Eaton Corporation plc
Exchange: NYSESector: IndustrialsIndustry: Specialty Industrial Machinery
Eaton 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 guided by our commitment to do business right, to operate sustainably and to help our customers manage power ─ today and well into the future. By capitalizing on the global growth trends of electrification and digitalization, we're helping to solve the world's most urgent power management challenges and building a more sustainable society for people today and generations to come. Founded in 1911, Eaton has continuously evolved to meet the changing and expanding needs of our stakeholders. With revenues of $27.4 billion in 2025, the company serves customers in 180 countries.
Did you know?
Pays a 1.01% dividend yield.
Current Price
$413.87
+1.02%GoodMoat Value
$193.46
53.3% overvaluedProfile
Valuation (TTM)
Market Cap$160.75B
P/E39.32
EV$149.45B
P/B8.28
Shares Out388.40M
P/Sales5.86
Revenue$27.45B
EV/EBITDA27.61
Eaton Corporation plc (ETN) Stock Analysis
GoodMoat Analysis
Eaton Corporation is a high-quality industrial business with a strong competitive position, evidenced by a robust ROE of 21.0% and solid operating margins. However, its current valuation appears significantly extended, trading at a P/E of 35.6 and a price far above the GoodMoat target, indicating a lack of margin of safety for a value investor.
Read full analysis
Eaton Corporation is a global leader in power management and electrical components, operating in the specialty industrial machinery sector. Applying the GoodMoat framework, the business likely possesses a durable competitive advantage, or moat, scoring well on criteria such as niche dominance in mission-critical electrical infrastructure, switching costs from integrated systems, and potential technology leadership. This is supported by strong financial quality indicators, including a high Return on Equity of 21.0%, a healthy operating margin of 19.0%, and a manageable debt level with a Debt/Equity ratio of 0.54. The company also demonstrates solid growth with revenue increasing 13.1% year-over-year. According to the Decision Framework, Eaton passes the initial Moat & Quality Gate as a high-quality business. The critical issue is valuation. The stock trades at a P/E of 35.6 and a price of $375, which is nearly double the GoodMoat target of $193.46. This suggests a deeply unfavourable or negative margin of safety in a Discounted Cash Flow analysis, far exceeding the 20% threshold required for a favourable rating. The low Free Cash Flow Yield of 2.5% further indicates the price is high relative to cash generation. For a value investor, Eaton represents a classic case of a wonderful business at an unwonderful price, making further investigation primarily an exercise in understanding what would justify such a premium rather than finding a margin of safety. Analysis based on data as of 2024-05-15.
Market Cap$160.75B
Current Price$413.87
P/E Ratio39.32
Forward P/E—
PEG Ratio2.15
EPS$10.45
Book Value$50.01
P/B Ratio8.28
ETN Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 4.0% FCF growth (CAGR)
Cash vs Debt
Net Debt: 9.9B
Revenue
21.4B
FY19
17.9B
FY20
19.6B
FY21
20.8B
FY22
23.2B
FY23
24.9B
FY24
27.4B
FY25
Net Income
2.2B
FY19
1.4B
FY20
2.1B
FY21
2.5B
FY22
3.2B
FY23
3.8B
FY24
4.1B
FY25
ETN 52-Week Range
$272.33
$413.87
50-Day MA: $373.71200-Day MA: $359.09
Did you know?
Currently trading near its 52-week high — in the top 0% of its range.
Eaton Corporation plc (ETN) Financial Summary
Eaton Corporation plc (ETN) is a Industrials company in the Specialty Industrial Machinery industry, listed on NYSE. The stock currently trades at $413.87 with a market capitalization of $160.75B.
Key valuation metrics include a P/E ratio of 39.32, price-to-book ratio of 8.28, and EPS of $10.45. The company reports a profit margin of 14.9% and return on equity of 21.0%.
ETN Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $160.75B |
| P/E Ratio | 39.32 |
| EPS | $10.45 |
| P/B Ratio | 8.28 |
| P/S Ratio | 5.86 |
| EV/EBITDA | 27.61 |
| Dividend Yield | 1.01% |
| Profit Margin | 14.9% |
| Return on Equity | 21.0% |
| Debt/Equity | 0.54 |
ETN Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $21.39B | $2.21B |
| FY20 | $17.86B | $1.41B |
| FY21 | $19.63B | $2.14B |
| FY22 | $20.75B | $2.46B |
| FY23 | $23.20B | $3.22B |
| FY24 | $24.88B | $3.79B |
| FY25 | $27.45B | $4.09B |
Eaton Corporation plc (ETN) Valuation
Based on GoodMoat's DCF model, Eaton Corporation plc has a fair value estimate of $193.46. At the current price of $413.87, the stock appears 113.9% overvalued relative to our intrinsic value estimate.
ETN Quality Indicators
Eaton Corporation plc maintains a profit margin of 14.9% and an operating margin of 19.0%. Return on equity stands at 21.0%. The current ratio is 1.32. Debt-to-equity ratio is 0.54.
About Eaton Corporation plc
Eaton 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 guided by our commitment to do business right, to operate sustainably and to help our customers manage power ─ today and well into the future. By capitalizing on the global growth trends of electrification and digitalization, we're helping to solve the world's most urgent power management challenges and building a more sustainable society for people today and generations to come. Founded in 1911, Eaton has continuously evolved to meet the changing and expanding needs of our stakeholders. With revenues of $27.4 billion in 2025, the company serves customers in 180 countries.
ETN Free Cash Flow
Eaton Corporation plc generated $3.63B in trailing twelve-month free cash flow, representing an FCF yield of 2.26%. This moderate FCF yield indicates reasonable cash generation.
ETN Shares Outstanding
Eaton Corporation plc has 0.39 billion shares outstanding at a share price of $413.87, giving it a market capitalization of $160.75B.
ETN Recent Insider Trades
Recent insider transactions at Eaton Corporation plc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Yelton Michael (See Remarks below.) | SELL | 3,494 | $1.31M |
| RUIZ STERNADT PAULO (See Remarks below.) | SELL | 10,707 | $4.18M |