Eaton Corporation plc operates as a power management company.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$158.00|
|52 Week High||US$98.05|
|52 Week Low||US$171.32|
|1 Month Change||-6.72%|
|3 Month Change||7.71%|
|1 Year Change||58.56%|
|3 Year Change||82.11%|
|5 Year Change||146.26%|
|Change since IPO||2,117.54%|
Recent News & Updates
Eaton's (NYSE:ETN) Recent Business Rotation and Increased Debt May be Weakening Fundamentals
Eaton Corporation plc's (NYSE:ETN) share price has soared 144% in the last half decade. Most would be very happy with that. In the last week, shares have slid back 1.1%, which seems to be part of a recent reversal of a very long-lasting bull run. In this analysis, we will take a look at the fundamental performance and evaluate if Eaton's bull run is at an end.
Is Eaton (NYSE:ETN) A Risky Investment?
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When Should You Buy Eaton Corporation plc (NYSE:ETN)?
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|ETN||US Electrical||US Market|
Return vs Industry: ETN exceeded the US Electrical industry which returned 54.3% over the past year.
Return vs Market: ETN exceeded the US Market which returned 36.2% over the past year.
Stable Share Price: ETN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: ETN's weekly volatility (3%) has been stable over the past year.
About the Company
Eaton Corporation plc operates as a power management company. Its Electrical Americas and Electrical Global segment provides electrical components, industrial components, power distribution and assemblies, residential products, single and three phase power quality products, wiring devices, circuit protection products, utility power distribution products, power reliability equipment, and services in North and South America, as well as hazardous duty electrical, emergency lighting, fire detection, explosion-proof instrumentation, and structural support systems internationally. The company’s Hydraulics segment provides pumps, motors, and hydraulic power units; valves, cylinders, and electronic controls; industrial and hydraulic hoses, fittings, assemblies, thermoplastic hose and tubing products, couplings, connectors, and assembly equipment; and industrial drums and disc brakes.
Eaton Fundamentals Summary
|ETN fundamental statistics|
Is ETN overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ETN income statement (TTM)|
|Cost of Revenue||US$12.96b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||4.72|
|Net Profit Margin||9.86%|
How did ETN perform over the long term?See historical performance and comparison
1.9%Current Dividend Yield
Is Eaton undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ETN ($158) is trading above our estimate of fair value ($130.16)
Significantly Below Fair Value: ETN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ETN is poor value based on its PE Ratio (33.4x) compared to the US Electrical industry average (22.9x).
PE vs Market: ETN is poor value based on its PE Ratio (33.4x) compared to the US market (17.7x).
Price to Earnings Growth Ratio
PEG Ratio: ETN is poor value based on its PEG Ratio (2.9x)
Price to Book Ratio
PB vs Industry: ETN is overvalued based on its PB Ratio (4.1x) compared to the US Electrical industry average (3x).
How is Eaton forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ETN's forecast earnings growth (11.6% per year) is above the savings rate (2%).
Earnings vs Market: ETN's earnings (11.6% per year) are forecast to grow slower than the US market (14.9% per year).
High Growth Earnings: ETN's earnings are forecast to grow, but not significantly.
Revenue vs Market: ETN's revenue (4.2% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: ETN's revenue (4.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ETN's Return on Equity is forecast to be high in 3 years time (20%)
How has Eaton performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ETN has high quality earnings.
Growing Profit Margin: ETN's current net profit margins (9.9%) are higher than last year (8%).
Past Earnings Growth Analysis
Earnings Trend: ETN's earnings have declined by 6.2% per year over the past 5 years.
Accelerating Growth: ETN's earnings growth over the past year (22.2%) exceeds its 5-year average (-6.2% per year).
Earnings vs Industry: ETN earnings growth over the past year (22.2%) underperformed the Electrical industry 22.9%.
Return on Equity
High ROE: ETN's Return on Equity (12.2%) is considered low.
How is Eaton's financial position?
Financial Position Analysis
Short Term Liabilities: ETN's short term assets ($9.8B) exceed its short term liabilities ($8.9B).
Long Term Liabilities: ETN's short term assets ($9.8B) do not cover its long term liabilities ($12.4B).
Debt to Equity History and Analysis
Debt Level: ETN's debt to equity ratio (78.8%) is considered high.
Reducing Debt: ETN's debt to equity ratio has increased from 54.9% to 78.8% over the past 5 years.
Debt Coverage: ETN's debt is well covered by operating cash flow (22.7%).
Interest Coverage: ETN's interest payments on its debt are well covered by EBIT (6.9x coverage).
What is Eaton current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ETN's dividend (1.92%) is higher than the bottom 25% of dividend payers in the US market (1.35%).
High Dividend: ETN's dividend (1.92%) is low compared to the top 25% of dividend payers in the US market (3.63%).
Stability and Growth of Payments
Stable Dividend: ETN's dividends per share have been stable in the past 10 years.
Growing Dividend: ETN's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (63.1%), ETN's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ETN's dividends in 3 years are forecast to be well covered by earnings (42.8% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Craig Arnold (61 yo)
Mr. Craig Arnold has been the Chairman of Eaton Corporation plc since June 1, 2016 and Chief Executive Officer at Eaton Corporation plc since June 01, 2016. Mr. Craig Arnold serves as Chief Executive Offic...
CEO Compensation Analysis
Compensation vs Market: Craig's total compensation ($USD17.47M) is above average for companies of similar size in the US market ($USD11.36M).
Compensation vs Earnings: Craig's compensation has been consistent with company performance over the past year.
Experienced Management: ETN's management team is considered experienced (2.5 years average tenure).
Experienced Board: ETN's board of directors are considered experienced (5.2 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ETN insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Eaton Corporation plc's employee growth, exchange listings and data sources
- Name: Eaton Corporation plc
- Ticker: ETN
- Exchange: NYSE
- Founded: 1916
- Industry: Electrical Components and Equipment
- Sector: Capital Goods
- Market Cap: US$62.382b
- Shares outstanding: 398.78m
- Website: https://www.eaton.com
Number of Employees
- Eaton Corporation plc
- Eaton House
- 30 Pembroke Road
- Co. Dublin
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/23 22:55|
|End of Day Share Price||2021/09/23 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.