Eaton reported second-quarter organic sales growth of 19% year over year driven by mid-twenties organic growth in both its Electrical Americas and Electrical Global segments. Shares traded up the morning of November 3.
Eaton’s recent portfolio changes should create value for shareholders and transform its returns on invested capital from around 10% to the mid- to upper teens.
Eaton has a worse return profile than peers and deserves to trade at a discount. It lacks a true serviceable base of equipment, which hampers its ability to generate superior returns.
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Metric
|
ETN
|
HUBB
|
SU
|
|---|---|---|---|
Price/Earnings (Normalized) | 34.54 | 22.35 | 25.54 |
Price/Book Value | 7.25 | 5.78 | 5.51 |
Price/Sales | 4.77 | 3.62 | 3.26 |
Price/Cash Flow | 28.45 | 19.55 | 18.15 |
|
Metric
|
ETN
|
HUBB
|
SU
|
|---|---|---|---|
Quick Ratio | 0.61 | 0.78 | 0.81 |
Current Ratio | 1.23 | 1.53 | 1.09 |
Interest Coverage | 9.55 | 9.26 | 12.31 |
|
Metric
|
ETN
|
HUBB
|
SU
|
|---|---|---|---|
Return on Assets (Normalized) | 10.08% | 11.17% | 8.90% |
Return on Equity (Normalized) | 25.46% | 27.71% | 22.32% |
Return on Invested Capital (Normalized) | 14.87% | 15.70% | 13.76% |
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1-Day Chart
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Name
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Price
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Morningstar Rating for Stocks
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Capital Allocation
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Economic Moat
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Market Cap
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United States