ETN
BULLISH
$352.39
Live
Eaton Corporation plc · NYSE
Target $410.7
(+16.5%)
$231.85
52W Range
$399.56
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Nov 16, 2025
Market cap
$137.52B
P/E
35.34
ROE
20.7%
Profit margin
14.7%
Debt/Equity
0.6
Dividend yield
1.18%
AI Analysis
AI-powered fundamental assessment
Confidence
88%
Eaton Corporation (ETN) exhibits strong fundamental quality with consistent earnings outperformance, robust profitability, and a resilient growth trajectory despite near-term macro headwinds. The stock trades at a premium valuation (P/E 35.35 vs sector 26.18), justified by superior margin profile (19.78% operating margin) and reliable execution, as evidenced by 24 of the last 25 quarters beating EPS estimates. While insider selling raises a minor concern, the overwhelming analyst consensus (24 analysts, Buy rating) and strong long-term price momentum (225.4% over 5Y) support continued outperformance. Relative to peers like HON and DE, ETN demonstrates better earnings stability and capital efficiency, positioning it well for structural tailwinds in electrification and industrial automation.
Key Strengths
Consistent earnings beat streak: 24 of last 25 quarters beat EPS estimates, with 10+ consecutive quarters of positive surprises exceeding 0.5%
Superior profitability: 19.78% operating margin and 14.74% net margin significantly above sector averages of 11.10%
High return on equity: 20.65% ROE, reflecting efficient capital allocation despite lower leverage than peers
Strong long-term growth: 10.10% YoY revenue growth and 8.1% YoY EPS growth, outpacing the industrial sector average of 6.74%
Attractive analyst target: $410.70 target implies 16.5% upside, backed by 24 analysts
Key Risks
Rich valuation: P/E of 35.35 is 35% above sector average (26.18), increasing sensitivity to growth deceleration
Insider selling: Recent $5.74M sale by an officer signals lack of near-term confidence despite strong fundamentals
Elevated price-to-book: 7.26x vs sector median, suggesting potential overvaluation if ROE regresses
Weak short-term price momentum: -7.7% over 1M and -5.7% over 1W, indicating profit-taking or macro concerns
Limited liquidity: Quick ratio of 0.71 suggests constrained near-term flexibility, below sector median
AI Fair Value Estimate
Based on comprehensive analysis
$410.7
+16.5% above current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
80
Strong
65
88
92
78
76
AI Verdict
Eaton earns its premium valuation through exceptional earnings consistency, high returns on capital, and exposure to structural growth in electrification, outperforming peers like HON and DE on profitability and growth quality despite trading at a higher multiple. Near-term headwinds and insider selling temper enthusiasm, but the long-term trajectory remains compelling.
Key drivers: Sustained earnings outperformance (24/25 beats), Superior margin and ROE profile vs peers, Analyst-targeted upside of 16.5%
Confidence
88%
Value
65/100
ETN trades at a substantial valuation premium to industrial peers like HON (P/E 21.02) and UNP (18.93), reflecting its higher growth and margin profile, but leaves limited margin of safety if macro conditions deteriorate
Positives
- Forward P/E of 29.24 suggests some de-rating already priced in
- Valuation premium supported by higher growth and quality vs sector
Watchpoints
- Current P/E of 35.35 is significantly above sector average of 26.18
- Price/Book of 7.26 implies high expectations for ROE sustainability
Future
88/100
Despite solid growth fundamentals, recent price weakness (-7.7% over 1M) contrasts with strong earnings momentum, suggesting a potential disconnect that could resolve positively if guidance remains robust
Positives
- 10.10% YoY revenue growth and 8.1% EPS growth indicate strong demand momentum
- Exposure to long-term structural trends in energy transition and industrial automation
Watchpoints
- Near-term earnings growth slowing (2.4% YoY), raising concerns about cyclical peak
- Weak 1M and 1W price performance suggests short-term resistance
Past
92/100
Eaton’s historical performance is elite, with near-flawless earnings execution and 225.4% appreciation over five years, though recent underperformance highlights increased volatility and macro sensitivity
Positives
- Remarkable earnings consistency: 24 of last 25 quarters beat estimates, including 10+ consecutive positive surprises above 0.5%
- 5-year return of +225.4% demonstrates exceptional shareholder value creation
Watchpoints
- Most recent Q/Q EPS growth of +4.1% shows deceleration from prior quarters
- 1-year return of -1.6% underperforms sector leaders like BA (+40.8%)
Health
78/100
Eaton maintains a strong balance sheet with low leverage relative to peers like DE (2.67) and HON (2.15), but constrained liquidity (quick ratio 0.71) could pose risks in a downturn
Positives
- Conservative leverage: Debt/Equity of 0.60 is well below sector average of 1.88
- Healthy ROIC proxy via strong ROE (20.65%) and stable margins
Watchpoints
- Low quick ratio of 0.71 indicates limited liquid assets to cover short-term liabilities
- Missing cash flow data limits visibility into operational liquidity
Dividend
76/100
The dividend is well-covered and sustainable given the 40.64% payout ratio, though the 1.18% yield is modest compared to higher-yielding industrials like UNP
Positives
- Sustainable 1.18% yield with a reasonable 40.64% payout ratio
- Consistent capital return policy supports income investors
Watchpoints
- Yield is below peer average, limiting appeal for income-focused investors
- No data on dividend growth history or policy longevity
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$352.39
Analyst Target
$410.7
Upside/Downside
+16.5%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for ETN and closest competitors.
Updated 2025-11-14
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
ETN
Eaton Corporation plc
Primary
|
+225.4% | +125.9% | -1.6% | +7.4% | -7.7% | -5.7% |
|
HON
Honeywell International Inc.
Peer
|
+15.2% | +26.5% | +20.2% | +14.2% | -1.4% | -5.3% |
|
LMT
Lockheed Martin Corporation
Peer
|
+68.5% | +25.2% | +23.5% | +15.5% | -9.9% | -9.1% |
|
UNP
Union Pacific Corporation
Peer
|
+24.9% | +33.4% | +17.7% | +12.0% | +4.6% | +0.6% |
|
DE
Deere & Company
Peer
|
+66.1% | +45.4% | +22.6% | +28.9% | -8.0% | +0.4% |
ETN
Eaton Corporation plc
Primary
5Y
+225.4%
3Y
+125.9%
1Y
-1.6%
6M
+7.4%
1M
-7.7%
1W
-5.7%
HON
Honeywell International Inc.
Peer
5Y
+15.2%
3Y
+26.5%
1Y
+20.2%
6M
+14.2%
1M
-1.4%
1W
-5.3%
LMT
Lockheed Martin Corporation
Peer
5Y
+68.5%
3Y
+25.2%
1Y
+23.5%
6M
+15.5%
1M
-9.9%
1W
-9.1%
UNP
Union Pacific Corporation
Peer
5Y
+24.9%
3Y
+33.4%
1Y
+17.7%
6M
+12.0%
1M
+4.6%
1W
+0.6%
DE
Deere & Company
Peer
5Y
+66.1%
3Y
+45.4%
1Y
+22.6%
6M
+28.9%
1M
-8.0%
1W
+0.4%
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
35.34
Forward P/E
29.24
PEG Ratio
N/A
P/B Ratio
7.26
P/S Ratio
5.16
EV/Revenue
5.54
EV/EBITDA
24.14
Market Cap
$137.52B
Profitability
Profit margins and return metrics
Profit Margin
14.74%
Operating Margin
19.78%
Gross Margin
38.27%
ROE
20.65%
ROA
8.03%
Growth
Revenue and earnings growth rates
Revenue Growth
+10.1%
Earnings Growth
+2.4%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+0.1%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.6
Moderate
Current Ratio
1.28
Good
Quick Ratio
0.71
Poor
Cash/Share
$1.46
Quarterly Earnings History
EPS performance vs analyst estimates
2026-01-29
$N/A
2025-11-04
$3.07
+0.5% surprise
2025-08-05
$2.95
+0.9% surprise
2025-05-02
$2.72
+0.6% surprise
Industrials Sector Comparison
Comparing ETN against 469 companies in the Industrials sector
(39 bullish, 174 neutral, 256 bearish)
P/E Ratio
35.34
This Stock
vs
98.24
Sector Avg
-64.0%
(Discount)
Return on Equity (ROE)
20.65%
This Stock
vs
-19.38%
Sector Avg
-206.5%
(Below Avg)
Profit Margin
14.74%
This Stock
vs
6.65%
Sector Avg
+121.6%
(Superior)
Debt to Equity
0.6
This Stock
vs
2.63
Sector Avg
-77.3%
(Less Debt)
Revenue Growth
10.1%
This Stock
vs
71.29%
Sector Avg
-85.8%
(Slower)
Current Ratio
1.28
This Stock
vs
3.09
Sector Avg
-58.6%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
ETN
Eaton Corporation plc
|
BULLISH | $137.52B | 35.34 | 20.7% | 14.7% | $352.39 | |
|
HON
Honeywell International Inc.
|
BEARISH | $139.38B | 31.74 | 26.1% | 12.6% | $219.97 | Compare |
|
LMT
Lockheed Martin Corporation
|
NEUTRAL | $128.01B | 25.83 | 76.9% | 6.7% | $555.43 | Compare |
|
UNP
Union Pacific Corporation
|
NEUTRAL | $148.06B | 20.84 | 40.4% | 29.1% | $249.4 | Compare |
|
DE
Deere & Company
|
BEARISH | $156.33B | 32.62 | 19.6% | 10.3% | $578.76 | Compare |
ETN
Eaton Corporation plc
BULLISH
Mkt Cap
$137.5B
P/E
35.3
ROE
20.7%
Price
$352.39
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-11-11 | YELTON MICHAEL | Officer | Gift | 819 | - |
| 2025-10-31 | JOHNSON GERALD | Director | Purchase | 100 | $38,434 |
| 2025-10-02 | WADECKI ADAM A. | Officer | Stock Award | 967 | - |
| 2025-08-11 | JOHNSON GERALD | Director | Purchase | 100 | $36,100 |
| 2025-08-07 | LEONETTI OLIVIER C | Officer | Sale | 16,018 | $5,740,688 |
| 2025-08-07 | LEONETTI OLIVIER C | Officer | Option Exercise | 13,582 | $3,964,459 |
| 2025-08-04 | RUIZ STERNADT PAULO | Officer and Director | Stock Award | 890 | - |
| 2025-06-05 | RUIZ STERNADT PAULO | Officer and Director | Gift | 77 | - |
YELTON MICHAEL
Officer
2025-11-11
819 shares
JOHNSON GERALD
Director
2025-10-31
100 shares
·
$38,434
WADECKI ADAM A.
Officer
2025-10-02
967 shares
JOHNSON GERALD
Director
2025-08-11
100 shares
·
$36,100
LEONETTI OLIVIER C
Officer
2025-08-07
16,018 shares
·
$5,740,688
LEONETTI OLIVIER C
Officer
2025-08-07
13,582 shares
·
$3,964,459
RUIZ STERNADT PAULO
Officer and Director
2025-08-04
890 shares
RUIZ STERNADT PAULO
Officer and Director
2025-06-05
77 shares
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
24 analysts
JP Morgan
2025-11-06
Overweight
Overweight
RBC Capital
2025-11-05
Outperform
Outperform
Barclays
2025-11-05
Equal-Weight
Equal-Weight
Mizuho
2025-10-17
Outperform
Outperform
JP Morgan
2025-10-15
Overweight
Overweight
Keybanc
2025-10-14
Overweight
Overweight
Citigroup
2025-10-09
Buy
Buy
Wells Fargo
2025-10-06
Equal-Weight
Equal-Weight
Melius Research
2025-09-15
Hold
Buy
Daiwa Capital
2025-09-11
Outperform
Past News Coverage
Recent headlines mentioning ETN from our newsroom.
Newest → oldest
No matching news yet.