EATON CORP PLC's gross profit margin for the fourth quarter of its fiscal year 2014 has decreased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. EATON CORP PLC has weak liquidity. Currently, the Quick Ratio is 0.88 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 5.98% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q4 FY14||Q4 FY13|
|Net Sales ($mil)||5565.0||5527.0|
|Net Income ($mil)||581.0||479.0|
|Balance Sheet||Q4 FY14||Q4 FY13|
|Cash & Equiv. ($mil)||1026.0||1709.0|
|Total Assets ($mil)||33529.0||35491.0|
|Total Debt ($mil)||9034.0||9549.0|
|Profitability||Q4 FY14||Q4 FY13|
|Gross Profit Margin||30.87||34.43|
|Return on Assets||5.34||5.24|
|Return on Equity||11.35||11.08|
|Debt||Q4 FY14||Q4 FY13|
|Share Data||Q4 FY14||Q4 FY13|
|Shares outstanding (mil)||474.6||475.1|
|Div / share||0.49||0.42|
|Book value / share||33.26||35.34|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2775214.0||3149486.0|
BUY. EATON CORP PLC's P/E ratio indicates a discount compared to an average of 24.04 for the Electrical Equipment industry and a value on par with the S&P 500 average of 19.80. To use another comparison, its price-to-book ratio of 2.17 indicates a discount versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 3.77. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, EATON CORP PLC proves to trade at a discount to investment alternatives within the industry.
|ETN 19.13||Peers 24.04||ETN NA||Peers 16.95|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
ETN is trading at a discount to its peers.
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.
Ratio not available.
|ETN 13.36||Peers 18.62||ETN 0.63||Peers 5.00|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
ETN is trading at a discount to its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
ETN trades at a significant discount to its peers.
|ETN 2.17||Peers 3.77||ETN -3.34||Peers 15.93|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
ETN is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, ETN is expected to significantly trail its peers on the basis of its earnings growth rate.
|ETN 1.52||Peers 2.28||ETN 2.29||Peers 4.77|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
ETN is trading at a significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
ETN significantly trails its peers on the basis of sales growth
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