Eaton Corporation plc (NYSE:ETN) Relative Strength Index (RSI) is 34.11, with weekly volatility at 2.12% and ATR at 2.68. The ETN stock’s 52-week price range has touched low of $82.44 and a $149.38 high. Intraday shares traded counted 3.04 million, which was -54.35% lower than its 30-day average trading volume of 1.97M. Its shares traded lower over the last trading session, losing -2.36% on 06/18/21. The shares fell to a low of $139.12 before closing at $139.26. ETN’s previous close was $142.62 while the outstanding shares total 398.30M. The firm has a beta of 1.14, a 12-month trailing P/E ratio of 39.10, and a growth ratio of 2.39.
Investors have identified the Specialty Industrial Machinery company Eaton Corporation plc as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $56.83 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Eaton Corporation plc (ETN) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For ETN, the company has in raw cash 354.0 million on their books with 1.01 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 9.9 billion total, with 6.58 billion as their total liabilities.
ETN were able to record 141.0 million as free cash flow during the 08/03/2021 quarter of the year, this saw their quarterly net cash flow reduce by -84.0 million. In cash movements, the company had a total of 260.0 million as operating cash flow.
Potential earnings growth for Eaton Corporation plc (ETN)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/03/2021 quarter of the year, Eaton Corporation plc recorded a total of 4.69 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -2.07% coming in sequential stages and their sales for the 08/03/2021 quarter increasing by 0.11%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 3.18 billion trying to sell their products during the last quarter, with the result yielding a gross income of 1.51 billion. This allows shareholders to hold on to 398.30M with the recently reported earning now reading 1.15 cents per share. This is a figure that compared to analyst’s prediction for their 08/03/2021 (1.44 cents a share).
Having a look at the company’s valuation, the company is expected to record 6.88 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on ETN sounds very interesting.
Is the stock of ETN attractive?
In related news, See Remarks below., CHERUVATATH NANDAKUMAR sold 6,400 shares of the company’s stock in a transaction that recorded on Jun 02. The sale was performed at an average price of 146.56, for a total value of 937,984. As the sale deal closes, the See Remarks below., BRICKHOUSE BRIAN S now sold 7,659 shares of the company’s stock, valued at 1,134,757. Also, See Remarks below., Faria Joao V sold 15,087 shares of the company’s stock in a deal that was recorded on May 07. The shares were price at an average price of 145.79 per share, with a total market value of 2,199,581. Following this completion of acquisition, the See Remarks below., RUIZ STERNADT PAULO now holds 14,254 shares of the company’s stock, valued at 2,086,901. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.20%.
17 out of 25 analysts covering the stock have rated it a Buy, while 7 have maintained a Hold recommendation on Eaton Corporation plc. 0 analysts has assigned a Sell rating on the ETN stock. The 12-month mean consensus price target for the company’s shares has been set at $160.79.