Eaton (ETN) AI Stock Analysis

• Market Cap: $133.12B
• Dividend Yield: 1.2%
• Average Volume (3M): 2.46M
• Price to Earnings (P/E): 34.3
• Beta (1Y): 1.43
• Revenue Growth: 8.24%
• EPS Growth: 6.21%
• Country: US
• Employees: 94,443
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 3.07
• Shares Outstanding: 388,400,000
• 10 Day Avg. Volume: 3,150,296
• 30 Day Avg. Volume: 2,461,767
• PEG Ratio: 1.89
• Price to Book (P/B): 7.14
• Price to Sales (P/S): 5.30
• P/FCF Ratio: 37.50
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 5.88
• Enterprise Value/Gross Profit: 15.44
• Enterprise Value/Ebitda: 25.99
• 1Y Price Target: $423.21
• Price Target Upside: 25.10% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 12.1
• Revenue Forecast (FY): $27.46B

• Rating: 69 Neutral
• Price Target: $375.00 ▲(10.85% Upside)

Eaton's overall stock score is driven by strong financial performance and positive earnings call insights, highlighting growth in key segments and strategic acquisitions. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation, which tempers the overall score.

Positive Factors

Revenue Growth

Eaton's upward revision of its organic growth forecast indicates strong demand and effective market strategies, supporting long-term revenue expansion.

Strategic Acquisitions

The acquisition of Boyd's thermal business enhances Eaton's data center capabilities, positioning it well in high-growth markets and boosting future revenue.

Aerospace Segment Growth

Strong growth and margin expansion in the Aerospace segment reflect Eaton's competitive position and ability to capitalize on industry trends.

Negative Factors

Challenges in Vehicle Segment

Declining sales in the Vehicle segment highlight market challenges and potential pressure on Eaton's overall growth and profitability.

Decline in eMobility Business

The decline in eMobility revenue and resulting losses suggest difficulties in adapting to market shifts, potentially impacting future growth.

Rising Debt Levels

Increased debt levels could strain Eaton's financial flexibility, necessitating careful management to maintain long-term stability.

Eaton Business Overview & Revenue Model

Company Description

Eaton Corporation plc is a multinational power management company headquartered in Dublin, Ireland. It operates across several sectors, including Electrical, Industrial, Aerospace, and Vehicle markets. Eaton provides a wide range of products and services designed to manage electrical, hydraulic, and mechanical power more efficiently and sustainably. Its core offerings include power distribution and control equipment, backup power solutions, hydraulics systems, and vehicle drivetrain components.

How the Company Makes Money

Eaton generates revenue through multiple key streams, primarily by selling its electrical and industrial products and services. The Electrical sector, which includes power distribution, circuit protection, and control equipment, constitutes a significant portion of its revenue. The Industrial sector, focusing on hydraulics and filtration systems, also contributes considerably to earnings. Additionally, Eaton earns revenue from its Aerospace segment through the supply of fuel, hydraulic, and motion control systems to commercial and military aerospace markets. The company's Vehicle segment generates income by providing solutions for commercial vehicles, enhancing fuel efficiency, and reducing emissions. Eaton's partnerships with various industries and sectors, along with its focus on sustainability and innovation, further bolster its revenue generation capabilities.

Eaton Financial Statement Overview

Summary

Eaton's financial statements indicate strong growth and profitability. The income statement shows consistent revenue growth and healthy margins. The balance sheet reflects financial stability with prudent leverage, and the cash flow statement highlights strong cash generation capabilities.

Income Statement

Eaton's income statement shows strong performance with consistent revenue growth over the years, culminating in a 2.47% growth in TTM. The company maintains healthy margins, with a gross profit margin of 38.18% and a net profit margin of 14.74% in TTM. The EBIT and EBITDA margins are also robust, indicating efficient operations. Overall, Eaton demonstrates solid profitability and growth trajectory.

Balance Sheet

Eaton's balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.59 in TTM, indicating prudent leverage. The return on equity is strong at 21.07%, showcasing effective use of equity capital. The equity ratio stands at 46.47%, suggesting a balanced capital structure. Overall, the balance sheet indicates financial stability with a focus on maintaining a healthy leverage position.

Cash Flow

Eaton's cash flow statement reveals positive trends, with a 6.21% growth in free cash flow in TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 1.05, indicating efficient conversion of earnings into cash. The free cash flow to net income ratio of 0.89 reflects a solid cash flow position. Overall, Eaton's cash flow management is commendable, supporting its operational and strategic initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.63B	24.88B	23.20B	20.75B	19.63B	17.86B
Gross Profit	10.15B	9.50B	8.43B	6.91B	6.32B	5.45B
EBITDA	6.03B	5.63B	4.96B	3.95B	3.96B	2.78B
Net Income	3.93B	3.79B	3.22B	2.46B	2.14B	1.41B
Balance Sheet
Total Assets	40.65B	38.38B	38.43B	35.03B	34.03B	31.82B
Cash, Cash Equivalents and Short-Term Investments	565.00M	2.08B	2.61B	555.00M	568.00M	1.10B
Total Debt	11.22B	9.82B	9.80B	9.11B	8.92B	8.38B
Total Liabilities	21.77B	19.85B	19.36B	17.95B	17.58B	16.85B
Stockholders Equity	18.89B	18.49B	19.04B	17.04B	16.41B	14.93B
Cash Flow
Free Cash Flow	3.67B	3.52B	2.87B	1.94B	1.59B	2.56B
Operating Cash Flow	4.10B	4.33B	3.62B	2.53B	2.16B	2.94B
Investing Cash Flow	-1.05B	-271.00M	-2.58B	-1.20B	-1.76B	397.00M
Financing Cash Flow	-3.06B	-3.94B	-871.00M	-1.34B	-535.00M	-3.26B

Eaton Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 338.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETN, the sentiment is Negative. The current price of 338.29 is below the 20-day moving average (MA) of 369.88, below the 50-day MA of 370.60, and above the 200-day MA of 333.09, indicating a neutral trend. The MACD of -7.00 indicates Positive momentum. The RSI at 37.72 is Neutral, neither overbought nor oversold. The STOCH value of 11.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ETN.

Eaton Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PH	77 Outperform	$103.60B	29.24	27.30%	0.86%	0.22%	26.66%
EMR	71 Outperform	$71.31B	31.37	10.91%	1.69%	2.97%	18.14%
ITW	71 Outperform	$69.93B	23.48	91.71%	2.52%	-0.41%	-10.88%
ROK	71 Outperform	$41.55B	48.28	24.24%	1.43%	0.98%	-7.51%
ETN	69 Neutral	$133.12B	34.28	20.69%	1.20%	8.24%	6.21%
IR	66 Neutral	$29.11B	54.65	5.35%	0.11%	4.20%	-34.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Eaton Corporate Events

Eaton Corporation Reports Record Third Quarter Results

Eaton Corporation, a leading intelligent power management company, operates across various sectors including electrical, aerospace, and mobility, focusing on sustainable power solutions. The company reported record-breaking third-quarter results for 2025, with significant growth in orders and backlog, particularly in its Electrical Americas and Aerospace segments. Eaton achieved a record earnings per share of $2.59, with adjusted earnings per share reaching $3.07, driven by a 10% increase in sales compared to the previous year. The company’s Electrical Americas segment saw a 15% rise in sales, while the Aerospace segment experienced a 14% increase, both contributing to the overall strong performance. Despite challenges in the Vehicle and eMobility segments, Eaton maintained robust segment margins of 25.0%, exceeding expectations. Looking forward, Eaton’s management remains optimistic about achieving its full-year targets, with anticipated organic growth and continued investment in capacity expansion to capitalize on opportunities in digitalization and infrastructure spending.

Eaton’s Earnings Call Highlights Robust Growth Amid Challenges

Eaton Corporation’s recent earnings call conveyed a strong overall performance, highlighting significant growth in the data center and aerospace segments. The company’s strategic acquisitions have bolstered these areas, although challenges persist in the vehicle and eMobility segments. A slowdown in the residential market has also impacted short-term growth. Nevertheless, Eaton’s strategic investments and expanding backlog provide confidence for continued success.

Eaton Enters New $3 Billion Credit Agreement

On September 29, 2025, Eaton Corporation entered into a new $3 billion Revolving Credit Agreement, replacing its previous facility from 2022. This agreement increases the maximum aggregate borrowings and allows for further commitment increases, reflecting Eaton’s strategic financial management and positioning for growth.

The most recent analyst rating on (ETN) stock is a Buy with a $438.00 price target. To see the full list of analyst forecasts on Eaton stock, see the ETN Stock Forecast page.