ECOLAB INC (ECL) Stock Fundamental Analysis
USA - NYSE:ECL - US2788651006 - Common Stock
255.67 USD
+0.21 (+0.08%)
255.67 USD
0 (0%)
ECL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 82 industry peers in the Chemicals industry. ECL scores excellent on profitability, but there are some minor concerns on its financial health. ECL is quite expensive at the moment. 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.
In the past 5 years ECL always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.30%, ECL belongs to the top of the industry, outperforming 89.02% of the companies in the same industry.
The Return On Equity of ECL (20.42%) is better than 91.46% of its industry peers.
The Return On Invested Capital of ECL (11.53%) is better than 89.02% 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 6.13%.
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 93.90% of its industry peers.
In the last couple of years the Profit Margin of ECL has grown nicely.
With an excellent Operating Margin value of 17.63%, ECL belongs to the best of the industry, outperforming 85.37% of the companies in the same industry.
In the last couple of years the Operating Margin of ECL has grown nicely.
With an excellent Gross Margin value of 44.36%, ECL belongs to the best of the industry, outperforming 89.02% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ECL is still creating some value.
The number of shares outstanding for ECL has been reduced compared to 1 year ago.
The number of shares outstanding for ECL has been reduced compared to 5 years ago.
Compared to 1 year ago, ECL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.00 indicates that ECL is not in any danger for bankruptcy at the moment.
ECL has a better Altman-Z score (5.00) than 95.12% 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 better Debt to FCF ratio (5.19) than 79.27% 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.
Looking at the Debt to Equity ratio, with a value of 0.83, ECL is in line with its industry, outperforming 43.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.19 | ||
| Altman-Z | 5 |
ROIC/WACC1.38
WACC8.37%
2.3 Liquidity
ECL has a Current Ratio of 1.70. 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 1.70. This is in the lower half of the industry: ECL underperforms 64.63% of its industry peers.
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 (1.33) which is comparable to the rest of the 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.
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 1.38% in the last year.
ECL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.10% yearly.
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.
The Revenue is expected to grow by 5.42% on average over the next years.
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
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 35.17, which means the current valuation is very expensive for ECL.
Based on the Price/Earnings ratio, ECL is valued a bit more expensive than the industry average as 63.41% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 25.51, ECL is valued a bit more expensive.
With a Price/Forward Earnings ratio of 29.85, ECL can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, ECL is valued a bit more expensive than the industry average as 65.85% 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 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.17 | ||
| Fwd PE | 29.85 |
4.2 Price Multiples
74.39% 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 | 46.68 | ||
| EV/EBITDA | 20.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ECL does not grow enough to justify the current Price/Earnings ratio.
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)2.47
PEG (5Y)12.87
EPS Next 2Y13.41%
EPS Next 3Y13.49%
5. Dividend
5.1 Amount
With a yearly dividend of 0.99%, ECL is not a good candidate for dividend investing.
ECL's Dividend Yield is comparable with the industry average which is at 4.00.
Compared to an average S&P500 Dividend Yield of 2.44, ECL's dividend is way lower than the S&P500 average.
| 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 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
ECL pays out 36.57% of its income as dividend. This is a sustainable payout ratio.
ECL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP36.57%
EPS Next 2Y13.41%
EPS Next 3Y13.49%
255.67
+0.21 (+0.08%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners82.4%
Inst Owner Change-0.42%
Ins Owners0.11%
Ins Owner Change0.6%
Market Cap72.51B
Revenue(TTM)15.89B
Net Income(TTM)1.98B
Analysts76.13
Price Target294.75 (15.29%)
Short Float %0.99%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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)0.44%
PT rev (3m)1.42%
EPS NQ rev (1m)-0.43%
EPS NQ rev (3m)-0.36%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.17 | ||
| Fwd PE | 29.85 | ||
| P/S | 4.56 | ||
| P/FCF | 46.68 | ||
| P/OCF | 27.58 | ||
| P/B | 7.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.92 |
EPS(TTM)7.27
EY2.84%
EPS(NY)8.57
Fwd EY3.35%
FCF(TTM)5.48
FCFY2.14%
OCF(TTM)9.27
OCFY3.63%
SpS56.03
BVpS34.27
TBVpS-5.39
PEG (NY)2.47
PEG (5Y)12.87
Graham Number74.87
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 |
F-Score6
WACC8.37%
ROIC/WACC1.38
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.