Eaton (ETN) Stock Analysis

June 13, 2026

Here is a fundamental analysis of Eaton (ETN), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

Performance

Cumulative Growth

ETN

GSPC

Eaton (ETN) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Eaton (ETN) and S&P 500 (GSPC). Returns over one year are annualized.

Performance at a Glance

Eaton (ETN) metric values compared with Capital Goods industry-group medians
Metric	Current stock: ETN	Industry group median
1-Year Return	19.86%	25.11%

Risk

Drawdown

ETN

GSPC

Eaton (ETN) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

Eaton (ETN) metric values compared with Capital Goods industry-group medians
Metric	Current stock: ETN	Industry group median
1-Year Volatility	33.55%	41.58%
Beta	1.20	1.19

Company Profile

Company profile fields for Eaton (ETN)
Profile Item	ETN
Name	Eaton Corporation plc
Country/Region	Ireland
GICS Sector	Industrials
GICS Industry Group	Capital Goods
GICS Industry	Electrical Equipment
GICS Sub-Industry	Electrical Components & Equipment
Market Capitalization	151.98 billion USD
Currency	USD
Exchange	NYSE
Listing Date	June 1, 1972
Security Type	Common Stock

Valuation

Price-to-Earnings Ratio (TTM)

Eaton (ETN) trades at P/E ratio of 38.30, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

ETN

Capital Goods industry group

38.30

Group distribution

Max: 89.57
Q3: 49.59
ETN: 38.30
Median: 32.68
Q1: 22.67
Min: 6.05

Largest peers

BA: 86.92
CAT: 45.26
GE: 41.65
ETN: 38.30
RTX: 34.50
DE: 32.68
GEV: 27.47

Where Eaton (ETN) stands on P/E ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Sales Ratio (TTM)

Eaton (ETN) trades at 5.33 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

ETN

Capital Goods industry group

5.33

Group distribution

Max: 10.21
ETN: 5.33
Q3: 4.95
Median: 2.70
Q1: 1.31
Min: 0.05

Largest peers

GE: 7.25
GEV: 6.42
CAT: 5.93
ETN: 5.33
DE: 3.29
RTX: 2.73
BA: 1.87

Where Eaton (ETN) stands on P/S ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Book Ratio (MRQ)

Eaton (ETN) trades at 7.71 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

ETN

Capital Goods industry group

7.71

Group distribution

Max: 14.00
ETN: 7.71
Q3: 7.07
Median: 3.83
Q1: 2.13
Min: -4.80

Largest peers

BA: 28.86
CAT: 22.48
GE: 18.83
GEV: 18.16
ETN: 7.71
DE: 5.69
RTX: 3.73

Where Eaton (ETN) stands on P/B ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Valuation at a Glance

Eaton (ETN) metric values compared with Capital Goods industry-group medians
Metric	Current stock: ETN	Industry group median
Price-to-Earnings Ratio (TTM)	38.30	32.68
Price-to-Sales Ratio (TTM)	5.33	2.70
Price-to-Book Ratio (MRQ)	7.71	3.83
Free Cash Flow Yield	1.74%	2.07%

Profitability

Return on Equity (TTM)

Eaton (ETN) posts ROE of 20.85%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

ETN

Capital Goods industry group

20.85%

Group distribution

Max: 46.13%
ETN: 20.85%
Q3: 20.05%
Median: 11.19%
Q1: 2.17%
Min: -23.78%

Largest peers

BA: 169.95%
GEV: 75.71%
CAT: 51.33%
GE: 45.43%
ETN: 20.85%
DE: 18.35%
RTX: 11.57%

Where Eaton (ETN) stands on ROE within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Net Profit Margin (TTM)

Eaton (ETN) keeps 13.99% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

ETN

Capital Goods industry group

13.99%

Group distribution

Max: 24.69%
ETN: 13.99%
Q3: 11.55%
Median: 5.77%
Q1: 0.30%
Min: -13.94%

Largest peers

GEV: 23.81%
GE: 17.86%
ETN: 13.99%
CAT: 13.33%
DE: 10.10%
RTX: 8.03%
BA: 2.46%

Where Eaton (ETN) stands on net margin within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Operating Profit Margin (TTM)

Eaton (ETN) turns 16.11% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

ETN

Capital Goods industry group

16.11%

Group distribution

Max: 29.84%
ETN: 16.11%
Q3: 15.85%
Median: 8.19%
Q1: 1.80%
Min: -17.50%

Largest peers

GE: 20.21%
CAT: 18.18%
DE: 17.48%
ETN: 16.11%
RTX: 13.18%
GEV: 5.46%
BA: 1.72%

Where Eaton (ETN) stands on operating margin within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Profitability at a Glance

Eaton (ETN) metric values compared with Capital Goods industry-group medians
Metric	Current stock: ETN	Industry group median
Return on Equity (TTM)	20.85%	11.19%
Return on Assets (TTM)	7.02%	5.15%
Net Profit Margin (TTM)	13.99%	5.77%
Operating Profit Margin (TTM)	16.11%	8.19%
Gross Profit Margin (TTM)	37.11%	29.80%

Financial Strength

Current Ratio (MRQ)

Eaton (ETN) has current ratio of 1.19, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

ETN

Capital Goods industry group

1.19

Group distribution

Max: 5.24
Q3: 2.98
Median: 2.12
Q1: 1.45
ETN: 1.19
Min: 0.71

Largest peers

DE: 2.21
CAT: 1.35
ETN: 1.19
BA: 1.18
RTX: 1.02
GE: 1.01
GEV: 0.89

Where Eaton (ETN) stands on current ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Debt-to-Equity Ratio (MRQ)

Eaton (ETN) has debt-to-equity ratio of 1.10, in the higher-leverage quartile for its industry. The heavier reliance on borrowing can make earnings, rates, or refinancing conditions matter more.

ETN

Capital Goods industry group

1.10

Group distribution

Max: 2.29
ETN: 1.10
Q3: 1.08
Median: 0.62
Q1: 0.27
Min: 0.00

Largest peers

BA: 8.29
DE: 3.76
CAT: 2.31
GE: 1.17
ETN: 1.10
RTX: 0.57
GEV: 0.25

Where Eaton (ETN) stands on debt-to-equity ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength at a Glance

Eaton (ETN) metric values compared with Capital Goods industry-group medians
Metric	Current stock: ETN	Industry group median
Current Ratio (MRQ)	1.19	2.12
Debt-to-Equity Ratio (MRQ)	1.10	0.62
Net Debt / EBITDA	3.32	2.03

Dividends

Dividend Yield (TTM)

Eaton (ETN) has dividend yield of 1.12%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.

ETN

Capital Goods industry group

1.12%

Group distribution

Max: 2.69%
ETN: 1.12%
Q3: 1.09%
Median: 0.20%
Q1: 0.00%
Min: 0.00%

Largest peers

RTX: 1.51%
ETN: 1.12%
DE: 1.12%
CAT: 0.72%
GE: 0.56%
GEV: 0.21%
BA: 0.00%

Where Eaton (ETN) stands on dividend yield within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Eaton (ETN) has payout ratio of 41.29%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

ETN

Capital Goods industry group

41.29%

Group distribution

Max: 72.02%
ETN: 41.29%
Q3: 29.49%
Median: 6.03%
Q1: 0.00%
Min: 0.00%

Largest peers

RTX: 51.03%
ETN: 41.29%
DE: 36.71%
CAT: 29.58%
GE: 19.25%
GEV: 5.11%
BA: 0.00%

Where Eaton (ETN) stands on payout ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Dividends at a Glance

Eaton (ETN) metric values compared with Capital Goods industry-group medians
Metric	Current stock: ETN	Industry group median
Dividend Yield (TTM)	1.12%	0.20%
Dividend Payout Ratio (TTM)	41.29%	6.03%