About Eaton Corporation, PLC
Eaton Corporation plc operates as a power management company in the United States, Canada, Latin America, Europe, and the Asia Pacific. It operates through Electrical Americas, Electrical Global, Aerospace, Vehicle, and eMobility segments. The company offers electrical and 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, and power reliability equipment; and hazardous duty electrical equipment, emergency lighting, fire detection, intrinsically safe explosion-proof instrumentation, and structural support systems. It also provides 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 and thermoplastic tubing products, fittings, adapters, couplings, and sealing and ducting products; air-to-air refueling systems, fuel pumps, fuel inerting products, sensors, and adapters and regulators; oxygen generation systems, payload carriages, and thermal management products; wiring connectors and cables; and hydraulic and bag filters, strainers and cartridges, and golf grips for manufacturers of commercial and military aircraft, related aftermarket customers, and industrial applications. In addition, the company 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; and voltage inverters, converters, fuses, circuit protection units, vehicle controls, power distribution systems, fuel tank isolation valves, and commercial vehicle hybrid systems. The company was formerly known as Abeiron Limited. The company was founded in 1911 and is based in Dublin, Ireland.
Eaton Corporation, PLC (ETN) is a Industrials company in the Specialty Industrial Machinery industry with a market capitalisation of $165B. The stock trades at 43.30x trailing earnings and yields 1.04%.
- Sector
- Industrials
- Industry
- Specialty Industrial Machinery
- Market cap
- $165B
- P/E ratio
- 43.30
- Forward P/E
- 26.33
- EPS (TTM)
- $9.81
- Revenue (TTM)
- $30B
- Free cash flow
- $3.1B
- Profit margin
- 12.8%
- Dividend yield
- 1.04%
- Beta
- 1.17
- Shares outstanding
- 388.4M
Financial health: Fair6.8/10
6 strengths, 2 concerns. Weakest points: earnings growth, peg ratio.
- Debt to equity: 0.51 (Watch, benchmark < 0.5) — Debt of 0.51x equity is moderate against the 0.5x benchmark. It has been broadly flat over the last 4 years.
- Net debt vs cash flow: 2.6y (Strong, benchmark < 4 years) — Net debt of $9.1B is 2.6x annual free cash flow — about 3 years of cash flow to repay.
- Current ratio: 1.32 (Watch, benchmark > 1.5) — Short-term assets cover 1.32x short-term liabilities, against Graham's 1.5x floor. It has been broadly flat over the last 4 years.
- Return on equity: 19.7% (Strong, benchmark > 15%) — Earns 19.7% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 36.0% (Watch, benchmark > 40%) — Keeps 36.0% of revenue after the direct cost of sales, short of the > 40% mark.
- Net margin: 12.8% (Strong, benchmark > 10%) — Turns 12.8% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $3.6B (Strong, benchmark positive) — Generated $3.6B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 21.4% (Strong, benchmark > 10%) — Revenue changed 21.4% year on year, comfortably past the > 10% mark.
- Earnings growth: -15.9% (Concern, benchmark > 10%) — Earnings changed -15.9% year on year, well short of the > 10% mark.
- PEG ratio: 2.58 (Concern, benchmark < 1) — At 2.58, the price looks expensive relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 43.6% (Strong, benchmark < 60%) — Pays out 43.6% of earnings as dividends, leaving room to keep paying.