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Eaton Corp PLC ETN

Morningstar Rating
$319.26 −3.75 (1.16%)
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Company Report

Eaton Continues to Capitalize on Strong Growth Tailwinds

Eaton is a mission-critical manufacturer of highly engineered products and services. These offerings are designed to solve customer pain points in vital portions of the world’s infrastructure. We believe Eaton has successfully repositioned its portfolio to fully benefit from an energy supercycle and capture secular trends like the global energy transition, digitization, and electrification. Eaton’s portfolio can be divided into two portions: its legacy industrial sector and its electrical sector.

Price vs Fair Value

ETN is trading at a 487% premium.
Price
$322.98
Fair Value
$319.00
Uncertainty
Medium
1-Star Price
$476.55
5-Star Price
$722.50
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Eaton’s portfolio moves could create value for shareholders and transform the firm from a 10% ROIC generator to one in the mid- to upper teens.

Bears

Even when baking in all of management's targets by 2025, the stock is priced for perfection, and any misstep in the strategic plan's execution could cause the stock to contract.

Is it the right time to buy, sell, or hold?
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News

Trading Information

Previous Close Price
$323.01
Day Range
$317.87322.05
52-Week Range
$186.68345.16
Bid/Ask
$319.14 / $319.30
Market Cap
$127.69 Bil
Volume/Avg
441,484 / 2.2 Mil

Key Statistics

Price/Earnings (Normalized)
33.54
Price/Sales
5.48
Dividend Yield (Trailing)
1.14%
Dividend Yield (Forward)
1.19%
Total Yield
1.25%

Company Profile

Eaton is a diversified power management company operating for over 100 years. The company operates through various segments, including electrical Americas, electrical global, aerospace, vehicle, and eMobility. Eaton’s portfolio can broadly be divided into two halves. One part of its portfolio is housed under its industrial sector umbrella, which serves a large variety of end markets like commercial vehicles, general aviation, and trucks. The other portion is Eaton’s electrical sector portfolio, which serves data centers, utilities, and the residential end market, among others. While the company receives favorable tax treatment with its Ireland domicile, most of its operations are in the US.
Sector
Industrials
Industry
Specialty Industrial Machinery
Stock Style Box
Large Growth
Total Number of Employees
94,000

Competitors

Valuation

Metric
ETN
EMR
PH
Price/Earnings (Normalized)
33.5420.9321.24
Price/Book Value
6.692.965.83
Price/Sales
5.483.753.45
Price/Cash Flow
32.9219.2318.17
Price/Earnings
ETN
EMR
PH

Financial Strength

Metric
ETN
EMR
PH
Quick Ratio
0.930.680.46
Current Ratio
1.561.180.87
Interest Coverage
31.808.067.42
Quick Ratio
ETN
EMR
PH

Profitability

Metric
ETN
EMR
PH
Return on Assets (Normalized)
10.37%5.56%10.78%
Return on Equity (Normalized)
21.01%12.76%30.06%
Return on Invested Capital (Normalized)
14.16%6.72%15.83%
Return on Assets
ETN
EMR
PH
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