ECOLAB INC (ECL)
US2788651006 - Common Stock
Overall ECL gets a fundamental rating of 6 out of 10. We evaluated ECL against 83 industry peers in the Chemicals industry. While ECL has a great profitability rating, 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.
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
ECL has a Return On Assets of 9.25%. This is amongst the best in the industry. ECL outperforms 90.36% of its industry peers.
With an excellent Return On Equity value of 23.92%, ECL belongs to the best of the industry, outperforming 92.77% of the companies in the same industry.
ECL has a better Return On Invested Capital (11.88%) than 90.36% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ECL is in line with the industry average of 7.24%.
The 3 year average ROIC (8.73%) for ECL is below the current ROIC(11.88%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.25% | ||
| ROE | 23.92% | ||
| ROIC | 11.88% |
ROA(3y)5.57%
ROA(5y)3.5%
ROE(3y)15.93%
ROE(5y)9.24%
ROIC(3y)8.73%
ROIC(5y)9.03%
1.3 Margins
ECL has a Profit Margin of 13.04%. This is amongst the best in the industry. ECL outperforms 91.57% of its industry peers.
In the last couple of years the Profit Margin of ECL has declined.
With an excellent Operating Margin value of 16.29%, ECL belongs to the best of the industry, outperforming 85.54% of the companies in the same industry.
ECL's Operating Margin has been stable in the last couple of years.
The Gross Margin of ECL (43.17%) is better than 85.54% of its industry peers.
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 | 16.29% | ||
| PM (TTM) | 13.04% | ||
| GM | 43.17% |
OM growth 3Y0.52%
OM growth 5Y-1.24%
PM growth 3YN/A
PM growth 5Y-1.67%
GM growth 3Y-1.08%
GM growth 5Y-0.45%
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.
ECL has more shares outstanding than it did 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
ECL has an Altman-Z score of 4.90. This indicates that ECL is financially healthy and has little risk of bankruptcy at the moment.
ECL has a better Altman-Z score (4.90) than 93.98% of its industry peers.
ECL has a debt to FCF ratio of 3.80. This is a good value and a sign of high solvency as ECL would need 3.80 years to pay back of all of its debts.
The Debt to FCF ratio of ECL (3.80) is better than 78.31% of its industry peers.
ECL has a Debt/Equity ratio of 0.82. This is a neutral value indicating ECL is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.82, ECL is doing worse than 60.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 3.8 | ||
| Altman-Z | 4.9 |
ROIC/WACC1.39
WACC8.56%
2.3 Liquidity
ECL has a Current Ratio of 1.30. 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 1.30 is on the low side compared to the rest of the industry. ECL is outperformed by 84.34% of its industry peers.
A Quick Ratio of 0.97 indicates that ECL may have some problems paying its short term obligations.
With a Quick ratio value of 0.97, ECL is not doing good in the industry: 69.88% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
ECL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.82%, which is quite impressive.
The Earnings Per Share has been decreasing by -0.15% on average over the past years.
Looking at the last year, ECL shows a small growth in Revenue. The Revenue has grown by 4.13% in the last year.
Measured over the past years, ECL shows a small growth in Revenue. The Revenue has been growing by 0.87% on average per year.
EPS 1Y (TTM)29.82%
EPS 3Y7.79%
EPS 5Y-0.15%
EPS Q2Q%18.83%
Revenue 1Y (TTM)4.13%
Revenue growth 3Y9.12%
Revenue growth 5Y0.87%
Sales Q2Q%1.02%
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 13.49% on average per year.
The Revenue is expected to grow by 4.70% on average over the next years.
EPS Next Y28.98%
EPS Next 2Y20.59%
EPS Next 3Y17.94%
EPS Next 5Y13.49%
Revenue Next Year2.81%
Revenue Next 2Y3.32%
Revenue Next 3Y4.01%
Revenue Next 5Y4.7%
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
Based on the Price/Earnings ratio of 37.43, the valuation of ECL can be described as expensive.
66.27% of the companies in the same industry are cheaper than ECL, based on the Price/Earnings ratio.
ECL's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.54.
A Price/Forward Earnings ratio of 31.62 indicates a quite expensive valuation of ECL.
71.08% of the companies in the same industry are cheaper than ECL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ECL to the average of the S&P500 Index (23.99), we can say ECL is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.43 | ||
| Fwd PE | 31.62 |
4.2 Price Multiples
ECL's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ECL is more expensive than 74.70% 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 | 33.88 | ||
| EV/EBITDA | 21.39 |
4.3 Compensation for Growth
ECL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 17.94% in the coming years.
PEG (NY)1.29
PEG (5Y)N/A
EPS Next 2Y20.59%
EPS Next 3Y17.94%
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.
Compared to an average industry Dividend Yield of 3.35, ECL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, ECL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
The dividend of ECL has a limited annual growth rate of 4.71%.
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)4.71%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
32.16% 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.
DP32.16%
EPS Next 2Y20.59%
EPS Next 3Y17.94%
ECOLAB INC
NYSE:ECL (12/26/2024, 11:32:05 AM)
239.57
-1.17 (-0.49%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners90.45%
Inst Owner Change1.58%
Ins Owners0.11%
Ins Owner Change0.72%
Market Cap67.84B
Analysts74.38
Price Target283.26 (18.24%)
Short Float %0.71%
Short Ratio1.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Dividend Growth(5Y)4.71%
DP32.16%
Div Incr Years33
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.6%
Min EPS beat(2)-0.66%
Max EPS beat(2)-0.53%
EPS beat(4)0
Avg EPS beat(4)-0.53%
Min EPS beat(4)-0.66%
Max EPS beat(4)-0.28%
EPS beat(8)4
Avg EPS beat(8)0.09%
EPS beat(12)4
Avg EPS beat(12)-0.48%
EPS beat(16)7
Avg EPS beat(16)0.62%
Revenue beat(2)0
Avg Revenue beat(2)-1.99%
Min Revenue beat(2)-2.04%
Max Revenue beat(2)-1.93%
Revenue beat(4)0
Avg Revenue beat(4)-1.43%
Min Revenue beat(4)-2.04%
Max Revenue beat(4)-0.85%
Revenue beat(8)1
Avg Revenue beat(8)-1.12%
Revenue beat(12)4
Avg Revenue beat(12)-0.52%
Revenue beat(16)6
Avg Revenue beat(16)-0.56%
PT rev (1m)4.09%
PT rev (3m)9.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.46%
EPS NY rev (1m)0%
EPS NY rev (3m)0.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.39%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)40.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.43 | ||
| Fwd PE | 31.62 | ||
| P/S | 4.33 | ||
| P/FCF | 33.88 | ||
| P/OCF | 23.39 | ||
| P/B | 7.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.39 |
EPS(TTM)6.4
EY2.67%
EPS(NY)7.58
Fwd EY3.16%
FCF(TTM)7.07
FCFY2.95%
OCF(TTM)10.24
OCFY4.27%
SpS55.36
BVpS30.19
TBVpS-9.3
PEG (NY)1.29
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.25% | ||
| ROE | 23.92% | ||
| ROCE | 14.68% | ||
| ROIC | 11.88% | ||
| ROICexc | 12.81% | ||
| ROICexgc | 41.71% | ||
| OM | 16.29% | ||
| PM (TTM) | 13.04% | ||
| GM | 43.17% | ||
| FCFM | 12.77% |
ROA(3y)5.57%
ROA(5y)3.5%
ROE(3y)15.93%
ROE(5y)9.24%
ROIC(3y)8.73%
ROIC(5y)9.03%
ROICexc(3y)9.07%
ROICexc(5y)9.41%
ROICexgc(3y)30.19%
ROICexgc(5y)29.16%
ROCE(3y)10.86%
ROCE(5y)11.22%
ROICexcg growth 3Y9.87%
ROICexcg growth 5Y2.65%
ROICexc growth 3Y3.55%
ROICexc growth 5Y-0.34%
OM growth 3Y0.52%
OM growth 5Y-1.24%
PM growth 3YN/A
PM growth 5Y-1.67%
GM growth 3Y-1.08%
GM growth 5Y-0.45%
F-Score9
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 3.8 | ||
| Debt/EBITDA | 2 | ||
| Cap/Depr | 96.45% | ||
| Cap/Sales | 5.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.23% | ||
| Profit Quality | 97.93% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 4.9 |
F-Score9
WACC8.56%
ROIC/WACC1.39
Cap/Depr(3y)78.7%
Cap/Depr(5y)75.7%
Cap/Sales(3y)5.04%
Cap/Sales(5y)4.93%
Profit Quality(3y)114.46%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)29.82%
EPS 3Y7.79%
EPS 5Y-0.15%
EPS Q2Q%18.83%
EPS Next Y28.98%
EPS Next 2Y20.59%
EPS Next 3Y17.94%
EPS Next 5Y13.49%
Revenue 1Y (TTM)4.13%
Revenue growth 3Y9.12%
Revenue growth 5Y0.87%
Sales Q2Q%1.02%
Revenue Next Year2.81%
Revenue Next 2Y3.32%
Revenue Next 3Y4.01%
Revenue Next 5Y4.7%
EBIT growth 1Y27.3%
EBIT growth 3Y9.69%
EBIT growth 5Y-0.38%
EBIT Next Year69.56%
EBIT Next 3Y25.49%
EBIT Next 5Y19.62%
FCF growth 1Y138.11%
FCF growth 3Y6.08%
FCF growth 5Y2.73%
OCF growth 1Y84.68%
OCF growth 3Y9.04%
OCF growth 5Y1.15%