ScoreWhy is Eaton Corp. Plc ?
1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 20.19
2
Low Debt Company with Strong Long Term Fundamental Strength
3
The company has declared negative results in Mar'2025 after 4 consecutive positive quarters
- INTEREST COVERAGE RATIO(Q) Lowest at 2,598.39
- DEBT-EQUITY RATIO (HY) Highest at 59.12 %
- INVENTORY TURNOVER RATIO(HY) Lowest at 3.76 times
4
With ROCE of 18.81%, it has a fair valuation with a 5.17 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -3.19%, its profits have risen by 17.8% ; the PEG ratio of the company is 1.7
5
Underperformed the market in the last 1 year
- Even though the market (S&P 500) has generated returns of 14.11% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -3.19% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Eaton Corp. Plc should be less than 10%
- Overall Portfolio exposure to Electronics & Appliances should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Eaton Corp. Plc for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Eaton Corp. Plc
22.76%
0.23
37.05%
S&P 500
14.9%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.98%
EBIT Growth (5y)
18.56%
EBIT to Interest (avg)
20.19
Debt to EBITDA (avg)
1.95
Net Debt to Equity (avg)
0.44
Sales to Capital Employed (avg)
0.87
Tax Ratio
16.89%
Dividend Payout Ratio
39.81%
Pledged Shares
0
Institutional Holding
88.13%
ROCE (avg)
13.89%
ROE (avg)
16.41%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
33
Industry P/E
Price to Book Value
7.21
EV to EBIT
27.41
EV to EBITDA
24.08
EV to Capital Employed
5.23
EV to Sales
5.43
PEG Ratio
3.85
Dividend Yield
120.23%
ROCE (Latest)
19.08%
ROE (Latest)
21.90%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
ROCE(HY)
Highest at 21.57%
DIVIDEND PER SHARE(HY)
Highest at USD 5.31
RAW MATERIAL COST(Y)
Fallen by 0.98% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 5.31 times
NET SALES(Q)
Highest at USD 7,055 MM
NET PROFIT(Q)
Highest at USD 1,132 MM
EPS(Q)
Highest at USD 2.91
-15What is not working for the Company
INTEREST(HY)
At USD 156 MM has Grown at 97.47%
INTEREST COVERAGE RATIO(Q)
Lowest at 1,980
OPERATING CASH FLOW(Y)
Lowest at USD 2,507 MM
DIVIDEND PAYOUT RATIO(Y)
Lowest at 35.74%
OPERATING PROFIT(Q)
Lowest at USD 1,386 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 19.65 %
Here's what is working for Eaton Corp. Plc
Dividend per share
Highest at USD 5.31 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Net Sales
Highest at USD 7,055 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Net Profit
Highest at USD 1,132 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 2.91
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Debtors Turnover Ratio
Highest at 5.31 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by 0.98% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Eaton Corp. Plc
Interest Coverage Ratio
Lowest at 1,980 and Fallen
In each period in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
At USD 156 MM has Grown at 97.47%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Operating Cash Flow
Lowest at USD 2,507 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Operating Profit
Lowest at USD 1,386 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Operating Profit Margin
Lowest at 19.65 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Dividend Payout Ratio
Lowest at 35.74%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
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