Fundamental analysis · SEC EDGAR · TTM through 30/06/2026

Fundamental analysis of Eaton Corp Plc

ETN · NYSE · Industrial

Fundamental quality

ATTRACTIVE

75

out of 100

Eaton Corp Plc earns a fundamental-quality score of 75 out of 100, profiling it as a company with solid fundamentals. Its score rests mainly on its profitability (net margin 12.8%). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Eaton makes electrical power-management equipment: switchgear, transformers, backup systems and components that deliver electricity safely to factories, data centers and buildings. It sits at the center of two waves: electrification and the AI data-center boom.

What will shape its future

  • Investment in data centers and the power grid, its main current demand drivers.
  • Broad electrification (renewables, EVs, industrial automation), a decades-long tailwind.
  • Its cyclicality: it sells capital equipment, sensitive to industrial and construction investment.

Breakdown by area

I.Growth
73

EPS growth: 20.7% · Revenue growth: 9.9%

II.Profitability
76

Net margin: 12.8% · ROE: 18.9% · ROIC: 10.4%

III.Financial health
66

Net debt/EBITDA: 3.12x · FCF: 13.1%

Source: SEC EDGAR · TTM through 30/06/2026

The score includes +3 for dividend strength: 15 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength, and here its pillars hold up evenly.

Versus its sector

Percentile against the other 69 Industrial companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 67%
ROEbeats 57%
Growthbeats 57%
Cash generationbeats 61%
Less debtbeats 23%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Eaton Corp Plc strengths

  • Growing earnings per share (20.7% annualized).
  • Strong free-cash-flow generation (FCF margin of 13.1%): profit turns into real cash.
  • Strong return on equity (ROE of 18.9%): it puts shareholder capital to good use.
  • Expanding margins: net margin has risen from 8% to 15% in recent years.

Eaton Corp Plc risks and weaknesses

  • No clear weaknesses in the recent fundamentals, though the system doesn't assess qualitative factors (competition, regulation, management).

Eaton Corp Plc historical evolution

YearRevenueNet incomeFree cash flowNet debt
202017,8581,4102,5557,620
202119,6282,1441,5888,282
202220,7522,4621,9358,361
202323,1963,2182,8678,781
202424,8783,7943,5198,597
202527,4484,0873,5539,273

Between 2020 and 2025, revenue went from $17,858M to $27,448M (+54%) and net income went from $1,410M to $4,087M (+190%). Meanwhile, its margins have widened (from 8% to 15%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended June 30, 2026, versus the half-year ended June 30, 2025 (SEC filings):

  • Revenue+19.2%
  • Net income-13.3%

What changed with the June 30, 2026 results

Compared with the previous close (March 31, 2026), this is what moved in its accounts:

  • Quality score7675
  • Net margin14%12.8%
  • ROE20.2%18.9%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$4.16

per share, yearly

39.8% of earnings

Payout

at least 15 straight years raising it

Growth

That is what we can verify in the SEC filings, whose structured data only starts in 2008 and which many companies begin tagging later. The real streak may be considerably longer.

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Eaton Corp Plc cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is Eaton Corp Plc a good company to invest in?

In terms of business quality, Eaton Corp Plc scores 75 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Eaton Corp Plc a profitable company?

Yes. Eaton Corp Plc shows a net margin of 12.8% and an ROE of 18.9%, a sign of a profitable business.

Does Eaton Corp Plc have a lot of debt?

Yes, its leverage is high: net debt is 3.12 times its EBITDA.

Is Eaton Corp Plc growing?

Its revenue has grown 9.9% annualized in recent years and its earnings per share 20.7%, and without interruption since 2020.

Does Eaton Corp Plc generate cash?

Yes. It converts about 13.1% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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