ECOLAB INC (ECJ.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ECJ - US2788651006 - Common Stock
225.8 EUR
+1.7 (+0.76%)
ECJ gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 75 industry peers in the Chemicals industry. While ECJ belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ECJ is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ECJ was profitable.
In the past year ECJ had a positive cash flow from operations.
Of the past 5 years ECJ 4 years were profitable.
Each year in the past 5 years ECJ had a positive operating cash flow.
1.2 Ratios
ECJ has a better Return On Assets (8.30%) than 85.33% of its industry peers.
With an excellent Return On Equity value of 20.42%, ECJ belongs to the best of the industry, outperforming 90.67% of the companies in the same industry.
ECJ has a better Return On Invested Capital (11.53%) than 86.67% of its industry peers.
ECJ had an Average Return On Invested Capital over the past 3 years of 10.09%. This is above the industry average of 7.13%.
The last Return On Invested Capital (11.53%) for ECJ is above the 3 year average (10.09%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.3% | ||
| ROE | 20.42% | ||
| ROIC | 11.53% |
ROA(3y)6.93%
ROA(5y)3.9%
ROE(3y)18.76%
ROE(5y)10.47%
ROIC(3y)10.09%
ROIC(5y)9.38%
1.3 Margins
The Profit Margin of ECJ (12.49%) is better than 90.67% of its industry peers.
ECJ's Profit Margin has improved in the last couple of years.
The Operating Margin of ECJ (17.63%) is better than 90.67% of its industry peers.
ECJ's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 44.36%, ECJ is in the better half of the industry, outperforming 62.67% of the companies in the same industry.
ECJ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.63% | ||
| PM (TTM) | 12.49% | ||
| GM | 44.36% |
OM growth 3Y5.67%
OM growth 5Y2.23%
PM growth 3Y14.78%
PM growth 5Y5.11%
GM growth 3Y2.05%
GM growth 5Y0.87%
2. Health
2.1 Basic Checks
ECJ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ECJ has less shares outstanding
ECJ has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ECJ has been reduced compared to a year ago.
2.2 Solvency
ECJ has an Altman-Z score of 5.12. This indicates that ECJ is financially healthy and has little risk of bankruptcy at the moment.
ECJ's Altman-Z score of 5.12 is amongst the best of the industry. ECJ outperforms 89.33% of its industry peers.
The Debt to FCF ratio of ECJ is 5.19, which is a neutral value as it means it would take ECJ, 5.19 years of fcf income to pay off all of its debts.
ECJ has a better Debt to FCF ratio (5.19) than 70.67% of its industry peers.
A Debt/Equity ratio of 0.83 indicates that ECJ is somewhat dependend on debt financing.
ECJ has a Debt to Equity ratio of 0.83. This is in the lower half of the industry: ECJ underperforms 70.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.19 | ||
| Altman-Z | 5.12 |
ROIC/WACC0.8
WACC14.43%
2.3 Liquidity
A Current Ratio of 1.70 indicates that ECJ should not have too much problems paying its short term obligations.
ECJ's Current ratio of 1.70 is in line compared to the rest of the industry. ECJ outperforms 52.00% of its industry peers.
ECJ has a Quick Ratio of 1.33. This is a normal value and indicates that ECJ is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.33, ECJ is doing good in the industry, outperforming 69.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
ECJ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.59%, which is quite good.
ECJ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.73% yearly.
ECJ shows a small growth in Revenue. In the last year, the Revenue has grown by 1.38%.
Measured over the past years, ECJ shows a small growth in Revenue. The Revenue has been growing by 1.10% on average per year.
EPS 1Y (TTM)13.59%
EPS 3Y11.38%
EPS 5Y2.73%
EPS Q2Q%13.11%
Revenue 1Y (TTM)1.38%
Revenue growth 3Y7.33%
Revenue growth 5Y1.1%
Sales Q2Q%4.16%
3.2 Future
Based on estimates for the next years, ECJ will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.49% on average per year.
The Revenue is expected to grow by 5.42% on average over the next years.
EPS Next Y14.07%
EPS Next 2Y13.41%
EPS Next 3Y13.51%
EPS Next 5Y11.49%
Revenue Next Year1.97%
Revenue Next 2Y3.65%
Revenue Next 3Y4.12%
Revenue Next 5Y5.42%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 36.60, ECJ can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ECJ is valued a bit more expensive than 61.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of ECJ to the average of the S&P500 Index (26.50), we can say ECJ is valued slightly more expensively.
The Price/Forward Earnings ratio is 31.07, which means the current valuation is very expensive for ECJ.
Based on the Price/Forward Earnings ratio, ECJ is valued a bit more expensive than the industry average as 69.33% of the companies are valued more cheaply.
ECJ's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.93.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.6 | ||
| Fwd PE | 31.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ECJ indicates a slightly more expensive valuation: ECJ is more expensive than 73.33% of the companies listed in the same industry.
ECJ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.53 | ||
| EV/EBITDA | 21.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ECJ does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of ECJ may justify a higher PE ratio.
ECJ's earnings are expected to grow with 13.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.6
PEG (5Y)13.39
EPS Next 2Y13.41%
EPS Next 3Y13.51%
5. Dividend
5.1 Amount
ECJ has a Yearly Dividend Yield of 1.11%. Purely for dividend investing, there may be better candidates out there.
ECJ's Dividend Yield is slightly below the industry average, which is at 2.58.
With a Dividend Yield of 1.11, ECJ pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
The dividend of ECJ has a limited annual growth rate of 3.93%.
Dividend Growth(5Y)3.93%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
36.57% of the earnings are spent on dividend by ECJ. This is a low number and sustainable payout ratio.
ECJ's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP36.57%
EPS Next 2Y13.41%
EPS Next 3Y13.51%
FRA:ECJ (12/23/2025, 7:00:00 PM)
225.8
+1.7 (+0.76%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners82.48%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap63.96B
Revenue(TTM)15.89B
Net Income(TTM)1.98B
Analysts76.77
Price Target254.57 (12.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
Yearly Dividend1.99
Dividend Growth(5Y)3.93%
DP36.57%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.25%
Min EPS beat(2)-1.41%
Max EPS beat(2)-1.09%
EPS beat(4)1
Avg EPS beat(4)-0.7%
Min EPS beat(4)-1.41%
Max EPS beat(4)0.38%
EPS beat(8)1
Avg EPS beat(8)-0.62%
EPS beat(12)5
Avg EPS beat(12)-0.18%
EPS beat(16)5
Avg EPS beat(16)-0.53%
Revenue beat(2)1
Avg Revenue beat(2)-0.33%
Min Revenue beat(2)-0.73%
Max Revenue beat(2)0.07%
Revenue beat(4)1
Avg Revenue beat(4)-0.54%
Min Revenue beat(4)-1.02%
Max Revenue beat(4)0.07%
Revenue beat(8)1
Avg Revenue beat(8)-0.99%
Revenue beat(12)2
Avg Revenue beat(12)-0.93%
Revenue beat(16)5
Avg Revenue beat(16)-0.53%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.6 | ||
| Fwd PE | 31.07 | ||
| P/S | 4.74 | ||
| P/FCF | 48.53 | ||
| P/OCF | 28.67 | ||
| P/B | 7.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.69 |
EPS(TTM)6.17
EY2.73%
EPS(NY)7.27
Fwd EY3.22%
FCF(TTM)4.65
FCFY2.06%
OCF(TTM)7.88
OCFY3.49%
SpS47.6
BVpS29.11
TBVpS-4.58
PEG (NY)2.6
PEG (5Y)13.39
Graham Number63.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.3% | ||
| ROE | 20.42% | ||
| ROCE | 14.22% | ||
| ROIC | 11.53% | ||
| ROICexc | 12.8% | ||
| ROICexgc | 34.92% | ||
| OM | 17.63% | ||
| PM (TTM) | 12.49% | ||
| GM | 44.36% | ||
| FCFM | 9.78% |
ROA(3y)6.93%
ROA(5y)3.9%
ROE(3y)18.76%
ROE(5y)10.47%
ROIC(3y)10.09%
ROIC(5y)9.38%
ROICexc(3y)10.68%
ROICexc(5y)9.93%
ROICexgc(3y)35.11%
ROICexgc(5y)31.71%
ROCE(3y)12.44%
ROCE(5y)11.62%
ROICexgc growth 3Y15.5%
ROICexgc growth 5Y7.38%
ROICexc growth 3Y16.48%
ROICexc growth 5Y4.33%
OM growth 3Y5.67%
OM growth 5Y2.23%
PM growth 3Y14.78%
PM growth 5Y5.11%
GM growth 3Y2.05%
GM growth 5Y0.87%
F-Score6
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.19 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 112.57% | ||
| Cap/Sales | 6.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.97% | ||
| Profit Quality | 78.27% | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 5.12 |
F-Score6
WACC14.43%
ROIC/WACC0.8
Cap/Depr(3y)88.71%
Cap/Depr(5y)80.52%
Cap/Sales(3y)5.47%
Cap/Sales(5y)5.12%
Profit Quality(3y)101.32%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.59%
EPS 3Y11.38%
EPS 5Y2.73%
EPS Q2Q%13.11%
EPS Next Y14.07%
EPS Next 2Y13.41%
EPS Next 3Y13.51%
EPS Next 5Y11.49%
Revenue 1Y (TTM)1.38%
Revenue growth 3Y7.33%
Revenue growth 5Y1.1%
Sales Q2Q%4.16%
Revenue Next Year1.97%
Revenue Next 2Y3.65%
Revenue Next 3Y4.12%
Revenue Next 5Y5.42%
EBIT growth 1Y9.72%
EBIT growth 3Y13.42%
EBIT growth 5Y3.35%
EBIT Next Year46.26%
EBIT Next 3Y20.47%
EBIT Next 5Y16.34%
FCF growth 1Y-8.82%
FCF growth 3Y8.64%
FCF growth 5Y2.35%
OCF growth 1Y8.71%
OCF growth 3Y10.92%
OCF growth 5Y3.06%
ECOLAB INC / ECJ.DE FAQ
What is the ChartMill fundamental rating of ECOLAB INC (ECJ.DE) stock?
ChartMill assigns a fundamental rating of 6 / 10 to ECJ.DE.
Can you provide the valuation status for ECOLAB INC?
ChartMill assigns a valuation rating of 2 / 10 to ECOLAB INC (ECJ.DE). This can be considered as Overvalued.
How profitable is ECOLAB INC (ECJ.DE) stock?
ECOLAB INC (ECJ.DE) has a profitability rating of 9 / 10.
What are the PE and PB ratios of ECOLAB INC (ECJ.DE) stock?
The Price/Earnings (PE) ratio for ECOLAB INC (ECJ.DE) is 36.6 and the Price/Book (PB) ratio is 7.76.
How financially healthy is ECOLAB INC?
The financial health rating of ECOLAB INC (ECJ.DE) is 6 / 10.