ECOLAB INC (ECL) Stock Fundamental Analysis
NYSE:ECL - New York Stock Exchange, Inc. - US2788651006 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to ECL. ECL was compared to 85 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. While showing a medium growth rate, ECL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year ECL was profitable.
ECL had a positive operating cash flow in the past year.
ECL had positive earnings in 4 of the past 5 years.
Each year in the past 5 years ECL had a positive operating cash flow.
1.2 Ratios
ECL's Return On Assets of 9.40% is amongst the best of the industry. ECL outperforms 92.94% of its industry peers.
ECL's Return On Equity of 23.69% is amongst the best of the industry. ECL outperforms 92.94% of its industry peers.
With an excellent Return On Invested Capital value of 12.15%, ECL belongs to the best of the industry, outperforming 89.41% of the companies in the same industry.
ECL had an Average Return On Invested Capital over the past 3 years of 10.09%. This is above the industry average of 6.84%.
The last Return On Invested Capital (12.15%) for ECL is above the 3 year average (10.09%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.4% | ||
| ROE | 23.69% | ||
| ROIC | 12.15% |
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
The Profit Margin of ECL (13.41%) is better than 91.76% of its industry peers.
In the last couple of years the Profit Margin of ECL has grown nicely.
ECL has a better Operating Margin (16.96%) than 83.53% of its industry peers.
ECL's Operating Margin has improved in the last couple of years.
ECL has a Gross Margin of 43.75%. This is amongst the best in the industry. ECL outperforms 89.41% 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 | 16.96% | ||
| PM (TTM) | 13.41% | ||
| GM | 43.75% |
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.
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 5.27. This indicates that ECL is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.27, ECL belongs to the best of the industry, outperforming 95.29% of the companies in the same industry.
ECL has a debt to FCF ratio of 5.06. This is a neutral value as ECL would need 5.06 years to pay back of all of its debts.
ECL has a Debt to FCF ratio of 5.06. This is in the better half of the industry: ECL outperforms 76.47% of its industry peers.
A Debt/Equity ratio of 0.79 indicates that ECL is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.79, ECL is in line with its industry, outperforming 43.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 5.06 | ||
| Altman-Z | 5.27 |
ROIC/WACC1.38
WACC8.81%
2.3 Liquidity
ECL has a Current Ratio of 1.32. This is a normal value and indicates that ECL is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ECL (1.32) is worse than 77.65% of its industry peers.
A Quick Ratio of 0.98 indicates that ECL may have some problems paying its short term obligations.
ECL has a Quick ratio of 0.98. This is in the lower half of the industry: ECL underperforms 63.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
ECL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.28%, which is quite impressive.
The Earnings Per Share has been growing slightly by 2.73% on average over the past years.
ECL shows a small growth in Revenue. In the last year, the Revenue has grown by 1.19%.
The Revenue has been growing slightly by 1.10% on average over the past years.
EPS 1Y (TTM)20.28%
EPS 3Y11.38%
EPS 5Y2.73%
EPS Q2Q%11.94%
Revenue 1Y (TTM)1.19%
Revenue growth 3Y7.33%
Revenue growth 5Y1.1%
Sales Q2Q%-1.52%
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 10.66% on average per year.
Based on estimates for the next years, ECL will show a small growth in Revenue. The Revenue will grow by 4.64% on average per year.
EPS Next Y13.89%
EPS Next 2Y13.12%
EPS Next 3Y13.75%
EPS Next 5Y10.66%
Revenue Next Year1.38%
Revenue Next 2Y3.33%
Revenue Next 3Y4.09%
Revenue Next 5Y4.64%
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 39.22, the valuation of ECL can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ECL indicates a slightly more expensive valuation: ECL is more expensive than 65.88% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. ECL is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 31.38, the valuation of ECL can be described as expensive.
64.71% of the companies in the same industry are cheaper than ECL, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 35.19. ECL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.22 | ||
| Fwd PE | 31.38 |
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 72.94% of the companies listed 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 | 50.45 | ||
| EV/EBITDA | 22.83 |
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.
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 13.75% in the coming years.
PEG (NY)2.82
PEG (5Y)14.35
EPS Next 2Y13.12%
EPS Next 3Y13.75%
5. Dividend
5.1 Amount
ECL has a yearly dividend return of 0.97%, which is pretty low.
Compared to an average industry Dividend Yield of 3.53, ECL has a dividend in line with its industry peers.
With a Dividend Yield of 0.97, ECL pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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 32.39% 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.
DP32.39%
EPS Next 2Y13.12%
EPS Next 3Y13.75%
NYSE:ECL (7/14/2025, 3:28:01 PM)
267.46
+0.5 (+0.19%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners81.59%
Inst Owner Change-0.02%
Ins Owners0.11%
Ins Owner Change1.29%
Market Cap75.83B
Analysts74.67
Price Target281.65 (5.31%)
Short Float %0.78%
Short Ratio1.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Yearly Dividend2.34
Dividend Growth(5Y)3.93%
DP32.39%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.16%
Min EPS beat(2)-0.69%
Max EPS beat(2)0.38%
EPS beat(4)1
Avg EPS beat(4)-0.38%
Min EPS beat(4)-0.69%
Max EPS beat(4)0.38%
EPS beat(8)3
Avg EPS beat(8)-0.12%
EPS beat(12)5
Avg EPS beat(12)-0.15%
EPS beat(16)7
Avg EPS beat(16)0.08%
Revenue beat(2)0
Avg Revenue beat(2)-0.75%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)-0.49%
Revenue beat(4)0
Avg Revenue beat(4)-1.37%
Min Revenue beat(4)-2.04%
Max Revenue beat(4)-0.49%
Revenue beat(8)0
Avg Revenue beat(8)-1.33%
Revenue beat(12)2
Avg Revenue beat(12)-0.84%
Revenue beat(16)6
Avg Revenue beat(16)-0.43%
PT rev (1m)-0.61%
PT rev (3m)-4.24%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)-0.71%
EPS NY rev (1m)0.12%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)0.85%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.22 | ||
| Fwd PE | 31.38 | ||
| P/S | 4.83 | ||
| P/FCF | 50.45 | ||
| P/OCF | 29.93 | ||
| P/B | 8.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.83 |
EPS(TTM)6.82
EY2.55%
EPS(NY)8.52
Fwd EY3.19%
FCF(TTM)5.3
FCFY1.98%
OCF(TTM)8.94
OCFY3.34%
SpS55.32
BVpS31.31
TBVpS-7.82
PEG (NY)2.82
PEG (5Y)14.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.4% | ||
| ROE | 23.69% | ||
| ROCE | 14.98% | ||
| ROIC | 12.15% | ||
| ROICexc | 13% | ||
| ROICexgc | 39.18% | ||
| OM | 16.96% | ||
| PM (TTM) | 13.41% | ||
| GM | 43.75% | ||
| FCFM | 9.58% |
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 Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 5.06 | ||
| Debt/EBITDA | 1.95 | ||
| Cap/Depr | 110.06% | ||
| Cap/Sales | 6.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.44% | ||
| Profit Quality | 71.48% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 5.27 |
F-Score7
WACC8.81%
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)20.28%
EPS 3Y11.38%
EPS 5Y2.73%
EPS Q2Q%11.94%
EPS Next Y13.89%
EPS Next 2Y13.12%
EPS Next 3Y13.75%
EPS Next 5Y10.66%
Revenue 1Y (TTM)1.19%
Revenue growth 3Y7.33%
Revenue growth 5Y1.1%
Sales Q2Q%-1.52%
Revenue Next Year1.38%
Revenue Next 2Y3.33%
Revenue Next 3Y4.09%
Revenue Next 5Y4.64%
EBIT growth 1Y15.94%
EBIT growth 3Y13.42%
EBIT growth 5Y3.35%
EBIT Next Year45.24%
EBIT Next 3Y20%
EBIT Next 5Y15.72%
FCF growth 1Y39.33%
FCF growth 3Y8.64%
FCF growth 5Y2.35%
OCF growth 1Y39.49%
OCF growth 3Y10.92%
OCF growth 5Y3.06%