Eaton (ETN) Stock Analysis

July 23, 2026

This is a peer-relative look at Eaton (ETN): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Capital Goods peers, so every number reads in context rather than in isolation.

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	156.47 billion USD
Currency	USD
Exchange	NYSE
Listing Date	June 1, 1972
Security Type	Common Stock

Price 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.

Calendar-Year Returns

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Calendar-year total returns for Eaton (ETN) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Eaton (ETN) metric values compared with Capital Goods industry-group medians
Metric	Current stock: ETN	Industry group median
Total Return (1Y)	9.09%	20.73%
Total Return (3Y, Annualized)	26.35%	16.65%
Total Return (5Y, Annualized)	22.90%	10.84%

Risk Profile

Drawdown History

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.

Return Distribution

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Distribution of monthly total returns for Eaton (ETN) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Eaton (ETN) metric values compared with Capital Goods industry-group medians
Metric	Current stock: ETN	Industry group median
Volatility (1Y, Annualized)	35.67%	42.81%
Beta (5Y)	1.19	1.20
Max Drawdown (5Y)	-34.46%	-48.46%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. ETN is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Eaton (ETN) metric values compared with Capital Goods industry-group medians
Metric	Current stock: ETN	Industry group median
Sharpe Ratio (1Y)	0.14	0.38
Sortino Ratio (1Y)	0.20	0.58

Profitability

ROE (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: 42.07%
ETN: 20.85%
Q3: 19.97%
Median: 11.35%
Q1: 3.35%
Min: -19.79%

Largest peers

BA: 169.95%
GEV: 75.71%
CAT: 51.33%
GE: 48.23%
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 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: 11.54%
Median: 5.80%
Q1: 0.73%
Min: -13.94%

Largest peers

GEV: 23.81%
GE: 17.72%
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 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: 16.03%
Median: 8.69%
Q1: 1.95%
Min: -17.50%

Largest peers

GE: 20.57%
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 Metrics

Eaton (ETN) metric values compared with Capital Goods industry-group medians
Metric	Current stock: ETN	Industry group median
ROE (TTM)	20.85%	11.35%
ROA (TTM)	7.02%	5.15%
Net Margin (TTM)	13.99%	5.80%
Operating Margin (TTM)	16.11%	8.69%
Gross Margin (TTM)	37.11%	29.71%

Growth

Revenue Growth

Eaton (ETN) grew revenue 10.33%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

Eaton (ETN): Revenue Growth across different time periods, set against Capital Goods industry-group medians.

EPS Growth

Eaton (ETN) grew earnings per share 10.00%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

Eaton (ETN): EPS Growth across different time periods, set against Capital Goods industry-group medians.

Growth Metrics

Eaton (ETN) metric values compared with Capital Goods industry-group medians
Metric	Current stock: ETN	Industry group median
Revenue Growth (YoY)	10.33%	8.06%
Revenue Growth (3Y CAGR)	9.77%	6.41%
EPS Growth (YoY)	10.00%	4.71%
EPS Growth (3Y CAGR)	19.39%	5.63%

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: 2.97
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: 0.98
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 / Equity (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: 2.31
ETN: 1.10
Q3: 1.10
Median: 0.63
Q1: 0.28
Min: 0.00

Largest peers

BA: 8.29
DE: 3.76
CAT: 2.31
GE: 1.13
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 Metrics

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 / Equity (MRQ)	1.10	0.63
Net Debt / EBITDA	3.32	2.03

Dividends

Dividend Yield (TTM)

Eaton (ETN) has dividend yield of 1.05%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

ETN

Capital Goods industry group

1.05%

Group distribution

Max: 2.64%
Q3: 1.06%
ETN: 1.05%
Median: 0.14%
Q1: 0.00%
Min: 0.00%

Largest peers

RTX: 1.40%
DE: 1.11%
ETN: 1.05%
CAT: 0.70%
GE: 0.49%
GEV: 0.14%
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: 29.57%
Median: 6.31%
Q1: 0.00%
Min: 0.00%

Largest peers

RTX: 51.03%
ETN: 41.29%
DE: 36.71%
CAT: 29.58%
GE: 19.58%
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.

Dividend Metrics

Eaton (ETN) metric values compared with Capital Goods industry-group medians
Metric	Current stock: ETN	Industry group median
Dividend Yield (TTM)	1.05%	0.14%
Dividend Payout Ratio (TTM)	41.29%	6.31%

Valuation

P/E Ratio (TTM)

Eaton (ETN) trades at P/E ratio of 39.20, 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

39.20

Group distribution

Max: 77.51
Q3: 46.30
ETN: 39.20
Median: 31.73
Q1: 22.49
Min: 1.06

Largest peers

BA: 82.58
CAT: 43.10
GE: 40.32
ETN: 39.20
RTX: 36.47
DE: 33.21
GEV: 31.54

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.

P/S Ratio (TTM)

Eaton (ETN) trades at 5.49 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

5.49

Group distribution

Max: 9.90
ETN: 5.49
Q3: 4.82
Median: 2.65
Q1: 1.27
Min: 0.05

Largest peers

GEV: 7.36
GE: 6.98
CAT: 5.79
ETN: 5.49
DE: 3.35
RTX: 2.89
BA: 1.75

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.

P/B Ratio (MRQ)

Eaton (ETN) trades at 7.93 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

7.93

Group distribution

Max: 12.69
ETN: 7.93
Q3: 6.34
Median: 3.69
Q1: 2.01
Min: -4.34

Largest peers

BA: 26.98
CAT: 21.97
GEV: 20.82
GE: 19.69
ETN: 7.93
DE: 5.78
RTX: 3.94

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 Metrics

Eaton (ETN) metric values compared with Capital Goods industry-group medians
Metric	Current stock: ETN	Industry group median
P/E Ratio (TTM)	39.20	31.73
P/S Ratio (TTM)	5.49	2.65
P/B Ratio (MRQ)	7.93	3.69
Free Cash Flow Yield (TTM)	1.69%	2.18%