Is ETN's EPS growth sustainable long-term?

**Eaton's EPS growth appears to be sustainable long-term**, based on the following points:

1. **Consistent Growth History**: Eaton has demonstrated a strong track record of growing its EPS, with a compound annual growth rate (CAGR) of over 12% expected through approximately 2030. This consistent growth history suggests that the company's business model and strategies are effective in generating earnings growth.
2. **Reasonable Growth Targets**: The company's growth targets of organic growth of 6%-9% and an adjusted EPS CAGR of over 12% through 2030 are aligned with industry expectations and the analyst's own forecasts. These targets are considered reasonable, with potential upside from strategic initiatives like mergers and acquisitions or increased buyback activities.
3. **Diverse Growth Drivers**: Eaton's growth is not solely dependent on one segment; it is broad-based across Commercial & Institutional, Utilities, and Aerospace, with each expected to grow at high-single-digit rates. This diversification reduces the risk of EPS growth being dependent on a single market or product.
4. **Strong Financial Health**: Eaton maintains a robust financial health score of "GOOD" and has a solid track record of dividend payments for 55 consecutive years. This financial stability is a positive indicator for the sustainability of its EPS growth.
5. **Analyst Confidence**: Multiple analysts, including BofA Securities, Bernstein, and UBS, have reaffirmed their positive stances on Eaton, maintaining buy ratings and price targets that suggest confidence in the company's future earnings growth. This analyst confidence is a strong indicator of the sustainability of Eaton's EPS growth.
6. **Margin Expansion Potential**: Eaton expects significant margin expansion, with 350-450bps expected by 2030, driven mainly by Electrical Global and Aerospace. Margin expansion can contribute to higher EPS growth without increasing costs, which is a positive signal for sustainability.

In conclusion, Eaton's EPS growth is supported by its historical performance, reasonable growth targets, diverse growth drivers, strong financial health, analyst confidence, and potential for margin expansion. These factors collectively suggest that Eaton's EPS growth is likely to be sustainable in the long term.