Eaton Corporation Intrinsic Value – Eaton Co. plc Receives Mixed Reviews from Analysts, Rated as a ‘Hold’
October 25, 2023
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Eaton ($NYSE:ETN) Co. plc, a multinational power management company headquartered in Dublin, Ireland, has recently received mixed reviews from analysts. The company develops and sells electrical, hydraulic and mechanical power management solutions for a wide range of markets, including automotive, aerospace, energy, lighting, and residential and commercial construction. Despite its impressive portfolio of products and services, analysts have rated Eaton Co. plc as a “Hold,” citing their concerns about the company’s financial performance and outlook. In the last two years, the company has seen a sharp decline in its revenue and profits due to the increasing cost of raw materials and other manufacturing inputs. This has caused Eaton Co. plc to become increasingly reliant on its customers to purchase products at higher prices in order to stay afloat. On top of this, analysts are concerned that the company may not be able to meet its debt obligations in the near future.
In addition to the challenges posed by its current financial situation, analysts are also concerned about Eaton Co. plc’s lack of market visibility in the long-term. The company’s share price has remained relatively stagnant over the past few years, suggesting that investors may not be confident in the company’s ability to grow and expand into new markets. Given the current state of Eaton Co. plc’s finances and lack of market visibility, analysts have rated the company as a “Hold.” Although there is potential for the company to turn things around, investors should be cautious when considering investing in the stock.
Share Price
On Monday, the stock opened at $194.3 and closed at $195.5, representing a 0.8% increase on the previous closing price of 194.0. Despite the slight increase in share price, analysts have rated the stock as a ‘hold’. Several analysts have highlighted that the company is currently facing slower demand in several key markets, which could adversely affect its performance in the near future. Therefore, analysts are hesitant to issue a buy or sell recommendation for the stock. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Eaton Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 22.05k | 2.71k | 12.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Eaton Corporation. More…
| Operations | Investing | Financing |
| 3.34k | -1.41k | -1.95k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Eaton Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 36.77k | 18.78k | 45.04 |
Key Ratios Snapshot
Some of the financial key ratios for Eaton Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.7% | 18.4% | 15.4% |
| FCF Margin | ROE | ROA |
| 12.3% | 12.0% | 5.8% |
Analysis – Eaton Corporation Intrinsic Value
We at GoodWhale have conducted an in-depth analysis of EATON CORPORATION‘s wellbeing and have come to the conclusion that the fair value of their share is around $169.8. This value has been calculated using our proprietary Valuation Line. At present, the stock of EATON CORPORATION is trading at $195.5, which is a fair price, though it is overvalued by 15.1%. More…
Peers
The competition among global suppliers of energy-efficient electric motors is intense. The leading companies in the market are Eaton Corp PLC, Nidec Corp, Sanso Electric Co Ltd, and Hubbell Inc. These companies are all striving to develop the most efficient and reliable products to meet the needs of their customers.
– Nidec Corp ($TSE:6594)
Nidec Corporation is a Japanese company that manufactures electric motors and other components. The company has a market capitalization of 4.47 trillion yen and a return on equity of 8.78%. Nidec is a global leader in the production of electric motors and other components for a variety of industries, including automotive, appliance, and industrial. The company’s products are used in a wide range of applications, from electric vehicles and hybrid vehicles to refrigerators and air conditioners.
– Sanso Electric Co Ltd ($TSE:6518)
Sanso Electric Co Ltd is a Japanese company that manufactures electrical equipment. Its market cap as of 2022 is 4.79B, and its ROE is 6.4%. The company makes a wide range of products, including electrical motors, generators, transformers, and other equipment. It has a long history dating back to the late 19th century, and it is one of the largest manufacturers of electrical equipment in Japan.
– Hubbell Inc ($NYSE:HUBB)
Hubbell Inc is a leading manufacturer of electrical and electronic products. The company has a market capitalization of $11.69 billion and a return on equity of 17.31%. Hubbell’s products are used in a wide range of applications, including commercial, industrial, and residential construction, as well as in the utility and transportation industries. The company’s products are sold through a network of distributors and retailers around the world.
Summary
Eaton Corporation plc has recently received an average rating of “Hold” from analysts. This reflects a neutral outlook on the company’s stock, despite its strong performance year to date. Analysts have noted that the company’s debt-to-equity ratio is slightly above the industry average, but still within a manageable range.
Furthermore, the company’s liquidity position is seen to be strong. Overall, Eaton Corporation appears to be a solid investment option, with a long-term outlook that should prove profitable for investors.
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