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%)
We assign a fundamental rating of 6 out of 10 to ECL. ECL was compared to 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
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.
Each year in the past 5 years ECL had a positive operating cash flow.
1.2 Ratios
ECL has a better Return On Assets (8.30%) than 87.95% of its industry peers.
With an excellent Return On Equity value of 20.42%, ECL belongs to the best of the industry, outperforming 91.57% 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 87.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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
ECL has a better Profit Margin (12.49%) than 91.57% of its industry peers.
ECL's Profit Margin has improved in the last couple of years.
ECL has a Operating Margin of 17.63%. This is amongst the best in the industry. ECL outperforms 84.34% of its industry peers.
ECL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 44.36%, ECL belongs to the top of the industry, outperforming 87.95% 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 | 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 below the Cost of Capital (WACC), so ECL is destroying 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.
ECL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.19 indicates that ECL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.19, ECL belongs to the top of the industry, outperforming 96.39% of the companies in the same industry.
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.
A Debt/Equity ratio of 0.83 indicates that ECL is somewhat dependend on debt financing.
ECL's Debt to Equity ratio of 0.83 is in line compared to the rest of the industry. ECL outperforms 43.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.19 | ||
| Altman-Z | 5.19 |
ROIC/WACC0.79
WACC14.64%
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's Current ratio of 1.70 is on the low side compared to the rest of the industry. ECL is outperformed by 61.45% 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.
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.
ECL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.73% yearly.
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.
The Revenue is expected to grow by 5.42% on average over the next years.
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
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
Based on the Price/Earnings ratio of 37.38, the valuation of ECL can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ECL indicates a slightly more expensive valuation: ECL is more expensive than 61.45% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, ECL is valued a bit more expensive.
ECL is valuated quite expensively with a Price/Forward Earnings ratio of 31.76.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ECL indicates a slightly more expensive valuation: ECL is more expensive than 61.45% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ECL to the average of the S&P500 Index (23.92), we can say ECL is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.38 | ||
| Fwd PE | 31.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ECL is valued a bit more expensive than 78.31% of the companies in the same industry.
ECL's Price/Free Cash Flow is on the same level as the industry average.
| 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.
ECL has an outstanding profitability rating, which 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
With a Yearly Dividend Yield of 1.07%, ECL has a reasonable but not impressive dividend return.
ECL's Dividend Yield is comparable with the industry average which is at 2.34.
With a Dividend Yield of 1.07, ECL pays less dividend than the S&P500 average, which is at 1.92.
| 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 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
ECL pays out 36.57% 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.
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 Change0.1%
Ins Owners0.11%
Ins Owner Change0.55%
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.