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ECOLAB INC (ECL) Stock Fundamental Analysis

NYSE:ECL - New York Stock Exchange, Inc. - US2788651006 - Common Stock - Currency: USD

268.05  +1.12 (+0.42%)

Fundamental Rating

6

ECL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 85 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.


Dividend Valuation Growth Profitability Health

9

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.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B 2B

1.2 Ratios

ECL's Return On Assets of 9.40% is amongst the best of the industry. ECL outperforms 92.94% of its industry peers.
With an excellent Return On Equity value of 23.69%, ECL belongs to the best of the industry, outperforming 92.94% of the companies in the same industry.
ECL has a better Return On Invested Capital (12.15%) than 89.41% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ECL is above the industry average of 6.85%.
The 3 year average ROIC (10.09%) for ECL is below the current ROIC(12.15%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 9.4%
ROE 23.69%
ROIC 12.15%
ROA(3y)6.93%
ROA(5y)3.9%
ROE(3y)18.76%
ROE(5y)10.47%
ROIC(3y)10.09%
ROIC(5y)9.38%
ECL Yearly ROA, ROE, ROICECL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20

1.3 Margins

ECL has a better Profit Margin (13.41%) than 91.76% of its industry peers.
ECL's Profit Margin has improved in the last couple of years.
ECL's Operating Margin of 16.96% is amongst the best of the industry. ECL outperforms 83.53% of its industry peers.
ECL's Operating Margin has improved in the last couple of years.
ECL's Gross Margin of 43.75% is amongst the best of the industry. ECL outperforms 89.41% 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 RankSector Rank
OM 16.96%
PM (TTM) 13.41%
GM 43.75%
OM growth 3Y5.67%
OM growth 5Y2.23%
PM growth 3Y14.78%
PM growth 5Y5.11%
GM growth 3Y2.05%
GM growth 5Y0.87%
ECL Yearly Profit, Operating, Gross MarginsECL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30 40

5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ECL 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.
The debt/assets ratio for ECL has been reduced compared to a year ago.
ECL Yearly Shares OutstandingECL Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
ECL Yearly Total Debt VS Total AssetsECL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

2.2 Solvency

ECL has an Altman-Z score of 5.27. This indicates that ECL is financially healthy and has little risk of bankruptcy at the moment.
ECL has a Altman-Z score of 5.27. This is amongst the best in the industry. ECL outperforms 96.47% of its industry peers.
ECL has a debt to FCF ratio of 5.06. This is a neutral value as ECL would need 5.06 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.06, ECL is doing good in the industry, outperforming 75.29% of the companies in the same industry.
A Debt/Equity ratio of 0.79 indicates that ECL is somewhat dependend on debt financing.
The Debt to Equity ratio of ECL (0.79) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.79
Debt/FCF 5.06
Altman-Z 5.27
ROIC/WACC1.26
WACC9.67%
ECL Yearly LT Debt VS Equity VS FCFECL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

2.3 Liquidity

ECL has a Current Ratio of 1.32. 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 Current ratio of 1.32. This is in the lower half of the industry: ECL underperforms 77.65% of its industry peers.
ECL has a Quick Ratio of 1.32. This is a bad value and indicates that ECL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.98, ECL is not doing good in the industry: 63.53% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.32
Quick Ratio 0.98
ECL Yearly Current Assets VS Current LiabilitesECL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

5

3. Growth

3.1 Past

ECL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.28%, which is quite impressive.
The Earnings Per Share has been growing slightly by 2.73% on average over the past years.
Looking at the last year, ECL shows a small growth in Revenue. The Revenue has grown by 1.19% in the last year.
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)20.28%
EPS 3Y11.38%
EPS 5Y2.73%
EPS Q2Q%11.94%
Revenue 1Y (TTM)1.19%
Revenue growth 3Y7.33%
Revenue growth 5Y1.1%
Sales Q2Q%-1.52%

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 10.68% on average per year.
The Revenue is expected to grow by 4.69% on average over the next years.
EPS Next Y13.76%
EPS Next 2Y13.08%
EPS Next 3Y13.62%
EPS Next 5Y10.68%
Revenue Next Year1.3%
Revenue Next 2Y3.21%
Revenue Next 3Y3.96%
Revenue Next 5Y4.69%

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.
ECL Yearly Revenue VS EstimatesECL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B 20B 25B
ECL Yearly EPS VS EstimatesECL Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2 4 6 8 10

2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 39.30 indicates a quite expensive valuation of ECL.
Based on the Price/Earnings ratio, ECL is valued a bit more expensive than the industry average as 65.88% of the companies are valued more cheaply.
ECL is valuated rather expensively when we compare the Price/Earnings ratio to 26.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 31.47, 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 the industry average as 69.41% of the companies are valued more cheaply.
ECL's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.06.
Industry RankSector Rank
PE 39.3
Fwd PE 31.47
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

74.12% 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 is on the same level as the industry average.
Industry RankSector Rank
P/FCF 50.56
EV/EBITDA 22.83
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.
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 13.62% in the coming years.
PEG (NY)2.86
PEG (5Y)14.38
EPS Next 2Y13.08%
EPS Next 3Y13.62%

5

5. Dividend

5.1 Amount

ECL has a yearly dividend return of 0.98%, which is pretty low.
Compared to an average industry Dividend Yield of 3.75, ECL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, ECL's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.98%

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
ECL Yearly Dividends per shareECL Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

5.3 Sustainability

ECL pays out 32.39% 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.
DP32.39%
EPS Next 2Y13.08%
EPS Next 3Y13.62%
ECL Yearly Income VS Free CF VS DividendECL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B 2B
ECL Dividend Payout.ECL Dividend Payout, showing the Payout Ratio.ECL Dividend Payout.PayoutRetained Earnings

ECOLAB INC

NYSE:ECL (6/6/2025, 10:41:51 AM)

268.05

+1.12 (+0.42%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)04-29 2025-04-29/bmo
Earnings (Next)07-28 2025-07-28/bmo
Inst Owners81.39%
Inst Owner Change2.55%
Ins Owners0.11%
Ins Owner Change1.37%
Market Cap75.99B
Analysts74.84
Price Target279.07 (4.11%)
Short Float %0.89%
Short Ratio1.86
Dividend
Industry RankSector Rank
Dividend Yield 0.98%
Yearly Dividend2.34
Dividend Growth(5Y)3.93%
DP32.39%
Div Incr Years34
Div Non Decr Years34
Ex-Date06-17 2025-06-17 (0.65)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.16%
Min EPS beat(2)-0.69%
Max EPS beat(2)0.38%
EPS beat(4)1
Avg EPS beat(4)-0.38%
Min EPS beat(4)-0.69%
Max EPS beat(4)0.38%
EPS beat(8)3
Avg EPS beat(8)-0.12%
EPS beat(12)5
Avg EPS beat(12)-0.15%
EPS beat(16)7
Avg EPS beat(16)0.08%
Revenue beat(2)0
Avg Revenue beat(2)-0.75%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)-0.49%
Revenue beat(4)0
Avg Revenue beat(4)-1.37%
Min Revenue beat(4)-2.04%
Max Revenue beat(4)-0.49%
Revenue beat(8)0
Avg Revenue beat(8)-1.33%
Revenue beat(12)2
Avg Revenue beat(12)-0.84%
Revenue beat(16)6
Avg Revenue beat(16)-0.43%
PT rev (1m)-1.26%
PT rev (3m)-3.97%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)-0.48%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.52%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.47%
Valuation
Industry RankSector Rank
PE 39.3
Fwd PE 31.47
P/S 4.85
P/FCF 50.56
P/OCF 29.99
P/B 8.56
P/tB N/A
EV/EBITDA 22.83
EPS(TTM)6.82
EY2.54%
EPS(NY)8.52
Fwd EY3.18%
FCF(TTM)5.3
FCFY1.98%
OCF(TTM)8.94
OCFY3.33%
SpS55.32
BVpS31.31
TBVpS-7.82
PEG (NY)2.86
PEG (5Y)14.38
Profitability
Industry RankSector Rank
ROA 9.4%
ROE 23.69%
ROCE 14.98%
ROIC 12.15%
ROICexc 13%
ROICexgc 39.18%
OM 16.96%
PM (TTM) 13.41%
GM 43.75%
FCFM 9.58%
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 Turnover0.7
Health
Industry RankSector Rank
Debt/Equity 0.79
Debt/FCF 5.06
Debt/EBITDA 1.95
Cap/Depr 110.06%
Cap/Sales 6.57%
Interest Coverage 250
Cash Conversion 70.44%
Profit Quality 71.48%
Current Ratio 1.32
Quick Ratio 0.98
Altman-Z 5.27
F-Score7
WACC9.67%
ROIC/WACC1.26
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)20.28%
EPS 3Y11.38%
EPS 5Y2.73%
EPS Q2Q%11.94%
EPS Next Y13.76%
EPS Next 2Y13.08%
EPS Next 3Y13.62%
EPS Next 5Y10.68%
Revenue 1Y (TTM)1.19%
Revenue growth 3Y7.33%
Revenue growth 5Y1.1%
Sales Q2Q%-1.52%
Revenue Next Year1.3%
Revenue Next 2Y3.21%
Revenue Next 3Y3.96%
Revenue Next 5Y4.69%
EBIT growth 1Y15.94%
EBIT growth 3Y13.42%
EBIT growth 5Y3.35%
EBIT Next Year45.24%
EBIT Next 3Y20%
EBIT Next 5Y16.11%
FCF growth 1Y39.33%
FCF growth 3Y8.64%
FCF growth 5Y2.35%
OCF growth 1Y39.49%
OCF growth 3Y10.92%
OCF growth 5Y3.06%