Eaton reported second-quarter organic sales growth of 14% year over year, driven by 18% organic growth in both the electrical Americas and electrical global segments. Management raised its full-year guidance.
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.
|
Metric
|
ETN
|
PH
|
EMR
|
|---|---|---|---|
Price/Earnings (Normalized) | 36.26 | 33.16 | 24.79 |
Price/Book Value | 8.59 | 8.76 | 4.29 |
Price/Sales | 5.82 | 6.37 | 4.74 |
Price/Cash Flow | 34.22 | 29.41 | 21.24 |
|
Metric
|
ETN
|
PH
|
EMR
|
|---|---|---|---|
Quick Ratio | 0.62 | 0.59 | 0.49 |
Current Ratio | 1.24 | 1.13 | 0.90 |
Interest Coverage | 11.86 | 11.58 | 7.94 |
|
Metric
|
ETN
|
PH
|
EMR
|
|---|---|---|---|
Return on Assets (Normalized) | 10.31% | — | 7.07% |
Return on Equity (Normalized) | 24.87% | — | 14.73% |
Return on Invested Capital (Normalized) | 14.90% | — | 9.51% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
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Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
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GEV
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SIEGY
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PH
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EMR
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ITW
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United States