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ETN

S&P 500
Weak · 38/100

Eaton Corporation

Industrials
Electrical Components & Equipment

$435.78

3.3%

Updated Today 7:15 PM ET

Price — Past Year

▲ Up 26.0% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$163.77B

P/E

41.46x

Forward P/E (est.)

40.17x

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)

6.7%

Rating Score

38/100

Technical Analysis (Educational)
Research

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 $435.78, above its 50-day average ($405.10) and 200-day average ($368.81). 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 58 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 positive — short-term momentum is improving.

Volatility — ATR. Average True Range is the typical daily move. ETN's is $16.63 (~3.8% 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 $426.59 (resistance); its 52-week range is $311.92–$435.43. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 1.5× the 20-day average — heavier than usual, which adds conviction to the move. 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.

Business Overview
Research

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 $163.77B.

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.

Revenue Growth
Research

4Y CAGR

8.7%

Revenue moved from $19.63B in 2021 to $27.45B in 2025, a 8.7% 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?

Profitability
Research

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.

Debt Analysis
Research

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.

Cash Flow Analysis
Research

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.

Valuation Analysis
Research

P/E

41.46x

P/S

5.83x

P/B

6.59x

EV / EBITDA

37.68x

ETN trades at 41.5x trailing earnings (about 40.2x on estimated forward earnings), 5.8x sales, and 6.6x book value. Reverse-engineering today's price implies the market expects roughly 6.7% long-term free-cash-flow growth. That is a rich multiple that prices in a lot of future growth.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
41.5xExpensive
Forward P/E
40.2xExpensive
P/S ratio
5.8xExpensive
Revenue growth
-15.1%Weak
EPS growth
3.2%Weak
Gross margin
36.9%Weak
Net margin
14.0%Strong
ROE
20.8%Strong

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

Sector Peer Comparison

How ETN stacks up against its Industrials peers — valuation, profitability, and growth versus the sector median.

In the Industrials sector (80 S&P 500 companies), ETN ranks #68 of 80 by our overall rating. It trades at a premium versus the sector on earnings (41.5x P/E vs. 30x median) with a lower return on equity (20.8% vs. 24.7%) and slower revenue growth (-15.1% vs. 5.0%).

P/E vs sector

41.5x

median 30x

ROE vs sector

20.8%

median 24.7%

Growth vs sector

-15.1%

median 5.0%

Sector rank

#68

of 80 by rating

CompanyP/ERev Gr.Rating
ETNThis stock41.5x-15.1%Weak· 38
VRT82.1x28.9%Favorable· 61
EMR35x4.0%Neutral· 45
AME35.4x9.5%Neutral· 56
ROK48.8x10.5%Neutral· 54
GNRC88.1x-0.5%Weak· 22
DE33.4x4.0%Weak· 37
UNP20.5x1.9%Favorable· 63
Industrials median30x5.0%52/100

Valuation vs. quality map

sector medianVRTEMRAMEROKGNRCDEUNPETNP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Industrials companies by sub-industry and size. Sector median is across all 80 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$307.30$503.97

vs. $435.78 today · expected CAGR -7%3%

Metric20262027202820292030
Revenue$28.27B$29.12B$29.99B$30.89B$31.82B
Net income$4.24B$4.37B$4.50B$4.63B$4.77B
EPS$10.92$11.25$11.59$11.93$12.29
Share price (low)$273.03$281.22$289.66$298.35$307.30
Share price (high)$447.77$461.20$475.04$489.29$503.97
CAGR (low–high)-37% / 3%-20% / 3%-13% / 3%-9% / 3%-7% / 3%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

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.
Bear Case

The case against ETN:

  • Revenue growth is slow/negative (-15.1%), limiting the upside engine.
  • A rich 41.5x earnings multiple prices in a lot of growth.
  • Our model's overall read is Weak (38/100).
Key Risks
Research

Valuation risk — at 41.5x 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.

Investment Thesis
Research

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 41.5x earnings, which our model scores Weak (38/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

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.