ECOLAB INC (ECL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ECL - US2788651006 - Common Stock
277.07 USD
-0.66 (-0.24%)
277.07 USD
0 (0%)
ECL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 82 industry peers in the Chemicals industry. While ECL has a great profitability rating, 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
- In the past year ECL was profitable.
- 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
- With an excellent Return On Assets value of 8.30%, ECL belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.
- ECL has a better Return On Equity (20.42%) than 91.46% of its industry peers.
- ECL's Return On Invested Capital of 11.53% is amongst the best of the industry. ECL outperforms 87.80% of its industry peers.
- ECL had an Average Return On Invested Capital over the past 3 years of 10.09%. This is above the industry average of 6.11%.
- 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 91.46% of the companies in the same industry.
- 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 84.15% of its industry peers.
- In the last couple of years the Operating Margin of ECL has grown nicely.
- Looking at the Gross Margin, with a value of 44.36%, ECL belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
- 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
- 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.
- Compared to 5 years ago, ECL has less shares outstanding
- ECL has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.25 indicates that ECL is not in any danger for bankruptcy at the moment.
- ECL's Altman-Z score of 5.25 is amongst the best of the industry. ECL outperforms 96.34% of its industry peers.
- 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.
- The Debt to FCF ratio of ECL (5.19) is better than 79.27% 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 | 5.25 |
ROIC/WACC0.78
WACC14.72%
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 60.98% 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
- 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
- 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 Year1.99%
Revenue Next 2Y3.99%
Revenue Next 3Y4.25%
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.
- 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
- ECL is valuated quite expensively with a Price/Earnings ratio of 38.11.
- 60.98% of the companies in the same industry are cheaper than ECL, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of ECL to the average of the S&P500 Index (27.38), we can say ECL is valued slightly more expensively.
- Based on the Price/Forward Earnings ratio of 32.38, the valuation of ECL can be described as expensive.
- ECL's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ECL is more expensive than 63.41% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. ECL is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.11 | ||
| Fwd PE | 32.38 |
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 79.27% 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 | 50.52 | ||
| EV/EBITDA | 22.51 |
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.
- ECL's earnings are expected to grow with 13.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.71
PEG (5Y)13.94
EPS Next 2Y13.35%
EPS Next 3Y13.5%
5. Dividend
5.1 Amount
- ECL has a Yearly Dividend Yield of 1.05%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.28, ECL has a dividend in line with its industry peers.
- With a Dividend Yield of 1.05, ECL pays less dividend than the S&P500 average, which is at 1.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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 2Y13.35%
EPS Next 3Y13.5%
277.07
-0.66 (-0.24%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)10-28 2025-10-28/bmo
Earnings (Next)02-10 2026-02-10/amc
Inst Owners82.4%
Inst Owner Change0.11%
Ins Owners0.11%
Ins Owner Change0.55%
Market Cap78.48B
Revenue(TTM)15.89B
Net Income(TTM)1.98B
Analysts76.77
Price Target300.77 (8.55%)
Short Float %1.2%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Yearly Dividend2.34
Dividend Growth(5Y)3.93%
DP36.57%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
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)1.03%
PT rev (3m)2.49%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-0.48%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.16%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.11 | ||
| Fwd PE | 32.38 | ||
| P/S | 4.94 | ||
| P/FCF | 50.52 | ||
| P/OCF | 29.85 | ||
| P/B | 8.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.51 |
EPS(TTM)7.27
EY2.62%
EPS(NY)8.56
Fwd EY3.09%
FCF(TTM)5.48
FCFY1.98%
OCF(TTM)9.28
OCFY3.35%
SpS56.1
BVpS34.31
TBVpS-5.4
PEG (NY)2.71
PEG (5Y)13.94
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 | 5.25 |
F-Score6
WACC14.72%
ROIC/WACC0.78
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 Year1.99%
Revenue Next 2Y3.99%
Revenue Next 3Y4.25%
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 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 38.11 and the Price/Book (PB) ratio is 8.07.
How financially healthy is ECOLAB INC?
The financial health rating of ECOLAB INC (ECL) is 6 / 10.