Eaton Corp PLC ETN

Morningstar Rating
$436.11 −1.17 (0.27%)
View Full Chart

Company Report

Eaton's Heritage as a Premier Electrical Equipment Supplier Give It a Leg Up in New Construction

Eaton manufactures mission-critical, highly engineered components designed to solve customer pain points in vital areas of the world’s infrastructure. A substantial portion of Eaton’s products are installed into customer operations and must be serviced or replaced at set intervals, which tends to carry higher margins than the sale of the equipment itself. Eaton boasts one of the largest global installed bases of electrical equipment, and trends such as rising regulatory standards for safety and efficiency, the reshoring of supply chains within the US, and an explosion in data generation and electrical system complexity are fueling its growth.

Price vs Fair Value

ETN is trading at a LOCK|Tn$B#>& premium.
Price
$437.28
Fair Value
!vD
Uncertainty
LOCK|%F?j
1-Star Price
LOCK|%.%J
5-Star Price
LOCK|n.$
Economic Moat
LOCK|XGn
Capital Allocation
LOCK|^@mz<#g

Bulls Say, Bears Say

Bulls

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.

Bears

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.

News

Articles & Videos

Trading Information

Previous Close Price
$437.28
Day Range
$433.65–452.00
52-Week Range
$311.92–478.00
Bid/Ask
$433.70 / $438.00
Shares Outstanding
388.40M
Market Cap
$169.39B
Volume/Avg
2M / 2M

Key Statistics

Price/Earnings (Normalized)
35.38
Price/Sales
5.67
Dividend Yield (Trailing)
0.99%
Dividend Yield (Forward)
1.01%
Dividend Payment Schedule
Mar, May, Aug, Nov
Total Yield
1.32%

Company Profile

Founded in 1911 by Joseph Eaton, the eponymous company began by selling truck axles in New Jersey. Eaton has since become an industrial powerhouse largely through acquisitions in various end markets. Eaton’s portfolio can broadly be divided into two parts: its electrical and industrial businesses. Its electrical portfolio (representing around 70% of company revenue) sells components within data centers, utilities, and commercial and residential buildings, while its industrial business (30% of revenue) sells components within commercial and passenger vehicles and aircraft. Eaton receives favorable tax treatment as a domiciliary of Ireland, but it generates over half of its revenue within the US.
Sector
Industrials
Industry
Specialty Industrial Machinery
Stock Style Box
Large Core
Total Number of Employees
97,000

Competitors

Valuation

Metric
ETN
SU
ABBN
Price/Earnings (Normalized)
35.3831.1735.90
Price/Book Value
8.396.7311.25
Price/Sales
5.673.985.03
Price/Cash Flow
33.3822.1532.94
Price/Earnings
ETN
SU
ABBN

Financial Strength

Metric
ETN
SU
ABBN
Quick Ratio
0.620.810.82
Current Ratio
1.241.091.43
Interest Coverage
11.8612.3177.55
Quick Ratio
ETN
SU
ABBN

Profitability

Metric
ETN
SU
ABBN
Return on Assets (Normalized)
10.31%8.90%10.69%
Return on Equity (Normalized)
24.87%22.32%31.26%
Return on Invested Capital (Normalized)
14.90%13.76%18.66%
Return on Assets
ETN
SU
ABBN

Specialty Industrial Machinery Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
GE Vernova Inc
GEV
LOCK|d^r>#$&vLOCK|g!xLd$263B
Siemens AG ADR
SIEGY
LOCK|>ncXmTlLOCK|ln$236B
Parker Hannifin Corp
PH
LOCK|N<jX$ZLOCK|@n<<c$122B
Emerson Electric Co
EMR
LOCK|FN!V?%LOCK|$Sm$88B
Illinois Tool Works Inc
ITW
LOCK|%xT#ngZLOCK|qpP$74B
Cummins Inc
CMI
LOCK|$g$>svLOCK|#<v%$71B
AMETEK Inc
AME
LOCK|M???!^sLOCK|VB>$57B
Rockwell Automation Inc
ROK
LOCK|>C$^RgbLOCK|KDf$49B
Fanuc Corp ADR
FANUY
LOCK|WKc!Jp#YLOCK|L^$36B

Sponsor Center