Eaton
ETN on NYSE. Eaton sells power management products to data centers, utilities, factories and aircraft makers. Market value $168.0bn.
Price checks use the past 12 months to June 2026. Quality checks use five annual reports, the latest for the year to December 2025.
The company doesn't report operating profit, so we work it out from pre-tax profit and interest.
Should I look at this?
Good business, but not cheap right now
Why it could be worth it
What to watch out for
See cheaper Industrials stocks on the list
This is not advice. Check the numbers below.
For every $100 of what the whole company costs, it produced $2.28 of spare cash in the past 12 months. A savings account pays about $4.
You pay 36.7 years of operating profit for the business. The average large US company costs around 18.
Each dollar kept in the business earns 12 cents a year. Above 10 is good.
Quality score: 96 of 100. Price score: 24 of 100. Our list needs 70 on quality and 60 on price.
$445.09 a share, 43% above its 1-year low
Over the past year the price has ranged from $311.92 to $478.00.
Dividend: 0.9% a year
Paid every year for at least 5 years
Prices from Tuesday’s close (6 October).
Five years of cash, in billions
| Revenue | |||||
| Revenue | $19.6bn | $20.8bn | $23.2bn | $24.9bn | $27.4bn |
| Operating margin | |||||
| Operating margin | 15.5% | n/a | 17.1% | 18.9% | 18.8% |
| Debt to equity | |||||
| Debt to equity | 0.52 | 0.51 | 0.49 | 0.50 | 0.51 |
| Shares outstanding | |||||
| Shares outstanding | 0.40bn | 0.40bn | 0.40bn | 0.39bn | 0.39bn |
Health checks
- Free cash flow positive5 of 5 years
- Accounting looks honest (Beneish)Nothing unusual
- Financial strength (Piotroski)6 of 9
- Profit backed by cash (accruals)Yes
- Debt0.51× equity
- Revenue growth, five yearsSlow, 9.0% a year
- Buying back its own sharesYes, 2% fewer since 2021
The quarter to June 2026
How the business did, compared with the same quarter a year earlier.
- Sales: $8.5 billion last quarter, up 21% on a year ago.
- Profit: $821 million, down 16% on a year ago.
- Spare cash over the past 12 months: $3.9 billion, up from $3.3 billion.
- About the same number of shares as a year ago.
- Debt is $20.1 billion more than cash, up from $10.6 billion a year ago.
- Sales grew on a year ago in each of the last 4 quarters.
| Quarter to | Amount |
|---|---|
| September 2024 | $6.3bn |
| December 2024 | $6.2bn |
| March 2025 | $6.4bn |
| June 2025 | $7.0bn |
| September 2025 | $7.0bn |
| December 2025 | $7.1bn |
| March 2026 | $7.5bn |
| June 2026 | $8.5bn |
| Quarter to | Amount |
|---|---|
| September 2024 | $1.0bn |
| December 2024 | $971m |
| March 2025 | $964m |
| June 2025 | $982m |
| September 2025 | $1.0bn |
| December 2025 | $1.1bn |
| March 2026 | $866m |
| June 2026 | $821m |
From the company's quarterly reports to the SEC.
Dates
- Next results (estimated)
- 3 November 2026
- Last annual report (10-K)
- 26 February 2026
- Next quarterly (estimated, 10-Q)
- 30 October 2026
Who owns it
10 long-term investors we follow own it, up from 8 last quarter. 2,664 funds in all.
- Cullen Capital ManagementJames Cullen
- Value
- $6m
- Share of fund
- <0.1%
- Matrix Asset AdvisorsDavid Katz
- Value
- $367,315
- Share of fund
- <0.1%
- Horizon KineticsMurray Stahl
- Value
- $339,618
- Share of fund
- <0.1%
| Fund | Value | Share of that fund | Change |
|---|---|---|---|
| Gotham Asset ManagementJoel Greenblatt | $28m | <0.1% | Cut |
| GAMCO InvestorsMario Gabelli | $9m | <0.1% | Cut |
| First Manhattan Co.First Manhattan partners | $8m | <0.1% | Cut |
| Cullen Capital ManagementJames Cullen | $6m | <0.1% | |
| Beutel GoodmanBeutel Goodman team | $3m | <0.1% | Cut |
| Boston PartnersBoston Partners team | $3m | <0.1% | New |
| Scharf InvestmentsBrian Krawez | $862,467 | <0.1% | Cut |
| Matrix Asset AdvisorsDavid Katz | $367,315 | <0.1% | |
| Horizon KineticsMurray Stahl | $339,618 | <0.1% | |
| Auxier Asset ManagementJeff Auxier | $231,849 | <0.1% | New |
Largest holders overall
- BlackRock$13.1bn
- Vanguard Capital Management$10.8bn
- Banque Cantonale Vaudoise$9.5bnAdded
- State Street$7.4bnAdded
- JPMorgan Chase$6.9bnCut
- Morgan Stanley$5.6bn
- Bank of America$4.7bnCut
- Vanguard Portfolio Management$4.0bnAdded
- Geode Capital Management$3.8bn
- FMR$3.6bn
From 13F filings for the quarter ended 30 June 2026.
Big holders and activists
1 investor owns more than 5%.
- Vanguard Capital ManagementPassive investor7.5%Since 31 March 2026
- JPMORGAN CHASE & CO.Passive investorSold down below 5%Since 30 September 2025
- The Vanguard GroupPassive investorSold down below 5%Since 13 March 2026
| Holder | Stake | Since | |
|---|---|---|---|
Vanguard Capital Management Passive investor | 7.5% | 31 March 2026 | |
JPMORGAN CHASE & CO. Passive investor | Sold down below 5% | 30 September 2025 | |
The Vanguard Group Passive investor | Sold down below 5% | 13 March 2026 |
From Schedule 13D and 13G filings: anyone owning more than 5% must file one.
What insiders did
In the last 12 months, 1 insider bought $588,772 of shares on the open market. 7 sold $23m.
- Johnson GeraldDirectorBought
- Date
- 13 August 2026
- Shares
- 130
- Price
- $455.90
- Value
- $59,267
- Johnson GeraldDirectorBought
- Date
- 12 August 2026
- Shares
- 70
- Price
- $469.93
- Value
- $32,895
- Monesmith Heath B.See Remarks below.Sold
- Date
- 11 August 2026
- Shares
- 18,036
- Price
- $458.04
- Value
- $8m
- Wadecki Adam ASee Remarks below.Sold
- Date
- 4 August 2026
- Shares
- 525
- Price
- $440.54
- Value
- $231,285
- Thompson Dorothy CDirectorSold
- Date
- 22 May 2026
- Shares
- 167
- Price
- $385.00
- Value
- $64,295
- Galvao AntonioSee Remarks below.Sold
- Date
- 13 May 2026
- Shares
- 494
- Price
- $405.86
- Value
- $200,495
- Johnson GeraldDirectorBought
- Date
- 11 May 2026
- Shares
- 215
- Price
- $419.02
- Value
- $90,089
- Johnson GeraldDirectorBought
- Date
- 8 May 2026
- Shares
- 746
- Price
- $402.29
- Value
- $300,108
- Monesmith Heath B.See Remarks below.Sold
- Date
- 6 May 2026
- Shares
- 18,367
- Price
- $409.11
- Value
- $8m
- Denk PeterSee Remarks below.Sold
- Date
- 6 May 2026
- Shares
- 2,000
- Price
- $417.94
- Value
- $835,880
| Date | Who | Did | Shares | Price | Value |
|---|---|---|---|---|---|
| 13 August 2026 | Johnson Gerald Director | Bought | 130 | $455.90 | $59,267 |
| 12 August 2026 | Johnson Gerald Director | Bought | 70 | $469.93 | $32,895 |
| 11 August 2026 | Monesmith Heath B. See Remarks below. | Sold | 18,036 | $458.04 | $8m |
| 4 August 2026 | Wadecki Adam A See Remarks below. | Sold | 525 | $440.54 | $231,285 |
| 22 May 2026 | Thompson Dorothy C Director | Sold | 167 | $385.00 | $64,295 |
| 13 May 2026 | Galvao Antonio See Remarks below. | Sold | 494 | $405.86 | $200,495 |
| 11 May 2026 | Johnson Gerald Director | Bought | 215 | $419.02 | $90,089 |
| 8 May 2026 | Johnson Gerald Director | Bought | 746 | $402.29 | $300,108 |
| 6 May 2026 | Monesmith Heath B. See Remarks below. | Sold | 18,367 | $409.11 | $8m |
| 6 May 2026 | Denk Peter See Remarks below. | Sold | 2,000 | $417.94 | $835,880 |
From Form 4 filings: insiders must report trades in their own company's shares within two days.
Warning signs in its filings
Problems the company itself reported to the SEC, in its own words.
None of the warning signs we check for were found.
We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.
We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 26 Feb 2026, plus the 10-Q filed 31 Jul 2026 and 8 later 8-Ks.
A 10-K is the yearly report every US company files with the SEC. An 8-K is a short notice of a big event.
What could go wrong
- It isn't cheap on profits: 36.7× operating profit.
Whether the price already reflects the risks is what the deep dive is for.
The deep dive
Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.
- What the business is worth, as a range, and the margin of safety at today’s price
- Prices to start buying, buy, and buy hard
- The three things that would make this a mistake
- Every number footnoted to the filing it came from
Your first deep dive is free.
Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.