ECOLAB INC (ECL) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:ECL • US2788651006
281.99 USD
-0.84 (-0.3%)
At close: Jan 30, 2026
281.99 USD
0 (0%)
After Hours: 1/30/2026, 8:04:00 PM
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. ECL scores excellent on profitability, but 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 better Return On Assets (8.30%) than 87.95% of its industry peers.
- ECL has a better Return On Equity (20.42%) than 91.57% of its industry peers.
- ECL's Return On Invested Capital of 11.53% is amongst the best of the industry. ECL outperforms 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 6.11%.
- 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 91.57% of its industry peers.
- ECL's Profit Margin has improved in the last couple of years.
- ECL has a better Operating Margin (17.63%) than 84.34% of its industry peers.
- In the last couple of years the Operating Margin of ECL has grown nicely.
- 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
- ECL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
- ECL has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.31 indicates that ECL is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 5.31, 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 Debt to FCF ratio of 5.19. This is in the better half of the industry: ECL outperforms 78.31% 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.
- Looking at the Debt to Equity ratio, with a value of 0.83, ECL is in line with its industry, outperforming 40.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.19 | ||
| Altman-Z | 5.31 |
ROIC/WACC0.78
WACC14.75%
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.
- With a Current ratio value of 1.70, ECL is not doing good in the industry: 61.45% of the companies in the same industry are doing better.
- A Quick Ratio of 1.33 indicates that ECL should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.33, ECL is in line with its industry, outperforming 51.81% of the companies in the same industry.
| 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.
- ECL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.73% yearly.
- 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
- Based on estimates for the next years, ECL will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.49% on average per year.
- ECL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.42% yearly.
EPS Next Y14.17%
EPS Next 2Y13.23%
EPS Next 3Y13.34%
EPS Next 5Y11.49%
Revenue Next Year1.99%
Revenue Next 2Y4.08%
Revenue Next 3Y4.32%
Revenue Next 5Y5.42%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- A Price/Earnings ratio of 38.79 indicates a quite expensive valuation of ECL.
- Based on the Price/Earnings ratio, ECL is valued a bit more expensive than the industry average as 60.24% of the companies are valued more cheaply.
- ECL is valuated rather expensively when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 33.03, ECL can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, ECL is valued a bit more expensive than the industry average as 62.65% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, ECL is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.79 | ||
| Fwd PE | 33.03 |
4.2 Price Multiples
- 79.52% of the companies in the same industry are cheaper than ECL, based on the Enterprise Value to EBITDA ratio.
- 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 | 51.42 | ||
| EV/EBITDA | 22.88 |
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 13.34% in the coming years.
PEG (NY)2.74
PEG (5Y)14.19
EPS Next 2Y13.23%
EPS Next 3Y13.34%
5. Dividend
5.1 Amount
- ECL has a Yearly Dividend Yield of 1.03%.
- ECL's Dividend Yield is comparable with the industry average which is at 2.27.
- With a Dividend Yield of 1.03, ECL pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
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 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 2Y13.23%
EPS Next 3Y13.34%
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 of ECOLAB INC (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.
Can you provide the PE and PB ratios for ECL stock?
The Price/Earnings (PE) ratio for ECOLAB INC (ECL) is 38.79 and the Price/Book (PB) ratio is 8.22.
How financially healthy is ECOLAB INC?
The financial health rating of ECOLAB INC (ECL) is 6 / 10.