Eaton Stock Analysis, Valuation (NYSE:ETN)

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$79.89 $1.3 (1.65%) ETN stock closing price May 21, 2018 (Closing)
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Eaton
Updated on : May 21, 2018
previous close
ETN 79.9 (0%)
S&P 500 2733 (0%)
Closing Price On: May 21, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Machinery-Electrical
Sector :
Industrial Products
5 Quarter Revenue
Revenue Growth
2018-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
3.3%
Operating Profit
Operating Margin:
12.6%
Sector Average:
8.3%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$339M
Net Income:
$488M
Dividend Yield
ETN dividend yield:
3.08%
PROS      CONS
Operating Margins
Net Margins
ROE
FCF Margin
PE Valuation
Long Term Growth
Cash Flow
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
ETN PS :
1.7
Industry PS :
1.5
Sector:   Industrial Products.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
8.7%
Return on Equity:
18.5%
Free Cash Flow Margin:
4%
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Eaton Stock Analysis

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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 3.3/5

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 Q1 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.
  • LTM Net margins were good at 14.6% for Eaton.
  • ETN stock is trading at an earnings multiple of 16.7 which is better than the industry average of 21.2.
  • The LTM ROE of 18.5% for Eaton is attractive.
  • The company has a healthy free cash flow margin of 4%.

Should you sell ETN stock?

  • Long term revenue growth of 3.3% over the past 5 years has been disappointing.
  • Cash flow from operations is low at 0.7 times the net income.

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.