ETN
Eaton Corporation
$448.54
▲ 0.1%Updated Aug 7, 11:30 AM ET
ETN at a glance — five pillars scored 0–100 from real filed financials.
Overall: Weak · 38/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 26.0% over the last 12 months
Market Cap
$154.75B
P/E
44.1x
Forward P/E (est.)
42.72x
ROE
20.8%
Revenue Growth
-15.1%
EPS Growth
3.2%
Profit Margin
14.0%
FCF Yield
2.4%
Debt / Equity
0.51x
ROIC
8.0%
Interest Coverage
25.52x
Current Ratio
1.19x
Dividend Yield
1.1%
Implied Growth (rev. DCF)
6.6%
Rating Score
38/100
Eaton Corporation (ETN) is a large-cap company in the Electrical Components & Equipment industry, part of the Industrials sector of the S&P 500, with a market value around $154.75B.
In its latest reported year it generated about $27.45B in revenue and $4.09B in net profit.
Our model rates ETN Weak (38/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (10 years of history).
Some durable-advantage evidence, but not across the board — dig into which ingredient is weak and whether it's cyclical or structural.
grew in 7 of the last 9 year-over-year periods
positive in 10 of 10 years
8.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what ETN's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. ETN trades near $448.54, above its 50-day average ($406.97) and 200-day average ($371.37). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 52 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. ETN's is $17.32 (~3.9% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month ETN found buyers near $375.04 (support) and sellers near $436.74 (resistance); its 52-week range is $311.92–$436.74. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 1.0× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
8.7%
Revenue moved from $19.75B in 2016 to $27.45B in 2025, a 3.7% compound annual growth rate. The most recent year declined 15.1% year over year. Shrinking revenue is worth a closer look — is it cyclical or structural?
Gross Margin
36.9%
Operating Margin
18.2%
Net Margin
14.9%
ROE
20.8%
Eaton Corporation keeps about 14.0% of each sales dollar as net profit, with a 36.9% gross margin and 18.2% operating margin. Return on equity is 20.8% and return on invested capital about 8.0%. Margins are moderate — typical of a competitive but profitable business.
Total Debt
$18.62B
Net Debt
$18.05B
Net Debt / EBITDA
—
Debt / Equity
0.51x
Leverage: debt-to-equity is 0.5x, and operating profit covers interest about 25.5x, with a current ratio of 1.2x. That is a moderate, manageable debt load for most businesses. It carries roughly $18.62B of total debt against $565.00M of cash.
Operating CF
$4.47B
Free Cash Flow
$3.55B
FCF Margin
12.9%
In the latest year Eaton Corporation produced about $4.47B of operating cash flow and $3.55B of free cash flow after capital spending. That is a free-cash-flow yield of about 2.4% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The payout is comfortably covered by cash the business actually generates, with a raise habit behind it.
Dividend yield
1.1%
Per share (latest FY)
$4.16
Total paid (latest FY)
$1.63B
History on record
10 years
dividend uses 46% of free cash flow
40% of net income paid out
total dividends increased 5 years in a row
no cuts in the last 10 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
44.1x
P/S
5.83x
P/B
7.01x
EV / EBITDA
—
ETN trades at 44.1x trailing earnings (about 42.7x on estimated forward earnings), 5.8x sales, and 7.0x book value. Reverse-engineering today's price implies the market expects roughly 6.6% long-term free-cash-flow growth. That is a rich multiple that prices in a lot of future growth.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$93.90
Current price
$448.54
Starting FCF (latest 10-K)
$3.55B
Growth, years 1–5
-5.0%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where ETN sits versus its Industrials sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 144 Industrials companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How ETN stacks up against its Industrials peers — valuation, profitability, and growth versus the sector median.
In the Industrials sector (273 S&P 500 companies), ETN ranks #118 of 273 by our overall rating. It trades at a premium versus the sector on earnings (44.1x P/E vs. 32x median) with a higher return on equity (20.8% vs. 18.1%) and slower revenue growth (-15.1% vs. 6.0%).
P/E vs sector
44.1x
median 32x
ROE vs sector
20.8%
median 18.1%
Growth vs sector
-15.1%
median 6.0%
Sector rank
#118
of 273 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Industrials companies by sub-industry and size. Sector median is across all 273 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $448.54 today · expected CAGR -4% – 6%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $28.27B | $29.12B | $29.99B | $30.89B | $31.82B |
| Net income | $4.24B | $4.37B | $4.50B | $4.63B | $4.77B |
| EPS | $12.29 | $12.66 | $13.04 | $13.43 | $13.83 |
| Share price (low) | $319.59 | $329.18 | $339.06 | $349.23 | $359.70 |
| Share price (high) | $540.85 | $557.07 | $573.79 | $591.00 | $608.73 |
| CAGR (low–high) | -29% / 21% | -14% / 11% | -9% / 9% | -6% / 7% | -4% / 6% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for ETN:
- Strong return on equity (20.8%) shows capital is put to work well.
- As an established S&P 500 member in Industrials, it brings scale and a long operating history.
The case against ETN:
- Revenue growth is slow/negative (-15.1%), limiting the upside engine.
- A rich 44.1x earnings multiple prices in a lot of growth.
- Our model's overall read is Weak (38/100).
Valuation risk — at 44.1x earnings, disappointing results could compress the multiple.
Growth risk — sluggish revenue (-15.1%) leaves little margin for execution missteps.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen weakly: Eaton Corporation is a large-cap industrials business with shrinking revenue, with solid profitability, and a sound balance sheet. It trades at 44.1x earnings, which our model scores Weak (38/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 33 Wall Street analysts covering ETN recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Latest SEC Filings
ETN's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
ETN — frequently asked questions
Is ETN a good stock to buy?
We don't give buy or sell advice. Our model rates Eaton Corporation Weak (38/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is ETN's rating on The Stocks School?
Eaton Corporation currently scores 38/100 (Weak) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does ETN's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Eaton Corporation's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for ETN calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this ETN analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell ETN. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.