NYSE:ETN

Stock Analysis Report

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

-4.5%

ETN

-2.4%

US Electrical

-0.6%

US Market


1 Year Return

-5.6%

ETN

-10.7%

US Electrical

0.7%

US Market

ETN outperformed the Electrical industry which returned -10.7% over the past year.

ETN underperformed the Market in United States of America which returned 0.6% over the past year.


Share holder returns

ETNIndustryMarket
7 Day-4.5%-2.4%-0.6%
30 Day6.6%8.4%2.9%
90 Day0.4%0.3%1.3%
1 Year-2.2%-5.6%-8.8%-10.7%2.9%0.7%
3 Year46.1%32.0%38.0%29.9%44.6%35.2%
5 Year51.9%28.0%32.1%18.7%61.9%44.2%

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

2 weeks ago | Simply Wall St

Don't Ignore The Fact That This Insider Just Sold Some Shares In Eaton Corporation plc (NYSE:ETN)

Valuation

Is Eaton undervalued based on future cash flows and its price relative to the stock market?

16.19x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Eaton's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Eaton's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Eaton is poor value based on expected growth next year.


Price Based on Value of Assets

Eaton is overvalued based on assets compared to the US Electrical industry average.


Next Steps

Future Growth

How is Eaton expected to perform in the next 1 to 3 years based on estimates from 21 analysts?

5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Eaton's revenue is expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).

Eaton's earnings are expected to grow by 5.8% yearly, however this is not considered high growth (20% yearly).

Eaton's revenue growth is positive but not above the United States of America market average.

Eaton's earnings growth is positive but not above the United States of America market average.

Eaton's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Eaton is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

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.


Return on Equity

Eaton has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Eaton used its assets less efficiently than the US Electrical industry average last year based on Return on Assets.


Return on Capital Employed

Eaton has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Eaton's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Eaton's level of debt (49.5%) 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 (53.2% vs 49.5% today).

Debt is well covered by operating cash flow (40.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 11.6x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1x debt.


Next Steps

Dividend

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

3.68%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Eaton's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Eaton's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

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

Dividends paid are covered by earnings (1.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2x coverage).


Next Steps

Management

What is the CEO of Eaton's salary, the management and board of directors tenure and is there insider trading?

4.0yrs

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

Craig's remuneration is higher than average for companies of similar size in United States of America.

Craig's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.0yrs

Average Tenure

56yo

Average Age

The tenure for the Eaton management team is about average.


Board Age and Tenure

10.2yrs

Average Tenure

64yo

Average Age

The average tenure for the Eaton board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Eaton individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,507,73016 Sep 19
Ken Semelsberger
EntityIndividual
Role
Chief Accounting Officer
Principal Accounting Officer
Shares17,000
Max PriceUS$88.69
SellUS$86,89012 Sep 19
Joao Faria
EntityIndividual
Shares1,000
Max PriceUS$86.89
SellUS$217,06312 Sep 19
Nanda Cheruvatath
EntityIndividual
Shares2,500
Max PriceUS$86.83
SellUS$237,54003 Sep 19
Deborah McCoy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$79.18
BuyUS$49,81821 May 19
Olivier Leonetti
EntityIndividual
Shares630
Max PriceUS$79.08
BuyUS$129,98414 May 19
Dorothy Thompson
EntityIndividual
Shares1,655
Max PriceUS$78.54
SellUS$967,20015 Mar 19
Curtis Hutchins
EntityIndividual
Shares12,000
Max PriceUS$80.60
SellUS$1,522,47913 Mar 19
Richard Eubanks
EntityIndividual
Shares18,894
Max PriceUS$80.58
SellUS$402,30013 Mar 19
Brian Brickhouse
EntityIndividual
Shares5,000
Max PriceUS$80.46
SellUS$2,475,83013 Mar 19
Richard Fearon
EntityIndividual
Role
Vice Chairman
Vice Chairman and Chief Financial & Planning Officer
Shares31,000
Max PriceUS$80.25
SellUS$801,38913 Mar 19
Nanda Cheruvatath
EntityIndividual
Shares9,992
Max PriceUS$80.21
SellUS$1,366,38105 Mar 19
Uday Yadav
EntityIndividual
Role
Senior Key Executive
President & COO of Electrical Sector
Shares16,980
Max PriceUS$80.47
SellUS$582,29005 Mar 19
Heath Monesmith
EntityIndividual
Shares7,167
Max PriceUS$81.25
SellUS$7,62205 Mar 19
Nanda Cheruvatath
EntityIndividual
Shares95
Max PriceUS$80.23
SellUS$685,35911 Feb 19
Curtis Hutchins
EntityIndividual
Shares9,025
Max PriceUS$75.94
SellUS$383,65005 Feb 19
Joao Faria
EntityIndividual
Shares5,000
Max PriceUS$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: 17.4yrs
    • Compensation: US$5.71m
  • William Blausey (54yo)

    Chief Information Officer & Senior VP

    • Tenure: 13.7yrs
  • Ram Ramakrishnan

    Chief Technology Officer & Executive VP

    • Tenure: 7.3yrs
  • Uday Yadav (55yo)

    President & COO of Electrical Sector

    • Tenure: 4yrs
    • Compensation: US$4.06m
  • Yan Jin

    Senior Vice President of Investor Relations

    • Tenure: 0.5yrs
  • Deborah Severs

    Senior Vice President of Global Ethics & Compliance

    • Tenure: 7.6yrs
  • 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: 4yrs
    • Compensation: US$2.52m

Board Members

  • Mike Critelli (70yo)

    Independent Director

    • Tenure: 21.7yrs
    • Compensation: US$326.20k
  • Chris Connor (62yo)

    Lead Director

    • Tenure: 3.7yrs
    • Compensation: US$367.99k
  • Craig Arnold (59yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: US$14.67m
  • Arthur Johnson (72yo)

    Independent Director

    • Tenure: 10.7yrs
    • Compensation: US$343.45k
  • Debbie McCoy (64yo)

    Independent Director

    • Tenure: 19.7yrs
    • Compensation: US$339.24k
  • Gerald Smith (68yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$343.13k
  • Greg Page (68yo)

    Independent Director

    • Tenure: 16.4yrs
    • Compensation: US$336.23k
  • Rick Fearon (63yo)

    Vice Chairman and Chief Financial & Planning Officer

    • Tenure: 17.4yrs
    • Compensation: US$5.71m
  • Todd Bluedorn (55yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$345.39k
  • Sandra Pianalto (64yo)

    Independent Director

    • Tenure: 5.2yrs
    • 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$35.099b
  • 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

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

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 23:34
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.