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Brief Commentary On Eaton Corporation plc’s (NYSE:ETN) Fundamentals

Eaton Corporation plc (NYSE:ETN) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of ETN, it is a dependable dividend-paying company that has been able to sustain great financial health over the past. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Eaton here.

Established dividend payer with adequate balance sheet

ETN’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. ETN appears to have made good use of debt, producing operating cash levels of 0.37x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NYSE:ETN Historical Debt December 2nd 18

ETN is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.

NYSE:ETN Historical Dividend Yield December 2nd 18

Next Steps:

For Eaton, there are three pertinent factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for ETN’s future growth? Take a look at our free research report of analyst consensus for ETN’s outlook.
  2. Historical Performance: What has ETN’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ETN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.