Eaton Corporation plc cash flow to debt ratio of 40.04% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Eaton Corporation plc's free cash flow has increased 0.97% from $3.52B last year to $3.55B, signaling increasing performance

Eaton Corporation plc's debt to equity ratio is 1.05, which means that the company's assets are unhealthy financed, signaling financial risk.

Eaton Corporation plc's debt has increased relative to shareholder equity from 0.53 last year to 1.05 today, signaling weakened financials

Eaton Corporation plc has a net debt to EBITDA ratio of 1.74x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Eaton Corporation plc's interest coverage ratio of 11.96 indicates that earnings with good margin can cover interest payments on company debt

Eaton Corporation plc's profit margin has decreased (16.36%) in the last year from 15.25% to 12.76%, signaling decreasing performance

Eaton Corporation plc's short-term assets of $12.36B exceed its short-term liabilities of $9.37B

Eaton Corporation plc's return on assets of 6.82% is higher than the 5.00% threshold, indicating efficient asset utilization

Eaton Corporation plc's return on equity of 19.56%, is higher than 15.00%, indicating good performance

Eaton Corporation plc's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Eaton Corporation plc had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Eaton Corporation plc has positive free cash flow, indicating the company generates cash after capital expenditures

Eaton Corporation plc has a free cash flow yield of 2.06%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Eaton Corporation plc's yearly earnings has increased 7.78% since last year from $3.79B to $4.09B, signaling increasing performance

Eaton Corporation plc's yearly revenue has increased 10.33% since last year from $24.88B to $27.45B, signaling increasing performance

ROIC 9.09% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Eaton Corporation plc's 3-year revenue CAGR of 9.77% is positive, indicating growing revenue over the past 3 years

Eaton Corporation plc had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Eaton Corporation plc had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Eaton Corporation plc is overvalued relative to its fair value price of 177.41 based on Discounted Cash Flow model

Eaton Corporation plc has an earnings yield of 2.22%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Eaton Corporation plc is overvalued relative to its fair value price of 80.12 based on EBITDA multiple model

Eaton Corporation plc has an EV/EBITDA ratio of 30.80x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Eaton Corporation plc is overvalued relative to its fair value price of 250.42 based on Earnings Fair Value model

Eaton Corporation plc has a PEG-ratio over 1 which is considered overvalued

Eaton Corporation plc has a price-to-book ratio of 8.52x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Eaton Corporation plc has a price-to-sales ratio of 5.76x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue