ECOLAB INC (ECL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ECL - US2788651006 - Common Stock
271.73 USD
-0.01 (0%)
271.73 USD
0 (0%)
ECL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. While ECL has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, ECL is valued expensive at the moment.
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
ECL has a Return On Assets of 8.30%. This is amongst the best in the industry. ECL outperforms 87.95% of its industry peers.
ECL's Return On Equity of 20.42% is amongst the best of the industry. ECL outperforms 91.57% of its industry peers.
ECL has a Return On Invested Capital of 11.53%. This is amongst the best in the industry. ECL outperforms 87.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ECL is above the industry average of 6.10%.
The last Return On Invested Capital (11.53%) for ECL is above the 3 year average (10.09%), which is a sign of increasing profitability.
| 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
The Profit Margin of ECL (12.49%) is better than 91.57% of its industry peers.
ECL's Profit Margin has improved in the last couple of years.
The Operating Margin of ECL (17.63%) is better than 84.34% of its industry peers.
ECL's Operating Margin has improved in the last couple of years.
The Gross Margin of ECL (44.36%) is better than 87.95% 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 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ECL is destroying value.
ECL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ECL has less shares outstanding
The debt/assets ratio for ECL has been reduced compared to a year ago.
2.2 Solvency
ECL has an Altman-Z score of 5.19. This indicates that ECL is financially healthy and has little risk of bankruptcy at the moment.
ECL has a better Altman-Z score (5.19) than 96.39% of its industry peers.
The Debt to FCF ratio of ECL is 5.19, which is a neutral value as it means it would take ECL, 5.19 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ECL (5.19) is better than 79.52% of its industry peers.
ECL has a Debt/Equity ratio of 0.83. This is a neutral value indicating ECL is somewhat dependend on debt financing.
The Debt to Equity ratio of ECL (0.83) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.19 | ||
| Altman-Z | 5.19 |
ROIC/WACC0.79
WACC14.64%
2.3 Liquidity
A Current Ratio of 1.70 indicates that ECL should not have too much problems paying its short term obligations.
With a Current ratio value of 1.70, ECL is not doing good in the industry: 61.45% of the companies in the same industry are doing better.
ECL has a Quick Ratio of 1.33. This is a normal value and indicates that ECL is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.33, ECL perfoms like the industry average, outperforming 53.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.59% over the past year.
The Earnings Per Share has been growing slightly by 2.73% on average over the past years.
The Revenue has been growing slightly by 1.38% in the past 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)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
ECL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.49% yearly.
ECL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.42% yearly.
EPS Next Y14.07%
EPS Next 2Y13.35%
EPS Next 3Y13.5%
EPS Next 5Y11.49%
Revenue Next Year1.97%
Revenue Next 2Y3.68%
Revenue Next 3Y4.14%
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
The Price/Earnings ratio is 37.38, which means the current valuation is very expensive for ECL.
61.45% of the companies in the same industry are cheaper than ECL, based on the Price/Earnings ratio.
ECL is valuated rather expensively when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
ECL is valuated quite expensively with a Price/Forward Earnings ratio of 31.76.
Based on the Price/Forward Earnings ratio, ECL is valued a bit more expensive than 62.65% of the companies in the same industry.
ECL is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.38 | ||
| Fwd PE | 31.76 |
4.2 Price Multiples
ECL's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ECL is more expensive than 79.52% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ECL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.55 | ||
| EV/EBITDA | 22.11 |
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 13.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.66
PEG (5Y)13.68
EPS Next 2Y13.35%
EPS Next 3Y13.5%
5. Dividend
5.1 Amount
ECL has a Yearly Dividend Yield of 1.07%.
ECL's Dividend Yield is comparable with the industry average which is at 2.36.
Compared to an average S&P500 Dividend Yield of 1.90, ECL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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
5.3 Sustainability
36.57% 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.
DP36.57%
EPS Next 2Y13.35%
EPS Next 3Y13.5%
271.73
-0.01 (0%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners82.4%
Inst Owner Change0%
Ins Owners0.11%
Ins Owner Change0.44%
Market Cap76.96B
Revenue(TTM)15.89B
Net Income(TTM)1.98B
Analysts76.77
Price Target297.31 (9.41%)
Short Float %1.2%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
Yearly Dividend2.34
Dividend Growth(5Y)3.93%
DP36.57%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
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)-0.14%
PT rev (3m)1.31%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-0.44%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.16%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.38 | ||
| Fwd PE | 31.76 | ||
| P/S | 4.84 | ||
| P/FCF | 49.55 | ||
| P/OCF | 29.27 | ||
| P/B | 7.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.11 |
EPS(TTM)7.27
EY2.68%
EPS(NY)8.56
Fwd EY3.15%
FCF(TTM)5.48
FCFY2.02%
OCF(TTM)9.28
OCFY3.42%
SpS56.1
BVpS34.31
TBVpS-5.4
PEG (NY)2.66
PEG (5Y)13.68
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 | 5.19 |
F-Score6
WACC14.64%
ROIC/WACC0.79
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 Y14.07%
EPS Next 2Y13.35%
EPS Next 3Y13.5%
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 2Y3.68%
Revenue Next 3Y4.14%
Revenue Next 5Y5.42%
EBIT growth 1Y9.72%
EBIT growth 3Y13.42%
EBIT growth 5Y3.35%
EBIT Next Year46.26%
EBIT Next 3Y20.52%
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 of ECOLAB INC (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.
Can you provide the PE and PB ratios for ECL stock?
The Price/Earnings (PE) ratio for ECOLAB INC (ECL) is 37.38 and the Price/Book (PB) ratio is 7.92.
How financially healthy is ECOLAB INC?
The financial health rating of ECOLAB INC (ECL) is 6 / 10.