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Is this Large Market Cap Stock target price reasonable for Eaton Corporation plc (NYSE:ETN)?

The company in question is, Eaton Corporation plc (NYSE:ETN) currently with a stock price of 63.25 (1.44% today). The market cap for Eaton Corporation plc is 29101.33, and is in the sector Industrial Goods, and Diversified Machinery industry. The target price for Eaton Corporation plc is 67.32. Currently Eaton Corporation plc is trading with a P/E of 15.59, and a forward P/E of 13.82. Average volume for Eaton Corporation plc is 2472.95 and so far today it is 1965000.

Performance in the last year for Eaton Corporation plc has been 24.08%. For EPS growth, Eaton Corporation plc has seen a growth of 12.70%, and is looking to grow in the next year to 6.86%. More long term stats show that EPS growth has been 9.10% over the last five years and could be 8.12% for the next five years. Eaton Corporation plc has seen sales growth quarter over quarter at -5.40%, with EPS growth quarter over quarter at -6.00%. The 20-day simple moving average is -2.75%, with the 200-day simple moving average coming to 7.80%.

Since the IPO date for Eaton Corporation plc on the 6/1/1972, Eaton Corporation plc has seen performance year to date to be 24.98%. With Eaton Corporation plc trading at 63.25, the dividend yield is 3.60%, and the EPS is 4.06.

So could Eaton Corporation plc, be undervalued? Well as said before P/E is 15.59. The PEG is 1.92, P/S is 1.44 and the P/B is at 1.89. The P/cash is 62.05, with P/free cash flow at 22.52.

Eaton Corporation plc ability to deal with debt shows that the current ratio is 1.4, and the quick ratio is 0.9. This is with long term debt/equity at 0.5, and total debt/equity at 0.55.

In terms of margins, Eaton Corporation plc has a gross margin of 31.90%, an operating margin of 11.20% and a profit margin of 9.30%.Payout ratio for Eaton Corporation plc is 55.10%. Return on assets come to 5.90% with return on investment coming to 9.40%.

Insider ownership for Eaton Corporation plc, is at 0.20% and institutional ownership comes to 77.50%. Outstanding shares are at 460.1. While shares float is 453.24. The float short is currently 1.02%, and short ratio is 1.87.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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