Eaton Corporation PLC Valuation

 

Eaton Corporation PLC, the American-Irish multinational power management company is undervalued, according to Wolfteam Ltd.

Eaton Corporation PLC with 20.75 billion USD revenue, growing at 5.73 %, net profit margin of 11.86 % Eaton Corporation's intrinsic value is 121 billion USD compared to its market capitalization of 94.83 bln. USD.

In the third quarter of 2023 Eaton reported 5.9 billion USD of sales, growing at 11 % year on year from the third quarter of 2022:

Date October 31, 2023
Eaton Reports Record Quarterly Results With 18% Backlog Growth; Raises
Guidance
• Quarterly earnings per share of $2.22 and record quarterly adjusted earnings
per share of $2.47, up 22% over 2022
• Record quarterly sales with 9% organic sales growth and record quarterly
segment margins of 23.6%, 240 basis points above the third quarter of 2022,
with 46% incremental margin
• Third quarter record operating cash flow of $1.1 billion, up 18%
• Raised adjusted earnings per share guidance midpoint to $9.00, reflecting 19%
growth over 2022
DUBLIN – Intelligent power management company Eaton Corporation plc (NYSE:ETN) today
announced that earnings per share were $2.22 for the third quarter of 2023. Excluding
charges of $0.21 per share related to intangible amortization, $0.03 per share related to
acquisitions and divestitures, and $0.01 per share related to a multi-year restructuring
program, adjusted earnings per share of $2.47 were a quarterly record and up 22% over the
third quarter of 2022.
Sales in the quarter were $5.9 billion, a quarterly record and up 11% from the third quarter of
2022. Organic sales were up 9%, and positive currency translation added 2%.
Segment margins were 23.6%, a quarterly record and a 240-basis point improvement over
the third quarter of 2022.
Eaton/Page 2
Operating cash flow was a third quarter record $1.1 billion, and free cash flow was $913
million, up 18% and 10%, respectively, over the same period in 2022.
The company’s backlog was up 18% over the third quarter of 2022, up 4% sequentially

All in all, the market underestimates Eaton's recent revenue growth and profitability's influence on revenue and profit and ultimately Eaton Corporation PLC's market capitalization in the mid-term, according to Wolfeam Ltd.'s corporate view.