ECOLAB INC (ECL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ECL - US2788651006 - Common Stock
262.64 USD
+0.12 (+0.05%)
262.64 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ECL. ECL was compared to 83 industry peers in the Chemicals industry. ECL has an excellent profitability rating, but there are some minor concerns on its financial health. ECL is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ECL was profitable.
ECL had a positive operating cash flow in the past year.
ECL had positive earnings in 4 of the past 5 years.
ECL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ECL has a Return On Assets of 8.30%. This is amongst the best in the industry. ECL outperforms 87.95% of its industry peers.
ECL has a Return On Equity of 20.42%. This is amongst the best in the industry. ECL outperforms 91.57% of its industry peers.
ECL has a better Return On Invested Capital (11.53%) than 87.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ECL is above the industry average of 6.10%.
The 3 year average ROIC (10.09%) for ECL is below the current ROIC(11.53%), indicating increased profibility in the last year.
| 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 ECL (12.49%) is better than 91.57% of its industry peers.
ECL's Profit Margin has improved in the last couple of years.
ECL has a better Operating Margin (17.63%) than 84.34% of its industry peers.
In the last couple of years the Operating Margin of ECL has grown nicely.
The Gross Margin of ECL (44.36%) is better than 87.95% of its industry peers.
ECL'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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ECL is destroying value.
The number of shares outstanding for ECL has been reduced compared to 1 year ago.
Compared to 5 years ago, ECL has less shares outstanding
The debt/assets ratio for ECL has been reduced compared to a year ago.
2.2 Solvency
ECL has an Altman-Z score of 5.08. This indicates that ECL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.08, ECL belongs to the top of the industry, outperforming 96.39% of the companies in the same industry.
The Debt to FCF ratio of ECL is 5.19, which is a neutral value as it means it would take ECL, 5.19 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.19, ECL is doing good in the industry, outperforming 79.52% of the companies in the same industry.
ECL has a Debt/Equity ratio of 0.83. This is a neutral value indicating ECL is somewhat dependend on debt financing.
The Debt to Equity ratio of ECL (0.83) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.19 | ||
| Altman-Z | 5.08 |
ROIC/WACC0.79
WACC14.62%
2.3 Liquidity
ECL has a Current Ratio of 1.70. This is a normal value and indicates that ECL is financially healthy and should not expect problems in meeting its short term obligations.
ECL has a worse Current ratio (1.70) than 61.45% of its industry peers.
A Quick Ratio of 1.33 indicates that ECL should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.33, ECL is in line with its industry, outperforming 53.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.59% over the past year.
The Earnings Per Share has been growing slightly by 2.73% on average over the past years.
The Revenue has been growing slightly by 1.38% in the past year.
Measured over the past years, ECL 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, ECL will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.49% on average per year.
ECL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.42% yearly.
EPS Next Y14.07%
EPS Next 2Y13.35%
EPS Next 3Y13.5%
EPS Next 5Y11.49%
Revenue Next Year1.97%
Revenue Next 2Y3.68%
Revenue Next 3Y4.14%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 36.13, ECL can be considered very expensive at the moment.
61.45% of the companies in the same industry are cheaper than ECL, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.60, ECL is valued a bit more expensive.
A Price/Forward Earnings ratio of 30.69 indicates a quite expensive valuation of ECL.
63.86% of the companies in the same industry are cheaper than ECL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ECL to the average of the S&P500 Index (23.23), we can say ECL is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.13 | ||
| Fwd PE | 30.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ECL is valued a bit more expensive than the industry average as 79.52% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ECL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.89 | ||
| EV/EBITDA | 21.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ECL has an outstanding profitability rating, which may justify a higher PE ratio.
ECL's earnings are expected to grow with 13.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.57
PEG (5Y)13.22
EPS Next 2Y13.35%
EPS Next 3Y13.5%
5. Dividend
5.1 Amount
ECL has a Yearly Dividend Yield of 1.11%.
ECL's Dividend Yield is comparable with the industry average which is at 2.47.
With a Dividend Yield of 1.11, ECL pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
The dividend of ECL has a limited annual growth rate of 3.93%.
ECL has paid a dividend for at least 10 years, which is a reliable track record.
ECL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.93%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
ECL pays out 36.57% of its income as dividend. This is a sustainable payout ratio.
The dividend of ECL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP36.57%
EPS Next 2Y13.35%
EPS Next 3Y13.5%
262.64
+0.12 (+0.05%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners82.4%
Inst Owner Change0%
Ins Owners0.11%
Ins Owner Change0.44%
Market Cap74.39B
Revenue(TTM)15.89B
Net Income(TTM)1.98B
Analysts76.77
Price Target297.31 (13.2%)
Short Float %1.2%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
Yearly Dividend2.34
Dividend Growth(5Y)3.93%
DP36.57%
Div Incr Years34
Div Non Decr Years34
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)-0.14%
PT rev (3m)1.31%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-0.44%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.16%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.13 | ||
| Fwd PE | 30.69 | ||
| P/S | 4.68 | ||
| P/FCF | 47.89 | ||
| P/OCF | 28.29 | ||
| P/B | 7.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.42 |
EPS(TTM)7.27
EY2.77%
EPS(NY)8.56
Fwd EY3.26%
FCF(TTM)5.48
FCFY2.09%
OCF(TTM)9.28
OCFY3.53%
SpS56.1
BVpS34.31
TBVpS-5.4
PEG (NY)2.57
PEG (5Y)13.22
Graham Number74.92
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 | 5.08 |
F-Score6
WACC14.62%
ROIC/WACC0.79
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 2Y13.35%
EPS Next 3Y13.5%
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 2Y3.68%
Revenue Next 3Y4.14%
Revenue Next 5Y5.42%
EBIT growth 1Y9.72%
EBIT growth 3Y13.42%
EBIT growth 5Y3.35%
EBIT Next Year46.26%
EBIT Next 3Y20.52%
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 / ECL FAQ
Can you provide the ChartMill fundamental rating for ECOLAB INC?
ChartMill assigns a fundamental rating of 6 / 10 to ECL.
What is the valuation status of ECOLAB INC (ECL) stock?
ChartMill assigns a valuation rating of 2 / 10 to ECOLAB INC (ECL). This can be considered as Overvalued.
How profitable is ECOLAB INC (ECL) stock?
ECOLAB INC (ECL) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for ECL stock?
The Price/Earnings (PE) ratio for ECOLAB INC (ECL) is 36.13 and the Price/Book (PB) ratio is 7.65.
How financially healthy is ECOLAB INC?
The financial health rating of ECOLAB INC (ECL) is 6 / 10.