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EatonFRA:3EC -2.05%90 Return-on-Tangible-Asset is 16.27% as of Mar. 2026, which is 4% below its 10-year median of 16.98. GuruFocus rates FRA:3EC with a GF Score™ of 90/100 and a GF Value™ of €353.36 (Fairly Valued). The stock has 5 warning signs investors should review. Among 3,073 Industrial Products companies, Eaton ranks better than 97.3% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Eaton's annualizedNet Income for the quarter that ended in Mar. 2026 was €2,996 Mil. Eaton's average total tangible assets for the quarter that ended in Mar. 2026 was €18,421 Mil. Therefore, Eaton's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 16.27%.
The historical rank and industry rank for Eaton's Return-on-Tangible-Asset or its related term are showing as below:
FRA:3EC'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 9.57 Med: 16.98 Max: 23.37
Current: 19.59
During the past 13 years, Eaton's highest Return-on-Tangible-Asset was 23.37%. The lowest was 9.57%. And the median was 16.98%.
FRA:3EC's Return-on-Tangible-Asset is ranked better than 97.3% of 3073
companies
in the Industrial Products industry
Industry Median: 3.24
vs FRA:3EC: 19.59
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Eaton Return-on-Tangible-Asset Related Terms
Eaton Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Eaton's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:3EC vs PH, CMI, EMR: Return-on-Tangible-Asset Comparison
For the Specialty Industrial Machinery subindustry, Eaton's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Eaton Return-on-Tangible-Asset vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Eaton's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Eaton's Return-on-Tangible-Asset falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 16.27% mean?
Eaton (FRA:3EC) has a Return-on-Tangible-Asset of 16.27% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Eaton and its competitors. This is near median its historical median of 16.98. Over the past decade, Eaton's Return-on-Tangible-Asset has ranged from 9.57 to 23.37. According to the industry distribution chart, Eaton ranks #83 out of 3073 companies in the Industrial Products industry, placing it in the top 2.7%.
Is Eaton's Return-on-Tangible-Asset too high?
Eaton's current Return-on-Tangible-Asset of 16.27% is near median its 10-year median of 16.98. Over the past 10 years, this metric has ranged from a low of 9.57 to a high of 23.37. The Industrial Products industry median Return-on-Tangible-Asset is 3.24. Eaton's value of 16.27% is 402.2% above this industry median. Based on the distribution chart, Eaton ranks #83 out of 3073 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Eaton has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Eaton's Return-on-Tangible-Asset compare to PH and CMI?
According to the Industrial Products industry distribution chart, Eaton ranks #83 out of 3073 companies for Return-on-Tangible-Asset. This places Eaton in the top 3% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.24. Eaton's value of 16.27% is 402.2% above this benchmark. Historically, Eaton's own Return-on-Tangible-Asset has ranged from 9.57 to 23.37 over the past decade. While the company's 10-year median is 16.98 vs. the industry median of 3.24, Eaton has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for an Industrial Products company?
The median Return-on-Tangible-Asset among Industrial Products companies is 3.24, based on 3,073 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Eaton's current Return-on-Tangible-Asset of 16.27% is 402.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Eaton and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Asset is 3.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eaton's current Return-on-Tangible-Asset is 16.27%, which is near median its own 10-year median of 16.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eaton stock overvalued right now?
Based on GuruFocus' analysis, Eaton (FRA:3EC) is currently considered Fairly Valued. The stock's GF Value™ is €353.36, compared to a current price of €358.60 — trading 1.5% above its estimated fair value. The current Return-on-Tangible-Asset is 16.27%, which is near median its 10-year median of 16.98 and 402.2% above the Industrial Products industry median of 3.24. Eaton's overall GF Score™ is 90/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Eaton (FRA:3EC), the current Return-on-Tangible-Asset is 16.27% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Eaton (FRA:3EC) Overvalued in 2026?
Based on GuruFocus' analysis, Eaton stock appears to be overvalued.
The current stock price of €358.60 is trading 1.5% above its estimated GF Value™ of €353.36.
GuruFocus considers Eaton to be Fairly Valued.
Key valuation signals for FRA:3EC:
Return-on-Tangible-Asset: 16.27% (near median its 10-year median of 16.98)
GF Value™: €353.36 vs. price of €358.60 (1.5% above fair value)
Industry Position: 402.2% above the Industrial Products median (#83 of 3073)
No single metric tells the full story. See the FRA:3EC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1911 by Joseph Eaton, the eponymous company began by selling truck axles in New Jersey. Eaton has since become an industrial powerhouse largely through acquisitions in various end markets. Eaton's portfolio can broadly be divided into two parts: its electrical and industrial businesses. Its electrical portfolio (representing around 70% of company revenue) sells components within data centers, utilities, and commercial and residential buildings, while its industrial business (30% of revenue) sells components within commercial and passenger vehicles and aircraft. Eaton receives favorable tax treatment as a domiciliary of Ireland, but it generates over half of its revenue within the US.
90GF Score
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Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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