ECOLAB INC (ECL) Stock Fundamental Analysis
USA - NYSE:ECL - US2788651006 - Common Stock
256.13 USD
+3.07 (+1.21%)
256.13 USD
0 (0%)
Overall ECL gets a fundamental rating of 6 out of 10. We evaluated ECL against 82 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.
In the past year ECL had a positive cash flow from operations.
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 (8.30%) than 89.02% of its industry peers.
With an excellent Return On Equity value of 20.42%, ECL belongs to the best of the industry, outperforming 91.46% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.53%, ECL belongs to the best of the industry, outperforming 90.24% 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 6.23%.
The last Return On Invested Capital (11.53%) for ECL 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
Looking at the Profit Margin, with a value of 12.49%, ECL belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
In the last couple of years the Profit Margin of ECL has grown nicely.
The Operating Margin of ECL (17.63%) is better than 85.37% 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 90.24% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ECL is still creating some value.
ECL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ECL has less shares outstanding
Compared to 1 year ago, ECL has an improved debt to assets ratio.
2.2 Solvency
ECL has an Altman-Z score of 4.97. This indicates that ECL is financially healthy and has little risk of bankruptcy at the moment.
ECL has a Altman-Z score of 4.97. This is amongst the best in the industry. ECL outperforms 93.90% of its industry peers.
ECL has a debt to FCF ratio of 5.19. This is a neutral value as ECL would need 5.19 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.19, ECL is in the better half of the industry, outperforming 79.27% of the companies in the same industry.
A Debt/Equity ratio of 0.83 indicates that ECL is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.83, ECL perfoms like the industry average, outperforming 43.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.19 | ||
| Altman-Z | 4.97 |
ROIC/WACC1.39
WACC8.29%
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.
With a Current ratio value of 1.70, ECL is not doing good in the industry: 62.20% of the companies in the same industry are doing better.
A Quick Ratio of 1.33 indicates that ECL should not have too much problems paying its short term obligations.
ECL has a Quick ratio (1.33) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
ECL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.59%, which is quite good.
ECL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.73% yearly.
Looking at the last year, ECL shows a small growth in Revenue. The Revenue has grown by 1.38% in the last year.
The Revenue has been growing slightly by 1.10% on average over the past years.
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
ECL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.49% yearly.
Based on estimates for the next years, ECL will show a small growth in Revenue. The Revenue will grow by 5.42% on average per year.
EPS Next Y14.21%
EPS Next 2Y13.41%
EPS Next 3Y13.49%
EPS Next 5Y11.49%
Revenue Next Year1.97%
Revenue Next 2Y3.69%
Revenue Next 3Y4.1%
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
A Price/Earnings ratio of 35.23 indicates a quite expensive valuation of ECL.
65.85% 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 25.83, ECL is valued a bit more expensive.
A Price/Forward Earnings ratio of 29.90 indicates a quite expensive valuation of ECL.
64.63% of the companies in the same industry are cheaper than ECL, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, ECL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.23 | ||
| Fwd PE | 29.9 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ECL indicates a slightly more expensive valuation: ECL is more expensive than 74.39% of the companies listed in the same industry.
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 | 46.77 | ||
| EV/EBITDA | 20.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ECL does not grow enough to justify the current Price/Earnings ratio.
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 13.49% in the coming years.
PEG (NY)2.48
PEG (5Y)12.89
EPS Next 2Y13.41%
EPS Next 3Y13.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.00%, ECL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.11, ECL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, ECL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 2Y13.41%
EPS Next 3Y13.49%
256.13
+3.07 (+1.21%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners82.4%
Inst Owner Change-1.05%
Ins Owners0.11%
Ins Owner Change0.26%
Market Cap72.64B
Revenue(TTM)15.89B
Net Income(TTM)1.98B
Analysts76.13
Price Target294.75 (15.08%)
Short Float %0.8%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Yearly Dividend2.34
Dividend Growth(5Y)3.93%
DP36.57%
Div Incr Years34
Div Non Decr Years34
Ex-Date
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)-1.79%
PT rev (3m)3.2%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)-0.03%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.23 | ||
| Fwd PE | 29.9 | ||
| P/S | 4.57 | ||
| P/FCF | 46.77 | ||
| P/OCF | 27.63 | ||
| P/B | 7.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.73 |
EPS(TTM)7.27
EY2.84%
EPS(NY)8.57
Fwd EY3.34%
FCF(TTM)5.48
FCFY2.14%
OCF(TTM)9.27
OCFY3.62%
SpS56.03
BVpS34.27
TBVpS-5.39
PEG (NY)2.48
PEG (5Y)12.89
Graham Number74.87
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 | 4.97 |
F-Score6
WACC8.29%
ROIC/WACC1.39
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 Y14.21%
EPS Next 2Y13.41%
EPS Next 3Y13.49%
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 2Y3.69%
Revenue Next 3Y4.1%
Revenue Next 5Y5.42%
EBIT growth 1Y9.72%
EBIT growth 3Y13.42%
EBIT growth 5Y3.35%
EBIT Next Year47.27%
EBIT Next 3Y20.71%
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 for 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.
What is the financial health of ECOLAB INC (ECL) stock?
The financial health rating of ECOLAB INC (ECL) is 6 / 10.
Can you provide the expected EPS growth for ECL stock?
The Earnings per Share (EPS) of ECOLAB INC (ECL) is expected to grow by 14.21% in the next year.