ETN
Eaton Corp plc
Industrials • CIK: 0001551182
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Market Cap
$124.19B
P/E (TTM)
30.4x
Rev Growth (TTM)
+10.3%
Net Margin (TTM)
14.9%
FCF Yield (TTM)
2.9%
FCF Margin (TTM)
12.9%
Filing Intelligence
5.0/10
10-K filed Feb 26, 2026 • FY 2025
Executive Summary
The company intends to continue its dividend payments, increasing the quarterly dividend by 6% and plans no share repurchases in 2026 due to an upcoming acquisition.. Reorganization creating a new...
Key Concerns
- ●Supply Chain Disruptions and Inflationary Pressures (high)
- ●Cybersecurity and AI Risks (medium)
Key Strengths
- ●Management expects capital expenditures to increase to $1.1 billion in 2026 to support anticipated growth and capacity expansion.
- ●Eaton has a strong liquidity position, with ample flexibility, cash flow, and access to capital markets to meet its debt obligations.
- ●The company is strategically focused on acquiring businesses that offer higher growth and strong returns, aligning with secular trends and...
Cash Flow Health
Free Cash Flow8/8 positive
TTM$3.6B
Q4 '25
$1.6B+34%
Q3 '25
$1.2B+64%
FCF Margin
TTM12.9%
Q4 '2522.3%+33%
Sector: 4.7%Top 25%
OCF Margin16.3%
OCF/NI1.09x
CapEx Coverage4.9x
FCF Yield2.9%
FCF Growth (2Y)+22%
Cash Conversion Cycle
86 days
DSO: 70+DIO: 96−DPO: 81
Capital Allocation & Returns
Balanced
Total Shareholder YieldTTM
TTM2.8%
Div Yield1.3%
+Buyback (TTM)1.5%
Balancing returns with reinvestment
Dividend & Payout Metrics
Dividend Yield (TTM)1.3%
FCF Payout Ratio45.7%
Free Cash Flow (TTM)$3.6B
Stock Repurchases (TTM)$1.9B
Capital Return / FCF98.2%
Est. Dividends Paid (TTM)$1.6B
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
19.9%
Stable
+0.0% YoY+4.6%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
20.3%
8Q: 19.8%
Asset Turnover
0.69x
8Q: 0.65x
Leverage (1+D/E)
1.45x
D/E: 0.45x
DuPont: 20.2% ≈ 19.9% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
6.91x
8Q:6.85x
Flat
Invested Cap Turn
0.98x
8Q:0.91x
+16.4%
CapEx Intensity
3.3%
8Q:2.6%
CapEx/Depreciation
0.91x
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $27.4B | $7.1B↑1.0% | $7.0B↓0.6% | $7.0B↑10.2% | $6.4B↑2.2% | $6.2B↓1.7% | $6.3B↓0.1% | $6.3B↑6.8% | $5.9B |
Operating Income | $6.7B | $1.8B↑0.6% | $1.7B↑4.0% | $1.7B↑10.5% | $1.5B↓1.3% | $1.5B↓0.1% | $1.5B↑2.8% | $1.5B↑9.6% | $1.4B |
Net Income | $4.1B | $1.1B↑12.1% | $1.0B↑2.9% | $982.0M↑1.9% | $964.0M↓0.7% | $971.0M↓3.8% | $1.0B↑1.6% | $993.0M↑21.0% | $821.0M |
Operating Cash Flow | $4.5B | $2.0B↑45.4% | $1.4B↑47.2% | $918.0M↑285.7% | $238.0M↓85.1% | $1.6B↑22.0% | $1.3B↑38.4% | $946.0M↑99.2% | $475.0M |
Free Cash Flow | $3.6B | $1.6B↑34.1% | $1.2B↑63.8% | $716.0M↑686.8% | $91.0M↓93.2% | $1.3B↑19.2% | $1.1B↑48.4% | $759.0M↑159.9% | $292.0M |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
30.4x
Volatile
8Q: 132.7x-1686%
High PEG ratio (3.0x) suggests expensive for growth
Valuation Lenses
Earnings
30.4x
vs – sector
Cash Flow
37.2x
EV/FCF vs –
Growth-Adj
3.0xPEG
Expensive for growth
Quality-Adj
1.5P/E per %ROIC
ROIC: 19.9%
Shareholder Returns
Dividend
1.3%
Buyback
1.5%
Total Yield
2.8%
Market Cap$124.19B
EV$132.16B
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
97/100
Exceptional
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)Top 25%
21.8%
8Q:–
Return on Invested Capital (ROIC)Top 25%
19.9%
8Q:–
+4.6%
vs Sector:0.1%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 20.3%
Asset Turnover: 0.69x
Earnings Quality
Cash Conversion
1.09x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin37.6%
Capital Efficiency
Invested Capital Turnover0.98x
Working Capital
Cash Conversion Cycle86 days
Growth Quality & Momentum
Moderate Growth
Growth Quality Score
70/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
10.3%
OpInc Growth YoY
14.1%
EPS Growth YoY
10.1%
FCF 3Y CAGR
22.5%
Growth Quality Analysis
✓Efficient Growth: Free cash flow growing faster than revenue
✓Sustainability Index: 7.5/10 - Highly sustainable growth
Margin Quality & Sustainability
Moderate
Profitability Cascade
Gross
37.6%
Operating
24.5%
Top 25% in sector
Net
14.9%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
-1.9 pts
FCF: 12.9% | Net: 14.9%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Adequate
Net Debt / EBITDA
–Net Debt: $7.96B
Interest Coverage
–
Balance sheet risk & solvency analysis