Market Cap
US$56.8b
Last Updated
2021/04/16 22:11 UTC
Data Sources
Company Financials +
Executive Summary
Eaton Corporation plc operates as a power management company. More Details
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with adequate balance sheet.
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 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.
Market Performance
7 Day Return
0.5%
ETN
-0.4%
US Electrical
1.3%
US Market
1 Year Return
78.1%
ETN
94.1%
US Electrical
53.9%
US Market
Return vs Industry: ETN underperformed the US Electrical industry which returned 102.5% over the past year.
Return vs Market: ETN exceeded the US Market which returned 57.5% over the past year.
Shareholder returns
| ETN | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.5% | -0.4% | 1.3% |
| 30 Day | 2.3% | -0.9% | 3.3% |
| 90 Day | 14.6% | 3.2% | 8.9% |
| 1 Year | 83.3%78.1% | 97.7%94.1% | 56.6%53.9% |
| 3 Year | 97.0%78.5% | 74.9%65.1% | 64.4%53.6% |
| 5 Year | 164.4%124.1% | 99.8%83.2% | 120.4%95.7% |
Long-Term 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
2 days ago | Simply Wall St
Is There Now An Opportunity In Eaton Corporation plc (NYSE:ETN)?1 week ago | Simply Wall St
What Type Of Shareholders Make Up Eaton Corporation plc's (NYSE:ETN) Share Registry?Valuation
Is Eaton undervalued compared to its fair value and its price relative to the market?
40.26x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ETN ($140.8) is trading above our estimate of fair value ($96.94)
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 (40.2x) compared to the US Electrical industry average (30.7x).
PE vs Market: ETN is poor value based on its PE Ratio (40.2x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: ETN is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: ETN's PB Ratio (3.8x) is in line with the US Electrical industry average.
Future Growth
How is Eaton forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
15.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ETN's forecast earnings growth (15.5% per year) is above the savings rate (2%).
Earnings vs Market: ETN's earnings (15.5% per year) are forecast to grow slower than the US market (18.4% per year).
High Growth Earnings: ETN's earnings are forecast to grow, but not significantly.
Revenue vs Market: ETN's revenue (3.9% per year) is forecast to grow slower than the US market (9.4% per year).
High Growth Revenue: ETN's revenue (3.9% 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 low in 3 years time (16.2%).
Past Performance
How has Eaton performed over the past 5 years?
-2.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ETN has high quality earnings.
Growing Profit Margin: ETN's current net profit margins (7.9%) are lower than last year (10.3%).
Past Earnings Growth Analysis
Earnings Trend: ETN's earnings have declined by 2.8% per year over the past 5 years.
Accelerating Growth: ETN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ETN had negative earnings growth (-36.2%) over the past year, making it difficult to compare to the Electrical industry average (-8.9%).
Return on Equity
High ROE: ETN's Return on Equity (9.5%) is considered low.
Financial Health
How is Eaton's financial position?
Financial Position Analysis
Short Term Liabilities: ETN's short term assets ($9.2B) exceed its short term liabilities ($5.9B).
Long Term Liabilities: ETN's short term assets ($9.2B) do not cover its long term liabilities ($11.0B).
Debt to Equity History and Analysis
Debt Level: ETN's debt to equity ratio (54.3%) is considered high.
Reducing Debt: ETN's debt to equity ratio has reduced from 55.3% to 54.3% over the past 5 years.
Debt Coverage: ETN's debt is well covered by operating cash flow (36.2%).
Interest Coverage: ETN's interest payments on its debt are well covered by EBIT (8.1x coverage).
Balance Sheet
Dividend
What is Eaton current dividend yield, its reliability and sustainability?
2.15%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ETN's dividend (2.16%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: ETN's dividend (2.16%) is low compared to the top 25% of dividend payers in the US market (3.48%).
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: At its current payout ratio (83.3%), ETN's 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 (41.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.1yrs
Average management tenure
CEO
Craig Arnold (60 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 ($USD11.02M).
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 (3.1 years average tenure).
Board Members
Experienced Board: ETN's board of directors are considered experienced (5.3 years average tenure).
Ownership
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$56.771b
- Shares outstanding: 398.36m
- Website: https://www.eaton.com
Number of Employees
Location
- Eaton Corporation plc
- Eaton House
- 30 Pembroke Road
- Dublin
- Co. Dublin
- 4
- Ireland
Listings
Biography
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,...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/16 22:11 |
| End of Day Share Price | 2021/04/16 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.