Eaton (ETN) AI Stock Analysis

• Market Cap: $137.28B
• Dividend Yield: 1.25%
• Average Volume (3M): 2.93M
• Price to Earnings (P/E): 35.3
• Beta (1Y): 1.44
• 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: 2,274,903
• 30 Day Avg. Volume: 2,930,006
• 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: 1.14
• Enterprise Value/Revenue: 5.88
• Enterprise Value/Gross Profit: 15.44
• Enterprise Value/Ebitda: 25.99
• 1Y Price Target: $425.25
• Price Target Upside: 28.10% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 12.1
• Revenue Forecast (FY): $27.54B

• Rating: 75 Outperform
• Price Target: $386.00 ▲(16.27% Upside)

Eaton's overall stock score reflects strong financial performance and positive earnings call sentiment, supported by strategic acquisitions and a robust backlog. However, technical indicators and valuation suggest caution, with potential overvaluation and mixed market momentum. Challenges in the Vehicle and eMobility segments also present risks.

Positive Factors

Revenue Growth

Eaton's consistent revenue and margin growth across key segments highlight its strong market position and operational efficiency, supporting long-term profitability.

Strategic Acquisitions

The acquisition of Boyd enhances Eaton's data center capabilities, positioning it for growth in the high-demand liquid cooling market, strengthening its competitive edge.

Financial Flexibility

The new credit agreement enhances Eaton's financial flexibility, supporting strategic initiatives and growth opportunities, ensuring long-term financial health.

Negative Factors

Challenges in Vehicle Segment

Weaknesses in the Vehicle segment, particularly in North America, could hinder Eaton's overall growth, affecting profitability and market competitiveness.

eMobility Segment Decline

The decline in eMobility highlights challenges in adapting to market shifts, potentially impacting Eaton's future growth in the sustainable transport sector.

Leadership Transition

The CFO's departure during a leadership transition may create uncertainty, affecting strategic continuity and financial management in the near term.

Eaton Business Overview & Revenue Model

Company Description

Eaton Corporation plc operates as a power management company worldwide. The company's Electrical Americas and Electrical Global segment provides electrical components, 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, power reliability equipment, and services, as well as hazardous duty electrical equipment, emergency lighting, fire detection, explosion-proof instrumentation, and structural support systems. Its Aerospace segment offers 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, thermoplastic tubing products, fittings, adapters, couplings, and sealing and ducting products; air-to-air refueling systems, fuel pumps, fuel inerting products, sensors, valves, and adapters and regulators; oxygen generation system, payload carriages, and thermal management products; and wiring connectors and cables, as well as hydraulic and bag filters, strainers and cartridges, and golf grips for manufacturers of commercial and military aircraft, and related after-market customers, as well as industrial applications. The company's Vehicle segment 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. Its eMobility segment provides voltage inverters, converters, fuses, onboard chargers, circuit protection units, vehicle controls, power distribution systems, fuel tank isolation valves, and commercial vehicle hybrid systems. Eaton Corporation plc was founded in 1911 and is based in Dublin, Ireland.

How the Company Makes Money

Eaton generates revenue through multiple key streams, primarily focusing on its electrical and industrial segments. The electrical segment includes products such as circuit breakers, power distribution equipment, and energy management solutions, which are sold to utilities, commercial enterprises, and industrial customers. The hydraulic segment offers hydraulic components and systems for construction, agriculture, and manufacturing applications. Additionally, Eaton's aerospace division provides aircraft fuel systems, hydraulic systems, and other components to both commercial and military aerospace sectors. The company also benefits from strategic partnerships with other firms for co-development of technologies and solutions, enhancing its market reach and innovation capabilities. A significant factor contributing to Eaton's earnings is its commitment to sustainability and energy efficiency, which has driven demand for its innovative products and services in an increasingly environmentally conscious market.

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: 331.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 331.98 is below the 20-day moving average (MA) of 339.98, below the 50-day MA of 360.87, and below the 200-day MA of 336.00, indicating a bearish trend. The MACD of -5.21 indicates Negative momentum. The RSI at 40.43 is Neutral, neither overbought nor oversold. The STOCH value of 70.43 is Neutral, 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	79 Outperform	$113.46B	32.03	27.30%	0.79%	0.22%	26.66%
EMR	76 Outperform	$76.97B	33.86	10.91%	1.56%	2.97%	18.14%
ETN	75 Outperform	$137.28B	35.35	20.69%	1.25%	8.24%	6.21%
ITW	71 Outperform	$74.67B	24.98	91.71%	2.37%	-0.41%	-10.88%
ROK	71 Outperform	$46.06B	53.51	24.24%	1.31%	0.98%	-7.51%
IR	66 Neutral	$31.03B	58.26	5.35%	0.10%	4.20%	-34.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Eaton Corporate Events

Eaton Announces CFO Departure Amidst Leadership Transition

On November 14, 2025, Eaton Corporation announced the planned departure of Olivier Leonetti, its Executive Vice President and Chief Financial Officer, effective April 1, 2026. The company is conducting a comprehensive search for his successor, reaffirming its 2025 full-year guidance. Leonetti, who joined Eaton in January 2024, will continue in his role until a successor is appointed, ensuring a smooth transition. His contributions have been acknowledged by Eaton’s CEO, Paulo Ruiz, as significant in building the company’s growth and agility.

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.