One-glance verdict
Overvalued
$169.87 our estimate vs market $448.68
Wall Street consensus: $471.47 (177.6% higher than our fair-value estimate)
164% above our estimate, beyond the bull case
Fundamentals snapshot
Eaton Corporation, PLC
ETN · NYQ · Industrials · Specialty Industrial Machinery
Current price
$448.68
52-week range
$311.92 - $455.82
Market cap
$174.27B
Balance sheet
Stretched
21.61x Strong cushion
Net debt $20.63B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 9.4% last year.
- Reward Returns 19.7% on equity, ahead of 16% of its peers.
- Risk Stock trades 51.0% above its 5-year average P/E.
- Risk Net debt grew 13.7% over 3 years.
What this company does
Eaton Corporation, PLC
Eaton sells the essential equipment that manages electrical power for everything from buildings and data centers to airplanes and electric vehicles. The company makes most of its money from these electrical products, which is important because it's in a position to grow as the world modernizes its power grids and shifts to using more electricity.
How the company got here
Eaton started in 1911 making truck axles and grew by buying other companies, mostly in the auto industry. A major turning point was in 1978 when it acquired Cutler-Hammer, which moved the company into electrical controls. This shift became its main focus after buying Westinghouse's electrical business in 1994 and Cooper Industries in 2012, which doubled its electrical division. Over time, Eaton transformed from a vehicle parts supplier into a global power management company, focusing on electrical and aerospace technologies.
What it actually does
Eaton is a power management company that makes products to help use electrical, hydraulic (using liquids to move things), and mechanical power more safely and efficiently. You might not buy their products directly, but they are in many places you interact with daily, like buildings, airplanes, and factories. For example, they make circuit breakers for your home's electrical panel, systems that keep power on in hospitals and data centers, and parts for airplane fuel systems. Essentially, they create the behind-the-scenes equipment that controls and protects power in a wide variety of applications.
Electrical Americas
This is Eaton's largest and most profitable business, serving customers in North and South America. It sells a huge range of electrical products, from the circuit breakers and panelboards you might see in a home or office to large equipment like switchgear that manages power for entire factories, data centers, or utility companies. Customers in construction, IT, and manufacturing buy these products to safely distribute, control, and protect their electrical power. This segment makes up the biggest piece of Eaton's business.
Electrical Global
This segment does very similar things to the Electrical Americas business but serves customers in Europe, the Middle East, Africa, and the Asia-Pacific region. It provides a wide array of products for power distribution and circuit protection, as well as specialized equipment for things like emergency lighting and fire detection systems in buildings. Because product standards and customer needs can differ by region, Eaton runs this as a separate business to better serve its international customers. It represents a significant, though smaller, portion of the company's electrical sales compared to the Americas.
Aerospace
This part of the company makes highly engineered systems and components for commercial and military aircraft. Think of things like fuel systems, hydraulic equipment that moves wing flaps, and motion control systems for steering. Major aircraft manufacturers like Boeing and Airbus are key customers, and the business also sells replacement parts and services (the aftermarket). This is a smaller but important segment for Eaton because the products are highly specialized and critical for flight safety.
Vehicle
Returning to its roots, this segment produces parts for traditional cars and commercial trucks. It makes components like transmissions, clutches, and engine parts that help improve fuel efficiency and reduce emissions. The customers are large vehicle manufacturers who build these parts into new cars and trucks. While still a meaningful part of the company, it is less of a focus for future growth compared to the electrical businesses.
eMobility
This is Eaton's newest and smallest business, created to focus on the growing electric vehicle (EV) market. It combines expertise from both the electrical and vehicle segments to create products specifically for EVs, such as power electronics, converters, and fuses for high-voltage systems. Customers include car and truck manufacturers who are building electric and hybrid vehicles. This segment represents a bet on the future of transportation and the increasing electrification of vehicles.
What management is betting on now
Management is focusing heavily on trends like electrification and digitalization (making systems smarter and more connected). This means investing in high-growth areas, especially those related to the energy transition, grid modernization, and the power-hungry needs of data centers and artificial intelligence. The company's strategy is to become a more focused power management leader by concentrating on its higher-margin (more profitable per sale) electrical and aerospace businesses. They are also investing in new technologies for electric vehicles to capture growth in that expanding market.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$1.13B
FY2024 Q4
$1.34B
FY2025 Q1
$91.00M
FY2025 Q2
$716.00M
FY2025 Q3
$1.17B
FY2025 Q4
$1.57B
FY2026 Q1
$314.00M
FY2026 Q2
$874.00M
Revenue
$8.53B
Net income
$821.00M
Diluted EPS
2.11
Operating cash flow
$1.13B
Free cash flow
$874.00M
Fetching…
Sources
Revenue
$7.45B
Net income
$866.00M
Diluted EPS
2.22
Operating cash flow
$507.00M
Free cash flow
$314.00M
Fetching…
Sources
Revenue
$7.05B
Net income
$1.13B
Diluted EPS
2.90
Operating cash flow
$1.97B
Free cash flow
$1.57B
Fetching…
Sources
Revenue
$6.99B
Net income
$1.01B
Diluted EPS
2.59
Operating cash flow
$1.35B
Free cash flow
$1.17B
Fetching…
Sources
Revenue
$7.03B
Net income
$982.00M
Diluted EPS
2.51
Operating cash flow
$918.00M
Free cash flow
$716.00M
Fetching…
Sources
Revenue
$6.38B
Net income
$964.00M
Diluted EPS
2.45
Operating cash flow
$238.00M
Free cash flow
$91.00M
Fetching…
Sources
Revenue
$6.24B
Net income
$971.00M
Diluted EPS
2.45
Operating cash flow
$1.60B
Free cash flow
$1.34B
Fetching…
Sources
Revenue
$6.34B
Net income
$1.01B
Diluted EPS
2.53
Operating cash flow
$1.31B
Free cash flow
$1.13B
Fetching…
Sources
Is it cheap or expensive?
Fair value $169.87 vs current price $448.68
Wall Street consensus is the average analyst price target: $471.47 (177.6% higher than our fair-value estimate).
Our most-likely fair value is $169.87 a share — about 62.1% below today's price of $448.68, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $20.6B. Interest coverage 21.6x.
Net debt
$20.63B
Interest coverage
21.61x
Eaton Corporation, PLC's profit covers its interest bill about 21.6 times over. which is stronger than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
ETN
BASELINE
Eaton Corporation, PLC
Total debt $21.33B Interest coverage 21.61x This is the baseline the peer rows are being compared against.
Total debt $13.80B Interest coverage 9.13x -58% vs ETN Carries about 2.4x less debt cushion than ETN.
Total debt $8.52B Interest coverage 9.93x -54% vs ETN Carries about 2.2x less debt cushion than ETN.
Total debt $3.61B Interest coverage 9.12x -58% vs ETN Carries about 2.4x less debt cushion than ETN.
Total debt $8.29B Interest coverage 11.75x -46% vs ETN Carries about 1.8x less debt cushion than ETN.
Total debt $3.34B Interest coverage 22.02x +2% vs ETN Has roughly the same debt cushion as ETN.
What you should know
The case for and against ETN
3 Rewards
3 Risks
Rewards
-
Revenue grew 9.4% last year.
-
Returns 19.7% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 51.0% above its 5-year average P/E.
-
Net debt grew 13.7% over 3 years.
-
Insider ownership is only 0.1% (peer median: 0.2%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
45.69x
Forward P/E
28.00x
P/B
8.60x
P/S
5.80x
EV/EBITDA
29.36x
PEG ratio
3.22x
Profitability
How much profit each dollar creates
Gross margin
36.0%
Operating margin
16.6%
Net margin
12.8%
ROE
19.7%
ROA
7.1%
Health
Liquidity and balance-sheet strength
Debt / equity
1.05x
Current ratio
1.24x
Quick ratio
0.70x
Total debt
$21.33B
Total cash
$695.00M
Growth
How the business has been compounding
Revenue TTM
$30.02B
Revenue 5Y CAGR
8.7%
EPS TTM
9.82
EPS 5Y CAGR
19.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$4.95B
Free CF TTM
$3.55B
FCF margin
11.8%
Dividend
Shareholder payout
Yield
1.0%
Payout ratio
43.6%
Last ex-div date
2026-08-07