Eaton Corporation: Secular Growth Company Hidden In The Industrial Sector

Nov. 03, 2022 10:29 AM ETEaton Corporation plc (ETN)1 Comment
Gary Gambino profile picture
Gary Gambino
4.22K Followers

Summary

  • Eaton continues to deliver record earnings and margins, benefitting from secular growth trends in both the electrical and industrial businesses.
  • An initial look at 2023 shows growth in most end markets despite an expected recession.
  • Eaton still looks fairly valued compared to peers, but its recession-resistant end markets make it worth owning now.

Eaton Corporation office building exterior in Houston, TX.

Brett_Hondow

The Records Keep Coming

Eaton Corp. (NYSE:ETN) continues to set records in operating margin and non-GAAP EPS as we see in its 3Q 2022 results. Orders and backlog are also high. This suggests continued strong demand leading to

Eaton 2023 end market growth

Eaton Corp.

Eaton End Market growth 2023

Author Spreadsheet

Eaton Earnings Model

Author Spreadsheet

Eaton peer valuation comparison

Author Spreadsheet

This article was written by

Gary Gambino profile picture
4.22K Followers
I am a Chemical Engineer by training and have an MBA with concentrations in Finance and Operations Management. I retired early after 22 years in the energy industry with roles in engineering, planning, and financial analysis. I have managed my own portfolio since 1998 and have met my goal to match the S+P 500 return over the long term with lower volatility and higher income yield. I plan to focus my writing on positions I already hold or am considering changing, however my bias is toward long-term holding unless there is a very compelling reason to sell.

Disclosure: I/we have a beneficial long position in the shares of ETN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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