(ECL) Ecolab - Overview
Sector: Basic Materials | Industry: Specialty Chemicals | Exchange: NYSE (USA) | Market Cap: 69.690m USD | Total Return: -3.7% in 12m
Industry Rotation: +0.5
Avg Turnover: 398M
EPS Trend: 81.8%
Qual. Beats: -1
Rev. Trend: 80.2%
Qual. Beats: 1
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Ecolab Inc. (ECL) is a global provider of water, hygiene, and infection prevention solutions, serving diverse markets including food and beverage, healthcare, hospitality, and industrial manufacturing. The company operates through four primary segments: Global Water, Global Institutional & Specialty, Global Pest Elimination, and Global Life Sciences. Its business model relies on a combination of proprietary chemical technologies, automated dispensing systems, and a large field-service workforce to ensure operational efficiency for commercial clients.
Operating within the Specialty Chemicals sub-industry, Ecolab utilizes a recurring revenue model driven by consumable products and long-term service contracts. This sector is characterized by high switching costs, as integrated hygiene and water treatment systems are critical to meeting stringent regulatory and safety standards in food production and healthcare environments. The company distributes its solutions under established brands such as Kay, Purolite, and Bioquell.
For a detailed analysis of the companys historical performance and valuation metrics, consider reviewing the data available on ValueRay. Founded in 1923 and headquartered in Saint Paul, Minnesota, Ecolab maintains a significant international footprint through direct sales forces and corporate account management.
- Global demand for industrial water treatment and conservation technology drives long-term revenue
- Fluctuations in raw material costs and energy prices impact operating profit margins
- Growth in hospitality and foodservice sectors increases institutional cleaning product sales volume
- Expansion of life sciences and pharmaceutical manufacturing services boosts high-margin segment growth
| Net Income: 2.11b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA 0.75 > 1.0 |
| NWC/Revenue: -0.32% < 20% (prev 9.38%; Δ -9.71% < -1%) |
| CFO/TA 0.12 > 3% & CFO 3.03b > Net Income 2.11b |
| Net Debt (8.58b) to EBITDA (3.28b): 2.61 < 3 |
| Current Ratio: 0.99 > 1.5 & < 3 |
| Outstanding Shares: last quarter (283.7m) vs 12m ago -0.56% < -2% |
| Gross Margin: 44.29% > 18% (prev 0.44%; Δ 4.39k% > 0.5%) |
| Asset Turnover: 69.41% > 50% (prev 70.13%; Δ -0.72% > 0%) |
| Interest Coverage Ratio: 7.77 > 6 (EBITDA TTM 3.28b / Interest Expense TTM 287.4m) |
| A: -0.00 (Total Current Assets 6.04b - Total Current Liabilities 6.10b) / Total Assets 25.04b |
| B: 0.52 (Retained Earnings 13.06b / Total Assets 25.04b) |
| C: 0.09 (EBIT TTM 2.23b / Avg Total Assets 23.70b) |
| D: 0.79 (Book Value of Equity 11.80b / Total Liabilities 15.01b) |
| Altman-Z'' Score: 3.15 = A |
| DSRI: 1.03 (Receivables 3.28b/3.02b, Revenue 16.45b/15.68b) |
| GMI: 0.99 (GM 44.29% / 43.71%) |
| AQI: 1.05 (AQ_t 0.55 / AQ_t-1 0.53) |
| SGI: 1.05 (Revenue 16.45b / 15.68b) |
| TATA: -0.04 (NI 2.11b - CFO 3.03b) / TA 25.04b) |
| Beneish M-Score: -2.98 (Cap -4..+1) = A |
Over the past week, the price has changed by -0.75%, over one month by -9.60%, over three months by -17.42% and over the past year by -3.66%.
- StrongBuy: 8
- Buy: 4
- Hold: 13
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 317.5 | 27.4% |
P/E Forward = 29.9401
P/S = 4.2359
P/B = 7.1519
P/EG = 2.3212
Revenue TTM = 16.45b USD
EBIT TTM = 2.23b USD
EBITDA TTM = 3.28b USD
Long Term Debt = 7.37b USD (from longTermDebt, last fiscal year)
Short Term Debt = 1.57b USD (from shortTermDebt, last quarter)
Debt = 9.10b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 8.58b USD (from netDebt column, last quarter)
Enterprise Value = 78.27b USD (69.69b + Debt 9.10b - CCE 519.8m)
Interest Coverage Ratio = 7.77 (Ebit TTM 2.23b / Interest Expense TTM 287.4m)
EV/FCF = 41.85x (Enterprise Value 78.27b / FCF TTM 1.87b)
FCF Yield = 2.39% (FCF TTM 1.87b / Enterprise Value 78.27b)
FCF Margin = 11.37% (FCF TTM 1.87b / Revenue TTM 16.45b)
Net Margin = 12.80% (Net Income TTM 2.11b / Revenue TTM 16.45b)
Gross Margin = 44.29% ((Revenue TTM 16.45b - Cost of Revenue TTM 9.17b) / Revenue TTM)
Gross Margin QoQ = 43.55% (prev 44.03%)
Tobins Q-Ratio = 3.13 (Enterprise Value 78.27b / Total Assets 25.04b)
Interest Expense / Debt = 0.80% (Interest Expense 72.7m / Debt 9.10b)
Taxrate = 21.77% (121.5m / 558.1m)
NOPAT = 1.75b (EBIT 2.23b * (1 - 21.77%))
Current Ratio = 0.99 (Total Current Assets 6.04b / Total Current Liabilities 6.10b)
Debt / Equity = 0.91 (Debt 9.10b / totalStockholderEquity, last quarter 10.00b)
Debt / EBITDA = 2.61 (Net Debt 8.58b / EBITDA 3.28b)
Debt / FCF = 4.59 (Net Debt 8.58b / FCF TTM 1.87b)
Total Stockholder Equity = 9.70b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.88% (Net Income 2.11b / Total Assets 25.04b)
RoE = 21.70% (Net Income TTM 2.11b / Total Stockholder Equity 9.70b)
RoCE = 13.09% (EBIT 2.23b / Capital Employed (Equity 9.70b + L.T.Debt 7.37b))
RoIC = 9.83% (NOPAT 1.75b / Invested Capital 17.78b)
WACC = 6.75% (E(69.69b)/V(78.79b) * Re(7.55%) + D(9.10b)/V(78.79b) * Rd(0.80%) * (1-Tc(0.22)))
Discount Rate = 7.55% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.92%
Shares (quarterly) Correlation: -85.40 | Cagr: -0.53%
[DCF] Terminal Value 85.46% ; FCFF base≈1.72b ; Y1≈2.06b ; Y5≈3.28b
[DCF] Fair Price = 239.7 (EV 76.04b - Net Debt 8.58b = Equity 67.46b / Shares 281.4m; r=6.75% [WACC]; 5y FCF grow 20.99% → 3.0% )
EPS Correlation: 81.83 | EPS CAGR: 12.31% | SUE: -1.34 | # QB: -1
Revenue Correlation: 80.16 | Revenue CAGR: 3.45% | SUE: 1.30 | # QB: 1
EPS current Quarter (2026-06-30): EPS=2.07 | Chg30d=-2.33% | Revisions=-40% | Analysts=18
EPS next Quarter (2026-09-30): EPS=2.28 | Chg30d=-1.20% | Revisions=-7% | Analysts=15
EPS current Year (2026-12-31): EPS=8.40 | Chg30d=-0.80% | Revisions=-29% | GrowthEPS=+11.6% | GrowthRev=+10.0%
EPS next Year (2027-12-31): EPS=9.62 | Chg30d=-0.54% | Revisions=-12% | GrowthEPS=+14.4% | GrowthRev=+6.2%
[Analyst] Revisions Ratio: -40%