EATON CORP PLC (ETN) Fundamental Analysis & Valuation

NYSE:ETN • IE00B8KQN827

355.52 USD
-0.04 (-0.01%)
Last: Mar 4, 2026, 03:50 PM
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This ETN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

7

ETN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 91 industry peers in the Electrical Equipment industry. While ETN has a great profitability rating, there are some minor concerns on its financial health. ETN is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make ETN suitable for growth investing!


Dividend Valuation Growth Profitability Health

9

1. ETN Profitability Analysis

1.1 Basic Checks

  • In the past year ETN was profitable.
  • In the past year ETN had a positive cash flow from operations.
  • In the past 5 years ETN has always been profitable.
  • ETN had a positive operating cash flow in 4 of the past 5 years.
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

  • With an excellent Return On Assets value of 9.66%, ETN belongs to the best of the industry, outperforming 87.91% of the companies in the same industry.
  • ETN's Return On Equity of 20.84% is amongst the best of the industry. ETN outperforms 90.11% of its industry peers.
  • ETN's Return On Invested Capital of 13.05% is amongst the best of the industry. ETN outperforms 91.21% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ETN is above the industry average of 9.66%.
  • The 3 year average ROIC (12.34%) for ETN is below the current ROIC(13.05%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 9.66%
ROE 20.84%
ROIC 13.05%
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

  • The Profit Margin of ETN (14.74%) is better than 86.81% of its industry peers.
  • In the last couple of years the Profit Margin of ETN has grown nicely.
  • With an excellent Operating Margin value of 18.84%, ETN belongs to the best of the industry, outperforming 93.41% of the companies in the same industry.
  • ETN's Operating Margin has improved in the last couple of years.
  • The Gross Margin of ETN (38.10%) is better than 89.01% of its industry peers.
  • ETN's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 18.84%
PM (TTM) 14.74%
GM 38.1%
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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6

2. ETN Health Analysis

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 increased compared to 1 year ago.
  • Compared to 5 years ago, ETN has less shares outstanding
  • ETN has a worse debt/assets ratio than last year.
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 5.36. This indicates that ETN is financially healthy and has little risk of bankruptcy at the moment.
  • ETN's Altman-Z score of 5.36 is amongst the best of the industry. ETN outperforms 81.32% of its industry peers.
  • The Debt to FCF ratio of ETN is 3.21, which is a good value as it means it would take ETN, 3.21 years of fcf income to pay off all of its debts.
  • With an excellent Debt to FCF ratio value of 3.21, ETN belongs to the best of the industry, outperforming 81.32% of the companies in the same industry.
  • A Debt/Equity ratio of 0.51 indicates that ETN is somewhat dependend on debt financing.
  • The Debt to Equity ratio of ETN (0.51) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.51
Debt/FCF 3.21
Altman-Z 5.36
ROIC/WACC1.56
WACC8.34%
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

  • ETN has a Current Ratio of 1.28. This is a normal value and indicates that ETN is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Current ratio value of 1.28, ETN is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
  • 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 63.74% 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 1.28
Quick Ratio 0.79
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. ETN Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 11.76% over the past year.
  • ETN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.22% yearly.
  • ETN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.33%.
  • 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.
  • 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 Y12.82%
EPS Next 2Y13.53%
EPS Next 3Y14%
EPS Next 5Y10.25%
Revenue Next Year10.09%
Revenue Next 2Y9.66%
Revenue Next 3Y9.37%
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

  • ETN is valuated quite expensively with a Price/Earnings ratio of 29.45.
  • 79.12% 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 26.83, ETN is valued at the same level.
  • The Price/Forward Earnings ratio is 26.11, which means the current valuation is very expensive for 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.
  • When comparing the Price/Forward Earnings ratio of ETN to the average of the S&P500 Index (24.95), we can say ETN is valued inline with the index average.
Industry RankSector Rank
PE 29.45
Fwd PE 26.11
ETN Price Earnings VS Forward Price EarningsETN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

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.
  • 72.53% of the companies in the same industry are more expensive than ETN, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 42.32
EV/EBITDA 24.92
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 an expensive valuation of the company.
  • The excellent profitability rating of ETN may justify a higher PE ratio.
  • ETN's earnings are expected to grow with 14.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.3
PEG (5Y)1.27
EPS Next 2Y13.53%
EPS Next 3Y14%

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6

5. ETN Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.17%, ETN has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.25, ETN pays a better dividend. On top of this ETN pays more dividend than 92.31% of the companies listed in the same industry.
  • Compared to the average S&P500 Dividend Yield of 1.82, ETN is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.17%

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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.7%
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 1 2 3 4

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.
  • The dividend of ETN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40.54%
EPS Next 2Y13.53%
EPS Next 3Y14%
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 (3/4/2026, 3:50:00 PM)

355.52

-0.04 (-0.01%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)02-03
Earnings (Next)04-30
Inst Owners85.75%
Inst Owner Change18.92%
Ins Owners0.04%
Ins Owner Change0.17%
Market Cap140.50B
Revenue(TTM)27.45B
Net Income(TTM)3.93B
Analysts79.43
Price Target408.65 (14.94%)
Short Float %1.98%
Short Ratio2.58
Dividend
Industry RankSector Rank
Dividend Yield 1.17%
Yearly Dividend3.79
Dividend Growth(5Y)5.7%
DP40.54%
Div Incr Years15
Div Non Decr Years34
Ex-DateN/A
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)2.43%
PT rev (3m)0.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.01%
EPS NY rev (1m)-0.52%
EPS NY rev (3m)-1.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.82%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)0.68%
Valuation
Industry RankSector Rank
PE 29.45
Fwd PE 26.11
P/S 5.28
P/FCF 42.32
P/OCF 34.25
P/B 7.46
P/tB N/A
EV/EBITDA 24.92
EPS(TTM)12.07
EY3.4%
EPS(NY)13.62
Fwd EY3.83%
FCF(TTM)8.4
FCFY2.36%
OCF(TTM)10.38
OCFY2.92%
SpS67.39
BVpS47.68
TBVpS-5.31
PEG (NY)2.3
PEG (5Y)1.27
Graham Number113.79
Profitability
Industry RankSector Rank
ROA 9.66%
ROE 20.84%
ROCE 16.1%
ROIC 13.05%
ROICexc 13.29%
ROICexgc 39.96%
OM 18.84%
PM (TTM) 14.74%
GM 38.1%
FCFM 12.47%
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 Turnover0.66
Health
Industry RankSector 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 5.36
F-Score7
WACC8.34%
ROIC/WACC1.56
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.76%
EPS 3Y16.83%
EPS 5Y23.22%
EPS Q2Q%17.67%
EPS Next Y12.82%
EPS Next 2Y13.53%
EPS Next 3Y14%
EPS Next 5Y10.25%
Revenue 1Y (TTM)10.33%
Revenue growth 3Y9.77%
Revenue growth 5Y8.98%
Sales Q2Q%13.06%
Revenue Next Year10.09%
Revenue Next 2Y9.66%
Revenue Next 3Y9.37%
Revenue Next 5Y9.41%
EBIT growth 1Y9.02%
EBIT growth 3Y19.5%
EBIT growth 5Y25.31%
EBIT Next Year27.8%
EBIT Next 3Y16.97%
EBIT Next 5Y13.53%
FCF growth 1Y2.69%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1.81%
OCF growth 3YN/A
OCF growth 5YN/A

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.


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.


How profitable is EATON CORP PLC (ETN) stock?

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


Can you provide the PE and PB ratios for ETN stock?

The Price/Earnings (PE) ratio for EATON CORP PLC (ETN) is 29.45 and the Price/Book (PB) ratio is 7.46.


What is the earnings growth outlook for EATON CORP PLC?

The Earnings per Share (EPS) of EATON CORP PLC (ETN) is expected to grow by 12.82% in the next year.