Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin19.0%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin14.9%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
C
Years to Pay Off Debt2.6 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$5.8B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$3.0B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
N/A
Cash Flow
B
Free Cash Flow$3.6B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income22.5%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$6.0B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Data
Key Margins
Gross Profit37.6%
Operating Margin19.0%
Net Margin14.9%
Company Info
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
3/5
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
N/A
N/A — requires
positive EPS and positive book value per share. Check the Financials tab for earnings history.
Margin of Safety
—
Market Cap / Net Assets
N/A
Net Assets: $19.5B
Warren's Owner Earnings
$6.0B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
3/5 — Speculative Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$27.4B
vs > $1.5B revenue
❌
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
1.32x
vs Current Ratio > 2.0x
✅
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
No loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
✅
Earnings Growth
EPS grew from $6.14 to $10.45 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
+70.2% EPS growth
vs > 33% EPS growth
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $27.4Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
❌ Strong Financial Condition — 1.32xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
✅ Earnings Stability — No loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $6.14 to $10.45 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
These metrics estimate what ETN is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
N/A
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
N/A
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
12.9%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
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 this industry. 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
No management data available.
Risk Analysis
ETN (ETN) fundamental analysis — Overall grade B based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A. Gross profit margin: 37.6%. Operating margin: 19.0%. Net margin: 14.9%. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
diligence and consult a qualified financial adviser before making any investment decision. Use of this tool constitutes acceptance that 360investing and its operators bear no liability for decisions made based on information presented here.