NYSE:ETN

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Executive Summary

Eaton Corporation plc operates as a power management company worldwide.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.3%

ETN

3.0%

US Electrical

4.3%

US Market


1 Year Return

9.4%

ETN

6.8%

US Electrical

7.4%

US Market

Return vs Industry: ETN exceeded the US Electrical industry which returned 3.9% over the past year.

Return vs Market: ETN exceeded the US Market which returned 5% over the past year.


Shareholder returns

ETNIndustryMarket
7 Day2.3%3.0%4.3%
30 Day-6.9%-4.6%0.5%
90 Day16.7%26.5%23.0%
1 Year13.3%9.4%9.1%6.8%9.7%7.4%
3 Year22.5%10.5%20.9%13.8%38.3%29.2%
5 Year59.4%33.8%12.8%3.8%66.0%47.6%

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

Valuation

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

17.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ETN ($88.88) is trading above our estimate of fair value ($66.14)

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 (17.4x) compared to the Electrical industry average (18x).

PE vs Market: ETN is poor value based on its PE Ratio (17.4x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: ETN is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: ETN is overvalued based on its PB Ratio (2.5x) compared to the US Electrical industry average (2.2x).


Next Steps

Future Growth

How is Eaton forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

12.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ETN's forecast earnings growth (12.9% per year) is above the savings rate (2.2%).

Earnings vs Market: ETN's earnings (12.9% per year) are forecast to grow slower than the US market (22.8% per year).

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

Revenue vs Market: ETN's revenue (2.6% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: ETN's revenue (2.6% 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 (14%).


Next Steps

Past Performance

How has Eaton performed over the past 5 years?

4.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ETN has high quality earnings.

Growing Profit Margin: ETN's current net profit margins (10.2%) are higher than last year (10.1%).


Past Earnings Growth Analysis

Earnings Trend: ETN's earnings have grown by 4.3% 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 (-2.4%) over the past year, making it difficult to compare to the Electrical industry average (-14.4%).


Return on Equity

High ROE: ETN's Return on Equity (14.9%) is considered low.


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 ($4.9B).

Long Term Liabilities: ETN's short term assets ($8.7B) do not cover its long term liabilities ($11.6B).


Debt to Equity History and Analysis

Debt Level: ETN's debt to equity ratio (59.4%) is considered high.

Reducing Debt: ETN's debt to equity ratio has reduced from 61.1% to 59.4% over the past 5 years.

Debt Coverage: ETN's debt is well covered by operating cash flow (38%).

Interest Coverage: ETN's interest payments on its debt are well covered by EBIT (125.6x coverage).


Balance Sheet


Next Steps

Dividend

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

3.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ETN's dividend (3.29%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: ETN's dividend (3.29%) is low compared to the top 25% of dividend payers in the US market (4.5%).


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 (55.8%), 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 (50.9% payout ratio).


Next Steps

Management

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

6.5yrs

Average management tenure


CEO

Craig Arnold (60yo)

no data

Tenure

US$19,962,364

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 ($USD19.96M) is above average for companies of similar size in the US market ($USD11.50M).

Compensation vs Earnings: Craig's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Craig Arnold
Chairman & CEOno dataUS$19.96m0.088% $31.2m
Richard Fearon
Vice Chairman and Chief Financial & Planning Officerno dataUS$7.51m0.050% $17.8m
Uday Yadav
President & COO of Electrical Sector4.83yrsUS$5.81m0.0063% $2.2m
Brian Brickhouse
President of Americas Region & Electrical Sectorno dataUS$3.93m0.0062% $2.2m
Heath Monesmith
President & COO of Industrial Sector3.33yrsUS$2.61m0.0092% $3.3m
Ken Semelsberger
Principal Accounting Officerno datano data0.014% $5.1m
Ramanath Ramakrishnan
Chief Technology Officer & Executive VP8.08yrsno datano data
William Blausey
Chief Information Officer & Senior VP14.5yrsno datano data
Yan Jin
Senior Vice President of Investor Relations1.33yrsno datano data
Deborah Severs
Senior Vice President of Global Ethics & Compliance8.42yrsno datano data

6.5yrs

Average Tenure

56yo

Average Age

Experienced Management: ETN's management team is seasoned and experienced (6.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Craig Arnold
Chairman & CEOno dataUS$19.96m0.088% $31.2m
Richard Fearon
Vice Chairman and Chief Financial & Planning Officerno dataUS$7.51m0.050% $17.8m
Michael Critelli
Independent Director22.5yrsUS$331.12k0.0095% $3.4m
Christopher Connor
Independent Lead Director4.5yrsUS$379.54k0.0034% $1.2m
Deborah McCoy
Independent Director20.5yrsUS$343.29k0.0067% $2.4m
Gerald Smith
Independent Director7.67yrsUS$345.26k0.00045% $160.0k
Gregory Page
Independent Director17.25yrsUS$329.02k0.014% $4.8m
Sandra Pianalto
Independent Director6yrsUS$335.26k0.00014% $49.8k
Dorothy Thompson
Independent Director4yrsUS$315.26k0.00055% $195.5k
Olivier Leonetti
Independent Director1.25yrsUS$82.70k0.00016% $56.9k

6.0yrs

Average Tenure

64.5yo

Average Age

Experienced Board: ETN's board of directors are considered experienced (6 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 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$35.552b
  • Shares outstanding: 400.00m
  • Website: https://www.eaton.com

Number of Employees


Location

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

Listings

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

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 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, and fuel vapor components for vehicle industry. 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. 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 Analysis2020/07/06 23:53
End of Day Share Price2020/07/06 00:00
Earnings2020/03/31
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.