ECOLAB INC (ECL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ECL - US2788651006 - Common Stock
273.46 USD
+4.66 (+1.73%)
273.46 USD
0 (0%)
Taking everything into account, ECL scores 6 out of 10 in our fundamental rating. ECL was compared to 81 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
ECL had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 8.30%, ECL belongs to the top of the industry, outperforming 87.65% of the companies in the same industry.
ECL has a Return On Equity of 20.42%. This is amongst the best in the industry. ECL outperforms 90.12% of its industry peers.
ECL has a Return On Invested Capital of 11.53%. This is amongst the best in the industry. ECL outperforms 88.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ECL is above the industry average of 6.08%.
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 92.59% 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 85.19% of its industry peers.
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 88.89% 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ECL is creating some value.
ECL has less 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 5.16. This indicates that ECL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.16, ECL belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
ECL has a debt to FCF ratio of 5.19. This is a neutral value as ECL would need 5.19 years to pay back of all of its debts.
The Debt to FCF ratio of ECL (5.19) is better than 79.01% of its industry peers.
A Debt/Equity ratio of 0.83 indicates that ECL is somewhat dependend on debt financing.
ECL has a Debt to Equity ratio (0.83) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.19 | ||
| Altman-Z | 5.16 |
ROIC/WACC1.38
WACC8.35%
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 65.43% 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's Quick ratio of 1.33 is in line compared to the rest of the industry. ECL outperforms 50.62% of its industry peers.
| 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.
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.
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
The Earnings Per Share is expected to grow by 11.49% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.42% on average over the next years.
EPS Next Y14.21%
EPS Next 2Y13.41%
EPS Next 3Y13.49%
EPS Next 5Y11.49%
Revenue Next Year1.97%
Revenue Next 2Y3.69%
Revenue Next 3Y4.1%
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.
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 37.61, the valuation of ECL can be described as expensive.
Based on the Price/Earnings ratio, ECL is valued a bit more expensive than the industry average as 64.20% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 25.98. ECL is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 31.92, which means the current valuation is very expensive for ECL.
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 66.67% of the companies listed in the same industry.
ECL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 35.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.61 | ||
| Fwd PE | 31.92 |
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 79.01% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ECL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.93 | ||
| EV/EBITDA | 21.91 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ECL does not grow enough to justify the current Price/Earnings ratio.
ECL has an outstanding profitability rating, which may justify a higher PE ratio.
ECL's earnings are expected to grow with 13.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.65
PEG (5Y)13.76
EPS Next 2Y13.41%
EPS Next 3Y13.49%
5. Dividend
5.1 Amount
ECL has a yearly dividend return of 0.99%, which is pretty low.
ECL's Dividend Yield is slightly below the industry average, which is at 4.16.
Compared to an average S&P500 Dividend Yield of 2.41, ECL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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 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.
ECL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP36.57%
EPS Next 2Y13.41%
EPS Next 3Y13.49%
273.46
+4.66 (+1.73%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners82.4%
Inst Owner Change-0.67%
Ins Owners0.11%
Ins Owner Change0.41%
Market Cap77.56B
Revenue(TTM)15.89B
Net Income(TTM)1.98B
Analysts76.13
Price Target297.71 (8.87%)
Short Float %0.99%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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)1.45%
PT rev (3m)2.31%
EPS NQ rev (1m)-0.47%
EPS NQ rev (3m)-0.29%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.61 | ||
| Fwd PE | 31.92 | ||
| P/S | 4.88 | ||
| P/FCF | 49.93 | ||
| P/OCF | 29.5 | ||
| P/B | 7.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.91 |
EPS(TTM)7.27
EY2.66%
EPS(NY)8.57
Fwd EY3.13%
FCF(TTM)5.48
FCFY2%
OCF(TTM)9.27
OCFY3.39%
SpS56.03
BVpS34.27
TBVpS-5.39
PEG (NY)2.65
PEG (5Y)13.76
Graham Number74.87
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 | 5.16 |
F-Score6
WACC8.35%
ROIC/WACC1.38
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 Y14.21%
EPS Next 2Y13.41%
EPS Next 3Y13.49%
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 2Y3.69%
Revenue Next 3Y4.1%
Revenue Next 5Y5.42%
EBIT growth 1Y9.72%
EBIT growth 3Y13.42%
EBIT growth 5Y3.35%
EBIT Next Year47.27%
EBIT Next 3Y20.71%
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 14.21% in the next year.