Eaton Corporation plc (ETN)

FairStock Score: 43/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Graham-and-Buffett style investor, I start with business quality and then ask what price is being demanded. Eaton is a $166.4B power-management company with 97,303 employees and segments in electrical, aerospace, vehicle, and eMobility. That diversity can smooth demand, but it does not by itself create a wide moat; a moat should show up in returns on capital, and the FairStock-calculated ROCE of 7.05% is only middling. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $8.5B and net income $821.0M, or diluted EPS $2.11. In fiscal Q2 2025, the quarter ended 2025-06-30, revenue was $7.0B and net income $982.0M, or diluted EPS $2.51. So sales grew but profit fell. For FY2025, period ended 2025-12-31, revenue was $27.4B, net income $4.1B, and diluted EPS $10.45; FY2023 revenue was $23.2B and diluted EPS $8.02, showing a solid longer-term climb. FairStock's Lynch category is STALWART: steady growth, with profit rising 23.7% a year over five years and revenue 9.0%. However, recent profit growth is -16.40%. At the 2026-10-13 close of $428.31, FairStock calculations show P/E 43.66, P/B 8.21, EV/EBITDA 29.03, FCF yield 2.4%, Graham Number $107.29, and margin of safety -299.21%. Trailing free cash flow is $3.9B, a 2.4% yield, which is not generous against the market cap. ROE is 19.68%, but ROCE is only 7.05% and D/E is 1.05. Altman Z is 3.36 and Piotroski is 6/9. The business has scale and cash flow, but the price offers no Graham-style cushion.

In plain English: Eaton makes electrical power gear, aerospace parts, and vehicle components. Sales are growing, but recent profits have slipped and the company uses a fair amount of debt. At the recent price, the shares look expensive compared with its profits, book value, and cash flow.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer