Eaton
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Eaton Corporation plc operates as a power management company worldwide. The last earnings update was 55 days ago. More info.
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ETN Share Price and Events
7 Day Returns
1 Year Returns
ETN Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Eaton (ETN) | 1.7% | 8.3% | 22% | 12.7% | 35.3% | 18.6% |
| US Electrical | 1% | 8.9% | 15.5% | 8.4% | 31.3% | 14.7% |
| US Market | -0.1% | 3.7% | 10.2% | 7.6% | 38.1% | 46.4% |
1 Year Return vs Industry and Market
- ETN outperformed the Electrical industry which returned 8.4% over the past year.
- ETN outperformed the Market in United States of America which returned 7.6% over the past year.
ETN Value
Is Eaton undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Eaton
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Eaton.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 21 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 11.5% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 7.1% |
| Electrical Unlevered Beta | Simply Wall St/ S&P Global | 1.14 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.139 (1 + (1- 12.5%) (20.8%)) |
1.232 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.23 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.232 * 7.14%) |
11.53% |
Discounted Cash Flow Calculation for NYSE:ETN using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Eaton is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 11.53%) |
|
|---|---|---|---|
| 2019 | 2,623.49 | Analyst x12 | 2,352.34 |
| 2020 | 2,738.24 | Analyst x9 | 2,201.48 |
| 2021 | 2,932.80 | Analyst x5 | 2,114.19 |
| 2022 | 2,988.00 | Analyst x1 | 1,931.36 |
| 2023 | 3,051.50 | Est @ 2.13% | 1,768.55 |
| 2024 | 3,121.88 | Est @ 2.31% | 1,622.34 |
| 2025 | 3,197.86 | Est @ 2.43% | 1,490.06 |
| 2026 | 3,278.52 | Est @ 2.52% | 1,369.76 |
| 2027 | 3,363.27 | Est @ 2.58% | 1,259.94 |
| 2028 | 3,451.66 | Est @ 2.63% | 1,159.41 |
| Present value of next 10 years cash flows | $17,269.44 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $3,451.66 × (1 + 2.73%) ÷ (11.53% – 2.73%) |
$40,309.02 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $40,309.02 ÷ (1 + 11.53%)10 |
$13,539.75 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $17,269.44 + $13,539.75 |
$30,809.19 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $30,809.19 / 424.22 |
$72.62 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $72.62 |
| Current discount | Discount to share price of
$85.59
= -1 x ($85.59 - $72.62) / $72.62 |
-17.9% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Eaton is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Eaton's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Eaton's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $4.94 |
| NYSE:ETN Share Price ** | NYSE (2019-04-23) in USD | $85.59 |
| United States of America Electrical Industry PE Ratio | Median Figure of 30 Publicly-Listed Electrical Companies | 17.39x |
| United States of America Market PE Ratio | Median Figure of 3,080 Publicly-Listed Companies | 18.03x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Eaton.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:ETN Share Price ÷ EPS (both in USD) = 85.59 ÷ 4.94 |
17.33x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Eaton is good value based on earnings compared to the US Electrical industry average.
- Eaton is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Eaton's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 17.33x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts |
8.1%per year |
| United States of America Electrical Industry PEG Ratio | Median Figure of 20 Publicly-Listed Electrical Companies | 1.52x |
| United States of America Market PEG Ratio | Median Figure of 2,109 Publicly-Listed Companies | 1.55x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 17.33x ÷ 8.1% |
2.13x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Eaton is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Eaton's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $38.02 |
| NYSE:ETN Share Price * | NYSE (2019-04-23) in USD | $85.59 |
| United States of America Electrical Industry PB Ratio | Median Figure of 63 Publicly-Listed Electrical Companies | 1.9x |
| United States of America Market PB Ratio | Median Figure of 5,185 Publicly-Listed Companies | 1.92x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:ETN Share Price ÷ Book Value per Share (both in USD) = 85.59 ÷ 38.02 |
2.25x |
* Primary Listing of Eaton.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Eaton is overvalued based on assets compared to the US Electrical industry average.
Value checks
We assess Eaton's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Electrical industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Electrical industry average (and greater than 0)? (1 check) Eaton has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
ETN Future Performance
How is Eaton expected to perform in the next 1 to 3 years based on estimates from 21 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Eaton's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Eaton's earnings growth is positive but not above the United States of America market average.
- Eaton's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:ETN Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts | 8.1% |
| NYSE:ETN Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 21 Analysts | 2.8% |
| United States of America Electrical Industry Earnings Growth Rate | Market Cap Weighted Average | 9.9% |
| United States of America Electrical Industry Revenue Growth Rate | Market Cap Weighted Average | 4.6% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.5% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 21 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-12-31 | 24,609 | 2,938 | 1 | |
| 2021-12-31 | 23,490 | 3,492 | 2,811 | 8 |
| 2020-12-31 | 22,972 | 3,401 | 2,635 | 19 |
| 2019-12-31 | 22,382 | 3,266 | 2,489 | 21 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 21,609 | 2,658 | 2,145 |
| 2018-09-30 | 21,363 | 2,717 | 2,148 |
| 2018-06-30 | 21,162 | 2,467 | 3,133 |
| 2018-03-31 | 20,807 | 2,542 | 3,039 |
| 2017-12-31 | 20,404 | 2,666 | 2,985 |
| 2017-09-30 | 20,058 | 2,425 | 2,849 |
| 2017-06-30 | 19,834 | 2,474 | 1,971 |
| 2017-03-31 | 19,782 | 2,645 | 1,946 |
| 2016-12-31 | 19,747 | 2,570 | 1,916 |
| 2016-09-30 | 19,937 | 2,674 | 1,950 |
| 2016-06-30 | 20,153 | 2,848 | 1,873 |
| 2016-03-31 | 20,445 | 2,682 | 1,917 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 21 Analyst Estimates (S&P Global) | See Below |
All data from Eaton Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-12-31 | 7.13 | 7.13 | 7.13 | 1.00 |
| 2021-12-31 | 6.85 | 6.95 | 6.67 | 4.00 |
| 2020-12-31 | 6.20 | 6.55 | 5.38 | 12.00 |
| 2019-12-31 | 5.81 | 5.94 | 5.45 | 13.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | 4.94 |
| 2018-09-30 | 4.92 |
| 2018-06-30 | 7.13 |
| 2018-03-31 | 6.88 |
| 2017-12-31 | 6.72 |
| 2017-09-30 | 6.37 |
| 2017-06-30 | 4.38 |
| 2017-03-31 | 4.30 |
| 2016-12-31 | 4.21 |
| 2016-09-30 | 4.26 |
| 2016-06-30 | 4.07 |
| 2016-03-31 | 4.14 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Eaton's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Eaton has a total score of 1/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
ETN Past Performance
How has Eaton performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Eaton's year on year earnings growth rate has been positive over the past 5 years.
- Eaton's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- Eaton's 1-year earnings growth is negative, it can't be compared to the US Electrical industry average.
Earnings and Revenue History
All data from Eaton Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 21,609.00 | 2,145.00 | 3,542.00 | 584.00 |
| 2018-09-30 | 21,363.00 | 2,148.00 | 3,538.00 | 583.00 |
| 2018-06-30 | 21,162.00 | 3,133.00 | 3,586.00 | 592.00 |
| 2018-03-31 | 20,807.00 | 3,039.00 | 3,575.00 | 597.00 |
| 2017-12-31 | 20,404.00 | 2,985.00 | 3,561.00 | 584.00 |
| 2017-09-30 | 20,058.00 | 2,849.00 | 3,563.00 | 585.00 |
| 2017-06-30 | 19,834.00 | 1,971.00 | 3,482.00 | 584.00 |
| 2017-03-31 | 19,782.00 | 1,946.00 | 3,488.00 | 583.00 |
| 2016-12-31 | 19,747.00 | 1,916.00 | 3,521.00 | 587.00 |
| 2016-09-30 | 19,937.00 | 1,950.00 | 3,514.00 | 597.00 |
| 2016-06-30 | 20,153.00 | 1,873.00 | 3,565.00 | 607.00 |
| 2016-03-31 | 20,445.00 | 1,917.00 | 3,569.00 | 616.00 |
| 2015-12-31 | 20,855.00 | 1,972.00 | 3,591.00 | 625.00 |
| 2015-09-30 | 21,363.00 | 2,028.00 | 3,616.00 | 626.00 |
| 2015-06-30 | 21,888.00 | 2,184.00 | 3,667.00 | 633.00 |
| 2015-03-31 | 22,283.00 | 1,820.00 | 3,744.00 | 643.00 |
| 2014-12-31 | 22,552.00 | 1,793.00 | 3,785.00 | 647.00 |
| 2014-09-30 | 22,514.00 | 1,691.00 | 3,873.00 | 658.00 |
| 2014-06-30 | 22,393.00 | 1,599.00 | 3,873.00 | 661.00 |
| 2014-03-31 | 22,228.00 | 1,922.00 | 3,848.00 | 654.00 |
| 2013-12-31 | 22,046.00 | 1,861.00 | 3,840.00 | 644.00 |
| 2013-09-30 | 20,852.00 | 1,561.00 | 3,509.00 | 605.00 |
| 2013-06-30 | 19,195.00 | 1,396.00 | 3,220.00 | 541.00 |
| 2013-03-31 | 17,661.00 | 1,284.00 | 2,950.00 | 486.00 |
| 2012-12-31 | 16,311.00 | 1,217.00 | 2,705.00 | 439.00 |
| 2012-09-30 | 16,011.00 | 1,400.00 | 2,758.00 | 414.00 |
| 2012-06-30 | 16,184.00 | 1,420.00 | 2,759.00 | 416.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Eaton has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Eaton used its assets less efficiently than the US Electrical industry average last year based on Return on Assets.
- Eaton has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Eaton's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Electrical industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Eaton has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
ETN Health
How is Eaton's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Eaton's finances.
The net worth of a company is the difference between its assets and liabilities.
- Eaton is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Eaton's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Eaton Company Filings, last reported 3 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 16,142.00 | 7,551.00 | 440.00 |
| 2018-09-30 | 16,789.00 | 7,308.00 | 506.00 |
| 2018-06-30 | 16,725.00 | 7,737.00 | 492.00 |
| 2018-03-31 | 17,301.00 | 7,916.00 | 827.00 |
| 2017-12-31 | 17,290.00 | 7,768.00 | 1,096.00 |
| 2017-09-30 | 16,636.00 | 8,779.00 | 1,636.00 |
| 2017-06-30 | 15,594.00 | 8,615.00 | 840.00 |
| 2017-03-31 | 15,199.00 | 8,224.00 | 523.00 |
| 2016-12-31 | 14,998.00 | 8,286.00 | 747.00 |
| 2016-09-30 | 15,446.00 | 8,450.00 | 707.00 |
| 2016-06-30 | 15,364.00 | 8,433.00 | 470.00 |
| 2016-03-31 | 15,563.00 | 8,654.00 | 574.00 |
| 2015-12-31 | 15,231.00 | 8,416.00 | 445.00 |
| 2015-09-30 | 15,413.00 | 8,672.00 | 568.00 |
| 2015-06-30 | 15,803.00 | 8,761.00 | 430.00 |
| 2015-03-31 | 15,264.00 | 9,340.00 | 802.00 |
| 2014-12-31 | 15,839.00 | 9,044.00 | 1,026.00 |
| 2014-09-30 | 16,645.00 | 9,031.00 | 990.00 |
| 2014-06-30 | 17,042.00 | 9,059.00 | 1,265.00 |
| 2014-03-31 | 17,111.00 | 9,364.00 | 1,144.00 |
| 2013-12-31 | 16,863.00 | 9,626.00 | 1,710.00 |
| 2013-09-30 | 16,117.00 | 9,736.00 | 1,341.00 |
| 2013-06-30 | 15,431.00 | 9,806.00 | 998.00 |
| 2013-03-31 | 15,210.00 | 10,128.00 | 1,039.00 |
| 2012-12-31 | 15,178.00 | 10,838.00 | 1,106.00 |
| 2012-09-30 | 8,242.00 | 4,107.00 | 1,045.00 |
| 2012-06-30 | 7,958.00 | 4,374.00 | 1,177.00 |
- Eaton's level of debt (46.8%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (57.1% vs 46.8% today).
- Debt is well covered by operating cash flow (35.2%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 11x coverage).
Financial health checks
We assess Eaton's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Eaton has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
ETN Dividends
What is Eaton's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Eaton
shares you are expected to receive
$66
in your first year as a dividend.
Dividend Amount
- Eaton's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
- Eaton's dividend is below the markets top 25% of dividend payers in United States of America (3.64%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 21 Analyst Estimates (S&P Global) | See Below |
| United States of America Electrical Industry Average Dividend Yield | Market Cap Weighted Average of 20 Stocks | 2.3% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2008 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2022-12-31 | 3.85 | 1.00 |
| 2021-12-31 | 3.27 | 7.00 |
| 2020-12-31 | 3.06 | 12.00 |
| 2019-12-31 | 2.86 | 12.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-02-27 | 2.840 | 3.476 |
| 2018-10-23 | 2.640 | 3.629 |
| 2018-07-24 | 2.640 | 3.187 |
| 2018-04-24 | 2.640 | 3.424 |
| 2018-02-28 | 2.640 | 3.330 |
| 2017-10-24 | 2.400 | 3.004 |
| 2017-07-25 | 2.400 | 3.196 |
| 2017-04-25 | 2.400 | 3.099 |
| 2017-02-22 | 2.400 | 3.271 |
| 2016-10-25 | 2.280 | 3.375 |
| 2016-07-26 | 2.280 | 3.508 |
| 2016-04-26 | 2.280 | 3.704 |
| 2016-02-24 | 2.280 | 3.748 |
| 2015-10-27 | 2.200 | 4.140 |
| 2015-07-21 | 2.200 | 3.939 |
| 2015-04-21 | 2.200 | 3.149 |
| 2015-02-25 | 2.200 | 3.210 |
| 2014-10-21 | 1.960 | 2.907 |
| 2014-07-22 | 1.960 | 2.935 |
| 2014-04-22 | 1.960 | 2.608 |
| 2014-02-26 | 1.960 | 2.655 |
| 2013-10-22 | 1.680 | 2.310 |
| 2013-07-24 | 1.680 | 2.500 |
| 2013-04-24 | 1.680 | 2.578 |
| 2013-02-27 | 1.680 | 2.763 |
| 2012-09-26 | 1.520 | 2.911 |
| 2012-07-25 | 1.520 | 3.326 |
| 2012-04-25 | 1.520 | 3.676 |
| 2012-01-26 | 1.520 | 3.058 |
| 2011-10-26 | 1.360 | 3.019 |
| 2011-07-27 | 1.360 | 3.376 |
| 2011-04-27 | 1.360 | 2.701 |
| 2011-01-27 | 1.360 | 2.529 |
| 2010-10-27 | 1.160 | 2.355 |
| 2010-07-21 | 1.160 | 2.939 |
| 2010-04-28 | 1.000 | 2.840 |
| 2010-01-27 | 1.000 | 2.790 |
| 2009-10-28 | 1.000 | 3.091 |
| 2009-07-20 | 1.000 | 3.586 |
| 2009-04-24 | 1.000 | 4.440 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Eaton's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are covered by earnings (1.9x coverage).
- Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
Income/ dividend checks
We assess Eaton's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Eaton afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Eaton has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
ETN Management
CEO
| COMPENSATION | $14,673,845 |
| AGE | 58 |
CEO Bio
Mr. Craig Arnold has been the Chairman of Eaton Corporation plc since June 1, 2016 and Chief Executive Officer at Eaton Corporation since June 01, 2016. Mr. Arnold serves as Chief Executive Officer of Eaton Corporation since June 1, 2016 and serves as its President since September 1, 2015. Mr. Arnold served as Chief Operating Officer of Eaton Corporation from September 1, 2015 to May 31, 2016. Mr. Arnold serves as Principal Executive Officer of Eaton Corporation plc. He served as the President and Chief Operating Officer of Eaton Corporation plc since September 1, 2015 until June 2016. Mr. Arnold served as Vice Chairman, President and Chief Operating Officer for Industrial Sector at Eaton Corporation plc since February 1, 2009 until August 31, 2015. He served as President of Fluid Power Group and Senior Vice President of Eaton Corporation since October 25, 2000 until 2008. He served as Chief Executive Officer of Fluid Power Group at Eaton Corporation from October 25, 2000 to January 31, 2009. He was responsible for Eaton’s hydraulics, aerospace, filtration, truck, automotive and general products businesses. He joined Eaton in 2000 as group executive of the Fluid Power Group from General Electric Company. Mr. Arnold was employed in a series of progressively more responsible positions at General Electric Company from 1983 to 2000. Mr. Arnold was responsible for Eaton’s Fluid Power business, which includes Aeroquip, aerospace and hydraulics businesses. He served as Corporate Vice President of General Electric and President of GE Lighting Services Ltd. from 1999 to 2000. He served as Corporate Vice President and President of GE Plastics, Greater China, from 1998 to 1999 and at GE Appliances, Asia, from 1997 to 1998. Mr. Arnold served as Managing Director of Structured Products Europe at GE Plastics from 1995 to 1997. He started his professional career with General Electric in 1983, initially holding a series of progressively responsible sales, marketing and product management positions. He was responsible for GE’s lighting business in Europe, the Middle East and India. He was responsible for GE’s e-commerce business in Europe across all of its businesses and served as GE’s senior management "account executive" for all GE businesses in the United Kingdom. He serves as a Director at University Hospitals Health System, Inc. He has been an Independent Director at Medtronic plc since January 26, 2015. He has been a Director of Eaton Corporation plc since September 1, 2015. He has been an Independent Director of Unocal Corporation since February 1, 2004. He serves as a Director of Mallinckrodt LLC, Eaton Corporation, Tyco Healthcare Ltd and Tyco Healthcare Group, LP. He serves as a Member of the advisory Board of the Salvation Army of Greater Cleveland Partnership and the United Way of Greater Cleveland. Mr. Arnold served as a Director of Covidien PLC since June 29, 2007 until January 2015. Mr. Arnold received a Bachelor’s Degree in Psychology from California State University in San Bernardino and a Master of Business Administration from Pepperdine University. He has years of senior management and executive leadership experience. He is a Member of The Business Roundtable and The Business Council.
CEO Compensation
- Craig's compensation has been consistent with company performance over the past year.
- Craig's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Eaton management team in years:
- The tenure for the Eaton management team is about average.
Management Team
Craig Arnold
Chairman & Principal Executive Officer
$15M
58
Rick Fearon
Principal Financial Officer & Director
$6M
62
Uday Yadav
President & COO of Industrial Sector
$4M
54
3.6 yrs
Mark Eubanks
President of Electrical Products Group - Eaton Corporation
$3M
45
3.6 yrs
Ken Semelsberger
Principal Accounting Officer
56
Ram Ramakrishnan
Chief Technology Officer & Executive VP
6.8 yrs
William Blausey
Chief Information Officer & Senior VP
53
13.3 yrs
Yan Jin
Senior Vice President of Investor Relations
0.1 yrs
Deborah Severs
Senior Vice President of Global Ethics & Compliance
7.2 yrs
Terry Szmagala
Senior Vice President of Public & Community Affairs and Corporate Communications
2.3 yrs
Board of Directors Tenure
Average tenure and age of the Eaton board of directors in years:
- The tenure for the Eaton board of directors is about average.
Board of Directors
Rick Fearon
Principal Financial Officer & Director
$6M
62
3.6 yrs
Arthur Johnson
Independent Director
$343K
71
10.3 yrs
Craig Arnold
Chairman & Principal Executive Officer
$15M
58
2.8 yrs
Todd Bluedorn
Independent Director
$345K
54
9.3 yrs
Gerald Smith
Independent Director
$343K
67
6.4 yrs
Sandra Pianalto
Independent Director
$333K
63
4.8 yrs
Chris Connor
Lead Director
$368K
61
3.3 yrs
Debbie McCoy
Independent Director
$339K
63
19.3 yrs
Mike Critelli
Independent Director
$326K
69
21.3 yrs
Greg Page
Independent Director
$336K
67
16 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 15. Mar 19 | Sell | Curtis Hutchins | Individual | 13. Mar 19 | 13. Mar 19 | -12,000 | $80.60 | $-967,200 | ||
| 13. Mar 19 | Sell | Richard Eubanks | Individual | 12. Mar 19 | 12. Mar 19 | -18,894 | $80.58 | $-1,522,479 | ||
| 13. Mar 19 | Sell | Brian Brickhouse | Individual | 12. Mar 19 | 12. Mar 19 | -5,000 | $80.46 | $-402,300 | ||
| 13. Mar 19 | Sell | Richard Fearon | Individual | 11. Mar 19 | 11. Mar 19 | -31,000 | $80.25 | $-2,475,830 | ||
| 13. Mar 19 | Sell | Nanda Cheruvatath | Individual | 11. Mar 19 | 11. Mar 19 | -9,992 | $80.21 | $-801,389 | ||
| 05. Mar 19 | Sell | Nanda Cheruvatath | Individual | 01. Mar 19 | 01. Mar 19 | -95 | $80.23 | $-7,622 | ||
| 05. Mar 19 | Sell | Uday Yadav | Individual | 04. Mar 19 | 04. Mar 19 | -16,980 | $80.47 | $-1,366,381 | ||
| 05. Mar 19 | Sell | Heath Monesmith | Individual | 04. Mar 19 | 04. Mar 19 | -7,167 | $81.25 | $-582,290 | ||
| 11. Feb 19 | Sell | Curtis Hutchins | Individual | 07. Feb 19 | 07. Feb 19 | -9,025 | $75.94 | $-685,359 | ||
| 05. Feb 19 | Sell | Joao Faria | Individual | 04. Feb 19 | 04. Feb 19 | -5,000 | $76.73 | $-383,650 | ||
| 14. Sep 18 | Sell | Ken Semelsberger | Individual | 13. Sep 18 | 13. Sep 18 | -11,500 | $86.57 | $-995,555 | ||
| 07. Sep 18 | Sell | Deborah McCoy | Individual | 06. Sep 18 | 06. Sep 18 | -3,000 | $84.55 | $-253,650 | ||
| 06. Sep 18 | Sell | Richard Fearon | Individual | 05. Sep 18 | 05. Sep 18 | -25,000 | $83.29 | $-2,082,250 | ||
| 31. Aug 18 | Sell | Revathi Advaithi | Individual | 30. Aug 18 | 30. Aug 18 | -15,500 | $82.98 | $-1,286,113 | ||
| 13. Jun 18 | Sell | Uday Yadav | Individual | 12. Jun 18 | 12. Jun 18 | -9,786 | $80.33 | $-786,024 | ||
| 12. Jun 18 | Sell | Michael Critelli | Individual | 12. Jun 18 | 12. Jun 18 | -5,000 | $80.86 | $-404,300 | ||
| 08. Jun 18 | Sell | Richard Eubanks | Individual | 07. Jun 18 | 07. Jun 18 | -7,175 | $80.34 | $-575,490 | ||
Management checks
We assess Eaton's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Eaton has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
ETN News
Simply Wall St News
What Is Eaton Corporation plc's (NYSE:ETN) Share Price Doing?
As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock … However, what if the stock is still a bargain?
Simply Wall St - – Full articleAre Insiders Selling Eaton Corporation plc (NYSE:ETN) Stock?
So shareholders might well want to know whether insiders have been buying or selling shares in Eaton Corporation plc (NYSE:ETN). … That means that an insider was selling shares at slightly below the current price (US$82.64). … Over the last year we saw more insider selling of Eaton shares, than buying.
Simply Wall St - – Full articleUpdate: Eaton (NYSE:ETN) Stock Gained 26% In The Last Three Years
For example, the Eaton Corporation plc (NYSE:ETN) share price return of 26% over three years lags the market return in the same period. … During three years of share price growth, Eaton achieved compound earnings per share growth of 5.2% per year. … In comparison, the 8.1% per year gain in the share price outpaces the EPS growth.
Simply Wall St - – Full articleIs Eaton Corporation plc's (NYSE:ETN) Balance Sheet Strong Enough To Weather A Storm?
its financial health remains the key to continued success. … Let’s take a look at Eaton’s leverage and assess its financial strength to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look further
Simply Wall St - – Full articleEaton Corporation plc (NYSE:ETN): Is It A Good Long Term Opportunity?
In December 2018, Eaton Corporation plc (NYSE:ETN) announced its most recent earnings update, whicha … signalled
Simply Wall St - – Full articleIs Eaton Corporation plc (NYSE:ETN) Expensive For A Reason? A Look At The Intrinsic Value
How far off is Eaton Corporation plc (NYSE:ETN) from its intrinsic value? … by taking the foreast future cash flows of the company and discounting them back to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.
Simply Wall St - – Full articleWill Eaton Corporation plc's (NYSE:ETN) Earnings Grow Over The Next Year?
Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … On 31 December 2018, Eaton Corporation plc (NYSE:ETN) released its earnings update.
Simply Wall St - – Full articleWhat Kind Of Shareholder Appears On The Eaton Corporation plc's (NYSE:ETN) Shareholder Register?
Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … We also tend to see lower insider ownership in companies that were previously publicly owned. … Companies of this size are usually well known to retail investors, too.
Simply Wall St - – Full articleHere's What Eaton Corporation plc's (NYSE:ETN) P/E Ratio Is Telling Us
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … How Do I Calculate Eaton's Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleShould Eaton Corporation plc (NYSE:ETN) Be Part Of Your Dividend Portfolio?
Over the past 10 years Eaton Corporation plc (NYSE:ETN) has been paying dividends to shareholders. … Does Eaton tick all the boxes of a great dividend stock? … Take the survey and be part of one of the most advanced studies of stock market investors to date
Simply Wall St - – Full articleETN Company Info
Description
Eaton Corporation plc operates as a power management company worldwide. Its Electrical Products segment offers electrical and industrial components, residential products, single phase power quality products, emergency lighting and fire detection products, wiring devices, structural support systems, and circuit protection and lighting products. The company’s Electrical Systems and Services segment provides power distribution and assemblies, three phase power quality products, hazardous duty electrical equipment, explosion-proof instrumentation, utility power distribution equipment, power reliability equipment, and services. Its Hydraulics segment offers various power products, controls and sensing products, fluid conveyance products, filtration systems solutions, industrial drum and disc brakes, and golf grips. The company’s Aerospace segment provides hydraulic power generation systems, controls and sensing products, fluid conveyance products, and fuel systems for commercial and military use. Its Vehicle segment offers transmissions, clutches, hybrid power systems, superchargers, engine valves and valve actuation systems, cylinder heads, locking and limited slip differentials, transmission controls, fuel vapor components, fluid connectors, and conveyance products. The company’s eMobility segment provides voltage inverters, converters, fuses, onboard chargers, circuit protection units, vehicle controls, power distribution products, fuel tank isolation valves, and commercial vehicle hybrid systems. It serves industrial, institutional, governmental, utility, commercial, residential, information technology, renewable energy, marine, agriculture, oil and gas, construction, mining, forestry, material handling, truck and bus, machine tools, molding, primary metals, and power generation markets, as well as original equipment manufacturers and aftermarket customers. The company was founded in 1916 and is based in Dublin, Ireland.
Details
| Name: | Eaton Corporation plc |
| ETN | |
| Exchange: | NYSE |
| Founded: | 1916 |
| $36,309,264,886 | |
| 424,223,214 | |
| Website: | http://www.eaton.com |
| Address: |
Eaton Corporation plc Eaton House, 30 Pembroke Road, Dublin, 4, Ireland |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | ETN | Common Shares | New York Stock Exchange | US | USD | 02. Jan 1968 | |
| DB | 3EC | Common Shares | Deutsche Boerse AG | DE | EUR | 02. Jan 1968 | |
| LSE | 0Y3K | Common Shares | London Stock Exchange | GB | USD | 02. Jan 1968 |
Number of employees
Current staff
Industry
| Electrical Components and Equipment | |
| Capital Goods |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/23 23:35 |
| End of day share price update: | 2019/04/23 00:00 |
| Last estimates confirmation: | 2019/04/18 |
| Last earnings filing: | 2019/02/27 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
