Eaton (ETN) AI Stock Analysis

• Market Cap: $134.60B
• Dividend Yield: 1.15%
• Average Volume (3M): 2.48M
• Price to Earnings (P/E): 35.0
• Beta (1Y): 1.44
• Revenue Growth: 7.66%
• EPS Growth: 9.19%
• Country: US
• Employees: 94,443
• Sector: Industrials
• Sector Strength: 75
• Industry: Industrial - Machinery
• EPS (TTM): 2.95
• Shares Outstanding: 389,300,000
• 10 Day Avg. Volume: 2,079,059
• 30 Day Avg. Volume: 2,482,040
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 5.80
• Enterprise Value/Gross Profit: 15.20
• Enterprise Value/Ebitda: 27.23
• 1Y Price Target: $384.80
• Price Target Upside: 9.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 76 Outperform
• Price Target: $403.00 ▲(14.48% Upside)

Eaton's overall stock score reflects its strong financial performance and positive earnings outlook, driven by growth in key segments like Electrical Americas and Aerospace. The technical analysis presents a mixed picture, with short-term weakness but long-term strength. Valuation concerns due to a high P/E ratio and modest dividend yield slightly dampen the score. The raised guidance and strategic initiatives provide confidence in Eaton's future growth prospects.

Positive Factors

Earnings and Financial Performance

ETN is expected to continue leading the industry, with Data Center revenue up by approximately 50% and an 18% increase in the negotiation pipeline quarter-over-quarter.

Growth and Development

ETN announced an agreement to acquire designer and builder of pre-integrated modular power enclosures for data centers, Fibrebond Corporation.

Strategic Initiatives

The US Reshoring initiative is progressing faster than anticipated, positioning ETN as a top beneficiary of this trend.

Negative Factors

Industry Challenges

With BEV adoption rates tapering, investors may question the relevancy of ETN's Vehicle and eMobility operations to its longer-term growth focus.

Market Concerns

Shares of ETN are down ~15% relative to the S&P 500 to start 2025.

Revenue Fluctuations

Eaton's 1Q25 orders are expected to be down year-over-year due to challenging comparisons from a large order in the previous year, not due to a slowdown in the market.

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 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 demonstrates a strong financial position with consistent revenue and profit growth, efficient operations, and robust cash flow generation. The company's balanced approach to managing debt and equity supports its financial stability. While the rising debt levels require attention, Eaton's overall financial health is solid, positioning it well for future growth in the industrial machinery sector.

Income Statement

Eaton's income statement shows strong performance with consistent revenue growth and healthy profit margins. The TTM data indicates a revenue growth rate of 2.68%, supported by a solid gross profit margin of 38.20% and a net profit margin of 15.10%. The EBIT and EBITDA margins are also robust at 14.08% and 20.71% respectively, indicating efficient operations and cost management. Overall, Eaton demonstrates a stable and profitable income trajectory.

Balance Sheet

Eaton's balance sheet reflects a balanced financial structure with a debt-to-equity ratio of 0.62, which is manageable within the industry norms. The return on equity (ROE) is strong at 21.00%, indicating effective use of equity to generate profits. The equity ratio stands at 46.03%, suggesting a solid equity base. While the company maintains a healthy balance, the rising debt levels warrant monitoring to ensure long-term financial stability.

Cash Flow

Eaton's cash flow statement highlights a positive trend with a free cash flow growth rate of 9.22% in the TTM period. The operating cash flow to net income ratio is 0.43, and the free cash flow to net income ratio is 0.81, indicating strong cash generation relative to earnings. The company effectively converts its earnings into cash, supporting its operational and investment needs. Continued focus on cash flow management will be crucial to sustain growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.99B	24.88B	23.20B	20.75B	19.63B	17.86B
Gross Profit	9.92B	9.50B	8.43B	6.91B	6.32B	5.45B
EBITDA	5.54B	5.63B	4.96B	3.95B	3.96B	2.78B
Net Income	3.92B	3.79B	3.22B	2.46B	2.14B	1.41B
Balance Sheet
Total Assets	40.51B	38.38B	38.43B	35.03B	34.03B	31.82B
Cash, Cash Equivalents and Short-Term Investments	584.00M	2.08B	2.61B	555.00M	568.00M	1.10B
Total Debt	11.58B	9.82B	9.80B	9.11B	8.92B	8.38B
Total Liabilities	21.86B	19.85B	19.36B	17.95B	17.58B	16.85B
Stockholders Equity	18.65B	18.49B	19.04B	17.04B	16.41B	14.93B
Cash Flow
Free Cash Flow	3.62B	3.52B	2.87B	1.94B	1.59B	2.56B
Operating Cash Flow	4.06B	4.33B	3.62B	2.53B	2.16B	2.94B
Investing Cash Flow	-250.00M	-271.00M	-2.58B	-1.20B	-1.76B	397.00M
Financing Cash Flow	-3.79B	-3.94B	-871.00M	-1.34B	-535.00M	-3.26B

Eaton Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 352.02
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETN, the sentiment is Positive. The current price of 352.02 is below the 20-day moving average (MA) of 359.92, below the 50-day MA of 359.57, and above the 200-day MA of 328.06, indicating a neutral trend. The MACD of -4.65 indicates Positive momentum. The RSI at 44.68 is Neutral, neither overbought nor oversold. The STOCH value of 40.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ETN.

Eaton Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PH	79 Outperform	$96.47B	27.67	27.42%	0.88%	-0.40%	24.40%
ETN	76 Outperform	$134.60B	34.97	20.76%	1.15%	7.66%	9.19%
EMR	73 Outperform	$75.05B	28.44	10.86%	1.58%	4.78%	59.68%
ROK	73 Outperform	$39.35B	41.21	28.46%	1.47%	-8.23%	-3.29%
ITW	73 Outperform	$77.75B	23.64	109.06%	2.25%	-1.40%	11.65%
IR	67 Neutral	$32.25B	62.21	5.21%	0.10%	4.67%	-36.65%
Sector *	64 Neutral	$10.95B	16.10	8.81%	1.99%	2.59%	-16.41%

Eaton Corporate Events

Eaton Expands Board with Gerald Johnson Appointment

On July 23, 2025, Eaton Corporation plc announced the election of Gerald Johnson to its Board of Directors, expanding the board from eleven to twelve members. Johnson, who retired as Executive Vice President of Global Manufacturing and Sustainability at General Motors, brings over 40 years of experience in global manufacturing and operations. His appointment is expected to enhance Eaton’s strategic growth initiatives, particularly in operations excellence and customer focus, aligning with the company’s commitment to sustainable power management solutions.

The most recent analyst rating on (ETN) stock is a Buy with a $340.00 price target. To see the full list of analyst forecasts on Eaton stock, see the ETN Stock Forecast page.

Eaton Announces Departure of Executive VP Ernest Marshall

On July 21, 2025, Eaton Corporation plc announced the upcoming departure of Ernest Marshall, their Executive Vice President and Chief Human Resources Officer, effective September 30, 2025. In connection with his departure, Mr. Marshall will receive a compensation package including a payment of 1.5 times his annual salary and target incentive, pro-rated eligibility in incentive programs, and continued vesting of stock options and restricted share units.

The most recent analyst rating on (ETN) stock is a Buy with a $340.00 price target. To see the full list of analyst forecasts on Eaton stock, see the ETN Stock Forecast page.