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EATON

Analysis before buying or selling Eaton shares

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Are you interested in buying or selling Eaton stock and are looking for accurate information that can help you perform analysis on this stock? In this article, we propose to learn more about this company with its precise activities and sources of income, but also an overview of its different competitors in the market and its recent partners. We will also explain how to perform a quality fundamental analysis of this stock with the various news items you should watch out for.

Dividend payments
Can I receive dividends when I buy Eaton shares?
Yes
 
Information on Eaton shares
ISIN code: IE00B8KQN827
Ticker: NYSE: ETN
Index or market: NYSE
 

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Elements to consider before selling or buying Eaton shares

Analysis N°1

Attention should be paid to the company's business diversification strategy with acquisitions that will contribute to its inorganic growth in a consolidated market.

Analysis N°2

The company's advancing positioning in emerging markets may also be one of the things you need to watch out for, as this would present growth opportunities.

Analysis N°3

Of course, the growth of the global automotive powertrain market and the growth prospects for electronic components will have to be closely monitored.

Analysis N°4

In the same way, the competition in all segments of Eaton's business should be carefully considered. This includes not only news, but also the results and market positioning of its competitors.

Analysis N°5

The cost of labour in the countries in which Eaton has plants will also have an impact on its profitability and should be considered as part of the fundamental analysis.

Analysis N°6

Attention should also be paid to the raw materials market, as the volatility of prices of these items, particularly iron, steel and oil, will also affect the company's profitability.

Analysis N°7

Finally, it will of course be necessary to look at the company's annual and quarterly results in order to compare them to previous results and to market and analyst expectations.

Analysis before buying or selling Eaton shares
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General presentation of Eaton

In order to better understand the challenges facing Eaton, it is important to have a good understanding of the company and its activities. That's why we are now offering a complete overview of the group and Eaton with its different sources of revenue.

The Eaton Corporation Group is an American company and also an industrial group that works in various sectors.

To better understand Eaton's business, it is possible to divide it into 4 categories according to the share of turnover it generates and in this way

  • Electrical distribution, control and protection systems and components, which generate 65% of turnover. This includes low-voltage electrical equipment, circuit breakers, inverters, modulators and industrial automation.
  • Aerospace, which generates 13.5% of turnover. These include fuel systems, hydraulic and pneumatic systems for commercial and military aircraft, man-machine interfaces, propulsion systems, switchgear and electrical protection.
  • Air management systems for automotive engines, which generate 13.1% of turnover. It should be noted that the group also offers transmission systems for trucks.
  • Hydraulic components and systems, which generate 6.6% of turnover. It should be noted here that this activity was sold in August 2021.
  • Finally, the remaining 1.8% of turnover is generated by other miscellaneous activities.

It is also interesting to know the geographical distribution of Eaton's turnover. Eaton generates only 55.4% of its revenue in the United States, with 21.8% coming from Europe, 12.9% from Asia-Pacific, 5.9% from Latin America and 4% from Canada. Eaton currently employs 85,947 people.

The major competitors of Eaton

Now we'll tell you more about Eaton's direct competitors in these core business areas. Here is an overview of its main competitors:

Schneider Electric 

This French company specialises in digital energy solutions and automation for energy efficiency. And there sustainability of which it is the world leader. It also manufactures products and solutions for homes, buildings, data centre, infrastructure, industries, combining energy technologies, real time automation and software and services.

Siemens 

German international group. Siemens is a German international group, specialising in the energy, health, industry and building sectors. It is currently the largest company in the engineering sector in Europe.

Cummins Inc

This American company is responsible for the design, manufacture and distribution of diesel and natural gas engines, as well as other related products such as filters and turbochargers. It is currently listed on the New York Stock Exchange and operates in more than 197 countries worldwide.

Alstom 

Finally, this French multinational is now specialised in the transport sector and in particular in rail transport. It was recently listed on the stock exchange as a stand-alone company. In 2020, Alstom acquired Bombardier.


The major partners of Eaton

If it is important to know who Eaton's adversaries are, it is also important to know who its allies are. We propose, through 2 specific examples, to discover its most recent partners:

Tenneco

The two companies recently announced a joint development agreement between Eaton's Vehicle Group division and Tenneco's Clean Air division to produce an integrated thermal exhaust management system. The system will enable owners of commercial and light-duty vehicles to meet upcoming emissions regulations. Under the terms of the agreement, Tenneco's cold start thermal unit will be combined with Eaton's blow-by technology.

Microsoft 

If the two companies were already partners before, since Eaton was using Microsoft's Azure solution, they have recently signed a new partnership agreement. Microsoft has decided to introduce Eaton's interactive EnergyAware UPS technology into its projects. This solution will serve as a distributed energy resource. This means that Microsoft will be able to manage networks with high levels of variable renewable energy production.

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Frequently Asked Questions

Does Eaton Corporation pay a dividend to its shareholders?

Yes, owning Eaton's stock allows you to receive a dividend that is currently (2022) $3.19 per share. This currently represents a yield of about 2.11%. Note that this company has been paying a dividend to its shareholders every year for a long time, since the dividend has been paid without interruption since 1980. It should also be noted that this dividend is paid four times a year, as is the case for most publicly traded American companies, and that this payment is generally made in March, May, August and November.

Who are the main shareholders of Eaton?

Eaton's capital is largely owned by several large private shareholders including The Vanguard Group with 8.41%, JPMorgan Investment Management with 4.55%, SSgA Funds Management with 4.05%, Massachusetts Financial Services with 3.45%, Brave Warrior Advisors with 2.67%, Atlantic Investment Management with 2.16%, BlackRock Fund Advisors with 2.15%, Wellington Management with 2.04%, and Norges Bank Investment Management with 1.79%.

How to set up a good technical analysis of the Eaton share?

To carry out a technical analysis of the Eaton share, all you have to do is look at the stock market charts that you will find on trading platforms or at online brokers. You can display and analyse different trend and volatility indicators and get signals that the stock is going up or down over the long or short term, depending on the strategy you use.

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