(ETN) Eaton - Overview
Sector: Industrials | Industry: Specialty Industrial Machinery | Exchange: NYSE (USA) | Market Cap: 144.401m USD | Total Return: 23.3% in 12m
Avg Turnover: 1.07B
EPS Trend: 97.2%
Qual. Beats: 1
Rev. Trend: 99.4%
Qual. Beats: 1
Warnings
Below Avwap Earnings
Tailwinds
No distinct edge detected
Eaton Corporation PLC is a global power management company headquartered in Dublin, Ireland. The firm operates through five primary segments: Electrical Americas, Electrical Global, Aerospace, Vehicle, and eMobility. Its portfolio includes electrical components, power distribution systems, aerospace fuel and hydraulic systems, and advanced drivetrain solutions for commercial and passenger vehicles.
As a diversified industrial manufacturer, Eaton benefits from the secular trend toward global electrification and grid modernization. The company’s business model relies heavily on long-cycle infrastructure projects and original equipment manufacturer (OEM) partnerships, providing exposure to both the industrial and utility sectors. This positioning allows the firm to capture demand from data center expansion and the transition to renewable energy integration.
To better understand Eaton’s valuation relative to its industrial peers, consider reviewing the detailed financial breakdowns available on ValueRay.
Founded in 1911, Eaton has evolved from a vehicle component manufacturer into a broad technological provider of energy-efficient solutions. Its eMobility segment specifically targets the growing electric vehicle market, supplying high-voltage power electronics and circuit protection for automotive manufacturers worldwide.
- Data center expansion drives demand for electrical power distribution infrastructure
- Federal infrastructure spending accelerates industrial and utility grid modernization projects
- Aerospace segment growth benefits from rising commercial and military aircraft production
- Electric vehicle adoption increases revenue for eMobility and power management components
- Raw material costs and global supply chain stability impact manufacturing margins
| Net Income: 3.99b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 0.06 > 1.0 |
| NWC/Revenue: 7.94% < 20% (prev 11.50%; Δ -3.57% < -1%) |
| CFO/TA 0.09 > 3% & CFO 4.74b > Net Income 3.99b |
| Net Debt (21.8b) to EBITDA (6.22b): 3.50 < 3 |
| Current Ratio: 1.19 > 1.5 & < 3 |
| Outstanding Shares: last quarter (389.2m) vs 12m ago -1.12% < -2% |
| Gross Margin: 36.89% > 18% (prev 0.38%; Δ 3.65k% > 0.5%) |
| Asset Turnover: 60.50% > 50% (prev 64.56%; Δ -4.06% > 0%) |
| Interest Coverage Ratio: 16.47 > 6 (EBITDA TTM 6.22b / Interest Expense TTM 314.0m) |
| A: 0.04 (Total Current Assets 14.0b - Total Current Liabilities 11.7b) / Total Assets 55.1b |
| B: 0.20 (Retained Earnings 11.1b / Total Assets 55.1b) |
| C: 0.11 (EBIT TTM 5.17b / Avg Total Assets 47.1b) |
| D: 0.20 (Book Value of Equity 6.91b / Total Liabilities 35.3b) |
| Altman-Z'' = 1.87 = BBB |
| DSRI: 1.11 (Receivables 6.37b/5.09b, Revenue 28.5b/25.3b) |
| GMI: 1.04 (GM 36.89% / 38.43%) |
| AQI: 1.14 (AQ_t 0.65 / AQ_t-1 0.57) |
| SGI: 1.13 (Revenue 28.5b / 25.3b) |
| TATA: -0.01 (NI 3.99b - CFO 4.74b) / TA 55.1b) |
| Beneish M = -2.74 (Cap -4..+1) = A |
As of May 24, 2026, the stock is trading at USD 381.51 with a total of 1,498,457 shares traded.
Over the past week, the price has changed by -2.03%,
over one month by -5.18%,
over three months by +8.73% and
over the past year by +23.30%.
Eaton has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy ETN.
- StrongBuy: 12
- Buy: 7
- Hold: 10
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 451 | 18.2% |
P/E Forward = 30.03
P/S = 5.0628
P/B = 7.8648
P/EG = 3.015
Revenue TTM = 28.5b USD
EBIT TTM = 5.17b USD
EBITDA TTM = 6.22b USD
Long Term Debt = 18.5b USD (from longTermDebt, last quarter)
Short Term Debt = 2.59b USD (from shortTermDebt, last quarter)
Debt = 22.5b USD (from shortLongTermDebtTotal, last quarter) + Leases 704.0m
Net Debt = 21.8b USD (calculated: Debt 22.5b - CCE 751.0m)
Enterprise Value = 166b USD (144b + Debt 22.5b - CCE 751.0m)
Interest Coverage Ratio = 16.47 (Ebit TTM 5.17b / Interest Expense TTM 314.0m)
EV/FCF = 35.40x (Enterprise Value 166b / FCF TTM 4.70b)
FCF Yield = 2.83% (FCF TTM 4.70b / Enterprise Value 166b)
FCF Margin = 16.46% (FCF TTM 4.70b / Revenue TTM 28.5b)
Net Margin = 13.99% (Net Income TTM 3.99b / Revenue TTM 28.5b)
Gross Margin = 36.89% ((Revenue TTM 28.5b - Cost of Revenue TTM 18.0b) / Revenue TTM)
Gross Margin QoQ = 35.59% (prev 36.82%)
Tobins Q-Ratio = 3.02 (Enterprise Value 166b / Total Assets 55.1b)
Interest Expense / Debt = 1.39% (Interest Expense 314.0m / Debt 22.5b)
Taxrate = 21.68% (240.0m / 1.11b)
NOPAT = 4.05b (EBIT 5.17b * (1 - 21.68%))
Current Ratio = 1.19 (Total Current Assets 14.0b / Total Current Liabilities 11.7b)
Debt / Equity = 1.14 (Debt 22.5b / totalStockholderEquity, last quarter 19.8b)
Debt / EBITDA = 3.50 (Net Debt 21.8b / EBITDA 6.22b)
Debt / FCF = 4.64 (Net Debt 21.8b / FCF TTM 4.70b)
Total Stockholder Equity = 19.2b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.47% (Net Income 3.99b / Total Assets 55.1b)
RoE = 20.81% (Net Income TTM 3.99b / Total Stockholder Equity 19.2b)
RoCE = 13.71% (EBIT 5.17b / Capital Employed (Equity 19.2b + L.T.Debt 18.5b))
RoIC = 8.84% (NOPAT 4.05b / Invested Capital 45.8b)
WACC = 9.42% (E(144b)/V(167b) * Re(10.72%) + D(22.5b)/V(167b) * Rd(1.39%) * (1-Tc(0.22)))
Discount Rate = 10.72% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.56 | Cagr: -1.41%
[DCF] Terminal Value 74.58% ; FCFF base≈4.14b ; Y1≈4.75b ; Y5≈6.99b
[DCF] Fair Price = 171.9 (EV 88.5b - Net Debt 21.8b = Equity 66.7b / Shares 388.3m; r=9.42% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 97.23 | EPS CAGR: 13.20% | SUE: 0.97 | # QB: 1
Revenue Correlation: 99.35 | Revenue CAGR: 9.01% | SUE: 3.41 | # QB: 1
EPS current Quarter (2026-06-30): EPS=3.08 | Chg30d=-1.39% | Revisions=-38% | Analysts=22
EPS next Quarter (2026-09-30): EPS=3.51 | Chg30d=-1.88% | Revisions=-47% | Analysts=22
EPS current Year (2026-12-31): EPS=13.34 | Chg30d=+0.24% | Revisions=+38% | GrowthEPS=+10.5% | GrowthRev=+16.8%
EPS next Year (2027-12-31): EPS=15.72 | Chg30d=+1.47% | Revisions=+41% | GrowthEPS=+17.9% | GrowthRev=+10.5%
[Analyst] Revisions Ratio: -47%