ECOLAB INC (ECL) Stock Fundamental Analysis
USA - NYSE:ECL - US2788651006 - Common Stock
264.83 USD
-0.53 (-0.2%)
264.83 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ECL. ECL was compared to 83 industry peers in the Chemicals industry. While ECL belongs to the best of the industry regarding profitability, 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.
ECL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 9.00%, ECL belongs to the best of the industry, outperforming 95.18% of the companies in the same industry.
Looking at the Return On Equity, with a value of 22.92%, ECL belongs to the top of the industry, outperforming 91.57% of the companies in the same industry.
ECL has a better Return On Invested Capital (11.75%) than 90.36% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ECL is above the industry average of 6.34%.
The last Return On Invested Capital (11.75%) for ECL is above the 3 year average (10.09%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9% | ||
| ROE | 22.92% | ||
| ROIC | 11.75% |
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
Looking at the Profit Margin, with a value of 13.59%, ECL belongs to the top of the industry, outperforming 93.98% of the companies in the same industry.
ECL's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 17.35%, ECL belongs to the best of the industry, outperforming 85.54% of the companies in the same industry.
ECL's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 44.01%, ECL belongs to the best of the industry, outperforming 90.36% 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 | 17.35% | ||
| PM (TTM) | 13.59% | ||
| GM | 44.01% |
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
ECL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ECL has been reduced compared to 1 year ago.
ECL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ECL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.99 indicates that ECL is not in any danger for bankruptcy at the moment.
The Altman-Z score of ECL (4.99) is better than 92.77% of its industry peers.
ECL has a debt to FCF ratio of 5.22. This is a neutral value as ECL would need 5.22 years to pay back of all of its debts.
ECL has a better Debt to FCF ratio (5.22) than 79.52% of its industry peers.
ECL has a Debt/Equity ratio of 0.81. This is a neutral value indicating ECL is somewhat dependend on debt financing.
The Debt to Equity ratio of ECL (0.81) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 5.22 | ||
| Altman-Z | 4.99 |
ROIC/WACC1.34
WACC8.8%
2.3 Liquidity
ECL has a Current Ratio of 1.44. 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 1.44 is on the low side compared to the rest of the industry. ECL is outperformed by 73.49% of its industry peers.
ECL has a Quick Ratio of 1.12. 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 Quick ratio of 1.12 is in line compared to the rest of the industry. ECL outperforms 40.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.06% over the past year.
Measured over the past 5 years, ECL shows a small growth in Earnings Per Share. The EPS has been growing by 2.73% on average per year.
Looking at the last year, ECL shows a small growth in Revenue. The Revenue has grown by 0.57% 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)15.06%
EPS 3Y11.38%
EPS 5Y2.73%
EPS Q2Q%12.5%
Revenue 1Y (TTM)0.57%
Revenue growth 3Y7.33%
Revenue growth 5Y1.1%
Sales Q2Q%0.99%
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 11.35% on average per year.
The Revenue is expected to grow by 4.90% on average over the next years.
EPS Next Y14.17%
EPS Next 2Y13.58%
EPS Next 3Y13.85%
EPS Next 5Y11.35%
Revenue Next Year1.84%
Revenue Next 2Y3.7%
Revenue Next 3Y4.22%
Revenue Next 5Y4.9%
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 37.67, ECL can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as ECL.
ECL is valuated rather expensively when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 30.82, which means the current valuation is very expensive for ECL.
ECL's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ECL is more expensive than 66.27% of the companies in the same industry.
ECL is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.67 | ||
| Fwd PE | 30.82 |
4.2 Price Multiples
72.29% of the companies in the same industry are cheaper than ECL, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as ECL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.72 | ||
| EV/EBITDA | 22.17 |
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.
A more expensive valuation may be justified as ECL's earnings are expected to grow with 13.85% in the coming years.
PEG (NY)2.66
PEG (5Y)13.78
EPS Next 2Y13.58%
EPS Next 3Y13.85%
5. Dividend
5.1 Amount
ECL has a yearly dividend return of 0.95%, which is pretty low.
Compared to an average industry Dividend Yield of 3.43, ECL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, ECL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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 32.94% 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.
DP32.94%
EPS Next 2Y13.58%
EPS Next 3Y13.85%
264.83
-0.53 (-0.2%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners81.96%
Inst Owner Change-1.08%
Ins Owners0.11%
Ins Owner Change0.24%
Market Cap75.11B
Analysts76
Price Target300.13 (13.33%)
Short Float %0.83%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend2.34
Dividend Growth(5Y)3.93%
DP32.94%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.05%
Min EPS beat(2)-1.41%
Max EPS beat(2)-0.69%
EPS beat(4)1
Avg EPS beat(4)-0.6%
Min EPS beat(4)-1.41%
Max EPS beat(4)0.38%
EPS beat(8)2
Avg EPS beat(8)-0.48%
EPS beat(12)5
Avg EPS beat(12)-0.25%
EPS beat(16)6
Avg EPS beat(16)-0.02%
Revenue beat(2)0
Avg Revenue beat(2)-0.88%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)-0.73%
Revenue beat(4)0
Avg Revenue beat(4)-1.04%
Min Revenue beat(4)-1.93%
Max Revenue beat(4)-0.49%
Revenue beat(8)0
Avg Revenue beat(8)-1.27%
Revenue beat(12)1
Avg Revenue beat(12)-0.99%
Revenue beat(16)5
Avg Revenue beat(16)-0.51%
PT rev (1m)3.27%
PT rev (3m)5.91%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)0.28%
EPS NY rev (1m)0.24%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.67 | ||
| Fwd PE | 30.82 | ||
| P/S | 4.78 | ||
| P/FCF | 47.72 | ||
| P/OCF | 28.62 | ||
| P/B | 8.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.17 |
EPS(TTM)7.03
EY2.65%
EPS(NY)8.59
Fwd EY3.24%
FCF(TTM)5.55
FCFY2.1%
OCF(TTM)9.25
OCFY3.49%
SpS55.44
BVpS32.86
TBVpS-6.78
PEG (NY)2.66
PEG (5Y)13.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9% | ||
| ROE | 22.92% | ||
| ROCE | 14.49% | ||
| ROIC | 11.75% | ||
| ROICexc | 13.09% | ||
| ROICexgc | 39.07% | ||
| OM | 17.35% | ||
| PM (TTM) | 13.59% | ||
| GM | 44.01% | ||
| FCFM | 10.01% |
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%
ROICexcg growth 3Y15.5%
ROICexcg 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-Score7
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 5.22 | ||
| Debt/EBITDA | 2.05 | ||
| Cap/Depr | 111.37% | ||
| Cap/Sales | 6.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.49% | ||
| Profit Quality | 73.68% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 4.99 |
F-Score7
WACC8.8%
ROIC/WACC1.34
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)15.06%
EPS 3Y11.38%
EPS 5Y2.73%
EPS Q2Q%12.5%
EPS Next Y14.17%
EPS Next 2Y13.58%
EPS Next 3Y13.85%
EPS Next 5Y11.35%
Revenue 1Y (TTM)0.57%
Revenue growth 3Y7.33%
Revenue growth 5Y1.1%
Sales Q2Q%0.99%
Revenue Next Year1.84%
Revenue Next 2Y3.7%
Revenue Next 3Y4.22%
Revenue Next 5Y4.9%
EBIT growth 1Y11.31%
EBIT growth 3Y13.42%
EBIT growth 5Y3.35%
EBIT Next Year47.5%
EBIT Next 3Y20.53%
EBIT Next 5Y16.44%
FCF growth 1Y18.65%
FCF growth 3Y8.64%
FCF growth 5Y2.35%
OCF growth 1Y26.95%
OCF growth 3Y10.92%
OCF growth 5Y3.06%