EATON CORP PLC (ETN) Fundamental Analysis & Valuation
NYSE:ETN • IE00B8KQN827
Current stock price
425.55 USD
-7.46 (-1.72%)
At close:
426.74 USD
+1.19 (+0.28%)
After Hours:
This ETN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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.
- ETN had positive earnings in each of the past 5 years.
- In the past 5 years ETN always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 9.91%, ETN belongs to the best of the industry, outperforming 88.04% of the companies in the same industry.
- ETN has a Return On Equity of 21.05%. This is amongst the best in the industry. ETN outperforms 91.30% of its industry peers.
- ETN has a better Return On Invested Capital (13.48%) than 92.39% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ETN is above the industry average of 9.37%.
- 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 Rank | Sector 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%
1.3 Margins
- Looking at the Profit Margin, with a value of 14.89%, ETN belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
- ETN's Profit Margin has improved in the last couple of years.
- ETN has a better Operating Margin (18.85%) than 93.48% of its industry peers.
- ETN's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 37.59%, ETN belongs to the top of the industry, outperforming 83.70% of the companies in the same industry.
- In the last couple of years the Gross Margin of ETN has grown nicely.
| Industry Rank | Sector 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%
2. ETN Health Analysis
2.1 Basic Checks
- ETN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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 is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 6.07 indicates that ETN is not in any danger for bankruptcy at the moment.
- ETN has a better Altman-Z score (6.07) than 78.26% of its industry peers.
- The Debt to FCF ratio of ETN is 2.78, which is a good value as it means it would take ETN, 2.78 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of ETN (2.78) is better than 83.70% of its industry peers.
- ETN has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.45, ETN is in line with its industry, outperforming 52.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | 6.07 |
ROIC/WACC1.68
WACC8.01%
2.3 Liquidity
- A Current Ratio of 1.32 indicates that ETN should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.32, ETN is not doing good in the industry: 63.04% of the companies in the same industry are doing better.
- A Quick Ratio of 0.81 indicates that ETN may have some problems paying its short term obligations.
- ETN has a Quick ratio of 0.81. This is in the lower half of the industry: ETN underperforms 67.39% 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 | 1.32 | ||
| Quick Ratio | 0.81 |
3. ETN Growth Analysis
3.1 Past
- ETN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.76%, which is quite good.
- The Earnings Per Share has been growing by 23.22% on average over the past years. This is a very strong growth
- The Revenue has grown by 10.33% in the past year. This is quite good.
- Measured over the past years, ETN shows a quite strong growth in Revenue. The Revenue has been growing by 8.98% on average per year.
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
- ETN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.25% yearly.
- The Revenue is expected to grow by 9.41% on average over the next years. This is quite good.
EPS Next Y10.95%
EPS Next 2Y13.21%
EPS Next 3Y13.4%
EPS Next 5Y10.25%
Revenue Next Year11.53%
Revenue Next 2Y10.53%
Revenue Next 3Y10.3%
Revenue Next 5Y9.41%
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 stable: in the next years the growth will be about the same than in the last years.
4. ETN Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 35.26, the valuation of ETN can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of ETN indicates a somewhat cheap valuation: ETN is cheaper than 78.26% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of ETN to the average of the S&P500 Index (26.51), we can say ETN is valued slightly more expensively.
- With a Price/Forward Earnings ratio of 31.78, 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 72.83% of the companies are valued more expensively.
- ETN's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.26 | ||
| Fwd PE | 31.78 |
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 76.09% of the companies listed in the same industry.
- 76.09% of the companies in the same industry are more expensive than ETN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.47 | ||
| EV/EBITDA | 28.16 |
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 13.40% in the coming years.
PEG (NY)3.22
PEG (5Y)1.52
EPS Next 2Y13.21%
EPS Next 3Y13.4%
5. ETN Dividend Analysis
5.1 Amount
- ETN has a Yearly Dividend Yield of 1.02%.
- ETN's Dividend Yield is rather good when compared to the industry average which is at 0.23. ETN pays more dividend than 91.30% of the companies in the same industry.
- With a Dividend Yield of 1.02, ETN pays less dividend than the S&P500 average, which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
5.2 History
- On average, the dividend of ETN grows each year by 7.53%, which is quite nice.
- 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)7.53%
Div Incr Years16
Div Non Decr Years34
5.3 Sustainability
- 39.77% 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.
DP39.77%
EPS Next 2Y13.21%
EPS Next 3Y13.4%
ETN Fundamentals: All Metrics, Ratios and Statistics
425.55
-7.46 (-1.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Industry Strength77.7
Industry Growth76.67
Earnings (Last)02-03 2026-02-03/bmo
Earnings (Next)05-05 2026-05-05/bmo
Inst Owners85.39%
Inst Owner Change-0.01%
Ins Owners0.05%
Ins Owner Change0.12%
Market Cap165.11B
Revenue(TTM)27.45B
Net Income(TTM)4.09B
Analysts80
Price Target419.22 (-1.49%)
Short Float %2.05%
Short Ratio3.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Yearly Dividend4.17
Dividend Growth(5Y)7.53%
DP39.77%
Div Incr Years16
Div Non Decr Years34
Ex-Date03-10 2026-03-10 (1.1)
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)1.92%
PT rev (3m)5.08%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)-9.64%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)-2.16%
Revenue NQ rev (1m)0.45%
Revenue NQ rev (3m)-0.11%
Revenue NY rev (1m)0.99%
Revenue NY rev (3m)1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.26 | ||
| Fwd PE | 31.78 | ||
| P/S | 6.02 | ||
| P/FCF | 46.47 | ||
| P/OCF | 36.92 | ||
| P/B | 8.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.16 |
EPS(TTM)12.07
EY2.84%
EPS(NY)13.39
Fwd EY3.15%
FCF(TTM)9.16
FCFY2.15%
OCF(TTM)11.53
OCFY2.71%
SpS70.74
BVpS50.07
TBVpS-3.6
PEG (NY)3.22
PEG (5Y)1.52
Graham Number116.604 (-72.6%)
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 6.07 |
F-Score7
WACC8.01%
ROIC/WACC1.68
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 Y10.95%
EPS Next 2Y13.21%
EPS Next 3Y13.4%
EPS Next 5Y10.25%
Revenue 1Y (TTM)10.33%
Revenue growth 3Y9.77%
Revenue growth 5Y8.98%
Sales Q2Q%13.06%
Revenue Next Year11.53%
Revenue Next 2Y10.53%
Revenue Next 3Y10.3%
Revenue Next 5Y9.41%
EBIT growth 1Y10.13%
EBIT growth 3Y19.5%
EBIT growth 5Y25.31%
EBIT Next Year29.48%
EBIT Next 3Y17.62%
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 35.26 and the Price/Book (PB) ratio is 8.5.
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%.