ECOLAB INC (ECL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ECL - US2788651006 - Common Stock
259.53 USD
-1.58 (-0.61%)
259.53 USD
0 (0%)
Taking everything into account, ECL scores 6 out of 10 in our fundamental rating. ECL was compared to 83 industry peers in the Chemicals industry. ECL scores excellent on profitability, 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
In the past year ECL was profitable.
In the past year ECL had a positive cash flow from operations.
ECL had positive earnings in 4 of the past 5 years.
ECL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ECL has a better Return On Assets (8.30%) than 89.16% of its industry peers.
Looking at the Return On Equity, with a value of 20.42%, ECL belongs to the top of the industry, outperforming 91.57% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.53%, ECL belongs to the best of the industry, outperforming 89.16% 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 5.95%.
The 3 year average ROIC (10.09%) for ECL is below the current ROIC(11.53%), indicating increased profibility in the last year.
| 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 Profit Margin of 12.49%. This is amongst the best in the industry. ECL outperforms 92.77% of its industry peers.
ECL's Profit Margin has improved in the last couple of years.
ECL has a better Operating Margin (17.63%) than 85.54% 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.
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.
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
An Altman-Z score of 5.04 indicates that ECL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.04, 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.
ECL has a Debt to FCF ratio of 5.19. This is in the better half of the industry: ECL outperforms 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.
Looking at the Debt to Equity ratio, with a value of 0.83, ECL is in line with its industry, outperforming 44.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.19 | ||
| Altman-Z | 5.04 |
ROIC/WACC1.36
WACC8.49%
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.
A Quick Ratio of 1.33 indicates that ECL should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.33, ECL is in line with its industry, 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
ECL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.59%, which is quite good.
ECL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.73% yearly.
ECL shows a small growth in Revenue. In the last year, the Revenue has grown by 1.38%.
The Revenue has been growing slightly by 1.10% on average over the past years.
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.
Based on estimates for the next years, ECL will show a small growth in Revenue. The Revenue will grow by 5.42% on average per year.
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
With a Price/Earnings ratio of 35.70, ECL can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ECL is valued a bit more expensive than 61.45% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.43. ECL is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 30.30, which means the current valuation is very expensive for ECL.
Based on the Price/Forward Earnings ratio, ECL is valued a bit more expensive than the industry average as 62.65% 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 23.66.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.7 | ||
| Fwd PE | 30.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ECL indicates a slightly more expensive valuation: ECL is more expensive than 78.31% of the companies listed 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 | 47.32 | ||
| EV/EBITDA | 21.19 |
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.
A more expensive valuation may be justified as ECL's earnings are expected to grow with 13.51% in the coming years.
PEG (NY)2.54
PEG (5Y)13.06
EPS Next 2Y13.41%
EPS Next 3Y13.51%
5. Dividend
5.1 Amount
ECL has a Yearly Dividend Yield of 1.12%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.66, ECL has a dividend in line with its industry peers.
With a Dividend Yield of 1.12, ECL pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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%
259.53
-1.58 (-0.61%)
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 Cap73.51B
Revenue(TTM)15.89B
Net Income(TTM)1.98B
Analysts76.77
Price Target297.71 (14.71%)
Short Float %1.15%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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 | 35.7 | ||
| Fwd PE | 30.3 | ||
| P/S | 4.63 | ||
| P/FCF | 47.32 | ||
| P/OCF | 27.96 | ||
| P/B | 7.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.19 |
EPS(TTM)7.27
EY2.8%
EPS(NY)8.57
Fwd EY3.3%
FCF(TTM)5.48
FCFY2.11%
OCF(TTM)9.28
OCFY3.58%
SpS56.1
BVpS34.31
TBVpS-5.4
PEG (NY)2.54
PEG (5Y)13.06
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 | 5.04 |
F-Score6
WACC8.49%
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.