ECOLAB INC (ECL) Fundamental Analysis & Valuation

NYSE:ECL • US2788651006

Current stock price

264.28 USD
-5.26 (-1.95%)
At close:
264.28 USD
0 (0%)
After Hours:

This ECL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. ECL Profitability Analysis

1.1 Basic Checks

  • ECL had positive earnings in the past year.
  • ECL had a positive operating cash flow in the past year.
  • In the past 5 years ECL has always been profitable.
  • ECL had a positive operating cash flow in each of the past 5 years.
ECL Yearly Net Income VS EBIT VS OCF VS FCFECL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B

1.2 Ratios

  • With an excellent Return On Assets value of 8.40%, ECL belongs to the best of the industry, outperforming 90.36% of the companies in the same industry.
  • ECL has a better Return On Equity (21.24%) than 93.98% of its industry peers.
  • ECL has a Return On Invested Capital of 12.44%. This is amongst the best in the industry. ECL outperforms 90.36% of its industry peers.
  • ECL had an Average Return On Invested Capital over the past 3 years of 11.58%. This is significantly above the industry average of 6.46%.
  • The 3 year average ROIC (11.58%) for ECL is below the current ROIC(12.44%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 8.4%
ROE 21.24%
ROIC 12.44%
ROA(3y)8.04%
ROA(5y)6.91%
ROE(3y)20.81%
ROE(5y)18.63%
ROIC(3y)11.58%
ROIC(5y)10.29%
ECL Yearly ROA, ROE, ROICECL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20

1.3 Margins

  • ECL's Profit Margin of 12.91% is amongst the best of the industry. ECL outperforms 92.77% of its industry peers.
  • In the last couple of years the Profit Margin of ECL has grown nicely.
  • ECL has a Operating Margin of 18.06%. This is amongst the best in the industry. ECL outperforms 84.34% of its industry peers.
  • ECL's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 44.53%, ECL belongs to the top of the industry, outperforming 89.16% of the companies in the same industry.
  • ECL's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 18.06%
PM (TTM) 12.91%
GM 44.53%
OM growth 3Y13.05%
OM growth 5Y5.73%
PM growth 3Y18.82%
PM growth 5YN/A
GM growth 3Y5.2%
GM growth 5Y1.31%
ECL Yearly Profit, Operating, Gross MarginsECL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 30 40

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. ECL Health Analysis

2.1 Basic Checks

  • ECL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying 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.
ECL Yearly Shares OutstandingECL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M
ECL Yearly Total Debt VS Total AssetsECL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.2 Solvency

  • An Altman-Z score of 4.78 indicates that ECL is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 4.78, ECL belongs to the top of the industry, outperforming 92.77% of the companies in the same industry.
  • ECL has a debt to FCF ratio of 4.33. This is a neutral value as ECL would need 4.33 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 4.33, ECL belongs to the top of the industry, outperforming 81.93% of the companies in the same industry.
  • A Debt/Equity ratio of 0.77 indicates that ECL is somewhat dependend on debt financing.
  • The Debt to Equity ratio of ECL (0.77) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.77
Debt/FCF 4.33
Altman-Z 4.78
ROIC/WACC0.84
WACC14.72%
ECL Yearly LT Debt VS Equity VS FCFECL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.3 Liquidity

  • ECL has a Current Ratio of 1.08. This is a normal value and indicates that ECL is financially healthy and should not expect problems in meeting its short term obligations.
  • ECL's Current ratio of 1.08 is on the low side compared to the rest of the industry. ECL is outperformed by 87.95% of its industry peers.
  • A Quick Ratio of 0.81 indicates that ECL may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.81, ECL is not doing good in the industry: 74.70% of the companies in the same industry are doing better.
  • The current and quick ratio evaluation for ECL is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.08
Quick Ratio 0.81
ECL Yearly Current Assets VS Current LiabilitesECL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. ECL Growth Analysis

3.1 Past

  • ECL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.21%, which is quite good.
  • ECL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.63% yearly.
  • The Revenue has been growing slightly by 2.16% in the past year.
  • ECL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.40% yearly.
EPS 1Y (TTM)13.21%
EPS 3Y18.86%
EPS 5Y12.63%
EPS Q2Q%14.92%
Revenue 1Y (TTM)2.16%
Revenue growth 3Y4.26%
Revenue growth 5Y6.4%
Sales Q2Q%4.67%

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 11.84% yearly.
  • Based on estimates for the next years, ECL will show a small growth in Revenue. The Revenue will grow by 6.08% on average per year.
EPS Next Y14.1%
EPS Next 2Y14.05%
EPS Next 3Y13.12%
EPS Next 5Y11.84%
Revenue Next Year8.7%
Revenue Next 2Y7.25%
Revenue Next 3Y6.93%
Revenue Next 5Y6.08%

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 stable.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
ECL Yearly Revenue VS EstimatesECL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B 20B 25B
ECL Yearly EPS VS EstimatesECL Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15

More info and screens

Find the best growth stocksShow best growing peers

2

4. ECL Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 35.05, ECL can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Earnings ratio of ECL is on the same level as its industry peers.
  • ECL is valuated rather expensively when we compare the Price/Earnings ratio to 26.17, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 30.72, which means the current valuation is very expensive for ECL.
  • ECL's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ECL is more expensive than 60.24% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.05, ECL is valued a bit more expensive.
Industry RankSector Rank
PE 35.05
Fwd PE 30.72
ECL Price Earnings VS Forward Price EarningsECL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ECL is valued a bit more expensive than 74.70% of the companies in the same industry.
  • ECL's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 39.13
EV/EBITDA 21.13
ECL Per share dataECL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The excellent profitability rating of ECL may justify a higher PE ratio.
  • A more expensive valuation may be justified as ECL's earnings are expected to grow with 13.12% in the coming years.
PEG (NY)2.49
PEG (5Y)2.78
EPS Next 2Y14.05%
EPS Next 3Y13.12%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. ECL Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.12%, ECL has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 2.07, ECL has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, ECL's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.12%

5.2 History

  • On average, the dividend of ECL grows each year by 6.41%, which is quite nice.
  • 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)6.41%
Div Incr Years34
Div Non Decr Years34
ECL Yearly Dividends per shareECL Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • ECL pays out 36.31% 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.
DP36.31%
EPS Next 2Y14.05%
EPS Next 3Y13.12%
ECL Yearly Income VS Free CF VS DividendECL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B
ECL Dividend Payout.ECL Dividend Payout, showing the Payout Ratio.ECL Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

ECL Fundamentals: All Metrics, Ratios and Statistics

ECOLAB INC

NYSE:ECL (4/2/2026, 8:20:34 PM)

After market: 264.28 0 (0%)

264.28

-5.26 (-1.95%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)02-10
Earnings (Next)04-28
Inst Owners83.5%
Inst Owner Change0%
Ins Owners0.1%
Ins Owner Change1.92%
Market Cap74.52B
Revenue(TTM)16.08B
Net Income(TTM)2.08B
Analysts77.42
Price Target326.36 (23.49%)
Short Float %1.08%
Short Ratio2.04
Dividend
Industry RankSector Rank
Dividend Yield 1.12%
Yearly Dividend2.67
Dividend Growth(5Y)6.41%
DP36.31%
Div Incr Years34
Div Non Decr Years34
Ex-Date03-17
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.72%
Min EPS beat(2)-1.09%
Max EPS beat(2)-0.35%
EPS beat(4)0
Avg EPS beat(4)-0.88%
Min EPS beat(4)-1.41%
Max EPS beat(4)-0.35%
EPS beat(8)1
Avg EPS beat(8)-0.62%
EPS beat(12)4
Avg EPS beat(12)-0.23%
EPS beat(16)5
Avg EPS beat(16)-0.35%
Revenue beat(2)1
Avg Revenue beat(2)-0.42%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)0.07%
Revenue beat(4)1
Avg Revenue beat(4)-0.65%
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)-0.87%
Revenue beat(16)4
Avg Revenue beat(16)-0.66%
PT rev (1m)-0.85%
PT rev (3m)9.77%
EPS NQ rev (1m)-0.35%
EPS NQ rev (3m)0.08%
EPS NY rev (1m)0%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)2.38%
Revenue NY rev (1m)1%
Revenue NY rev (3m)3.13%
Valuation
Industry RankSector Rank
PE 35.05
Fwd PE 30.72
P/S 4.63
P/FCF 39.13
P/OCF 25.24
P/B 7.63
P/tB N/A
EV/EBITDA 21.13
EPS(TTM)7.54
EY2.85%
EPS(NY)8.6
Fwd EY3.26%
FCF(TTM)6.75
FCFY2.56%
OCF(TTM)10.47
OCFY3.96%
SpS57.03
BVpS34.65
TBVpS-11.15
PEG (NY)2.49
PEG (5Y)2.78
Graham Number76.67
Profitability
Industry RankSector Rank
ROA 8.4%
ROE 21.24%
ROCE 15.15%
ROIC 12.44%
ROICexc 12.87%
ROICexgc 41.97%
OM 18.06%
PM (TTM) 12.91%
GM 44.53%
FCFM 11.84%
ROA(3y)8.04%
ROA(5y)6.91%
ROE(3y)20.81%
ROE(5y)18.63%
ROIC(3y)11.58%
ROIC(5y)10.29%
ROICexc(3y)12.23%
ROICexc(5y)10.77%
ROICexgc(3y)39.88%
ROICexgc(5y)35.3%
ROCE(3y)14.06%
ROCE(5y)12.53%
ROICexgc growth 3Y12.51%
ROICexgc growth 5Y9.4%
ROICexc growth 3Y13.57%
ROICexc growth 5Y6.18%
OM growth 3Y13.05%
OM growth 5Y5.73%
PM growth 3Y18.82%
PM growth 5YN/A
GM growth 3Y5.2%
GM growth 5Y1.31%
F-Score6
Asset Turnover0.65
Health
Industry RankSector Rank
Debt/Equity 0.77
Debt/FCF 4.33
Debt/EBITDA 1.93
Cap/Depr 107.36%
Cap/Sales 6.52%
Interest Coverage 9.6
Cash Conversion 76.1%
Profit Quality 91.75%
Current Ratio 1.08
Quick Ratio 0.81
Altman-Z 4.78
F-Score6
WACC14.72%
ROIC/WACC0.84
Cap/Depr(3y)99.19%
Cap/Depr(5y)89.95%
Cap/Sales(3y)5.96%
Cap/Sales(5y)5.59%
Profit Quality(3y)99.06%
Profit Quality(5y)104.25%
High Growth Momentum
Growth
EPS 1Y (TTM)13.21%
EPS 3Y18.86%
EPS 5Y12.63%
EPS Q2Q%14.92%
EPS Next Y14.1%
EPS Next 2Y14.05%
EPS Next 3Y13.12%
EPS Next 5Y11.84%
Revenue 1Y (TTM)2.16%
Revenue growth 3Y4.26%
Revenue growth 5Y6.4%
Sales Q2Q%4.67%
Revenue Next Year8.7%
Revenue Next 2Y7.25%
Revenue Next 3Y6.93%
Revenue Next 5Y6.08%
EBIT growth 1Y10.88%
EBIT growth 3Y17.88%
EBIT growth 5Y12.5%
EBIT Next Year51.08%
EBIT Next 3Y20.85%
EBIT Next 5Y16.54%
FCF growth 1Y4.67%
FCF growth 3Y20.97%
FCF growth 5Y6.79%
OCF growth 1Y4.93%
OCF growth 3Y18.19%
OCF growth 5Y9.68%

ECOLAB INC / ECL Fundamental Analysis 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.


Can you provide the profitability details for ECOLAB INC?

ECOLAB INC (ECL) has a profitability rating of 9 / 10.


What are the PE and PB ratios of ECOLAB INC (ECL) stock?

The Price/Earnings (PE) ratio for ECOLAB INC (ECL) is 35.05 and the Price/Book (PB) ratio is 7.63.


What is the earnings growth outlook for ECOLAB INC?

The Earnings per Share (EPS) of ECOLAB INC (ECL) is expected to grow by 14.1% in the next year.