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Eaton Corporation PLC (ETN) Stock

Eaton Corporation PLC Stock Details, Movements and Public Alerts

Eaton Corporation (ETN): The $130B Industrial Powerhouse Electrifying AI Data Centers and Grid Modernization

When Microsoft, Google, and Amazon need electrical infrastructure for their AI data centers, they call Eaton. CEO Craig Arnold has spent nine years reshaping this 113-year-old industrial giant into the premier electrical systems provider for the energy transition. With $24B revenue, 47% from its Electrical Americas segment alone, and record backlogs exceeding $15B, Eaton sits at the intersection of three secular megatrends: AI infrastructure requiring 20-30% more power density per rack, grid modernization demanding $500B+ investment through 2035, and EV charging infrastructure buildout. Trading at 28x forward earnings with 10%+ organic growth and 45%+ gross margins, ETN has delivered 190% total returns over five years—and analysts see another 15% upside as electrification spending accelerates globally.

52-Week Range

$397.32 - $229.75

-16.14% from high · +45.02% from low

Avg Daily Volume

2,551,339

Latest volume

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

35.32

Above market average

Forward P/E

26.11

Earnings expected to grow

PEG Ratio

2.56

Potentially overvalued

Price to Book

7.29

EV/EBITDA

24.65

EPS (TTM)

$9.92

Price to Sales

5.12

Beta

1.17

Similar volatility to market

How is ETN valued relative to its earnings and growth?
Eaton Corporation PLC trades at a P/E ratio of 35.32, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 26.11 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 2.56 indicates a premium valuation even accounting for growth.
What is ETN's risk profile compared to the market?
With a beta of 1.17, Eaton Corporation PLC is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 7.29 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

14.70%

Operating Margin

19.80%

EBITDA

$6.12B

Return on Equity

20.60%

Return on Assets

8.03%

Revenue Growth (YoY)

10.10%

Earnings Growth (YoY)

2.40%

How profitable and efficient is ETN's business model?
Eaton Corporation PLC achieves a profit margin of 14.70%, meaning it retains $14.70 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 19.80% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 20.60% and ROA at 8.03%, the company generates strong returns on invested capital.
What are ETN's recent growth trends?
Eaton Corporation PLC's revenue grew by 10.10% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 2.40% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against SPECIALTY INDUSTRIAL MACHINERY industry averages for proper context.

Dividend Information

Dividend Per Share

$4.06

Dividend Yield

1.15%

Ex-Dividend Date

Nov 6, 2025

Dividend Date

Nov 21, 2025

What dividend income can investors expect from ETN?
Eaton Corporation PLC offers a dividend yield of 1.15%, paying $4.06 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of Nov 6, 2025.
How reliable is ETN's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Eaton Corporation PLC pays $4.06 per share in dividends against earnings of $9.92 per share, resulting in a payout ratio of 40.93%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for Nov 21, 2025.

Company Size & Market

Market Cap

$136.4B

Revenue (TTM)

$26.63B

Revenue/Share (TTM)

$68.05

Shares Outstanding

388.40M

Book Value/Share

$48.51

Asset Type

Common Stock

What is ETN's market capitalization and position?
Eaton Corporation PLC has a market capitalization of $136.4B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 388.40M shares outstanding, the company's ownership is relatively concentrated. As a major player in the SPECIALTY INDUSTRIAL MACHINERY industry, it competes with other firms in this sector.
How does ETN's price compare to its book value?
Eaton Corporation PLC's book value per share is $48.51, while the current stock price is $333.18, resulting in a price-to-book (P/B) ratio of 6.87. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$408.94

22.74% upside potential

Analyst Recommendations

Strong Buy

7

Buy

13

Hold

8

Sell

0

Strong Sell

1

How reliable are analyst predictions for ETN?
29 analysts cover ETN with 69% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $408.94 implies 22.7% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on ETN?
Current analyst recommendations:7 Strong Buy, 13 Buy, 8 Hold, 01 Strong Sell. The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Dec 13, 2025, 08:26 AM

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Eaton Corporation (ETN) Stock Analysis 2025: Complete Investment Guide

From Hydraulics Giant to Electrification Leader

Craig Arnold took the CEO reins in 2016 with a bold vision: transform Eaton from a diversified industrial conglomerate into a focused electrical and power management leader. Eight years and $10B+ of strategic moves later—including selling the hydraulics business for $3.3B (2021) and acquiring Cooper Industries ($13B, electrical products)—Arnold has created the most comprehensive electrical infrastructure company serving the energy transition. Today's Eaton operates three segments: Electrical Americas (47% of revenue), Electrical Global (21%), and Aerospace (18%), plus a legacy Vehicle segment (14%) earmarked for separation. The transformation paid off spectacularly: revenue grew from $19.7B (2016) to $24B (2024), operating margins expanded from 14% to 21%, and the stock delivered 190% total returns versus 125% for the S&P 500.

Business Model & Competitive Moat

Eaton's moat combines scale, specification relationships, and mission-critical positioning. The company manufactures electrical components (circuit breakers, switchgear, transformers), systems (power distribution units, UPS backup), and software (power management, grid analytics) sold to data centers, utilities, commercial buildings, and industrial facilities. Once Eaton equipment is specified into a data center or utility substation design, switching costs become prohibitive—downtime risk far exceeds component pricing differences. This specification-based selling, combined with #1-2 market share across most product categories, enables 45%+ gross margins and sustained 3-4% annual price increases. Craig Arnold's 'Power of Eaton' strategy leverages the portfolio for system-level sales: customers buying $50M data center electrical packages prefer one vendor for switchgear, UPS, and monitoring versus managing five suppliers.

Financial Performance

  • •Revenue: $24B (2024), 9% organic growth; Electrical segments growing 12-15% while Vehicle declines 3-5%
  • •Profitability: 21% operating margin (up from 14% in 2016), 45%+ gross margins; best-in-class among electrical peers
  • •Cash Generation: $3.5B free cash flow (14.5% FCF margin); consistently converts 90%+ of net income
  • •Balance Sheet: $8B debt, 1.5x net debt/EBITDA; AA-rated credit enabling acquisitions and buybacks
  • •Returns: 25%+ ROIC, 18% ROE; well above 10% cost of capital

Growth Catalysts

  • •AI Data Center Boom: Hyperscalers spending $150B+ annually on AI infrastructure; Eaton's power distribution, cooling, and UPS systems essential for every facility
  • •Grid Modernization: $500B+ U.S. grid investment through 2035; Eaton supplies transformers, switchgear, and smart grid components to utilities
  • •EV Charging Infrastructure: $7.5B federal NEVI program plus private investment; Eaton's charging systems and grid connection equipment capture 15-20% market share
  • •Reshoring/Industrial Reinvestment: CHIPS Act, IRA driving $500B+ U.S. manufacturing buildout requiring Eaton electrical infrastructure
  • •Aerospace Recovery: Commercial aircraft production ramping 15-20% annually through 2027; Eaton supplies hydraulics, fuel systems, and electrical for Boeing/Airbus

Risks & Challenges

  • •Cyclical Exposure: Despite secular tailwinds, 30-40% of revenue tied to industrial/commercial construction cycles that could slow in recession
  • •Premium Valuation: 28x forward P/E (vs. 20x industrial peer average) leaves little margin for error; any growth disappointment triggers 15-20% correction
  • •Supply Chain/Input Costs: Copper, steel, and semiconductor shortages constrained 2022-2023; another disruption compresses margins 200-300 bps
  • •Competition: Schneider Electric, ABB, Siemens competing aggressively in data center and grid markets; price pressure in commoditized segments
  • •Vehicle Segment Overhang: $3B+ segment generating sub-10% margins; separation execution risk and stranded costs possible

Competitive Landscape

Eaton competes with European giants Schneider Electric ($45B revenue, 23x P/E), ABB ($32B, 21x), and Siemens ($95B diversified, energy division $18B). In North America, Eaton holds #1-2 positions in low/medium voltage equipment, UPS systems, and aerospace components. The company's advantage versus Schneider and ABB is deeper U.S. manufacturing presence and customer relationships; versus smaller players like Hubbell and nVent, it's breadth enabling system sales. CEO Craig Arnold's strategy targets 'connected power'—software and services layered atop equipment—where 20%+ margins and recurring revenue differentiate from commoditized component selling. Data center customers increasingly prefer Eaton's integrated power monitoring and predictive maintenance capabilities over assembling point solutions.

Who Is This Stock Suitable For?

Perfect For

  • ✓Long-term investors (5+ year horizon) seeking electrification/energy transition exposure
  • ✓Quality-focused portfolios accepting premium valuations for best-in-class operators
  • ✓Dividend growth investors (14 consecutive years of increases, 1.4% yield)
  • ✓Industrial sector allocators wanting AI/data center beneficiary

Less Suitable For

  • ✗Value investors seeking cheap industrials (28x forward P/E is premium)
  • ✗Income-focused investors needing 3%+ yields
  • ✗Risk-averse investors uncomfortable with cyclical exposure
  • ✗Short-term traders (stock moves on multi-year infrastructure trends)

Investment Thesis

Eaton Corporation represents the premier pure-play on electrical infrastructure for the energy transition. Craig Arnold's 9-year transformation created a focused, high-margin business positioned at the intersection of AI data centers, grid modernization, and EV charging—three secular trends with $1T+ combined spending through 2035. The 28x forward P/E reflects quality: 21% operating margins, $3.5B free cash flow, AA-rated balance sheet, and 10%+ organic growth. While premium valuation limits near-term upside, Eaton's competitive moat (specification relationships, system-level selling, #1-2 market positions) supports multi-year compounding.

The risk is cyclical exposure and valuation—any recession-driven construction slowdown or growth disappointment triggers 15-20% correction from current levels. Investors should view ETN as a core industrial holding for electrification exposure rather than a trading vehicle. The $15B+ backlog provides 18-24 months of revenue visibility, while 14 consecutive years of dividend increases signal management confidence. For portfolios seeking quality industrial compounders tied to AI and energy transition, Eaton merits accumulation on any 10-15% pullbacks.

Conclusion

Eaton is a BUY for long-term investors seeking electrification exposure through a quality industrial compounder. The 28x forward P/E is premium but justified by 10%+ growth, 21% margins, and secular tailwinds from AI data centers, grid modernization, and EV infrastructure. Craig Arnold's track record (190% total returns, margin expansion from 14% to 21%) supports confidence in execution. Accumulate on pullbacks for portfolios with 3-5 year horizons; not suitable for value-focused or short-term strategies.
Bull Case
$420 (23% upside) - AI data center spending accelerates, margins expand to 23%
Base Case
$385 (13% upside) - Consensus 10% growth, margins stable at 21%
Bear Case
$280 (18% downside) - Construction slowdown, multiple compresses to 22x

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