📊 ETN Key Takeaways
Is Eaton Corp plc (ETN) a Good Investment?
Eaton Corp demonstrates exceptional operational efficiency with an 18% operating margin and strong profitability metrics (14.9% net margin, 21% ROE). The company is generating substantial free cash flow of $3.6B while maintaining a healthy balance sheet with a 0.51x debt-to-equity ratio and excellent 34.2x interest coverage, indicating robust financial health and capacity for shareholder returns.
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.
Why Buy Eaton Corp plc Stock? ETN Key Strengths
- Outstanding profitability with 21% ROE and 9.9% ROA, indicating efficient capital deployment
- Strong revenue growth of 10.3% YoY coupled with earnings growth (10% EPS growth), demonstrating top-line and bottom-line expansion
- Exceptional free cash flow generation of $3.6B (12.9% FCF margin) provides financial flexibility and investment capacity
- Conservative leverage with 0.51x debt-to-equity and 34.2x interest coverage, indicating minimal financial distress risk
- Robust operating cash flow of $4.5B supports dividend capacity and organic growth investments
- 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
- Quick ratio of 0.81x below 1.0x suggests potential short-term liquidity constraints despite adequate current ratio
- Capital intensity of 3.4% (CapEx/Revenue) in industrial manufacturing may require sustained investment to maintain competitiveness
- Modest cash position of $622M relative to $9.9B debt and $41.3B total assets limits financial flexibility for major acquisitions or downturns
- Net income growth essentially flat (-0.1% YoY) despite 10.3% revenue growth indicates margin pressure or one-time items requiring investigation
- 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
- Operating margin trend and sustainability amid competitive industrial market dynamics
- Free cash flow conversion and capital allocation priorities between debt reduction, dividends, and reinvestment
- Revenue growth consistency and organic versus inorganic contribution to the 10.3% expansion
- Quick ratio improvement and working capital management efficiency
- 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
Eaton Corp plc presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $5.2B | $601.0M | $1.50 |
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
❓ Frequently Asked Questions about ETN
What is the AI rating for ETN?
Eaton Corp plc (ETN) has a Combined AI Rating of BUY from Claude (STRONG BUY) and ChatGPT (BUY) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ETN's key strengths?
Claude: Outstanding profitability with 21% ROE and 9.9% ROA, indicating efficient capital deployment. Strong revenue growth of 10.3% YoY coupled with earnings growth (10% EPS growth), demonstrating top-line and bottom-line expansion. 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: Quick ratio of 0.81x below 1.0x suggests potential short-term liquidity constraints despite adequate current ratio. Capital intensity of 3.4% (CapEx/Revenue) in industrial manufacturing may require sustained investment to maintain competitiveness. 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 $27.4B.
Does ETN pay dividends?
Eaton Corp plc pays dividends, with $1,626.0M 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 $10.45.
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 rating reflects both perspectives for balanced insights.
Is ETN a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Eaton Corp plc has a BUY rating with 84% 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 21.0% (sector avg: 15%), net margin of 14.9% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy ETN stock in 2026?
Our dual AI analysis gives Eaton Corp plc a combined BUY rating 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 $4.5B, with capital expenditures of $919.0M. FCF margin is 12.9%.
How does ETN compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 14.9% (avg: 10%), ROE 21.0% (avg: 15%), current ratio 1.32 (avg: 1.8).