ETN

Eaton Corporation plc

Fundamental data last updated:October 21, 2026

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company profile

SECTOR

Industrials

industry

Industrial - Machinery

Exchange

NYSE

County of HQ

IE

Next Earnings Date

Pending Announcement

Business Summary

Eaton Corporation plc operates as a power management company worldwide. The company's Electrical Americas and Electrical Global segment provides electrical components, industrial components, power distribution and assemblies, residential products, single and three phase power quality and connectivity products, wiring devices, circuit protection products, utility power distribution products, power reliability equipment, and services, as well as hazardous duty electrical equipment, emergency lighting, fire detection, explosion-proof instrumentation, and structural support systems. Its Aerospace segment offers pumps, motors, hydraulic power units, hoses and fittings, and electro-hydraulic pumps; valves, cylinders, electronic controls, electromechanical actuators, sensors, aircraft flap and slat systems, and nose wheel steering systems; hose, thermoplastic tubing products, fittings, adapters, couplings, and sealing and ducting products; air-to-air refueling systems, fuel pumps, fuel inerting products, sensors, valves, and adapters and regulators; oxygen generation system, payload carriages, and thermal management products; and wiring connectors and cables, as well as hydraulic and bag filters, strainers and cartridges, and golf grips for manufacturers of commercial and military aircraft, and related after-market customers, as well as industrial applications. The company's Vehicle segment offers transmissions, clutches, hybrid power systems, superchargers, engine valves and valve actuation systems, locking and limited slip differentials, transmission controls, and fuel vapor components for the vehicle industry. Its eMobility segment provides voltage inverters, converters, fuses, onboard chargers, circuit protection units, vehicle controls, power distribution systems, fuel tank isolation valves, and commercial vehicle hybrid systems. Eaton Corporation plc was founded in 1911 and is based in Dublin, Ireland.

 


VALUATION

P/E

39.11

Market Cap ($M USD)

$156.14B

Forward P/E

17.06

PEG

0.13

PRICE TO SALES

5.48

PRICE TO BOOK

7.90

EV / EBITDA

29.98

5-Year Average P/E

Free Cash Flow Yield

3.01%

DCF Value

$195.92

Graham Number

$108.52

Price to FCF

33.26

EV to FCF

37.79

Earnings Yield

2.56%

FCF Yield

3.01%

DIVIDEND

Yield

1.06%

Annual Payout

$4.28

Payout Ratio

41.19%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$10.28

Next Year EPS Growth Estimate

$23.58

Next Year Revenue Growth Estimate

$44.03B

Return on Equity (ROE)

20.81%

FREE CASH FLOW

Operating Margin

18.13%

Debt-to-Equity

0.57

Piotroski F-Score

6

Altman Z-Score

3.81

Return on Invested Capital (ROIC)

11.93%

Current Ratio

1.19

Quick Ratio

0.75

Net Debt to EBITDA

3.59

Interest Coverage

16.47

Gross Profit margin

36.89%

FCF PER SHARE

$12.09

REVENUE PER SHARE

$73.47

Gainseekers Quantitative Analysis

Summary

Eaton Corporation’s valuation is a tale of two narratives. Despite a staggering market cap, the stock traded significantly above its DCF value, suggesting a potential overvaluation. The Forward P/E of 17.76 indicates optimism about future earnings, yet the Earnings Yield of 2.52% is underwhelming. However, the Altman Z-score of 3.74 reflects financial stability, hinting at a low risk of distress. The market seems to price in robust growth, but the disconnect with intrinsic value raises eyebrows.

AI Exposure / Tech Reliance

Operating within the Industrials sector, Eaton is well-positioned to leverage AI and tech advancements. As a player in the Industrial Machinery industry, its adaptability to automation and smart technologies is crucial. This positioning allows Eaton to potentially enhance operational efficiencies and product offerings.

The Bull Case

For the GARP investor, Eaton's appeal lies in its impressive ROIC of 11.93%, showcasing efficient capital allocation. The Piotroski F-Score of 6 suggests solid financial health, while a robust operating margin of 18.13% underscores pricing power. Despite a modest FCF Yield, the company's ability to generate consistent free cash flow per share indicates strong cash generation capabilities.

The Bear Case

Yet, Eaton's high valuation multiples, such as a Price/Book of 8.00 and Price/Sales of 5.55, signal potential overvaluation. The stock's proximity to its 52-week high suggests technical overextension. Moreover, an EV to EBITDA ratio of 30.32 raises concerns about the premium investors are paying for its earnings. These factors, combined with a low Earnings Yield, suggest caution.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$409.36

Institutional Ownership %

1-Year Beta

1.24

Insider Buying % (6 Mo)

Distance to 52-Week High

8.29%

Distance to 52-Week Low

22.43%

EARNINGS SURPRISE %

2.93%

50-DAY SMA

$392.73

200-DAY SMA

$364.81

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.