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Eaton Corporation plc (NYSE:ETN): The Best Of Both Worlds

Simply Wall St

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I've been keeping an eye on Eaton Corporation plc (NYSE:ETN) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe ETN has a lot to offer. Basically, it is a highly-regarded dividend-paying company that has been able to sustain great financial health over the past. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad 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 indicates that ETN has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. ETN appears to have made good use of debt, producing operating cash levels of 0.38x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NYSE:ETN Historical Debt, June 25th 2019

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, June 25th 2019

Next Steps:

For Eaton, I've put together three key aspects you should look at:

  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!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.