Ecolab
Market Cap
US$64.1b
Last Updated
2021/05/15 22:19 UTC
Data Sources
Company Financials +
Executive Summary
Ecolab Inc. provides water, hygiene, and infection prevention solutions and services worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Average dividend payer with moderate growth potential.
Similar Companies
Share Price & News
How has Ecolab's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ECL is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: ECL's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
-1.9%
ECL
-0.5%
US Chemicals
-1.7%
US Market
1 Year Return
15.1%
ECL
68.3%
US Chemicals
50.8%
US Market
Return vs Industry: ECL underperformed the US Chemicals industry which returned 68.3% over the past year.
Return vs Market: ECL underperformed the US Market which returned 50.5% over the past year.
Shareholder returns
| ECL | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.9% | -0.5% | -1.7% |
| 30 Day | 1.9% | 5.6% | -1.2% |
| 90 Day | 1.9% | 13.5% | 0.4% |
| 1 Year | 16.1%15.1% | 71.8%68.3% | 53.3%50.8% |
| 3 Year | 56.2%51.6% | 48.3%26.1% | 61.5%51.4% |
| 5 Year | 102.5%92.0% | 113.1%71.3% | 125.9%100.7% |
Long-Term Price Volatility Vs. Market
How volatile is Ecolab's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall St
Don't Ignore The Fact That This Insider Just Sold Some Shares In Ecolab Inc. (NYSE:ECL)5 days ago | Simply Wall St
Here's What's Concerning About Ecolab's (NYSE:ECL) Returns On Capital2 weeks ago | Simply Wall St
Is Ecolab Inc. (NYSE:ECL) A Smart Pick For Income Investors?Valuation
Is Ecolab undervalued compared to its fair value and its price relative to the market?
73.82x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ECL ($224.06) is trading above our estimate of fair value ($192.02)
Significantly Below Fair Value: ECL is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ECL is poor value based on its PE Ratio (73.8x) compared to the US Chemicals industry average (27.6x).
PE vs Market: ECL is poor value based on its PE Ratio (73.8x) compared to the US market (19.9x).
Price to Earnings Growth Ratio
PEG Ratio: ECL is poor value based on its PEG Ratio (4.3x)
Price to Book Ratio
PB vs Industry: ECL is overvalued based on its PB Ratio (10.2x) compared to the US Chemicals industry average (2.8x).
Future Growth
How is Ecolab forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
17.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ECL's forecast earnings growth (17.2% per year) is above the savings rate (2%).
Earnings vs Market: ECL's earnings (17.2% per year) are forecast to grow faster than the US market (14.7% per year).
High Growth Earnings: ECL's earnings are forecast to grow, but not significantly.
Revenue vs Market: ECL's revenue (5.9% per year) is forecast to grow slower than the US market (9% per year).
High Growth Revenue: ECL's revenue (5.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ECL's Return on Equity is forecast to be high in 3 years time (25.6%)
Past Performance
How has Ecolab performed over the past 5 years?
0.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ECL has a large one-off loss of $319.4M impacting its March 31 2021 financial results.
Growing Profit Margin: ECL's current net profit margins (7.5%) are lower than last year (11.6%).
Past Earnings Growth Analysis
Earnings Trend: ECL's earnings have grown by 0.3% per year over the past 5 years.
Accelerating Growth: ECL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ECL had negative earnings growth (-40.7%) over the past year, making it difficult to compare to the Chemicals industry average (1.6%).
Return on Equity
High ROE: ECL's Return on Equity (14%) is considered low.
Financial Health
How is Ecolab's financial position?
Financial Position Analysis
Short Term Liabilities: ECL's short term assets ($5.2B) exceed its short term liabilities ($2.9B).
Long Term Liabilities: ECL's short term assets ($5.2B) do not cover its long term liabilities ($9.0B).
Debt to Equity History and Analysis
Debt Level: ECL's debt to equity ratio (106%) is considered high.
Reducing Debt: ECL's debt to equity ratio has increased from 102.8% to 106% over the past 5 years.
Debt Coverage: ECL's debt is well covered by operating cash flow (26.6%).
Interest Coverage: ECL's interest payments on its debt are well covered by EBIT (7.7x coverage).
Balance Sheet
Dividend
What is Ecolab current dividend yield, its reliability and sustainability?
0.86%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: ECL's dividend (0.86%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.25%).
High Dividend: ECL's dividend (0.86%) is low compared to the top 25% of dividend payers in the US market (3.42%).
Stability and Growth of Payments
Stable Dividend: ECL's dividends per share have been stable in the past 10 years.
Growing Dividend: ECL's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (62.6%), ECL's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ECL's dividends in 3 years are forecast to be well covered by earnings (34.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Christophe Beck (52 yo)
0.33
Tenure
US$6,445,060
Compensation
Mr. Christophe Beck serves as President of Ecolab Inc. since April 1, 2019 and has been its Chief Executive Officer since January 01, 2021. Mr. Beck serves as Director at Ecolab Inc. since October 30, 2020...
CEO Compensation Analysis
Compensation vs Market: Christophe's total compensation ($USD6.45M) is below average for companies of similar size in the US market ($USD11.16M).
Compensation vs Earnings: Christophe's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: ECL's management team is considered experienced (2.3 years average tenure).
Board Members
Experienced Board: ECL's board of directors are considered experienced (8.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ECL insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Ecolab Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Ecolab Inc.
- Ticker: ECL
- Exchange: NYSE
- Founded: 1923
- Industry: Specialty Chemicals
- Sector: Materials
- Market Cap: US$64.067b
- Shares outstanding: 285.94m
- Website: https://www.ecolab.com
Number of Employees
Location
- Ecolab Inc.
- 1 Ecolab Place
- Saint Paul
- Minnesota
- 55102-2233
- United States
Listings
Biography
Ecolab Inc. provides water, hygiene, and infection prevention solutions and services worldwide. Its Global Industrial segment offers water treatment and process applications, and cleaning and sanitizing so...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/15 22:19 |
| End of Day Share Price | 2021/05/14 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.