📊 ETN Key Takeaways
Is Eaton Corp plc (ETN) a Good Investment?
Eaton Corp demonstrates solid revenue growth of 10.3% YoY and positive free cash flow generation, but faces concerning capital efficiency issues with ROE of only 4.4% and ROA of 1.6%. The disconnect between 10.3% revenue growth and flat net income (-0.1% YoY) signals margin compression and cost pressures that outpace top-line gains, while a high debt load of $18.6B with minimal cash reserves ($565M) creates financial inflexibility.
Eaton shows high-quality fundamentals with double-digit revenue growth, strong operating and net margins, and robust returns on equity and assets. Financial health appears solid, supported by moderate leverage, excellent interest coverage, and strong free cash flow generation. The main caution is that net income was essentially flat year over year, which suggests investors should watch whether margin gains and earnings conversion continue alongside top-line growth.
Eaton Corp plc Key Strengths (ETN)
- Strong revenue growth of 10.3% YoY indicates solid market demand
- Positive free cash flow of $314M demonstrates cash generation capability
- Interest coverage ratio of 7.7x indicates healthy debt service capacity
- Double-digit revenue growth with an 18.0% operating margin indicates strong execution and pricing/mix discipline
- High profitability and efficiency, with 21.0% ROE, 9.9% ROA, and 12.9% free cash flow margin
- Balance sheet risk looks manageable given 0.51x debt-to-equity, 34.2x interest coverage, and positive free cash flow well above capital expenditures
ETN Stock Risks: Eaton Corp plc Investment Risks
- Extremely low returns on equity (4.4%) and assets (1.6%) signal poor capital allocation and efficiency
- Net income essentially flat despite double-digit revenue growth indicates troubling margin compression
- Weak liquidity position with quick ratio of 0.75x and high debt-to-equity of 0.94x limits financial flexibility
- Net income declined slightly year over year despite strong revenue growth, which may signal earnings pressure below the operating line
- Cash on hand is relatively modest at $622M, limiting balance sheet flexibility if conditions tighten
- Quick ratio of 0.81x suggests near-term liquidity is adequate but not especially conservative without relying on inventory or working capital turnover
Key Metrics to Watch
- Net profit margin trend - must improve to align with revenue growth trajectory
- Return on equity improvement - 4.4% is below cost of capital, unsustainable long-term
- Operating cash flow to net income ratio - monitor conversion quality and sustainability
- Net income growth relative to revenue growth
- Free cash flow margin and operating margin sustainability
Eaton Corp plc (ETN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.2% FCF margin may limit capital allocation flexibility.
ETN Profit Margin, ROE & Profitability Analysis
ETN vs Industrial Sector: How Eaton Corp plc Compares
How Eaton Corp plc compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Eaton Corp plc Stock Overvalued? ETN Valuation Analysis 2026
Based on fundamental analysis, Eaton Corp plc has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Eaton Corp plc Balance Sheet: ETN Debt, Cash & Liquidity
ETN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Eaton Corp plc's revenue has grown significantly by 28% over the 5-year period, indicating strong business expansion. The most recent EPS of $8.02 reflects profitable operations.
ETN Revenue Growth, EPS Growth & YoY Performance
ETN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $6.4B | $866.0M | $2.22 |
| Q3 2025 | $6.3B | $1.0B | $2.53 |
| Q2 2025 | $6.4B | $982.0M | $2.48 |
| Q1 2025 | $5.9B | $821.0M | $2.04 |
| Q3 2024 | $5.9B | $891.0M | $2.22 |
| Q2 2024 | $5.9B | $744.0M | $1.86 |
| Q1 2024 | $5.5B | $638.0M | $1.59 |
| Q3 2023 | $5.3B | $607.0M | $1.52 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Eaton Corp plc Dividends, Buybacks & Capital Allocation
ETN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Eaton Corp plc (CIK: 0001551182)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 22, 2026 | 4 | xslF345X06/tm2615504-1_4seq1.xml | View → |
| May 14, 2026 | 4 | xslF345X06/tm2614665-1_4seq1.xml | View → |
| May 12, 2026 | 4 | xslF345X06/tm2614249-1_4seq1.xml | View → |
| May 8, 2026 | 4 | xslF345X06/tm2614083-12_4seq1.xml | View → |
| May 8, 2026 | 4 | xslF345X06/tm2614083-11_4seq1.xml | View → |
❓ Frequently Asked Questions about ETN
What is the AI rating for ETN?
Eaton Corp plc (ETN) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ETN's key strengths?
Claude: Strong revenue growth of 10.3% YoY indicates solid market demand. Positive free cash flow of $314M demonstrates cash generation capability. ChatGPT: Double-digit revenue growth with an 18.0% operating margin indicates strong execution and pricing/mix discipline. High profitability and efficiency, with 21.0% ROE, 9.9% ROA, and 12.9% free cash flow margin.
What are the risks of investing in ETN?
Claude: Extremely low returns on equity (4.4%) and assets (1.6%) signal poor capital allocation and efficiency. Net income essentially flat despite double-digit revenue growth indicates troubling margin compression. ChatGPT: Net income declined slightly year over year despite strong revenue growth, which may signal earnings pressure below the operating line. Cash on hand is relatively modest at $622M, limiting balance sheet flexibility if conditions tighten.
What is ETN's revenue and growth?
Eaton Corp plc reported revenue of $7.5B.
Does ETN pay dividends?
Eaton Corp plc pays dividends, with $415.0M distributed to shareholders in the trailing twelve months.
Where can I find ETN SEC filings?
Official SEC filings for Eaton Corp plc (CIK: 0001551182) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ETN's EPS?
Eaton Corp plc has a diluted EPS of $2.22.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ETN's fundamental grade?
Based on our AI fundamental analysis in June 2026, Eaton Corp plc has a A grade with 76% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ETN stock overvalued or undervalued?
Valuation metrics for ETN: ROE of 4.4% (sector avg: 15%), net margin of 11.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is ETN's AI grade for 2026?
Our dual AI analysis gives Eaton Corp plc a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ETN's free cash flow?
Eaton Corp plc's operating cash flow is $507.0M, with capital expenditures of $193.0M. FCF margin is 4.2%.
How does ETN compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 11.6% (avg: 10%), ROE 4.4% (avg: 15%), current ratio 1.19 (avg: 1.8).