Eaton (ETN)
Industrials · $171B market cap · SEC CIK 0001551182
fundamentals score out of 100
Next reports on Nov 2, 2026, before the open, with analysts expecting $3.55 in earnings per share.
The case for ETN
- Revenue growing 15.5% year over year.
- Return on equity of 20%.
- Pays a modest 1.5% dividend.
The case against
- Pricey at 44.7× earnings, against a long-run market average nearer 20×.
- Long-term debt of $9.9B against $622M of cash.
- Free-cash-flow yield of 2.1% is lower than 85% of Industrials companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Industrials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 25 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 57 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 52 |
| Momentumhow the price has behaved lately | 68 |
| Stabilityhow violently it moves, what it owes and what it pays you | 56 |
- Each factor except momentum is half fixed thresholds, half rank among the 79 Industrials companies.
Key numbers
| Price / earnings | 44.7× |
|---|---|
| Price / book | 8.17× |
| Price / sales | 5.7× |
| Revenue growth (YoY) | +15.5% |
| EPS growth (YoY) | -1.1% |
| Gross margin | 36% |
| Operating margin | 18% |
| Net margin | 13% |
| Return on equity | 20% |
| Debt / equity | 1.02× |
| Current ratio | 1.24 |
| Dividend yield | 1.50% |
| Beta | 1.13 |
| 52-week range | $311.92 – $478.00 |
| Position in that range | 79% of the way up |
| 3-month return | +3.2% |
| 1-year return | +16.3% |
Five years of financials, as filed
Pulled from Eaton's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $27.4B | $24.9B | $23.2B | $20.8B | $19.6B |
| Net income | $4.1B | $3.8B | $3.2B | $2.5B | $2.1B |
| Operating cash flow | $4.5B | $4.3B | $3.6B | $2.5B | $2.2B |
| Capital expenditure | $919M | $808M | $757M | $598M | $575M |
| Total assets | $41.3B | $38.4B | $38.4B | $35.0B | $34.0B |
| Shareholder equity | $19.4B | $18.5B | $19.0B | $17.0B | $16.4B |
| Cash | $622M | $555M | $488M | $294M | $297M |
| Long-term debt | $9.9B | $9.2B | $9.3B | $8.3B | $8.6B |
| Free cash flow | $3.6B | $3.5B | $2.9B | $1.9B | $1.6B |
| Net margin | 14.9% | 15.3% | 13.9% | 11.9% | 10.9% |
| Diluted shares | 391M | 399M | 401M | 401M | 402M |
Share count is essentially flat over 4 years.
What Eaton says it does
Eaton Corporation plc (Eaton or the Company) is an intelligent power management company dedicated to protecting the environment and improving the quality of life for people everywhere. We make products for the data center, utility, industrial, commercial, machine building, residential, aerospace and mobility markets. We are capitalizing on the megatrends of the electrification, digitalization, and the reindustrialization of and growth of megaprojects in North America and increased global infrastructure spending, all of which are expanding our end markets and positioning Eaton for growth for years to come. We are strengthening our participation across the entire electrical power value chain and benefiting from momentum in the data center and utility end markets as well as a growth cycle in the commercial aerospace and defense markets. We are guided by our commitment to operate sustainably and with the highest ethical standards. Our work…
Risk factors ETN lists in its 10-K
- We are subject to risks relating to acquisitions, joint ventures and investments, and risks relating to the integration of acquired companies
- Our operations depend on production facilities throughout the world, which subjects them to varying degrees of risk
- Significant inflation or shortages of raw materials, energy, components, and/or labor, or similar challenges for our customers, could continue to adversely impact our results of operations
- We rely on suppliers to provide raw materials, components, and services
- Risks and uncertainties related to the development and use of artificial intelligence may present business, compliance and reputational risks
- Weather disruptions and regulatory, market and social reactions to them create uncertainties that could negatively impact our business
- Our ability to identify, attract, develop, engage, and retain qualified employees could affect our ability to execute our strategy
- Technology disruption may impact our stock price and/or negatively impact our end markets
- Volatility of end markets that we serve could materially and adversely affect our business, financial condition and results of operations
- Our operating results depend in part on continued successful research,
- development, and marketing of new and/or improved products and services, and
- there can be no assurance that we will continue to successfully introduce
- new products and services or maintain present market positions
- We are exposed to geopolitical, economic and other risks that arise from uncertainty in worldwide and regional economic conditions