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Eaton (ETN) Stock Analysis

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 ItemETN
NameEaton Corporation plc
Country/RegionIreland
GICS SectorIndustrials
GICS Industry GroupCapital Goods
GICS IndustryElectrical Equipment
GICS Sub-IndustryElectrical Components & Equipment
Market Capitalization159.57 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateJune 1, 1972
Security TypeCommon Stock

Price Performance

Cumulative Growth

ETN
GSPC
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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
MetricCurrent stock: ETNIndustry group median
Total Return (1Y)19.30%12.97%
Total Return (3Y, Annualized)22.21%15.09%
Total Return (5Y, Annualized)21.69%10.49%

Risk Profile

Drawdown History

ETN
GSPC
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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
MetricCurrent stock: ETNIndustry group median
Volatility (1Y, Annualized)38.34%43.93%
Beta (5Y)1.141.21
Max Drawdown (5Y)-34.46%-49.26%

Risk-Adjusted Performance

Risk-Return Positioning

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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
MetricCurrent stock: ETNIndustry group median
Sharpe Ratio (1Y)0.400.20
Sortino Ratio (1Y)0.570.30

Profitability

ROE (TTM)

Eaton (ETN) posts ROE of 19.68%, 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

19.68%

Group distribution
Max
40.35%
ETN
19.68%
Q3
18.68%
Median
11.42%
Q1
2.86%
Min
-19.86%
Largest peers
BA
173.54%
GEV
82.58%
CAT
56.97%
GE
48.23%
ETN
19.68%
DE
18.24%
RTX
12.27%
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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 12.75% 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

12.75%

Group distribution
Max
27.47%
ETN
12.75%
Q3
11.70%
Median
5.75%
Q1
0.71%
Min
-14.15%
Largest peers
GEV
23.04%
GE
17.72%
CAT
14.51%
ETN
12.75%
DE
10.17%
RTX
8.28%
BA
2.59%
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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 16.56% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

ETN

Capital Goods industry group

16.56%

Group distribution
Max
35.46%
Q3
17.36%
ETN
16.56%
Median
10.53%
Q1
4.58%
Min
-12.63%
Largest peers
CAT
22.18%
GE
20.57%
DE
17.48%
ETN
16.56%
RTX
12.70%
GEV
7.47%
BA
0.00%
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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
MetricCurrent stock: ETNIndustry group median
ROE (TTM)19.68%11.42%
ROA (TTM)7.05%5.05%
Net Margin (TTM)12.75%5.75%
Operating Margin (TTM)16.56%10.53%
Gross Margin (TTM)36.02%29.50%

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.

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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.

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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
MetricCurrent stock: ETNIndustry group median
Revenue Growth (YoY)10.33%8.16%
Revenue Growth (3Y CAGR)9.77%6.32%
EPS Growth (YoY)10.00%4.93%
EPS Growth (3Y CAGR)19.39%6.34%

Financial Strength

Current Ratio (MRQ)

Eaton (ETN) has current ratio of 1.24, 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

1.24

Group distribution
Max
5.28
Q3
2.99
Median
2.09
Q1
1.45
ETN
1.24
Min
0.76
Largest peers
DE
2.13
CAT
1.37
ETN
1.24
BA
1.14
RTX
1.01
GE
0.98
GEV
0.85
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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 1.05, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

ETN

Capital Goods industry group

1.05

Group distribution
Max
2.15
Q3
1.09
ETN
1.05
Median
0.58
Q1
0.27
Min
0.00
Largest peers
BA
7.91
DE
3.76
CAT
2.33
GE
1.13
ETN
1.05
RTX
0.57
GEV
0.28
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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
MetricCurrent stock: ETNIndustry group median
Current Ratio (MRQ)1.242.09
Debt / Equity (MRQ)1.050.58
Net Debt / EBITDA3.111.94

Dividends

Dividend Yield (TTM)

Eaton (ETN) has dividend yield of 1.08%, 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

1.08%

Group distribution
Max
2.72%
Q3
1.09%
ETN
1.08%
Median
0.17%
Q1
0.00%
Min
0.00%
Largest peers
RTX
1.37%
ETN
1.08%
DE
0.93%
CAT
0.77%
GE
0.50%
GEV
0.19%
BA
0.00%
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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 43.58%, 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

43.58%

Group distribution
Max
72.00%
ETN
43.58%
Q3
28.84%
Median
5.73%
Q1
0.00%
Min
0.00%
Largest peers
RTX
48.77%
ETN
43.58%
DE
36.02%
CAT
26.01%
GE
19.58%
GEV
5.73%
BA
0.00%
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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
MetricCurrent stock: ETNIndustry group median
Dividend Yield (TTM)1.08%0.17%
Dividend Payout Ratio (TTM)43.58%5.73%

Valuation

P/E Ratio (TTM)

Eaton (ETN) trades at P/E ratio of 41.84, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.

ETN

Capital Goods industry group

41.84

Group distribution
Max
71.51
ETN
41.84
Q3
41.67
Median
29.88
Q1
21.77
Min
1.12
Largest peers
BA
76.35
ETN
41.84
GE
39.66
DE
38.62
RTX
35.35
CAT
35.08
GEV
27.03
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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 5.31 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

5.31

Group distribution
Max
8.99
ETN
5.31
Q3
4.42
Median
2.46
Q1
1.18
Min
0.05
Largest peers
GE
6.91
GEV
6.06
ETN
5.31
CAT
5.01
DE
3.90
RTX
2.89
BA
1.78
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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 7.88 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

7.88

Group distribution
Max
11.44
ETN
7.88
Q3
5.79
Median
3.38
Q1
1.99
Min
-3.51
Largest peers
BA
27.51
GEV
20.98
GE
19.83
CAT
19.29
ETN
7.88
DE
6.68
RTX
4.08
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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
MetricCurrent stock: ETNIndustry group median
P/E Ratio (TTM)41.8429.88
P/S Ratio (TTM)5.312.46
P/B Ratio (MRQ)7.883.38
Free Cash Flow Yield (TTM)1.95%2.61%