Eaton Stock Analysis, Valuation (NYSE:ETN)

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$81.35 $0.35 (0.43%) ETN stock closing price Aug 20, 2018 (Closing)

Investors can watch the Amigobulls Eaton stock analysis video here. This is our analyst opinion covering the buy and sell arguments for ETN stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Eaton Corporation, PLC Ordinary Shares Stock Rating 3.7/5

Amigobulls ETN stock analysis takes into account various financial ratios like relative valuation, Eaton revenue, growth and return on equity based on latest quarter 2018 Q2 financial statements. We also check Eaton dividend performance. We compare Eaton valuation with its sector peers to gauge relative attractiveness of ETN stock. Based on a company's historical fundamentals we arrive at Eaton stock rating which is indicative of the company's financial performance.

Should you buy ETN stock?

  • The TTM operating margin was good at 12.6 for Eaton.
  • Net margins stood at a healthy 14.6% (average) for Eaton in the Trailing Twelve Months.
  • The Eaton stock currently trades at a price to earnings ratio of 16.1, compared to the sector average of 20.5. We rate this as a positive.
  • Eaton's return on invested capital of 8.7 is good.
  • The LTM ROE of 18.5 for Eaton is attractive.

Should you sell ETN stock?

  • Revenue growth of 3.3 has been weak over the last 5 years.
  • The company has an operating cash flow which is 0.6947 times the net income. This is not a healthy sign.

Comments on this video and Eaton stock

Investors can use Amigobulls Eaton stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. The fundamentals of a company are vital to identify long-term investment opportunities.

Eaton revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Investors could make use of ETN technical analysis to check whether the fundamental story is reflected in the market sentiment.