVpS-3.6
PEG (NY)2.64
PEG (5Y)1.28
Graham Number116.6
Profitability
Industry RankSector Rank
ROA 9.91%
ROE 21.05%
ROCE 16.23%
ROIC 13.48%
ROICexc 13.83%
ROICexgc 41.9%
OM 18.85%
PM (TTM) 14.89%
GM 37.59%
FCFM 12.94%
ROA(3y)9.39%
ROA(5y)8.3%
ROE(3y)19.49%
ROE(5y)17.2%
ROIC(3y)12.34%
ROIC(5y)10.64%
ROICexc(3y)13.1%
ROICexc(5y)11.16%
ROICexgc(3y)42.03%
ROICexgc(5y)38.52%
ROCE(3y)14.86%
ROCE(5y)12.84%
ROICexgc growth 3Y10.65%
ROICexgc growth 5Y18.52%
ROICexc growth 3Y15.99%
ROICexc growth 5Y19.82%
OM growth 3Y8.86%
OM growth 5Y14.99%
PM growth 3Y7.87%
PM growth 5Y13.53%
GM growth 3Y4.24%
GM growth 5Y4.25%
F-Score7
Asset Turnover0.67
Health
Industry RankSector Rank
Debt/Equity 0.45
Debt/FCF 2.78
Debt/EBITDA 1.42
Cap/Depr 91.35%
Cap/Sales 3.35%
Interest Coverage 14.74
Cash Conversion 72.37%
Profit Quality 86.91%
Current Ratio 1.32
Quick Ratio 0.81
Altman-Z 5.34
F-Score7
WACC8.38%
ROIC/WACC1.61
Cap/Depr(3y)86.94%
Cap/Depr(5y)77.18%
Cap/Sales(3y)3.29%
Cap/Sales(5y)3.13%
Profit Quality(3y)89.58%
Profit Quality(5y)84.28%
High Growth Momentum
Growth
EPS 1Y (TTM)11.76%
EPS 3Y16.83%
EPS 5Y23.22%
EPS Q2Q%17.67%
EPS Next Y11.2%
EPS Next 2Y13.11%
EPS Next 3Y12.97%
EPS Next 5Y10.25%
Revenue 1Y (TTM)10.33%
Revenue growth 3Y9.77%
Revenue growth 5Y8.98%
Sales Q2Q%13.06%
Revenue Next Year10.37%
Revenue Next 2Y9.92%
Revenue Next 3Y9.8%
Revenue Next 5Y9.41%
EBIT growth 1Y10.13%
EBIT growth 3Y19.5%
EBIT growth 5Y25.31%
EBIT Next Year27.8%
EBIT Next 3Y16.97%
EBIT Next 5Y13.53%
FCF growth 1Y0.99%
FCF growth 3Y22.45%
FCF growth 5Y6.82%
OCF growth 1Y3.37%
OCF growth 3Y20.86%
OCF growth 5Y8.72%

EATON CORP PLC / ETN Fundamental Analysis 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.


Can you provide the profitability details for EATON CORP PLC?

EATON CORP PLC (ETN) has a profitability rating of 9 / 10.


What is the valuation of EATON CORP PLC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for EATON CORP PLC (ETN) is 29.63 and the Price/Book (PB) ratio is 7.14.


Can you provide the dividend sustainability for ETN stock?

The dividend rating of EATON CORP PLC (ETN) is 7 / 10 and the dividend payout ratio is 39.77%.