EATON CORP PLC (ETN) Stock Fundamental Analysis
USA - NYSE:ETN - IE00B8KQN827 - Common Stock
376.36 USD
-10.21 (-2.64%)
Taking everything into account, ETN scores 6 out of 10 in our fundamental rating. ETN was compared to 92 industry peers in the Electrical Equipment industry. While ETN has a great profitability rating, there are some minor concerns on its financial health. ETN has a correct valuation and a medium growth rate. ETN also has an excellent dividend rating. This makes ETN very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
ETN had positive earnings in the past year.
In the past year ETN had a positive cash flow from operations.
Each year in the past 5 years ETN has been profitable.
Each year in the past 5 years ETN had a positive operating cash flow.
1.2 Ratios
ETN has a better Return On Assets (9.69%) than 92.39% of its industry peers.
With an excellent Return On Equity value of 21.10%, ETN belongs to the best of the industry, outperforming 92.39% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.83%, ETN belongs to the best of the industry, outperforming 90.22% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ETN is in line with the industry average of 10.26%.
The last Return On Invested Capital (12.83%) for ETN is above the 3 year average (10.83%), which is a sign of increasing profitability.
| 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
ETN has a Profit Margin of 15.11%. This is amongst the best in the industry. ETN outperforms 89.13% of its industry peers.
In the last couple of years the Profit Margin of ETN has grown nicely.
ETN has a better Operating Margin (18.89%) than 94.57% 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 38.16%, ETN belongs to the top of the industry, outperforming 85.87% of the companies in the same industry.
ETN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.89% | ||
| 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 ETN is still creating some value.
The number of shares outstanding for ETN has been reduced compared to 1 year ago.
ETN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ETN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.58 indicates that ETN is not in any danger for bankruptcy at the moment.
ETN has a better Altman-Z score (5.58) than 81.52% of its industry peers.
ETN has a debt to FCF ratio of 3.36. This is a good value and a sign of high solvency as ETN would need 3.36 years to pay back of all of its debts.
The Debt to FCF ratio of ETN (3.36) is better than 79.35% of its industry peers.
ETN has a Debt/Equity ratio of 0.53. This is a neutral value indicating ETN is somewhat dependend on debt financing.
ETN has a Debt to Equity ratio (0.53) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 5.58 |
ROIC/WACC1.75
WACC7.32%
2.3 Liquidity
ETN has a Current Ratio of 1.24. This is a normal value and indicates that ETN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.24, ETN is doing worse than 64.13% of the companies in the same industry.
ETN has a Quick Ratio of 1.24. 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 Quick ratio of 0.76. This is in the lower half of the industry: ETN underperforms 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
ETN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.72%, which is quite good.
ETN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.71% yearly.
ETN shows a small growth in Revenue. In the last year, the Revenue has grown by 7.66%.
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)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
ETN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.69% yearly.
The Revenue is expected to grow by 9.27% on average over the next years. This is quite good.
EPS Next Y12.58%
EPS Next 2Y13.27%
EPS Next 3Y12.78%
EPS Next 5Y14.69%
Revenue Next Year9.97%
Revenue Next 2Y9.58%
Revenue Next 3Y8.9%
Revenue Next 5Y9.27%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
Based on the Price/Earnings ratio of 33.19, the valuation of ETN can be described as expensive.
75.00% of the companies in the same industry are more expensive than ETN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.51, ETN is valued a bit more expensive.
With a Price/Forward Earnings ratio of 27.16, ETN can be considered very expensive at the moment.
ETN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ETN is cheaper than 72.83% of the companies in the same industry.
ETN is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.53, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.19 | ||
| Fwd PE | 27.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ETN is valued a bit cheaper than 72.83% of the companies in the same industry.
ETN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ETN is cheaper than 72.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.77 | ||
| EV/EBITDA | 27.19 |
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.
A more expensive valuation may be justified as ETN's earnings are expected to grow with 12.78% in the coming years.
PEG (NY)2.64
PEG (5Y)2.42
EPS Next 2Y13.27%
EPS Next 3Y12.78%
5. Dividend
5.1 Amount
ETN has a Yearly Dividend Yield of 1.09%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.00, ETN pays a better dividend. On top of this ETN pays more dividend than 89.13% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, ETN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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 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
39.79% of the earnings are spent on dividend by ETN. This is a low number and sustainable payout ratio.
ETN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP39.79%
EPS Next 2Y13.27%
EPS Next 3Y12.78%
NYSE:ETN (11/4/2025, 2:49:09 PM)
376.36
-10.21 (-2.64%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners86.86%
Inst Owner Change-2.14%
Ins Owners0.06%
Ins Owner Change-3.49%
Market Cap146.52B
Revenue(TTM)25.99B
Net Income(TTM)3.93B
Analysts77.89
Price Target403.33 (7.17%)
Short Float %1.61%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Yearly Dividend3.79
Dividend Growth(5Y)5.7%
DP39.79%
Div Incr Years15
Div Non Decr Years34
Ex-Date
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)1.5%
PT rev (3m)8.66%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-1.16%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.19 | ||
| Fwd PE | 27.16 | ||
| P/S | 5.64 | ||
| P/FCF | 44.77 | ||
| P/OCF | 36.09 | ||
| P/B | 7.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.19 |
EPS(TTM)11.34
EY3.01%
EPS(NY)13.86
Fwd EY3.68%
FCF(TTM)8.41
FCFY2.23%
OCF(TTM)10.43
OCFY2.77%
SpS66.76
BVpS47.79
TBVpS-6.19
PEG (NY)2.64
PEG (5Y)2.42
Graham Number110.43
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%
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 Turnover0.64
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 | 5.58 |
F-Score8
WACC7.32%
ROIC/WACC1.75
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 Y12.58%
EPS Next 2Y13.27%
EPS Next 3Y12.78%
EPS Next 5Y14.69%
Revenue 1Y (TTM)7.66%
Revenue growth 3Y8.22%
Revenue growth 5Y3.07%
Sales Q2Q%10.68%
Revenue Next Year9.97%
Revenue Next 2Y9.58%
Revenue Next 3Y8.9%
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%
EATON CORP PLC / ETN FAQ
Can you provide the ChartMill fundamental rating for EATON CORP PLC?
ChartMill assigns a fundamental rating of 6 / 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 5 / 10.
How sustainable is the dividend of EATON CORP PLC (ETN) stock?
The dividend rating of EATON CORP PLC (ETN) is 7 / 10 and the dividend payout ratio is 39.79%.