Stock Analysis Report

Executive Summary

Eaton Corporation plc operates as a power management company worldwide.


PE ratio (19.8x) is below the Electrical industry average (21x)

Earnings are forecast to grow 5.77% per year

Earnings grew by 3.1% over the past year

Pays a high and reliable dividend of 2.72%

Risk Analysis

Has a high level of debt

Snowflake Analysis

Established dividend payer with proven track record.

Similar Companies



Share Price & News

How has Eaton's share price performed over time and what events caused price changes?

Latest Share Price and Events

Stable Share Price: ETN has not had significant price volatility in the past 3 months.

Market Performance

7 Day Return




US Electrical


US Market

1 Year Return




US Electrical


US Market

Return vs Industry: ETN exceeded the US Electrical industry which returned 13.4% over the past year.

Return vs Market: ETN exceeded the US Market which returned 20.3% over the past year.

Shareholder returns

7 Day0.3%-0.9%0.5%
30 Day9.0%0.3%2.0%
90 Day15.7%5.5%9.4%
1 Year35.4%30.8%15.8%13.4%22.8%20.3%
3 Year59.1%43.9%34.8%27.0%50.1%40.4%
5 Year73.2%45.8%49.3%34.4%73.1%54.1%

Price Volatility Vs. Market

How volatile is Eaton's share price compared to the market and industry in the last 5 years?

Simply Wall St News


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 ($104.31) is trading above our estimate of fair value ($66.63)

Significantly Below Fair Value: ETN is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: ETN is good value based on its PE Ratio (19.8x) compared to the Electrical industry average (21x).

PE vs Market: ETN is poor value based on its PE Ratio (19.8x) compared to the US market (18.3x).

Price to Earnings Growth Ratio

PEG Ratio: ETN is poor value based on its PEG Ratio (3.4x)

Price to Book Ratio

PB vs Industry: ETN is overvalued based on its PB Ratio (2.7x) compared to the US Electrical industry average (1.8x).

Next Steps

Future Growth

How is Eaton forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ETN's forecast earnings growth (5.8% per year) is above the savings rate (1.7%).

Earnings vs Market: ETN's earnings (5.8% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: ETN's earnings are forecast to grow, but not significantly.

Revenue vs Market: ETN's revenue is expected to decline over the next 3 years (-1.4% per year).

High Growth Revenue: ETN's revenue is forecast to decline over the next 3 years (-1.4% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ETN's Return on Equity is forecast to be low in 3 years time (16.1%).

Next Steps

Past Performance

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 (10.3%) are higher than last year (9.9%).

Past Earnings Growth Analysis

Earnings Trend: ETN's earnings have grown by 5.6% per year over the past 5 years.

Accelerating Growth: ETN's earnings growth over the past year (3.1%) is below its 5-year average (5.6% per year).

Earnings vs Industry: ETN earnings growth over the past year (3.1%) exceeded the Electrical industry 0.6%.

Return on Equity

High ROE: ETN's Return on Equity (13.7%) is considered low.

Return on Assets

Return on Capital Employed

Next Steps

Financial Health

How is Eaton's financial position?

Financial Position Analysis

Short Term Liabilities: ETN's short term assets ($8.7B) exceed its short term liabilities ($5.1B).

Long Term Liabilities: ETN's short term assets ($8.7B) do not cover its long term liabilities ($11.5B).

Debt to Equity History and Analysis

Debt Level: ETN's debt to equity ratio (50.8%) is considered high.

Reducing Debt: ETN's debt to equity ratio has reduced from 57.1% to 50.8% over the past 5 years.

Debt Coverage: ETN's debt is well covered by operating cash flow (40.7%).

Interest Coverage: ETN's interest payments on its debt are well covered by EBIT (12.1x coverage).

Balance Sheet

Inventory Level: ETN has a high level of physical assets or inventory.

Debt Coverage by Assets: ETN's debt is covered by short term assets (assets are 1.1x debt).

Next Steps


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


Current Dividend Yield

Dividend Yield vs Market


Current dividend yield vs market & industry

Notable Dividend: ETN's dividend (2.72%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: ETN's dividend (2.72%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 (53.8%), 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 covered by earnings (51.5% payout ratio).

Next Steps


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


Average management tenure


Craig Arnold (59yo)



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 Eato ...

CEO Compensation Analysis

Compensation vs Market: Craig's total compensation ($USD14.67M) is above average for companies of similar size in the US market ($USD10.78M).

Compensation vs Earnings: Craig's compensation has been consistent with company performance over the past year.

Leadership Team

Craig Arnold
Chairman & CEO0yrsUS$14.67m0.072% $31.3m
Richard Fearon
Vice Chairman and Chief Financial & Planning Officer17.8yrsUS$5.71m0.048% $20.9m
Uday Yadav
President & COO of Electrical Sector4.4yrsUS$4.06m0.0067% $2.9m
Ken Semelsberger
Principal Accounting Officer0yrsno data0.018% $7.8m
Ramanath Ramakrishnan
Chief Technology Officer & Executive VP7.7yrsno datano data
William Blausey
Chief Information Officer & Senior VP14.1yrsno datano data
Yan Jin
Senior Vice President of Investor Relations0.9yrsno datano data
Deborah Severs
Senior Vice President of Global Ethics & Compliance8yrsno datano data
April Boise
EVP & General Counsel0.08yrsno datano data
Taras Szmagala
Senior Vice President of Public & Community Affairs and Corporate Communications3.2yrsno datano data


Average Tenure


Average Age

Experienced Management: ETN's management team is considered experienced (4.4 years average tenure).

Board Members

Craig Arnold
Chairman & CEO0yrsUS$14.67m0.072% $31.3m
Richard Fearon
Vice Chairman and Chief Financial & Planning Officer17.8yrsUS$5.71m0.048% $20.9m
Michael Critelli
Independent Director22.1yrsUS$326.20k0.013% $5.8m
Christopher Connor
Lead Director4.1yrsUS$367.99k0.0033% $1.4m
Deborah McCoy
Independent Director20.1yrsUS$339.24k0.0072% $3.1m
Gerald Smith
Independent Director7.3yrsUS$343.13k0.0014% $604.6k
Gregory Page
Independent Director16.8yrsUS$336.23k0.012% $5.2m
Todd Bluedorn
Independent Director10.1yrsUS$345.39k0.0016% $682.4k
Sandra Pianalto
Independent Director5.6yrsUS$333.13k0.00013% $56.1k
Dorothy Thompson
Independent Director3.6yrsUS$313.13k0.00053% $228.9k


Average Tenure


Average Age

Experienced Board: ETN's board of directors are considered experienced (8.7 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: ETN insiders have only sold shares 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 company bio, 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$43.188b
  • Shares outstanding: 413.40m
  • Website: https://www.eaton.com

Number of Employees


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


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ETNNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1968
0Y3KLSE (London Stock Exchange)YesCommon SharesGBUSDJan 1968
3ECDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1968
ETN1 NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1968
E1TN34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 SHS UNSPONBRBRLJan 2020


Eaton Corporation plc operates as a power management company worldwide. Its Electrical Products segment offers electrical and industrial components, wiring devices, and structural support systems; and residential, single phase power quality, emergency lighting and fire detection, 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 power, controls and sensing, and fluid conveyance products; and filtration systems solutions, industrial drum and disc brakes, and golf grips. The company’s Aerospace segment provides hydraulic power generation and fuel systems, controls and sensing, and fluid and conveyance products 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, 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. Eaton Corporation plc has a strategic alliance with KPIT to develop electrified mobility technologies. The company was founded in 1916 and is based in Dublin, Ireland. 

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 23:57
End of Day Share Price2020/02/19 00:00
Annual Earnings2019/12/31

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.