EATON CORP PLC's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged 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 1.00 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.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.21% 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.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||5728.0||5607.0|
|Net Income ($mil)||602.0||510.0|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||990.0||1340.0|
|Total Assets ($mil)||34239.0||35312.0|
|Total Debt ($mil)||9000.0||9693.0|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||35.89||35.21|
|Return on Assets||4.93||4.42|
|Return on Equity||10.19||9.71|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||474.6||474.5|
|Div / share||0.49||0.42|
|Book value / share||34.95||33.87|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3142041.0||2975804.0|
BUY. EATON CORP PLC's P/E ratio indicates a discount compared to an average of 23.02 for the Electrical Equipment industry and a value on par with the S&P 500 average of 19.91. To use another comparison, its price-to-book ratio of 1.93 indicates a discount versus the S&P 500 average of 2.75 and a significant discount versus the industry average of 3.68. 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 19.03||Peers 23.02||ETN 17.73||Peers 16.98|
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.
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
ETN is trading at a valuation on par to its peers.
|ETN 13.46||Peers 18.64||ETN 1.06||Peers 0.92|
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.
Premium. 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 premium to its peers.
|ETN 1.93||Peers 3.68||ETN 5.35||Peers 814.30|
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 1.42||Peers 2.32||ETN 7.97||Peers 6.51|
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.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
ETN has a sales growth rate that exceeds its peers.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV