ECOLAB INC (ECL) Stock Fundamental Analysis
NYSE:ECL - US2788651006 - Common Stock
283.73 USD
+0.67 (+0.24%)
283.73 USD
0 (0%)
Overall ECL gets a fundamental rating of 6 out of 10. We evaluated ECL against 84 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
ECL had positive earnings in the past year.
ECL had a positive operating cash flow in the past year.
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
ECL's Return On Assets of 9.00% is amongst the best of the industry. ECL outperforms 95.24% of its industry peers.
ECL's Return On Equity of 22.92% is amongst the best of the industry. ECL outperforms 92.86% of its industry peers.
ECL's Return On Invested Capital of 11.75% is amongst the best of the industry. ECL outperforms 91.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ECL is above the industry average of 6.53%.
The 3 year average ROIC (10.09%) for ECL is below the current ROIC(11.75%), indicating increased profibility in the last year.
| 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
The Profit Margin of ECL (13.59%) is better than 92.86% of its industry peers.
ECL's Profit Margin has improved in the last couple of years.
The Operating Margin of ECL (17.35%) is better than 84.52% of its industry peers.
In the last couple of years the Operating Margin of ECL has grown nicely.
ECL has a Gross Margin of 44.01%. This is amongst the best in the industry. ECL outperforms 89.29% of its industry peers.
ECL's Gross Margin has been stable in the last couple of years.
| 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.
ECL has less 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 5.20 indicates that ECL is not in any danger for bankruptcy at the moment.
The Altman-Z score of ECL (5.20) is better than 92.86% 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.
ECL's Debt to FCF ratio of 5.22 is fine compared to the rest of the industry. ECL outperforms 77.38% of its industry peers.
A Debt/Equity ratio of 0.81 indicates that ECL is somewhat dependend on debt financing.
ECL's Debt to Equity ratio of 0.81 is in line compared to the rest of the industry. ECL outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 5.22 | ||
| Altman-Z | 5.2 |
ROIC/WACC1.32
WACC8.9%
2.3 Liquidity
A Current Ratio of 1.44 indicates that ECL should not have too much problems paying its short term obligations.
ECL's Current ratio of 1.44 is on the low side compared to the rest of the industry. ECL is outperformed by 72.62% of its industry peers.
A Quick Ratio of 1.12 indicates that ECL should not have too much problems paying its short term obligations.
ECL has a Quick ratio (1.12) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.06% over the past year.
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.
ECL shows a small growth in Revenue. In the last year, the Revenue has grown by 0.57%.
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 Y13.89%
EPS Next 2Y13.12%
EPS Next 3Y13.75%
EPS Next 5Y11.35%
Revenue Next Year1.45%
Revenue Next 2Y3.34%
Revenue Next 3Y4.09%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ECL is valuated quite expensively with a Price/Earnings ratio of 40.36.
ECL's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.24. ECL is valued slightly more expensive when compared to this.
ECL is valuated quite expensively with a Price/Forward Earnings ratio of 33.29.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ECL indicates a slightly more expensive valuation: ECL is more expensive than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.82. ECL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.36 | ||
| Fwd PE | 33.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ECL is valued a bit more expensive than 75.00% of the companies in the same industry.
ECL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.11 | ||
| EV/EBITDA | 23.57 |
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.
ECL's earnings are expected to grow with 13.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.91
PEG (5Y)14.77
EPS Next 2Y13.12%
EPS Next 3Y13.75%
5. Dividend
5.1 Amount
ECL has a yearly dividend return of 0.93%, which is pretty low.
Compared to an average industry Dividend Yield of 3.59, ECL has a dividend in line with its industry peers.
With a Dividend Yield of 0.93, ECL pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
5.2 History
The dividend of ECL has a limited annual growth rate of 3.93%.
ECL has been paying a dividend for at least 10 years, so it has 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 2Y13.12%
EPS Next 3Y13.75%
283.73
+0.67 (+0.24%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners81.96%
Inst Owner Change-1.09%
Ins Owners0.11%
Ins Owner Change1.57%
Market Cap80.44B
Analysts76
Price Target290.62 (2.43%)
Short Float %0.89%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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)3.18%
PT rev (3m)4.14%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)-0.12%
EPS NY rev (1m)0%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)0.99%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.36 | ||
| Fwd PE | 33.29 | ||
| P/S | 5.12 | ||
| P/FCF | 51.11 | ||
| P/OCF | 30.65 | ||
| P/B | 8.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.57 |
EPS(TTM)7.03
EY2.48%
EPS(NY)8.52
Fwd EY3%
FCF(TTM)5.55
FCFY1.96%
OCF(TTM)9.26
OCFY3.26%
SpS55.46
BVpS32.87
TBVpS-6.79
PEG (NY)2.91
PEG (5Y)14.77
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 | 5.2 |
F-Score7
WACC8.9%
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 Y13.89%
EPS Next 2Y13.12%
EPS Next 3Y13.75%
EPS Next 5Y11.35%
Revenue 1Y (TTM)0.57%
Revenue growth 3Y7.33%
Revenue growth 5Y1.1%
Sales Q2Q%0.99%
Revenue Next Year1.45%
Revenue Next 2Y3.34%
Revenue Next 3Y4.09%
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%