About Eaton Corporation, PLC
Eaton Corporation, PLC (ETN) is a Industrials company in the Misc Industrial & Commercial Machinery & Equipment industry with a market capitalisation of $159.4B. The stock trades at 41.63x trailing earnings and yields 1.06%.
- Sector
- Industrials
- Industry
- Misc Industrial & Commercial Machinery & Equipment
- Market cap
- $159.4B
- P/E ratio
- 41.63
- EPS (TTM)
- $10.45
- Revenue (TTM)
- $27.4B
- Free cash flow
- $3.6B
- Profit margin
- 14.9%
- Dividend yield
- 1.06%
- Shares outstanding
- 388.4M
Financial health: Strong8/10
6 strengths, 0 concerns. No red flags against these benchmarks.
- 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: 21.0% (Strong, benchmark > 15%) — Earns 21.0% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 35.9% (Watch, benchmark > 40%) — Keeps 35.9% of revenue after the direct cost of sales, short of the > 40% mark.
- Net margin: 14.9% (Strong, benchmark > 10%) — Turns 14.9% 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: 10.3% (Strong, benchmark > 10%) — Revenue changed 10.3% year on year, comfortably past the > 10% mark.
- Earnings growth: 7.7% (Watch, benchmark > 10%) — Earnings changed 7.7% year on year, short of the > 10% mark.
- Payout ratio: 39.8% (Strong, benchmark < 60%) — Pays out 39.8% of earnings as dividends, leaving room to keep paying.