ECOLAB INC (ECL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ECL - US2788651006 - Common Stock
264.33 USD
-6.56 (-2.42%)
264.33 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ECL. ECL was compared to 81 industry peers in the Chemicals industry. ECL has an excellent profitability rating, but 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
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
The Return On Assets of ECL (8.30%) is better than 87.65% of its industry peers.
ECL has a Return On Equity of 20.42%. This is amongst the best in the industry. ECL outperforms 90.12% of its industry peers.
ECL's Return On Invested Capital of 11.53% is amongst the best of the industry. ECL outperforms 88.89% 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 6.15%.
The 3 year average ROIC (10.09%) for ECL is below the current ROIC(11.53%), indicating increased profibility in the last year.
| 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
ECL's Profit Margin of 12.49% is amongst the best of the industry. ECL outperforms 92.59% of its industry peers.
In the last couple of years the Profit Margin of ECL has grown nicely.
The Operating Margin of ECL (17.63%) is better than 85.19% of its industry peers.
ECL's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 44.36%, ECL belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
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 | 17.63% | ||
| 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
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.
The number of shares outstanding for ECL has been reduced compared to 5 years ago.
ECL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.10 indicates that ECL is not in any danger for bankruptcy at the moment.
ECL's Altman-Z score of 5.10 is amongst the best of the industry. ECL outperforms 95.06% 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.
ECL has a Debt to FCF ratio of 5.19. This is in the better half of the industry: ECL outperforms 79.01% of its industry peers.
A Debt/Equity ratio of 0.83 indicates that ECL is somewhat dependend on debt financing.
ECL's Debt to Equity ratio of 0.83 is in line compared to the rest of the industry. ECL outperforms 44.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.19 | ||
| Altman-Z | 5.1 |
ROIC/WACC1.35
WACC8.54%
2.3 Liquidity
A Current Ratio of 1.70 indicates that ECL should not have too much problems paying its short term obligations.
The Current ratio of ECL (1.70) is worse than 65.43% of its industry peers.
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.
ECL shows a small growth in Revenue. In the last year, the Revenue has grown by 1.38%.
Measured over the past years, ECL shows a small growth in Revenue. The Revenue has been growing by 1.10% on average per year.
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
Based on estimates for the next years, ECL will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.49% on average per year.
ECL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.42% yearly.
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
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
With a Price/Earnings ratio of 36.36, ECL can be considered very expensive at the moment.
64.20% of the companies in the same industry are cheaper than ECL, based on the Price/Earnings ratio.
ECL's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.37.
A Price/Forward Earnings ratio of 30.86 indicates a quite expensive valuation of ECL.
Based on the Price/Forward Earnings ratio, ECL is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
ECL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 36.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.36 | ||
| Fwd PE | 30.86 |
4.2 Price Multiples
77.78% of the companies in the same industry are cheaper than ECL, based on the Enterprise Value to EBITDA ratio.
ECL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.2 | ||
| EV/EBITDA | 21.55 |
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 13.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.56
PEG (5Y)13.3
EPS Next 2Y13.41%
EPS Next 3Y13.49%
5. Dividend
5.1 Amount
ECL has a yearly dividend return of 0.95%, which is pretty low.
Compared to an average industry Dividend Yield of 3.88, ECL is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.32, 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 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%
264.33
-6.56 (-2.42%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners82.4%
Inst Owner Change-0.68%
Ins Owners0.11%
Ins Owner Change0.45%
Market Cap74.87B
Revenue(TTM)15.89B
Net Income(TTM)1.98B
Analysts76.13
Price Target297.71 (12.63%)
Short Float %13.99%
Short Ratio1.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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)1.01%
PT rev (3m)2.31%
EPS NQ rev (1m)-0.54%
EPS NQ rev (3m)-0.24%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.36 | ||
| Fwd PE | 30.86 | ||
| P/S | 4.71 | ||
| P/FCF | 48.2 | ||
| P/OCF | 28.48 | ||
| P/B | 7.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.55 |
EPS(TTM)7.27
EY2.75%
EPS(NY)8.57
Fwd EY3.24%
FCF(TTM)5.48
FCFY2.07%
OCF(TTM)9.28
OCFY3.51%
SpS56.1
BVpS34.31
TBVpS-5.4
PEG (NY)2.56
PEG (5Y)13.3
Graham Number74.92
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 | 5.1 |
F-Score6
WACC8.54%
ROIC/WACC1.35
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.