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Eaton Corporation plc (NYSE: ETN) – Is this large market cap stock undervalued?

Eaton Corporation plc (NYSE: ETN), is firmly in the large market cap category with market cap of 29681.05. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Eaton Corporation plc is 63.19 (with a change from open of -0.32%), this in conjunction with a target price of 66.7. Volume today has so far reached 1138501, with an average volume of about 2319.88. The GAP for this stock, is -1.35%.

The P/E ratio is 15.84, bringing the forward P/E to a value of 14.01. The current EPS for Eaton Corporation plc, is 4.06, with a EPS growth for this year coming to a value of 12.70%. Performance has been interesting with performance year to date coming to 26.97%.

Looking further into the growth statistics for Eaton Corporation plc, EPS is looking like it will grow 7.07% in the next year. Looking even further it is projected to be 8.12%. Quarter over quarter is -6.00% for EPS growth and for sales growth quarter over quarter it is -5.40%. Looking at past EPS growth statistics we see that for the past five years it has been 9.10%. Sales growth for the past five years has in fact been 8.70%.

Looking at the ownership, we see that the insider ownership is at 0.20% and institutional ownership is 77.60%. Shares outstanding is 461.89, while shares float is at a value of 453.24. Float short for Eaton Corporation plc is 1.14% and the short ratio is 2.23.

In terms of debt, long term debt/equity is 0.5, while the total debt/equity comes to 0.55. The ability to meet these debts, means that the current ratio is 1.4, and the quick ratio is 0.9. The most recent gross margin is 31.90% and their operating margin is 11.20%. The profit margin is 9.30%.

Eaton Corporation plc has seen returns on assets of 5.90%, and on investment, 9.40%. Return on equity is 12.20%. Price/Earnings to growth ratio is 1.95. Price/Sales ratio is at a value of 1.47, with Price/book ratio coming to 1.92 and Price/cash is 63.29, and finally Price/Free cash Flow is 22.97.

The simple moving averages are -3.47% and 5.59% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -7.35% and the 52 week low is 40.67%.

Eaton Corporation plc has a dividend yield of 3.55%, with a current price of 63.19. The ability to pay this means the payout ratio is 55.10%. This is in an industry, Diversified Machinery, with equally high dividends from other companies in this sector, which it is Industrial Goods. Eaton Corporation plc is based in Ireland.

Performance in the Diversified Machinery industry means that Eaton Corporation plc has seen performance for the past week of -1.95%, with performance for the month coming to 1.66%. Looking at the data for the quarter it is at a value of 1.63%, and for the half year the performance is 24.72%. Volatility for this week is 1.99% and for the month this is 1.77%.

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.

About the author

Mark Hines

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