ECOLAB INC (ECL) Stock Fundamental Analysis
NYSE:ECL - New York Stock Exchange, Inc. - US2788651006 - Common Stock - Currency: USD
Taking everything into account, ECL scores 6 out of 10 in our fundamental rating. ECL was compared to 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 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.
ECL had a positive operating cash flow in the past year.
ECL had positive earnings in 4 of the past 5 years.
In the past 5 years ECL always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ECL (9.40%) is better than 92.94% of its industry peers.
ECL has a better Return On Equity (23.69%) than 92.94% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.15%, ECL belongs to the top of the industry, outperforming 89.41% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ECL is above the industry average of 6.84%.
The last Return On Invested Capital (12.15%) for ECL is above the 3 year average (10.09%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
ECL has a better Profit Margin (13.41%) than 91.76% of its industry peers.
In the last couple of years the Profit Margin of ECL has grown nicely.
ECL has a Operating Margin of 16.96%. This is amongst the best in the industry. ECL outperforms 83.53% of its industry peers.
ECL's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 43.75%, ECL belongs to the best of the industry, outperforming 89.41% 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 | 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%
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.
ECL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.28 indicates that ECL is not in any danger for bankruptcy at the moment.
ECL's Altman-Z score of 5.28 is amongst the best of the industry. ECL outperforms 96.47% of its industry peers.
The Debt to FCF ratio of ECL is 5.06, which is a neutral value as it means it would take ECL, 5.06 years of fcf income to pay off all of its debts.
ECL has a better Debt to FCF ratio (5.06) than 76.47% of its industry peers.
A Debt/Equity ratio of 0.79 indicates that ECL is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.79, ECL is in line with its industry, outperforming 43.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 5.06 | ||
| Altman-Z | 5.28 |
ROIC/WACC1.39
WACC8.76%
2.3 Liquidity
A Current Ratio of 1.32 indicates that ECL should not have too much problems paying its short term obligations.
With a Current ratio value of 1.32, ECL is not doing good in the industry: 77.65% of the companies in the same industry are doing better.
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.
ECL has a Quick ratio of 0.98. This is in the lower half of the industry: ECL underperforms 63.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.98 |
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.
ECL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.73% yearly.
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
The Earnings Per Share is expected to grow by 10.66% on average over the next years. This is quite good.
Based on estimates for the next years, ECL will show a small growth in Revenue. The Revenue will grow by 4.64% on average per year.
EPS Next Y13.77%
EPS Next 2Y13.03%
EPS Next 3Y13.64%
EPS Next 5Y10.66%
Revenue Next Year1.28%
Revenue Next 2Y3.23%
Revenue Next 3Y3.99%
Revenue Next 5Y4.64%
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 accelerating.
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
Based on the Price/Earnings ratio of 39.23, the valuation of ECL can be described as expensive.
65.88% 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 26.98.
ECL is valuated quite expensively with a Price/Forward Earnings ratio of 31.44.
Based on the Price/Forward Earnings ratio, ECL is valued a bit more expensive than the industry average as 65.88% 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 21.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.23 | ||
| Fwd PE | 31.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ECL is valued a bit more expensive than 74.12% of the companies in the same industry.
ECL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.46 | ||
| EV/EBITDA | 22.87 |
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 13.64% in the coming years.
PEG (NY)2.85
PEG (5Y)14.35
EPS Next 2Y13.03%
EPS Next 3Y13.64%
5. Dividend
5.1 Amount
ECL has a yearly dividend return of 0.99%, which is pretty low.
Compared to an average industry Dividend Yield of 3.69, ECL has a dividend in line with its industry peers.
With a Dividend Yield of 0.99, ECL pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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
32.39% of the earnings are spent on dividend by ECL. This is a low number and sustainable payout ratio.
ECL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP32.39%
EPS Next 2Y13.03%
EPS Next 3Y13.64%
NYSE:ECL (6/30/2025, 12:27:57 PM)
267.52
+0.07 (+0.03%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners81.59%
Inst Owner Change2.55%
Ins Owners0.11%
Ins Owner Change1.3%
Market Cap75.84B
Analysts74.84
Price Target281.65 (5.28%)
Short Float %0.88%
Short Ratio1.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Yearly Dividend2.34
Dividend Growth(5Y)3.93%
DP32.39%
Div Incr Years34
Div Non Decr Years34
Ex-Date
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)0.92%
PT rev (3m)-4.33%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)-0.39%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-0.31%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.23 | ||
| Fwd PE | 31.44 | ||
| P/S | 4.84 | ||
| P/FCF | 50.46 | ||
| P/OCF | 29.93 | ||
| P/B | 8.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.87 |
EPS(TTM)6.82
EY2.55%
EPS(NY)8.51
Fwd EY3.18%
FCF(TTM)5.3
FCFY1.98%
OCF(TTM)8.94
OCFY3.34%
SpS55.32
BVpS31.31
TBVpS-7.82
PEG (NY)2.85
PEG (5Y)14.35
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 5.28 |
F-Score7
WACC8.76%
ROIC/WACC1.39
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 Y13.77%
EPS Next 2Y13.03%
EPS Next 3Y13.64%
EPS Next 5Y10.66%
Revenue 1Y (TTM)1.19%
Revenue growth 3Y7.33%
Revenue growth 5Y1.1%
Sales Q2Q%-1.52%
Revenue Next Year1.28%
Revenue Next 2Y3.23%
Revenue Next 3Y3.99%
Revenue Next 5Y4.64%
EBIT growth 1Y15.94%
EBIT growth 3Y13.42%
EBIT growth 5Y3.35%
EBIT Next Year45.24%
EBIT Next 3Y20%
EBIT Next 5Y15.72%
FCF growth 1Y39.33%
FCF growth 3Y8.64%
FCF growth 5Y2.35%
OCF growth 1Y39.49%
OCF growth 3Y10.92%
OCF growth 5Y3.06%