Ecolab
Market Cap
US$57.6b
Last Updated
2020/10/19 23:41 UTC
Data Sources
Company Financials +
Executive Summary
Ecolab Inc. provides water, hygiene, and energy technologies and services worldwide. More Details
Snowflake Analysis
Average dividend payer with moderate growth potential.
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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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.5%
ECL
-1.2%
US Chemicals
-2.4%
US Market
1 Year Return
5.3%
ECL
9.8%
US Chemicals
18.2%
US Market
Return vs Industry: ECL underperformed the US Chemicals industry which returned 11.3% over the past year.
Return vs Market: ECL underperformed the US Market which returned 19.5% over the past year.
Shareholder returns
| ECL | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.5% | -1.2% | -2.4% |
| 30 Day | -1.1% | -0.5% | 4.2% |
| 90 Day | -2.8% | 5.3% | 6.3% |
| 1 Year | 6.3%5.3% | 12.3%9.8% | 20.9%18.2% |
| 3 Year | 57.0%52.2% | 15.6%-6.1% | 41.2%31.8% |
| 5 Year | 78.3%68.7% | 63.6%25.7% | 84.8%63.9% |
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
1 week ago | Simply Wall St
How Much Is Ecolab's (NYSE:ECL) CEO Getting Paid?2 weeks ago | Simply Wall St
Ecolab (NYSE:ECL) Shareholders Have Enjoyed A 66% Share Price Gain4 weeks ago | Simply Wall St
Do Institutions Own Ecolab Inc. (NYSE:ECL) Shares?Valuation
Is Ecolab undervalued compared to its fair value and its price relative to the market?
42.03x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ECL ($201.79) is trading above our estimate of fair value ($136.5)
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 (42x) compared to the US Chemicals industry average (28x).
PE vs Market: ECL is poor value based on its PE Ratio (42x) compared to the US market (19x).
Price to Earnings Growth Ratio
PEG Ratio: ECL is poor value based on its PEG Ratio (2x)
Price to Book Ratio
PB vs Industry: ECL is overvalued based on its PB Ratio (9.8x) compared to the US Chemicals industry average (2.1x).
Next Steps
Future Growth
How is Ecolab forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
21.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ECL's forecast earnings growth (21.2% per year) is above the savings rate (2.2%).
Earnings vs Market: ECL's earnings (21.2% per year) are forecast to grow slower than the US market (22.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ECL's revenue (4.1% per year) is forecast to grow slower than the US market (10% per year).
High Growth Revenue: ECL's revenue (4.1% 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 (23.6%)
Next Steps
Past Performance
How has Ecolab performed over the past 5 years?
8.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ECL has high quality earnings.
Growing Profit Margin: ECL's current net profit margins (9.5%) are lower than last year (10.5%).
Past Earnings Growth Analysis
Earnings Trend: ECL's earnings have grown by 8% 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 (-2.9%) over the past year, making it difficult to compare to the Chemicals industry average (-18.6%).
Return on Equity
High ROE: Whilst ECL's Return on Equity (23.83%) is high, this metric is skewed due to their high level of debt.
Next Steps
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 ($3.2B).
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 (123.7%) is considered high.
Reducing Debt: ECL's debt to equity ratio has increased from 106.1% to 123.7% over the past 5 years.
Debt Coverage: ECL's debt is well covered by operating cash flow (31.1%).
Interest Coverage: ECL's interest payments on its debt are well covered by EBIT (10.9x coverage).
Balance Sheet
Next Steps
Dividend
What is Ecolab current dividend yield, its reliability and sustainability?
0.93%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ECL's dividend (0.93%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).
High Dividend: ECL's dividend (0.93%) is low compared to the top 25% of dividend payers in the US market (4.66%).
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 reasonably low payout ratio (38.9%), ECL's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ECL's dividends in 3 years are forecast to be well covered by earnings (33.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.7yrs
Average management tenure
CEO
Doug Baker (61 yo)
16.25yrs
Tenure
US$19,803,193
Compensation
Mr. Douglas M. Baker, Jr., also known as Doug, has been the Chairman of the board and Chief Executive Officer of Ecolab Inc. since May 2006 and July 2004 respectively. Mr. Baker served as President of Ecol ...
CEO Compensation Analysis
Compensation vs Market: Doug's total compensation ($USD19.80M) is above average for companies of similar size in the US market ($USD11.20M).
Compensation vs Earnings: Doug's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 16.25yrs | US$19.80m | 0.27% $ 153.2m | |
| President & COO | 1.5yrs | US$4.90m | 0.017% $ 9.5m | |
| Chief Financial Officer | 8yrs | US$5.24m | 0.074% $ 42.8m | |
| Executive Vice President of Innovation & Transformation | 8yrs | US$4.57m | 0.0040% $ 2.3m | |
| Executive Vice President of Growth Initiatives | 5.75yrs | US$3.51m | 0.012% $ 6.8m | |
| Executive VP & CTO | 6.75yrs | no data | 0.010% $ 6.0m | |
| Executive VP & Chief Information Officer | no data | no data | no data | |
| Director of Investor Relations | no data | no data | no data | |
| Executive VP | 3.58yrs | no data | 0.020% $ 11.7m | |
| Chief Compliance Officer & Chief Employment Counsel | 1.75yrs | no data | no data | |
| Executive Vice President of Global Marketing | 0.75yr | no data | 0.0029% $ 1.7m | |
| Senior Vice President of Global Marketing & Communications | 0.75yr | no data | no data |
4.7yrs
Average Tenure
58yo
Average Age
Experienced Management: ECL's management team is considered experienced (4.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 16.25yrs | US$19.80m | 0.27% $ 153.2m | |
| Independent Director | 1.83yrs | US$313.07k | 0.00069% $ 397.4k | |
| Independent Lead Director | 3.42yrs | US$320.62k | 0.0022% $ 1.3m | |
| Independent Director | 4.83yrs | US$290.62k | 0.0031% $ 1.8m | |
| Independent Director | 8.75yrs | US$280.62k | 0.0023% $ 1.3m | |
| Independent Director | 10.92yrs | US$300.62k | 0.00035% $ 201.6k | |
| Independent Director | 10.42yrs | US$280.62k | 0.0069% $ 4.0m | |
| Independent Director | 14.42yrs | US$300.62k | 0.0077% $ 4.4m | |
| Independent Director | 12.67yrs | US$295.62k | 0.0093% $ 5.3m | |
| Independent Director | 1.83yrs | US$313.07k | 0% $ 0 | |
| Independent Director | 5.67yrs | US$290.62k | 0.0015% $ 852.3k | |
| Independent Director | 6.67yrs | US$280.62k | 0.0017% $ 967.5k |
7.7yrs
Average Tenure
61yo
Average Age
Experienced Board: ECL's board of directors are considered experienced (7.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ECL insiders have bought more shares than they have sold 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$57.588b
- Shares outstanding: 285.38m
- Website: https://www.ecolab.com
Number of Employees
Location
- Ecolab Inc.
- 1 Ecolab Place
- Saint Paul
- Minnesota
- 55102-2233
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ECL | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1969 |
| ECJ | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1969 |
| ECL * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1969 |
| 0IFA | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1969 |
| ECL | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jan 1969 |
| ECJ | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Jan 1969 |
| E1CL34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 4 REPR 1 COM | BR | BRL | Jan 2020 |
Biography
Ecolab Inc. provides water, hygiene, and energy technologies and services worldwide. The company operates through Global Industrial, Global Institutional, Global Energy, and Other segments. Its Global Indu ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/19 23:41 |
| End of Day Share Price | 2020/10/19 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.