Quality Investor

Eaton Corporation plc

Rank #378

ETN · NYSE · Industrials

Eaton Corporation plc (ETN) — Rank #378 by gross profitability (GP/assets 0.18) · ROE 20.2% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0001551182 · all metrics point-in-time as of the filing date.

About

Eaton Corporation plc operates as a power management company in the United States, Canada, Latin America, Europe, and the Asia Pacific.

Show more

It operates through Electrical Americas, Electrical Global, Aerospace, Vehicle, and eMobility segments. The company offers electrical and industrial components, power distribution and assemblies, residential products, single- and three-phase power quality and connectivity products, wiring devices, circuit protection products, utility power distribution products, and power reliability equipment; and hazardous duty electrical equipment, emergency lighting, fire detection, intrinsically safe explosion-proof instrumentation, and structural support systems. It also provides pumps, motors, hydraulic power units, hoses and fittings, and electro-hydraulic pumps; valves, cylinders, electronic controls, electromechanical actuators, sensors, aircraft flap and slat systems, and nose wheel steering systems; hose and thermoplastic tubing products, fittings, adapters, couplings, and sealing and ducting products; air-to-air refueling systems, fuel pumps, fuel inerting products, sensors, and adapters and regulators; oxygen generation systems, payload carriages, and thermal management products; wiring connectors and cables; and hydraulic and bag filters, strainers and cartridges, and golf grips for manufacturers of commercial and military aircraft, related aftermarket customers, and industrial applications. In addition, the company offers transmissions, clutches, hybrid power systems, superchargers, engine valves and valve actuation systems, locking and limited slip differentials, transmission controls, and fuel vapor components for the vehicle industry; and voltage inverters, converters, fuses, circuit protection units, vehicle controls, power distribution systems, fuel tank isolation valves, and commercial vehicle hybrid systems. The company was formerly known as Abeiron Limited.

The company was founded in 1911 and is based in Dublin, Ireland.

Industry
Specialty Industrial Machinery
Sector
Industrials
Filer Category
Large accelerated filer
Fiscal Year End
December 31
Website
eaton.com

Price History

ETN+176.3% · +22.5% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

Market Cap

$151.24B

P/E (annual)

37.3

P/S (annual)

5.5

P/B

7.5

P/OCF (annual)

33.8

Shareholder Yield

17.3%

Employees

97,303

Industry

Specialty Industrial Machinery

Exchange

NYSE

Signal Flags

1 green
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak

Quality Profile

Profitability

GP / assets
0.18
Return on equity
20.2%
Gross margin trend
N/A

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.77
Current ratio
1.24×
Net cash
-$19.92B

Cash Flow

2/3 pass
Positive FCF
PASS
Cash-backed earnings
WARN
Accruals healthy
PASS
SBC / revenue

Growth

1/1 pass
Revenue growth
Piotroski F-Score
N/A
Share dilution
-16.2%

Terry Smith quality gate

Passes 0/5 Terry Smith thresholds

3 of 5 thresholds not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

18.1%

fairly valued

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -16.2% — per-share value needs a total required return of 1.8% once share-count change is priced in.

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

13.2%

r = 10% (base)

18.1%

r = 12%

22.3%

Net debt / market cap: 13.1%

Base FCF: $3.6B3Y mean FCF: $1.7B

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

16.4xCheap
12.1xmed 17.2x24.0x

P / B

Price / book value per share

2.2xFair
1.5xmed 2.2x3.0x

P / FCF

Price / free cash flow per share

16.8xFair
14.2xmed 21.5x33.1x

Profitability

Gross profitability (GP / assets)

0.18

Primary signal (Novy-Marx).

17th pctl of 36 SIC 35 peers

Return on equity

20.2%

Gross margin

37.6%

37th pctl of 36 SIC 35 peers

Revenue growth (YoY)

Gross margin improving

Margin trend vs prior year.

N/A

Operating Leverage

2013201420152016
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

Revenue CAGR (5Y)

Earnings CAGR (3Y)

18.4%

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.77

6th pctl of 36 SIC 35 peers (best = lowest)

Current ratio

1.24×

3rd pctl of 36 SIC 35 peers

Quick ratio

0.62×

Net cash

-$19.92B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$3.55B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

-0.13

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

Stock-based comp intensity.

Dividend safety

Composite score

3.0 / 5

Good
Payout ratio
39.8%4/5 Strong
FCF coverage
2.19×4/5 Strong
Dividend growth streak
5 yr3/5 Good
Balance-sheet health
D/E 1.77 · IC N/A1/5 Weak

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20112016
Unknown