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ETN

EatonNYSE:ETN Stock Report

Market Cap

US$62.4b

7D

-0.8%

1Y

58.6%

Updated

23 Sep, 2021

Data

Company Financials +
ETN fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance3/6
Financial Health3/6
Dividends5/6

ETN Overview

Eaton Corporation plc operates as a power management company.

Eaton Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Eaton
Historical stock prices
Current Share PriceUS$158.00
52 Week HighUS$98.05
52 Week LowUS$171.32
Beta1.15
1 Month Change-6.72%
3 Month Change7.71%
1 Year Change58.56%
3 Year Change82.11%
5 Year Change146.26%
Change since IPO2,117.54%

Recent News & Updates

Sep 22
Eaton's (NYSE:ETN) Recent Business Rotation and Increased Debt May be Weakening Fundamentals

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.

Sep 22
Is Eaton (NYSE:ETN) A Risky Investment?

Is Eaton (NYSE:ETN) A Risky Investment?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Sep 10
When Should You Buy Eaton Corporation plc (NYSE:ETN)?

When Should You Buy Eaton Corporation plc (NYSE:ETN)?

Today we're going to take a look at the well-established Eaton Corporation plc ( NYSE:ETN ). The company's stock saw a...

Shareholder Returns

ETNUS ElectricalUS Market
7D-0.8%0.2%-0.5%
1Y58.6%55.6%37.5%

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.

Price Volatility

Is ETN's price volatile compared to industry and market?
ETN volatility
ETN Beta1.15
Industry Beta1.34
Market Beta1

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

FoundedEmployeesCEOWebsite
191685,000Craig Arnoldhttps://www.eaton.com

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

How do Eaton's earnings and revenue compare to its market cap?
ETN fundamental statistics
Market CapUS$62.38b
Earnings (TTM)US$1.89b
Revenue (TTM)US$19.12b

33.4x

P/E Ratio

3.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ETN income statement (TTM)
RevenueUS$19.12b
Cost of RevenueUS$12.96b
Gross ProfitUS$6.16b
ExpensesUS$4.28b
EarningsUS$1.89b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.72
Gross Margin32.23%
Net Profit Margin9.86%
Debt/Equity Ratio78.8%

How did ETN perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

63%

Payout Ratio

Valuation

Is Eaton undervalued compared to its fair value and its price relative to the market?

33.43x

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).


Future Growth

How is Eaton forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

11.6%

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%)


Past Performance

How has Eaton performed over the past 5 years?

-6.2%

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.


Financial Health

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).


Balance Sheet


Dividend

What is Eaton current dividend yield, its reliability and sustainability?

1.92%

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).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Craig Arnold (61 yo)

no data

Tenure

US$17,473,747

Compensation

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.


Leadership Team

Experienced Management: ETN's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: ETN's board of directors are considered experienced (5.2 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Eaton Corporation plc's employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Eaton Corporation plc
  • Eaton House
  • 30 Pembroke Road
  • Dublin
  • Co. Dublin
  • 4
  • Ireland

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 22:55
End of Day Share Price2021/09/23 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.