ECOLAB INC (ECL) Stock Fundamental Analysis
USA - NYSE:ECL - US2788651006 - Common Stock
265.48 USD
+0.65 (+0.25%)
265.48 USD
0 (0%)
Overall ECL gets a fundamental rating of 6 out of 10. We evaluated ECL against 83 industry peers in the Chemicals industry. While ECL has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, ECL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
ECL had positive earnings in the past year.
In the past year ECL had a positive cash flow from operations.
ECL had positive earnings in 4 of the past 5 years.
Each year in the past 5 years ECL had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 9.00%, ECL belongs to the best of the industry, outperforming 95.18% of the companies in the same industry.
ECL has a better Return On Equity (22.92%) than 91.57% of its industry peers.
ECL has a better Return On Invested Capital (11.75%) than 90.36% of its industry peers.
ECL had an Average Return On Invested Capital over the past 3 years of 10.09%. This is above the industry average of 6.34%.
The last Return On Invested Capital (11.75%) for ECL is above the 3 year average (10.09%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9% | ||
| ROE | 22.92% | ||
| ROIC | 11.75% |
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 (13.59%) than 93.98% of its industry peers.
ECL's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 17.35%, ECL belongs to the best of the industry, outperforming 85.54% of the companies in the same industry.
In the last couple of years the Operating Margin of ECL has grown nicely.
The Gross Margin of ECL (44.01%) is better than 90.36% 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 | 17.35% | ||
| PM (TTM) | 13.59% | ||
| GM | 44.01% |
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
ECL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, ECL has less shares outstanding
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 4.99 indicates that ECL is not in any danger for bankruptcy at the moment.
ECL's Altman-Z score of 4.99 is amongst the best of the industry. ECL outperforms 92.77% of its industry peers.
ECL has a debt to FCF ratio of 5.22. This is a neutral value as ECL would need 5.22 years to pay back of all of its debts.
The Debt to FCF ratio of ECL (5.22) is better than 79.52% of its industry peers.
ECL has a Debt/Equity ratio of 0.81. This is a neutral value indicating ECL is somewhat dependend on debt financing.
ECL has a Debt to Equity ratio of 0.81. This is comparable to the rest of the industry: ECL outperforms 44.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 5.22 | ||
| Altman-Z | 4.99 |
ROIC/WACC1.32
WACC8.88%
2.3 Liquidity
ECL has a Current Ratio of 1.44. This is a normal value and indicates that ECL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.44, ECL is doing worse than 73.49% of the companies in the same industry.
ECL has a Quick Ratio of 1.12. 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 Quick ratio (1.12) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
ECL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.06%, which is quite good.
Measured over the past 5 years, ECL shows a small growth in Earnings Per Share. The EPS has been growing by 2.73% on average per year.
Looking at the last year, ECL shows a small growth in Revenue. The Revenue has grown by 0.57% in the last year.
ECL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.10% yearly.
EPS 1Y (TTM)15.06%
EPS 3Y11.38%
EPS 5Y2.73%
EPS Q2Q%12.5%
Revenue 1Y (TTM)0.57%
Revenue growth 3Y7.33%
Revenue growth 5Y1.1%
Sales Q2Q%0.99%
3.2 Future
The Earnings Per Share is expected to grow by 11.35% on average over the next years. This is quite good.
ECL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.90% yearly.
EPS Next Y14.17%
EPS Next 2Y13.58%
EPS Next 3Y13.85%
EPS Next 5Y11.35%
Revenue Next Year1.84%
Revenue Next 2Y3.7%
Revenue Next 3Y4.22%
Revenue Next 5Y4.9%
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 37.76 indicates a quite expensive valuation of ECL.
Compared to the rest of the industry, the Price/Earnings ratio of ECL is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.38. ECL is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 30.90, 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 66.27% of the companies in the same industry.
ECL's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.76 | ||
| Fwd PE | 30.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ECL is valued a bit more expensive than the industry average as 72.29% of the companies are valued more cheaply.
ECL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.84 | ||
| EV/EBITDA | 22.17 |
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 13.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.67
PEG (5Y)13.82
EPS Next 2Y13.58%
EPS Next 3Y13.85%
5. Dividend
5.1 Amount
ECL has a yearly dividend return of 0.95%, which is pretty low.
ECL's Dividend Yield is comparable with the industry average which is at 3.43.
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 | 0.95% |
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 32.94% of its income as dividend. This is a sustainable payout ratio.
ECL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP32.94%
EPS Next 2Y13.58%
EPS Next 3Y13.85%
265.48
+0.65 (+0.25%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners81.96%
Inst Owner Change-1.08%
Ins Owners0.11%
Ins Owner Change0.24%
Market Cap75.30B
Analysts76
Price Target300.13 (13.05%)
Short Float %0.83%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend2.34
Dividend Growth(5Y)3.93%
DP32.94%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.05%
Min EPS beat(2)-1.41%
Max EPS beat(2)-0.69%
EPS beat(4)1
Avg EPS beat(4)-0.6%
Min EPS beat(4)-1.41%
Max EPS beat(4)0.38%
EPS beat(8)2
Avg EPS beat(8)-0.48%
EPS beat(12)5
Avg EPS beat(12)-0.25%
EPS beat(16)6
Avg EPS beat(16)-0.02%
Revenue beat(2)0
Avg Revenue beat(2)-0.88%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)-0.73%
Revenue beat(4)0
Avg Revenue beat(4)-1.04%
Min Revenue beat(4)-1.93%
Max Revenue beat(4)-0.49%
Revenue beat(8)0
Avg Revenue beat(8)-1.27%
Revenue beat(12)1
Avg Revenue beat(12)-0.99%
Revenue beat(16)5
Avg Revenue beat(16)-0.51%
PT rev (1m)3.27%
PT rev (3m)5.91%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)0.28%
EPS NY rev (1m)0.24%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.76 | ||
| Fwd PE | 30.9 | ||
| P/S | 4.79 | ||
| P/FCF | 47.84 | ||
| P/OCF | 28.69 | ||
| P/B | 8.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.17 |
EPS(TTM)7.03
EY2.65%
EPS(NY)8.59
Fwd EY3.24%
FCF(TTM)5.55
FCFY2.09%
OCF(TTM)9.25
OCFY3.49%
SpS55.44
BVpS32.86
TBVpS-6.78
PEG (NY)2.67
PEG (5Y)13.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9% | ||
| ROE | 22.92% | ||
| ROCE | 14.49% | ||
| ROIC | 11.75% | ||
| ROICexc | 13.09% | ||
| ROICexgc | 39.07% | ||
| OM | 17.35% | ||
| PM (TTM) | 13.59% | ||
| GM | 44.01% | ||
| FCFM | 10.01% |
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 Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 5.22 | ||
| Debt/EBITDA | 2.05 | ||
| Cap/Depr | 111.37% | ||
| Cap/Sales | 6.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.49% | ||
| Profit Quality | 73.68% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 4.99 |
F-Score7
WACC8.88%
ROIC/WACC1.32
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)15.06%
EPS 3Y11.38%
EPS 5Y2.73%
EPS Q2Q%12.5%
EPS Next Y14.17%
EPS Next 2Y13.58%
EPS Next 3Y13.85%
EPS Next 5Y11.35%
Revenue 1Y (TTM)0.57%
Revenue growth 3Y7.33%
Revenue growth 5Y1.1%
Sales Q2Q%0.99%
Revenue Next Year1.84%
Revenue Next 2Y3.7%
Revenue Next 3Y4.22%
Revenue Next 5Y4.9%
EBIT growth 1Y11.31%
EBIT growth 3Y13.42%
EBIT growth 5Y3.35%
EBIT Next Year47.5%
EBIT Next 3Y20.53%
EBIT Next 5Y16.44%
FCF growth 1Y18.65%
FCF growth 3Y8.64%
FCF growth 5Y2.35%
OCF growth 1Y26.95%
OCF growth 3Y10.92%
OCF growth 5Y3.06%