ECOLAB INC (ECL) Stock Fundamental Analysis
NYSE:ECL - New York Stock Exchange, Inc. - US2788651006 - Common Stock - Currency: USD
ECL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. ECL has an excellent profitability rating, but there are some minor concerns on its financial health. ECL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ECL was profitable.
In the past year ECL had a positive cash flow from operations.
Of the past 5 years ECL 4 years were profitable.
ECL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ECL's Return On Assets of 9.40% is amongst the best of the industry. ECL outperforms 92.94% of its industry peers.
With an excellent Return On Equity value of 23.69%, ECL belongs to the best of the industry, outperforming 92.94% of the companies in the same industry.
ECL has a better Return On Invested Capital (12.15%) than 89.41% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ECL is above the industry average of 6.85%.
The 3 year average ROIC (10.09%) for ECL is below the current ROIC(12.15%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.4% | ||
| ROE | 23.69% | ||
| ROIC | 12.15% |
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
ECL has a better Profit Margin (13.41%) than 91.76% of its industry peers.
ECL's Profit Margin has improved in the last couple of years.
ECL's Operating Margin of 16.96% is amongst the best of the industry. ECL outperforms 83.53% of its industry peers.
ECL's Operating Margin has improved in the last couple of years.
ECL's Gross Margin of 43.75% is amongst the best of the industry. ECL outperforms 89.41% of its industry peers.
In the last couple of years the Gross Margin of ECL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.96% | ||
| PM (TTM) | 13.41% | ||
| GM | 43.75% |
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) just above the Cost of Capital (WACC), ECL is creating some value.
ECL has less shares outstanding than it did 1 year ago.
ECL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ECL has been reduced compared to a year ago.
2.2 Solvency
ECL has an Altman-Z score of 5.27. This indicates that ECL is financially healthy and has little risk of bankruptcy at the moment.
ECL has a Altman-Z score of 5.27. This is amongst the best in the industry. ECL outperforms 96.47% of its industry peers.
ECL has a debt to FCF ratio of 5.06. This is a neutral value as ECL would need 5.06 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.06, ECL is doing good in the industry, outperforming 75.29% of the companies in the same industry.
A Debt/Equity ratio of 0.79 indicates that ECL is somewhat dependend on debt financing.
The Debt to Equity ratio of ECL (0.79) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 5.06 | ||
| Altman-Z | 5.27 |
ROIC/WACC1.26
WACC9.67%
2.3 Liquidity
ECL has a Current Ratio of 1.32. 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 Current ratio of 1.32. This is in the lower half of the industry: ECL underperforms 77.65% of its industry peers.
ECL has a Quick Ratio of 1.32. This is a bad value and indicates that ECL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.98, ECL is not doing good in the industry: 63.53% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
ECL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.28%, which is quite impressive.
The Earnings Per Share has been growing slightly by 2.73% on average over the past years.
Looking at the last year, ECL shows a small growth in Revenue. The Revenue has grown by 1.19% in the last 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)20.28%
EPS 3Y11.38%
EPS 5Y2.73%
EPS Q2Q%11.94%
Revenue 1Y (TTM)1.19%
Revenue growth 3Y7.33%
Revenue growth 5Y1.1%
Sales Q2Q%-1.52%
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 10.68% on average per year.
The Revenue is expected to grow by 4.69% on average over the next years.
EPS Next Y13.76%
EPS Next 2Y13.08%
EPS Next 3Y13.62%
EPS Next 5Y10.68%
Revenue Next Year1.3%
Revenue Next 2Y3.21%
Revenue Next 3Y3.96%
Revenue Next 5Y4.69%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 39.30 indicates a quite expensive valuation of ECL.
Based on the Price/Earnings ratio, ECL is valued a bit more expensive than the industry average as 65.88% of the companies are valued more cheaply.
ECL is valuated rather expensively when we compare the Price/Earnings ratio to 26.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 31.47, which means the current valuation is very expensive for ECL.
Based on the Price/Forward Earnings ratio, ECL is valued a bit more expensive than the industry average as 69.41% of the companies are valued more cheaply.
ECL's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.3 | ||
| Fwd PE | 31.47 |
4.2 Price Multiples
74.12% of the companies in the same industry are cheaper than ECL, based on the Enterprise Value to EBITDA ratio.
ECL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.56 | ||
| EV/EBITDA | 22.83 |
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.
A more expensive valuation may be justified as ECL's earnings are expected to grow with 13.62% in the coming years.
PEG (NY)2.86
PEG (5Y)14.38
EPS Next 2Y13.08%
EPS Next 3Y13.62%
5. Dividend
5.1 Amount
ECL has a yearly dividend return of 0.98%, which is pretty low.
Compared to an average industry Dividend Yield of 3.75, ECL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, ECL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
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 32.39% 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.
DP32.39%
EPS Next 2Y13.08%
EPS Next 3Y13.62%
NYSE:ECL (6/6/2025, 10:41:51 AM)
268.05
+1.12 (+0.42%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners81.39%
Inst Owner Change2.55%
Ins Owners0.11%
Ins Owner Change1.37%
Market Cap75.99B
Analysts74.84
Price Target279.07 (4.11%)
Short Float %0.89%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Yearly Dividend2.34
Dividend Growth(5Y)3.93%
DP32.39%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.16%
Min EPS beat(2)-0.69%
Max EPS beat(2)0.38%
EPS beat(4)1
Avg EPS beat(4)-0.38%
Min EPS beat(4)-0.69%
Max EPS beat(4)0.38%
EPS beat(8)3
Avg EPS beat(8)-0.12%
EPS beat(12)5
Avg EPS beat(12)-0.15%
EPS beat(16)7
Avg EPS beat(16)0.08%
Revenue beat(2)0
Avg Revenue beat(2)-0.75%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)-0.49%
Revenue beat(4)0
Avg Revenue beat(4)-1.37%
Min Revenue beat(4)-2.04%
Max Revenue beat(4)-0.49%
Revenue beat(8)0
Avg Revenue beat(8)-1.33%
Revenue beat(12)2
Avg Revenue beat(12)-0.84%
Revenue beat(16)6
Avg Revenue beat(16)-0.43%
PT rev (1m)-1.26%
PT rev (3m)-3.97%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)-0.48%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.52%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.3 | ||
| Fwd PE | 31.47 | ||
| P/S | 4.85 | ||
| P/FCF | 50.56 | ||
| P/OCF | 29.99 | ||
| P/B | 8.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.83 |
EPS(TTM)6.82
EY2.54%
EPS(NY)8.52
Fwd EY3.18%
FCF(TTM)5.3
FCFY1.98%
OCF(TTM)8.94
OCFY3.33%
SpS55.32
BVpS31.31
TBVpS-7.82
PEG (NY)2.86
PEG (5Y)14.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.4% | ||
| ROE | 23.69% | ||
| ROCE | 14.98% | ||
| ROIC | 12.15% | ||
| ROICexc | 13% | ||
| ROICexgc | 39.18% | ||
| OM | 16.96% | ||
| PM (TTM) | 13.41% | ||
| GM | 43.75% | ||
| FCFM | 9.58% |
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%
ROICexcg growth 3Y15.5%
ROICexcg 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-Score7
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 5.06 | ||
| Debt/EBITDA | 1.95 | ||
| Cap/Depr | 110.06% | ||
| Cap/Sales | 6.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.44% | ||
| Profit Quality | 71.48% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 5.27 |
F-Score7
WACC9.67%
ROIC/WACC1.26
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)20.28%
EPS 3Y11.38%
EPS 5Y2.73%
EPS Q2Q%11.94%
EPS Next Y13.76%
EPS Next 2Y13.08%
EPS Next 3Y13.62%
EPS Next 5Y10.68%
Revenue 1Y (TTM)1.19%
Revenue growth 3Y7.33%
Revenue growth 5Y1.1%
Sales Q2Q%-1.52%
Revenue Next Year1.3%
Revenue Next 2Y3.21%
Revenue Next 3Y3.96%
Revenue Next 5Y4.69%
EBIT growth 1Y15.94%
EBIT growth 3Y13.42%
EBIT growth 5Y3.35%
EBIT Next Year45.24%
EBIT Next 3Y20%
EBIT Next 5Y16.11%
FCF growth 1Y39.33%
FCF growth 3Y8.64%
FCF growth 5Y2.35%
OCF growth 1Y39.49%
OCF growth 3Y10.92%
OCF growth 5Y3.06%