Market Cap
US$35.1b
Last Updated
2019/10/21 23:35 UTC
Data Sources
Company Financials +
Executive Summary
Eaton Corporation plc operates as a power management company worldwide.
Snowflake
Fundamentals
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
Market Performance
7 Day Return
3.3%
ETN
2.7%
US Electrical
1.0%
US Market
1 Year Return
9.1%
ETN
5.7%
US Electrical
8.0%
US Market
Return vs Industry: ETN exceeded the US Electrical industry which returned 5.7% over the past year.
Return vs Market: ETN exceeded the US Market which returned 8% over the past year.
Shareholder returns
| ETN | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.3% | 2.7% | 1.0% |
| 30 Day | -0.08% | 1.9% | -0.07% |
| 90 Day | 2.1% | 1.1% | -1.0% |
| 1 Year | 13.0%9.1% | 8.0%5.7% | 10.4%8.0% |
| 3 Year | 45.9%31.8% | 43.6%35.1% | 46.2%36.7% |
| 5 Year | 58.4%33.5% | 38.3%24.4% | 64.3%46.2% |
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
4 days ago | Simply Wall St
Eaton Corporation plc (NYSE:ETN) Is Yielding 3.5% - But Is It A Buy?2 weeks ago | Simply Wall St
Here's What Eaton Corporation plc's (NYSE:ETN) P/E Is Telling Us3 weeks ago | Simply Wall St
What Kind Of Shareholders Own Eaton Corporation plc (NYSE:ETN)?Valuation
Is Eaton undervalued compared to its fair value and its price relative to the market?
16.18x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ETN ($83.5) is trading above our estimate of fair value ($73.93)
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 (16.2x) compared to the Electrical industry average (15.1x).
PE vs Market: ETN is good value based on its PE Ratio (16.2x) compared to the US market (17.6x).
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 (2.2x) compared to the US Electrical industry average (1.6x).
Next Steps
Future Growth
How is Eaton forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
5.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ETN's forecast earnings growth (5.7% per year) is above the savings rate (2.7%).
Earnings vs Market: ETN's earnings (5.7% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: ETN's earnings are forecast to grow, but not significantly.
Revenue vs Market: ETN's revenue (2.2% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: ETN's revenue (2.2% 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 low in 3 years time (16.1%).
Next Steps
Past Performance
How has Eaton performed over the past 5 years?
8.0%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: ETN's earnings have grown by 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 (-29.6%) over the past year, making it difficult to compare to the Electrical industry average (16.3%).
Return on Equity
High ROE: ETN's Return on Equity (13.5%) is considered low.
Return on Assets
ROA vs Industry: ETN's Return on Assets is below or equal to the Electrical industry average last year.
Return on Capital Employed
ROCE Improving: ETN has significantly improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is Eaton's financial position?
Financial Position Analysis
Short Term Liabilities: ETN's short term assets ($8.1B) exceeds its short term liabilities ($4.5B)
Long Term Liabilities: ETN's short term assets (8.1B) do not cover its long term liabilities (11.4B)
Debt to Equity History and Analysis
Debt Level: ETN's debt to equity ratio (49.5%) is considered high
Reducing Debt: ETN's debt to equity ratio has reduced from 53.2% to 49.5% over the past 5 years.
Debt Coverage: ETN's debt is well covered by operating cash flow (40.1%).
Interest Coverage: ETN's interest payments on its debt are well covered by EBIT (11.6x 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 1.003330x debt).
Next Steps
Dividend
What is Eaton's current dividend yield, its reliability and sustainability?
3.40%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: ETN's dividend (3.4%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: ETN's dividend (3.4%) is low compared to the top 25% of dividend payers in the US market (3.68%).
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 (53.1%), 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 (48.9% payout ratio).
Next Steps
Management
What is the CEO of Eaton's salary, the management and board of directors tenure and is there insider trading?
4.1yrs
Average management tenure
CEO
Craig Arnold (59yo)
0yrs
Tenure
US$14,673,845
Compensation
Mr. Craig Arnold has been the Chairman of Eaton Corporation plc since June 1, 2016 and Chief Executive Officer at Eaton Corporation since June 01, 2016. Mr. Arnold serves as Chief Executive Officer of Eato ...
CEO Compensation Analysis
Compensation vs. Market: Craig's total compensation ($USD14.67M) is about average for companies of similar size in the US market ($USD11.18M).
Compensation vs Earnings: Craig's compensation has been consistent with company performance over the past year.
Management Age and Tenure
4.1yrs
Average Tenure
56yo
Average Age
Experienced Management: ETN's management team is considered experienced (4.1 years average tenure).
Board Age and Tenure
10.3yrs
Average Tenure
64yo
Average Age
Experienced Board: ETN's board of directors are seasoned and experienced ( 10.3 years average tenure).
Insider Trading
Insider Buying: ETN insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Accounting Officer Principal Accounting Officer |
| Shares | 17,000 |
| Max Price | US$88.69 |
| Entity | Individual |
| Shares | 1,000 |
| Max Price | US$86.89 |
| Entity | Individual |
| Shares | 2,500 |
| Max Price | US$86.83 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 3,000 |
| Max Price | US$79.18 |
| Entity | Individual |
| Shares | 630 |
| Max Price | US$79.08 |
| Entity | Individual |
| Shares | 1,655 |
| Max Price | US$78.54 |
| Entity | Individual |
| Shares | 12,000 |
| Max Price | US$80.60 |
| Entity | Individual |
| Shares | 18,894 |
| Max Price | US$80.58 |
| Entity | Individual |
| Shares | 5,000 |
| Max Price | US$80.46 |
| Entity | Individual |
| Role | Vice Chairman Vice Chairman and Chief Financial & Planning Officer |
| Shares | 31,000 |
| Max Price | US$80.25 |
| Entity | Individual |
| Shares | 9,992 |
| Max Price | US$80.21 |
| Entity | Individual |
| Role | Senior Key Executive President & COO of Electrical Sector |
| Shares | 16,980 |
| Max Price | US$80.47 |
| Entity | Individual |
| Shares | 7,167 |
| Max Price | US$81.25 |
| Entity | Individual |
| Shares | 95 |
| Max Price | US$80.23 |
| Entity | Individual |
| Shares | 9,025 |
| Max Price | US$75.94 |
| Entity | Individual |
| Shares | 5,000 |
| Max Price | US$76.73 |
Ownership Breakdown
Management Team
Ken Semelsberger (57yo)
Principal Accounting Officer
- Tenure: 0yrs
Craig Arnold (59yo)
Chairman & CEO
- Tenure: 0yrs
- Compensation: US$14.67m
Rick Fearon (63yo)
Vice Chairman and Chief Financial & Planning Officer
- Tenure: 17.5yrs
- Compensation: US$5.71m
William Blausey (54yo)
Chief Information Officer & Senior VP
- Tenure: 13.8yrs
Ram Ramakrishnan
Chief Technology Officer & Executive VP
- Tenure: 7.3yrs
Uday Yadav (55yo)
President & COO of Electrical Sector
- Tenure: 4.1yrs
- Compensation: US$4.06m
Yan Jin
Senior Vice President of Investor Relations
- Tenure: 0.6yrs
Deborah Severs
Senior Vice President of Global Ethics & Compliance
- Tenure: 7.7yrs
Terry Szmagala
Senior Vice President of Public & Community Affairs and Corporate Communications
- Tenure: 2.8yrs
Mark Eubanks (46yo)
President of Electrical Products Group - Eaton Corporation
- Tenure: 4.1yrs
- Compensation: US$2.52m
Board Members
Mike Critelli (70yo)
Independent Director
- Tenure: 21.8yrs
- Compensation: US$326.20k
Chris Connor (62yo)
Lead Director
- Tenure: 3.8yrs
- Compensation: US$367.99k
Craig Arnold (59yo)
Chairman & CEO
- Tenure: 0yrs
- Compensation: US$14.67m
Arthur Johnson (72yo)
Independent Director
- Tenure: 10.8yrs
- Compensation: US$343.45k
Debbie McCoy (64yo)
Independent Director
- Tenure: 19.8yrs
- Compensation: US$339.24k
Gerald Smith (68yo)
Independent Director
- Tenure: 6.9yrs
- Compensation: US$343.13k
Greg Page (68yo)
Independent Director
- Tenure: 16.5yrs
- Compensation: US$336.23k
Rick Fearon (63yo)
Vice Chairman and Chief Financial & Planning Officer
- Tenure: 17.5yrs
- Compensation: US$5.71m
Todd Bluedorn (55yo)
Independent Director
- Tenure: 9.8yrs
- Compensation: US$345.39k
Sandra Pianalto (64yo)
Independent Director
- Tenure: 5.3yrs
- Compensation: US$333.13k
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$35.070b
- Shares outstanding: 420.00m
- Website: https://www.eaton.com
Number of Employees
Location
- Eaton Corporation plc
- Eaton House
- 30 Pembroke Road
- Dublin
- 4
- Ireland
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ETN | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Jan 1968 |
| 0Y3K | LSE (London Stock Exchange) | Yes | Common Shares | GB | USD | Jan 1968 |
| 3EC | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jan 1968 |
| ETN1 N | BMV (Bolsa Mexicana de Valores) | Yes | Common Shares | MX | MXN | Jan 1968 |
Biography
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 resi ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/21 23:35 |
| End of Day Share Price | 2019/10/21 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.