Eaton logged a -0.7% change during today's afternoon session, and is now trading at a price of $235.34 per share.
Eaton returned gains of 46.9% last year, with its stock price reaching a high of $240.44 and a low of $150.86. Over the same period, the stock outperformed the S&P 500 index by 30.7%. More recently, the company's 50-day average price was $216.72. Eaton Corporation plc operates as a power management company worldwide. Based in Dublin, Ireland, the large-cap Industrials company has 92,000 full time employees. Eaton has offered a 1.4% dividend yield over the last 12 months.
Irregular Cash Flows With a Flat Trend:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $21,609 | $21,390 | $17,858 | $19,628 | $20,752 | $22,613 |
| Revenue Growth | n/a | -1.01% | -16.51% | 9.91% | 5.73% | 8.97% |
| Operating Margins | 11% | 12% | 10% | 15% | 14% | 16% |
| Net Interest Expense (MM) | -$9 | -$73 | -$149 | -$40 | $36 | $77 |
| Depreciation & Amort. (MM) | $903 | $884 | $811 | $922 | $954 | $933 |
| Earnings Per Share | $4.91 | $5.25 | $3.49 | $5.34 | $6.14 | $7.460000000000001 |
| EPS Growth | n/a | 6.92% | -33.52% | 53.01% | 14.98% | 21.5% |
| Diluted Shares (MM) | 437 | 421 | 404 | 402 | 401 | 401 |
| Capital Expenditures (MM) | $565 | $587 | $389 | $575 | $598 | $723 |
| Current Ratio | 1.47 | 1.7 | 1.56 | 1.04 | 1.38 | 1.45 |
| Total Debt (MM) | $7,521 | $8,647 | $8,066 | $8,594 | $8,665 | $9,159 |
| Net Debt / EBITDA | 2.18 | 2.38 | 2.98 | 2.17 | 2.17 | 1.95 |
Eaton Has Elevated P/B and P/E Ratios:
Eaton has a trailing twelve month P/E ratio of 29.0, compared to an average of 22.19 for the Industrials sector. Based on its EPS guidance of $10.03, the company has a forward P/E ratio of 21.6. The 10.7% compound average growth rate of Eaton's historical and projected earnings per share yields a PEG ratio of 2.7. This suggests that these shares are overvalued. Furthermore, Eaton is likely overvalued compared to the book value of its equity, since its P/B ratio of 5.11 is higher than the sector average of 4.06. The company's shares are currently trading 167.5% above their Graham number.
Eaton Has an Average Rating of Buy:
The 17 analysts following Eaton have set target prices ranging from $187.0 to $270.0 per share, for an average of $233.12 with a buy rating. As of April 2023, the company is trading -7.0% away from its average target price, indicating that there is an analyst consensus of little upside potential.
Eaton has a very low short interest because 1.2% of the company's shares are sold short. Institutions own 85.9% of the company's shares, and the insider ownership rate stands at 0.19%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $8,551,323,755.
