ECOLAB INC (ECL)
US2788651006 - Common Stock
Taking everything into account, ECL scores 5 out of 10 in our fundamental rating. ECL was compared to 83 industry peers in the Chemicals industry. While ECL has a great profitability rating, 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.
Of the past 5 years ECL 4 years were profitable.
In the past 5 years ECL always reported a positive cash flow from operatings.
1.2 Ratios
ECL has a better Return On Assets (7.28%) than 84.34% of its industry peers.
Looking at the Return On Equity, with a value of 18.90%, ECL belongs to the top of the industry, outperforming 87.95% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.55%, ECL belongs to the top of the industry, outperforming 89.16% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ECL is above the industry average of 6.66%.
The 3 year average ROIC (8.73%) for ECL is below the current ROIC(10.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.28% | ||
| ROE | 18.9% | ||
| ROIC | 10.55% |
ROA(3y)5.57%
ROA(5y)3.5%
ROE(3y)15.93%
ROE(5y)9.24%
ROIC(3y)8.73%
ROIC(5y)9.03%
1.3 Margins
Looking at the Profit Margin, with a value of 10.01%, ECL belongs to the top of the industry, outperforming 80.72% of the companies in the same industry.
In the last couple of years the Profit Margin of ECL has declined.
Looking at the Operating Margin, with a value of 14.81%, ECL is in the better half of the industry, outperforming 79.52% of the companies in the same industry.
In the last couple of years the Operating Margin of ECL has remained more or less at the same level.
The Gross Margin of ECL (41.57%) is better than 84.34% 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 | 14.81% | ||
| PM (TTM) | 10.01% | ||
| GM | 41.57% |
OM growth 3Y0.52%
OM growth 5Y-1.24%
PM growth 3YN/A
PM growth 5Y-1.67%
GM growth 3Y-1.08%
GM growth 5Y-0.45%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ECL is still creating some value.
ECL has more shares outstanding than it did 1 year ago.
ECL has less shares outstanding than it did 5 years ago.
ECL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.04 indicates that ECL is not in any danger for bankruptcy at the moment.
The Altman-Z score of ECL (5.04) is better than 92.77% of its industry peers.
ECL has a debt to FCF ratio of 3.66. This is a good value and a sign of high solvency as ECL would need 3.66 years to pay back of all of its debts.
ECL has a better Debt to FCF ratio (3.66) than 77.11% of its industry peers.
ECL has a Debt/Equity ratio of 0.92. This is a neutral value indicating ECL is somewhat dependend on debt financing.
ECL has a Debt to Equity ratio of 0.92. This is in the lower half of the industry: ECL underperforms 63.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 3.66 | ||
| Altman-Z | 5.04 |
ROIC/WACC1.27
WACC8.29%
2.3 Liquidity
ECL has a Current Ratio of 1.41. 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 1.41. This is amonst the worse of the industry: ECL underperforms 80.72% of its industry peers.
A Quick Ratio of 0.99 indicates that ECL may have some problems paying its short term obligations.
With a Quick ratio value of 0.99, ECL is not doing good in the industry: 72.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
ECL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.62%, which is quite impressive.
Measured over the past years, ECL shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.15% on average per year.
The Revenue has been growing slightly by 6.95% in the past year.
The Revenue has been growing slightly by 0.87% on average over the past years.
EPS 1Y (TTM)24.62%
EPS 3Y7.79%
EPS 5Y-0.15%
EPS Q2Q%52.27%
Revenue 1Y (TTM)6.95%
Revenue growth 3Y9.12%
Revenue growth 5Y0.87%
Sales Q2Q%5.05%
3.2 Future
The Earnings Per Share is expected to grow by 14.25% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.93% on average over the next years.
EPS Next Y27.78%
EPS Next 2Y20.08%
EPS Next 3Y17.87%
EPS Next 5Y14.25%
Revenue Next Year4.32%
Revenue Next 2Y4.41%
Revenue Next 3Y4.72%
Revenue Next 5Y4.93%
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
ECL is valuated quite expensively with a Price/Earnings ratio of 43.25.
ECL's Price/Earnings ratio is a bit more expensive when compared to the industry. ECL is more expensive than 62.65% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.41. ECL is valued rather expensively when compared to this.
ECL is valuated quite expensively with a Price/Forward Earnings ratio of 32.64.
ECL's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ECL is more expensive than 73.49% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.59. ECL is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.25 | ||
| Fwd PE | 32.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ECL is valued a bit more expensive than the industry average as 74.70% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as ECL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.99 | ||
| EV/EBITDA | 23.81 |
4.3 Compensation for Growth
ECL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 17.87% in the coming years.
PEG (NY)1.56
PEG (5Y)N/A
EPS Next 2Y20.08%
EPS Next 3Y17.87%
5. Dividend
5.1 Amount
ECL has a yearly dividend return of 0.94%, which is pretty low.
ECL's Dividend Yield is comparable with the industry average which is at 3.07.
Compared to an average S&P500 Dividend Yield of 2.30, ECL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
The dividend of ECL has a limited annual growth rate of 4.71%.
ECL has been paying a dividend for at least 10 years, so it has a reliable track record.
ECL has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.71%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
40.93% of the earnings are spent on dividend by ECL. This is a bit on the high side, but may be sustainable.
The dividend of ECL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40.93%
EPS Next 2Y20.08%
EPS Next 3Y17.87%
ECOLAB INC
NYSE:ECL (7/26/2024, 7:26:21 PM)
After market: 245.24 0 (0%)245.24
+1.58 (+0.65%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap70.03B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.25 | ||
| Fwd PE | 32.64 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.56
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.28% | ||
| ROE | 18.9% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.81% | ||
| PM (TTM) | 10.01% | ||
| GM | 41.57% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)24.62%
EPS 3Y7.79%
EPS 5Y
EPS Q2Q%
EPS Next Y27.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.95%
Revenue growth 3Y9.12%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y