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
25.95%
0.23
37.05%
S&P 500
25.41%
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
39.82%
Pledged Shares
0
Institutional Holding
89.06%
ROCE (avg)
13.89%
ROE (avg)
16.41%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
33
Industry P/E
Price to Book Value
7.14
EV to EBIT
27.17
EV to EBITDA
22.93
EV to Capital Employed
5.16
EV to Sales
5.39
PEG Ratio
3.86
Dividend Yield
121.47%
ROCE (Latest)
18.99%
ROE (Latest)
21.88%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 4,741 MM
ROCE(HY)
Highest at 20.88%
DIVIDEND PER SHARE(HY)
Highest at USD 4.46
NET SALES(Q)
Highest at USD 7,451 MM
-18What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 106.9 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.46 times
INTEREST COVERAGE RATIO(Q)
Lowest at 1,408.85
RAW MATERIAL COST(Y)
Grown by 7.44% (YoY
INTEREST(Q)
Highest at USD 113 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 21.37 %
EPS(Q)
Lowest at USD 2.23
Here's what is working for Eaton Corp. Plc
Operating Cash Flow
Highest at USD 4,741 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Dividend per share
Highest at USD 4.46 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 7,451 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Depreciation
Highest at USD 272 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Eaton Corp. Plc
Interest
At USD 113 MM has Grown at 52.7%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest Coverage Ratio
Lowest at 1,408.85
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Debt-Equity Ratio
Highest at 106.9 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio
Lowest at 4.46 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Interest
Highest at USD 113 MM
in the last five periods and Increased by 52.7% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Operating Profit Margin
Lowest at 21.37 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
EPS
Lowest at USD 2.23
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Raw Material Cost
Grown by 7.44% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
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