ECOLAB INC (ECL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ECL - US2788651006 - Common Stock
263.59 USD
+0.67 (+0.25%)
263.59 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ECL. ECL was compared to 84 industry peers in the Chemicals industry. ECL has an excellent profitability rating, but 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
With an excellent Return On Assets value of 8.30%, ECL belongs to the best of the industry, outperforming 88.10% of the companies in the same industry.
Looking at the Return On Equity, with a value of 20.42%, ECL belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
ECL has a Return On Invested Capital of 11.53%. This is amongst the best in the industry. ECL outperforms 88.10% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ECL is above the industry average of 6.09%.
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
ECL's Profit Margin of 12.49% is amongst the best of the industry. ECL outperforms 91.67% 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 84.52% of its industry peers.
In the last couple of years the Operating Margin of ECL has grown nicely.
ECL has a Gross Margin of 44.36%. This is amongst the best in the industry. ECL outperforms 88.10% of its industry peers.
ECL's Gross Margin has been stable in the last couple of years.
| 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) just above the Cost of Capital (WACC), ECL is creating some value.
The number of shares outstanding for ECL has been reduced compared to 1 year ago.
Compared to 5 years ago, ECL has less shares outstanding
Compared to 1 year ago, ECL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.09 indicates that ECL is not in any danger for bankruptcy at the moment.
ECL has a Altman-Z score of 5.09. This is amongst the best in the industry. ECL outperforms 96.43% 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.
With a decent Debt to FCF ratio value of 5.19, ECL is doing good in the industry, outperforming 79.76% of the companies in the same industry.
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 | 5.09 |
ROIC/WACC1.36
WACC8.47%
2.3 Liquidity
A Current Ratio of 1.70 indicates that ECL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.70, ECL is doing worse than 61.90% of the companies in the same industry.
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.
ECL has a Quick ratio of 1.33. This is comparable to the rest of the industry: ECL outperforms 52.38% of its industry peers.
| 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.
Looking at the last year, ECL shows a small growth in Revenue. The Revenue has grown by 1.38% 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)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.
The Revenue is expected to grow by 5.42% on average over the next years.
EPS Next Y14.07%
EPS Next 2Y13.41%
EPS Next 3Y13.51%
EPS Next 5Y11.49%
Revenue Next Year1.97%
Revenue Next 2Y3.65%
Revenue Next 3Y4.12%
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
Based on the Price/Earnings ratio of 36.26, the valuation of ECL can be described as expensive.
61.90% 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 26.39.
ECL is valuated quite expensively with a Price/Forward Earnings ratio of 30.77.
Based on the Price/Forward Earnings ratio, ECL is valued a bit more expensive than the industry average as 63.10% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 23.84. ECL is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.26 | ||
| Fwd PE | 30.77 |
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 78.57% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ECL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.06 | ||
| EV/EBITDA | 21.5 |
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 13.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.58
PEG (5Y)13.27
EPS Next 2Y13.41%
EPS Next 3Y13.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.11%, ECL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.46, ECL has a dividend in line with its industry peers.
With a Dividend Yield of 1.11, ECL pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
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
36.57% of the earnings are spent on dividend by ECL. This is a low number and 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 3Y13.51%
263.59
+0.67 (+0.25%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners82.48%
Inst Owner Change-0.67%
Ins Owners0.11%
Ins Owner Change0.54%
Market Cap74.66B
Revenue(TTM)15.89B
Net Income(TTM)1.98B
Analysts76.77
Price Target297.71 (12.94%)
Short Float %1.15%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
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)-0.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.39%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.26 | ||
| Fwd PE | 30.77 | ||
| P/S | 4.7 | ||
| P/FCF | 48.06 | ||
| P/OCF | 28.4 | ||
| P/B | 7.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.5 |
EPS(TTM)7.27
EY2.76%
EPS(NY)8.57
Fwd EY3.25%
FCF(TTM)5.48
FCFY2.08%
OCF(TTM)9.28
OCFY3.52%
SpS56.1
BVpS34.31
TBVpS-5.4
PEG (NY)2.58
PEG (5Y)13.27
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 | 5.09 |
F-Score6
WACC8.47%
ROIC/WACC1.36
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 2Y13.41%
EPS Next 3Y13.51%
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 2Y3.65%
Revenue Next 3Y4.12%
Revenue Next 5Y5.42%
EBIT growth 1Y9.72%
EBIT growth 3Y13.42%
EBIT growth 5Y3.35%
EBIT Next Year46.26%
EBIT Next 3Y20.47%
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 14.07% in the next year.