ECOLAB INC (ECL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ECL - US2788651006 - Common Stock
265.52 USD
-0.23 (-0.09%)
265.52 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. While ECL has a great profitability rating, 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.
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
The Return On Assets of ECL (8.30%) is better than 87.95% 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.
ECL has a better Return On Invested Capital (11.53%) than 87.95% 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
Looking at the Profit Margin, with a value of 12.49%, ECL belongs to the top of the industry, outperforming 91.57% of the companies in the same industry.
ECL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.63%, ECL belongs to the top of the industry, outperforming 84.34% of the companies in the same industry.
ECL's Operating Margin has improved in the last couple of years.
ECL's Gross Margin of 44.36% is amongst the best of the industry. ECL outperforms 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 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.
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
ECL has an Altman-Z score of 5.11. This indicates that ECL is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.11, ECL belongs to the best 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 better Debt to FCF ratio (5.19) than 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.
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 | 5.11 |
ROIC/WACC0.79
WACC14.58%
2.3 Liquidity
A Current Ratio of 1.70 indicates that ECL should not have too much problems paying its short term obligations.
ECL has a Current ratio of 1.70. This is in the lower half of the industry: ECL underperforms 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.
ECL has a Quick ratio (1.33) which is in line with 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.
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.
The Revenue has been growing slightly by 1.38% in the past year.
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
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.
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 2Y13.35%
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
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
A Price/Earnings ratio of 36.52 indicates a quite expensive valuation of ECL.
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.
ECL is valuated rather expensively when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
ECL is valuated quite expensively with a Price/Forward Earnings ratio of 31.03.
Based on the Price/Forward Earnings ratio, ECL is valued a bit more expensive than 63.86% of the companies in the same industry.
ECL is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.52 | ||
| Fwd PE | 31.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ECL is valued a bit more expensive than 79.52% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ECL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.42 | ||
| EV/EBITDA | 21.64 |
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 13.50% in the coming years.
PEG (NY)2.6
PEG (5Y)13.36
EPS Next 2Y13.35%
EPS Next 3Y13.5%
5. Dividend
5.1 Amount
ECL has a Yearly Dividend Yield of 1.10%. Purely for dividend investing, there may be better candidates out there.
ECL's Dividend Yield is comparable with the industry average which is at 2.48.
With a Dividend Yield of 1.10, ECL pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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 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
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 2Y13.35%
EPS Next 3Y13.5%
265.52
-0.23 (-0.09%)
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 Cap75.21B
Revenue(TTM)15.89B
Net Income(TTM)1.98B
Analysts76.77
Price Target297.31 (11.97%)
Short Float %1.2%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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)-0.14%
PT rev (3m)-0.94%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-0.44%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-0.16%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.52 | ||
| Fwd PE | 31.03 | ||
| P/S | 4.73 | ||
| P/FCF | 48.42 | ||
| P/OCF | 28.6 | ||
| P/B | 7.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.64 |
EPS(TTM)7.27
EY2.74%
EPS(NY)8.56
Fwd EY3.22%
FCF(TTM)5.48
FCFY2.07%
OCF(TTM)9.28
OCFY3.5%
SpS56.1
BVpS34.31
TBVpS-5.4
PEG (NY)2.6
PEG (5Y)13.36
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 | 5.11 |
F-Score6
WACC14.58%
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 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.