NYSE · Industrials

Eaton Corporation plc

ETN · Specialty Industrial Machinery

$423.85

▼ -1.7 (-0.4%)

Data cached · refreshes every 10 min

Mr. Market is currently offering Eaton Corporation plc at $423.85.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

Overall Grade

Defensive

Enterprising

Profitability A

Gross Profit Margin 37.6%

Operating Margin 19.0%

Net Income Margin 14.9%

Fin. Health C

Years to Pay Off Debt 2.6 yrs

Working Capital vs Long-Term Debt -$5.8B

Working Capital $3.0B

Valuation F

Margin of Safety 0.0%

Price-to-Book 8.47x

Cash Flow B

Free Cash Flow $3.6B

CapEx % of Net Income 22.5%

Owner Earnings $6.0B

4/7

Graham Score

Enterprising

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $164.4B

Enterprise Value $175.0B

P/E (TTM) 40.48

Dividend Yield 0.98%

Exchange NYSE

Key Margins

Gross Profit 37.6%

Operating Margin 19.0%

Net Margin 14.9%

Company Info

Sector Industrials

Industry Specialty Industrial Machinery

Employees 97303

Country Ireland

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Eaton Corporation plc at $423.85.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

At $423.85, the stock trades at a 291% premium to its Graham Number of $108.50. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.

About Eaton Corporation plc

Eaton Corporation plc operates as a power management company in the United States, Canada, Latin America, Europe, and the Asia Pacific. The company operates through Electrical Americas, Electrical Global, Aerospace, Vehicle, and eMobility segments. It offers 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, and power reliability equipment; and hazardous duty electrical equipment, emergency lighting, fire detection, intrinsically safe explosion-proof instrumentation, and structural support systems. It also provides 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, and adapters and regulators; oxygen generation system, payload carriages, and thermal management products; wiring connectors and cables; 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. In addition, the company 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; voltage inverters, converters, fuses, circuit protection units, vehicle controls, power distribution systems, fuel tank isolation valves, and commercial vehicle hybrid systems. The company formerly known as Abeiron Limited. The company was founded in 1911 and is based in Dublin, Ireland.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	37.6% ▼	38.2%	36.4%	33.2%	N/A
Operating Margin %	19.0% ▲	18.6%	16.7%	14.4%	N/A
Net Income %	14.9% ▼	15.3%	13.9%	11.9%	N/A
Diluted EPS	10.45 ▲	9.50	8.02	6.14	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$41.3B	$38.4B	$38.4B	$35.0B	N/A
Total Debt	$10.5B ↑	$9.8B	$9.8B	$9.1B	N/A
Working Capital	$3.0B ▼	$3.9B	$3.9B	$2.4B	N/A
Years to Pay Debt	2.58	2.59	3.05	3.70	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$3.6B ▲	$3.5B	$2.9B	$1.9B	N/A
Owner Earnings	$6.0B	$5.5B	$4.9B	$4.0B	N/A
CapEx % of Net Income	22.5%	21.3%	23.5%	24.3%	N/A

Income Statement

	2025	2024	2023	2022	2021
Tax Effect Of Unusual Items	0	0	0	3,672
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	6,179,000	5,617,000	4,904,000	3,985,000
Total Unusual Items		0	0	24,000	617,000
Total Unusual Items Excluding Goodwill		0	0	24,000	617,000
Net Income From Continuing Operation Net Minority Interest	4,087,000	3,794,000	3,218,000	2,462,000
Reconciled Depreciation	1,006,000	921,000	926,000	954,000
Reconciled Cost Of Revenue	17,131,000	15,375,000	14,762,000	13,865,000
EBITDA	6,179,000	5,617,000	4,904,000	4,009,000
EBIT	5,173,000	4,696,000	3,978,000	3,055,000
Net Interest Income	-241,000	-130,000	-151,000	-144,000
Interest Expense	241,000	130,000	151,000	144,000
Normalized Income	4,087,000	3,794,000	3,218,000	2,441,672
Net Income From Continuing And Discontinued Operation	4,087,000	3,794,000	3,218,000	2,462,000
Total Expenses	22,239,000	20,246,000	19,311,000	17,757,000
Diluted Average Shares	391,200	399,400	401,100	400,800
Basic Average Shares	389,900	397,600	399,100	398,700
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	4,087,000	3,794,000	3,218,000	2,462,000
Net Income Common Stockholders	4,087,000	3,794,000	3,218,000	2,462,000
Net Income	4,087,000	3,794,000	3,218,000	2,462,000
Minority Interests	-3,000	-4,000	-5,000	-4,000
Net Income Including Noncontrolling Interests	4,090,000	3,798,000	3,223,000	2,465,000
Net Income Continuous Operations	4,091,000	3,798,000	3,223,000	2,466,000
Tax Provision	841,000	768,000	604,000	445,000
Pretax Income	4,932,000	4,566,000	3,827,000	2,911,000
Other Income Expense	-37,000	64,000	93,000	60,000
Other Non Operating Income Expenses	-37,000	64,000	93,000	36,000
Special Income Charges		0	0	24,000	617,000
Gain On Sale Of Business		0	0	24,000	617,000
Net Non Operating Interest Income Expense	-241,000	-130,000	-151,000	-144,000
Interest Expense Non Operating	241,000	130,000	151,000	144,000
Operating Income	5,209,000	4,632,000	3,885,000	2,995,000
Operating Expense	5,108,000	4,871,000	4,549,000	3,892,000
Research And Development	797,000	794,000	754,000	665,000
Selling General And Administration	4,311,000	4,077,000	3,795,000	3,227,000
Gross Profit	10,317,000	9,503,000	8,434,000	6,887,000
Cost Of Revenue	17,131,000	15,375,000	14,762,000	13,865,000
Total Revenue	27,448,000	24,878,000	23,196,000	20,752,000
Operating Revenue	27,448,000	24,878,000	23,196,000	20,752,000

Balance Sheet

	2025	2024	2023	2022	2021
Ordinary Shares Number	387,900	392,900	399,400	397,800
Share Issued	387,900	392,900	399,400	397,800
Net Debt	9,273,000	8,597,000	8,781,000	8,361,000
Total Debt	10,532,000	9,821,000	9,802,000	9,114,000
Tangible Book Value	-1,398,000	-882,000	-1,033,000	-3,244,000
Invested Capital	29,320,000	27,640,000	28,305,000	25,693,000
Working Capital	2,985,000	3,944,000	3,928,000	2,386,000
Net Tangible Assets	-1,398,000	-882,000	-1,033,000	-3,244,000
Capital Lease Obligations	637,000	669,000	533,000	459,000
Common Stock Equity	19,425,000	18,488,000	19,036,000	17,038,000
Total Capitalization	28,183,000	26,966,000	27,280,000	25,359,000
Total Equity Gross Minority Interest	19,469,000	18,531,000	19,069,000	17,075,000
Minority Interest	44,000	43,000	33,000	38,000
Stockholders Equity	19,425,000	18,488,000	19,036,000	17,038,000
Other Equity Interest		-1,000	-1,000		-1,000
Gains Losses Not Affecting Retained Earnings	-4,118,000	-4,342,000	-3,906,000	-3,946,000
Other Equity Adjustments	-4,118,000	-4,342,000	-3,906,000	-3,946,000
Retained Earnings	10,702,000	10,096,000	10,305,000	8,468,000
Additional Paid In Capital	12,837,000	12,731,000	12,634,000	12,512,000
Capital Stock	4,000	4,000	4,000	4,000
Common Stock	4,000	4,000	4,000	4,000
Total Liabilities Net Minority Interest	21,782,000	19,850,000	19,363,000	17,939,000
Total Non Current Liabilities Net Minority Interest	12,412,000	11,993,000	11,616,000	11,579,000
Other Non Current Liabilities	1,889,000	1,666,000	1,489,000	1,443,000
Employee Benefits	863,000	905,000	948,000	826,000
Non Current Pension And Other Postretirement Benefit Plans	863,000	905,000	948,000	826,000
Non Current Deferred Liabilities	265,000	275,000	402,000	530,000
Non Current Deferred Taxes Liabilities	265,000	275,000	402,000	530,000
Long Term Debt And Capital Lease Obligation	9,395,000	9,147,000	8,777,000	8,780,000
Long Term Capital Lease Obligation	637,000	669,000	533,000	459,000
Long Term Debt	8,758,000	8,478,000	8,244,000	8,321,000
Current Liabilities	9,370,000	7,857,000	7,747,000	6,360,000
Other Current Liabilities	3,421,000	2,835,000	2,681,000	2,487,000
Current Debt And Capital Lease Obligation	1,137,000	674,000	1,025,000	334,000
Current Debt	1,137,000	674,000	1,025,000	334,000
Other Current Borrowings				34,000
Commercial Paper				300,000
Pensionand Other Post Retirement Benefit Plans Current	644,000	670,000	676,000	467,000
Payables And Accrued Expenses	4,168,000	3,678,000	3,365,000	3,072,000
Payables	4,168,000	3,678,000	3,365,000	3,072,000
Accounts Payable	4,168,000	3,678,000	3,365,000	3,072,000
Total Assets	41,251,000	38,381,000	38,432,000	35,014,000
Total Non Current Assets	28,895,000	26,580,000	26,757,000	26,269,000
Other Non Current Assets	2,281,000	2,066,000	2,052,000	1,940,000
Non Current Deferred Assets	707,000	609,000	458,000	330,000
Non Current Deferred Taxes Assets	707,000	609,000	458,000	330,000
Goodwill And Other Intangible Assets	20,823,000	19,370,000	20,069,000	20,282,000
Other Intangible Assets	5,054,000	4,657,000	5,092,000	5,486,000
Goodwill	15,769,000	14,713,000	14,977,000	14,796,000
Net PPE	5,084,000	4,535,000	4,178,000	3,717,000
Accumulated Depreciation	-5,712,000	-5,333,000	-5,208,000	-4,867,000
Gross PPE	10,796,000	9,868,000	9,386,000	8,584,000
Other Properties	768,000	806,000	648,000	570,000
Machinery Furniture Equipment	7,667,000	6,823,000	6,497,000	5,885,000
Properties	2,361,000	2,239,000	2,241,000	2,129,000
Current Assets	12,355,000	11,801,000	11,675,000	8,746,000
Other Current Assets	1,444,000	875,000	852,000	685,000
Prepaid Assets					677,000
Inventory	4,721,000	4,227,000	3,739,000	3,430,000
Other Inventories		-1,000		-1,000
Finished Goods	1,961,000	1,576,000	1,354,000	1,375,000
Work In Process	1,034,000	1,038,000	870,000	781,000
Raw Materials	1,726,000	1,614,000	1,515,000	1,275,000
Receivables	5,387,000	4,619,000	4,475,000	4,076,000
Accounts Receivable	5,387,000	4,619,000	4,475,000	4,076,000
Allowance For Doubtful Accounts Receivable	-57,000	-55,000	-38,000	-31,000
Gross Accounts Receivable	5,444,000	4,674,000	4,513,000	4,107,000
Cash Cash Equivalents And Short Term Investments	803,000	2,080,000	2,609,000	555,000
Other Short Term Investments	181,000	1,525,000	2,121,000	261,000
Cash And Cash Equivalents	622,000	555,000	488,000	294,000
Cash Financial	622,000	555,000	488,000	294,000

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	3,553,000	3,519,000	2,867,000	1,935,000
Repurchase Of Capital Stock	-1,862,000	-2,492,000	0	-286,000
Repayment Of Debt	-717,000	-1,015,000	-19,000	-2,012,000
Issuance Of Debt	1,058,000	1,084,000	818,000	1,995,000
Capital Expenditure	-919,000	-808,000	-757,000	-598,000
End Cash Position	622,000	555,000	488,000	294,000
Beginning Cash Position	555,000	488,000	294,000	297,000
Effect Of Exchange Rate Changes	-131,000	-52,000	16,000	4,000
Changes In Cash	198,000	119,000	178,000	-7,000
Financing Cash Flow	-3,173,000	-3,936,000	-871,000	-1,340,000
Cash Flow From Continuing Financing Activities	-3,173,000	-3,936,000	-871,000	-1,340,000
Net Other Financing Charges	-66,000	-74,000	-58,000	-83,000
Proceeds From Stock Option Exercised	39,000	69,000	78,000	28,000
Cash Dividends Paid	-1,626,000	-1,500,000	-1,379,000	-1,299,000
Common Stock Dividend Paid	-1,626,000	-1,500,000	-1,379,000	-1,299,000
Net Common Stock Issuance	-1,862,000	-2,492,000	0	-286,000
Common Stock Payments	-1,862,000	-2,492,000	0	-286,000
Net Issuance Payments Of Debt	342,000	61,000	488,000	300,000
Net Short Term Debt Issuance	1,000	-8,000	-311,000	317,000
Net Long Term Debt Issuance	341,000	69,000	799,000	-17,000
Long Term Debt Payments	-717,000	-1,015,000	-19,000	-2,012,000
Long Term Debt Issuance	1,058,000	1,084,000	818,000	1,995,000
Investing Cash Flow	-1,101,000	-271,000	-2,575,000	-1,200,000
Cash Flow From Continuing Investing Activities	-1,101,000	-270,000	-2,574,000	-1,201,000
Net Other Investing Changes	-98,000	-33,000	-66,000	-79,000
Net Investment Purchase And Sale	1,342,000	572,000	-1,769,000	-66,000
Net Business Purchase And Sale	-1,506,000	-87,000	-59,000	-620,000
Sale Of Business	0	33,000	9,000	32,000
Purchase Of Business	-1,506,000	-120,000	-68,000	-652,000
Net PPE Purchase And Sale	80,000	85,000	76,000	163,000
Sale Of PPE	80,000	85,000	76,000	163,000
Capital Expenditure Reported	-919,000	-808,000	-757,000	-598,000
Operating Cash Flow	4,472,000	4,327,000	3,624,000	2,533,000
Cash Flow From Continuing Operating Activities	4,472,000	4,327,000	3,624,000	2,533,000
Change In Working Capital	-718,000	-219,000	-149,000	-688,000
Change In Other Working Capital	202,000	2,000	119,000	-16,000
Change In Other Current Liabilities	145,000	77,000	-47,000	236,000
Change In Other Current Assets	-198,000	-27,000	-58,000	-179,000
Change In Payables And Accrued Expense	282,000	420,000	453,000	318,000
Change In Accrued Expense	-50,000	21,000	197,000	-16,000
Change In Payable	332,000	399,000	256,000	334,000
Change In Account Payable	332,000	399,000	256,000	334,000
Change In Inventory	-256,000	-566,000	-282,000	-490,000
Change In Receivables	-893,000	-125,000	-334,000	-573,000
Changes In Account Receivables	-420,000	-215,000	-341,000	-743,000
Other Non Cash Items	6,000	-43,000	-209,000	-100,000
Deferred Tax	45,000	-154,000	-182,000	-128,000
Deferred Income Tax	45,000	-154,000	-182,000	-128,000
Depreciation Amortization Depletion	1,006,000	921,000	926,000	954,000
Depreciation And Amortization	1,006,000	921,000	926,000	954,000
Operating Gains Losses	43,000	24,000	15,000	30,000
Pension And Employee Benefit Expense	43,000	24,000	15,000	54,000
Gain Loss On Sale Of Business		0	0	-24,000	-197,000
Net Income From Continuing Operations	4,090,000	3,798,000	3,223,000	2,465,000

These metrics estimate what Eaton Corporation plc is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$108.50

Margin of Safety

Market Cap ÷ Company Value

1.45

P/B Ratio

8.47

Warren's Owner Earnings

$6.0B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

4/7 — Enterprising Investor

✅ Adequate Size

$27.4B

vs > $1.5B revenue

❌ Strong Financial Condition

1.32x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

0.98%

vs Uninterrupted dividends

✅ Earnings Growth

+70.2% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

40.5x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

8.47x P/B (P/E×P/B: 342.7)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-24.30

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$149.18

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	22.5%	21.3%	23.5%	24.3%	N/A
Repurchase of Capital Stock	-$1.9B	-$2.5B	$0M	-$286M	N/A
Free Cash Flow	$3.6B ▲	$3.5B ▲	$2.9B ▲	$1.9B •	N/A •
Warren's Owner Earnings	$6.0B	$5.5B	$4.9B	$4.0B	N/A

Peers & Industry

No auto-detected peers for Specialty Industrial Machinery. You can manually compare ETN against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.07%

Low — management has little skin in the game

Return on Equity (ROE)

21.0%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

9.9%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$1.9B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+7.2% YoY

Debt is roughly stable

Leadership Team

Paulo Ruiz Sternadt

CEO & Director

Age 50

Pay: $2,391,001

0.059% of net income

Heath Monesmith

President & COO of Electrical Sector

Age 54

Pay: $1,660,520

0.041% of net income

David Foster

Executive VP & CFO

Age 53

Yan Jin

Senior Vice President of Investor Relations

Jimmy Yam

Vice President of Sales

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	9.78%	37,947,566
Blackrock Inc.	7.58%	29,394,078
JPMORGAN CHASE & CO	4.69%	18,179,197
State Street Corporation	4.35%	16,861,321
Morgan Stanley	3.35%	12,978,790
Bank of America Corporation	2.97%	11,518,774
FMR, LLC	2.30%	8,905,537
Geode Capital Management, LLC	2.23%	8,656,864

Risk Analysis

Beta (Market Risk)

1.24

Moderate volatility — moves slightly more than market

Short Interest

2.0% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.55x

Conservative balance sheet — low financial risk

Current Ratio