Ecolab
Market Cap
US$59.8b
Last Updated
2020/02/23 00:14 UTC
Data Sources
Company Financials +
Executive Summary
Ecolab Inc. provides water, hygiene, and energy technologies and services worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Solid track record with adequate balance sheet and pays a dividend.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.09%
ECL
-0.9%
US Chemicals
-1.1%
US Market
1 Year Return
24.2%
ECL
-7.0%
US Chemicals
17.9%
US Market
Return vs Industry: ECL exceeded the US Chemicals industry which returned -7% over the past year.
Return vs Market: ECL exceeded the US Market which returned 17.9% over the past year.
Shareholder returns
| ECL | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.09% | -0.9% | -1.1% |
| 30 Day | 4.8% | 0.4% | 1.4% |
| 90 Day | 14.0% | -0.05% | 6.9% |
| 1 Year | 25.5%24.2% | 6.3%-7.0% | 20.3%17.9% |
| 3 Year | 70.8%65.3% | 27.7%2.9% | 47.8%38.3% |
| 5 Year | 90.1%79.6% | 37.5%7.6% | 71.9%53.0% |
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
3 days ago | Simply Wall St
Ecolab Inc. Just Reported Annual Earnings: Have Analysts Changed Their Mind On The Stock?1 week ago | Simply Wall St
How Many Ecolab Inc. (NYSE:ECL) Shares Have Insiders Sold, In The Last Year?3 weeks ago | Simply Wall St
Does Ecolab's (NYSE:ECL) Share Price Gain of 84% Match Its Business Performance?Valuation
Is Ecolab undervalued compared to its fair value and its price relative to the market?
38.35x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ECL ($207.5) is trading above our estimate of fair value ($163.25)
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 (38.3x) compared to the Chemicals industry average (22.6x).
PE vs Market: ECL is poor value based on its PE Ratio (38.3x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: ECL is poor value based on its PEG Ratio (3.3x)
Price to Book Ratio
PB vs Industry: ECL is overvalued based on its PB Ratio (6.9x) 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 19 analysts?
11.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ECL's forecast earnings growth (11.6% per year) is above the savings rate (1.7%).
Earnings vs Market: ECL's earnings (11.6% per year) are forecast to grow slower than the US market (14.1% per year).
High Growth Earnings: ECL's earnings are forecast to grow, but not significantly.
Revenue vs Market: ECL's revenue (2.6% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: ECL's revenue (2.6% 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 (21.8%)
Next Steps
Past Performance
How has Ecolab performed over the past 5 years?
8.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ECL has high quality earnings.
Growing Profit Margin: ECL's current net profit margins (10.5%) are higher than last year (9.7%).
Past Earnings Growth Analysis
Earnings Trend: ECL's earnings have grown by 8.1% per year over the past 5 years.
Accelerating Growth: ECL's earnings growth over the past year (9.1%) exceeds its 5-year average (8.1% per year).
Earnings vs Industry: ECL earnings growth over the past year (9.1%) exceeded the Chemicals industry -15.9%.
Return on Equity
High ROE: ECL's Return on Equity (18.1%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Ecolab's financial position?
Financial Position Analysis
Short Term Liabilities: ECL's short term assets ($4.8B) exceed its short term liabilities ($3.6B).
Long Term Liabilities: ECL's short term assets ($4.8B) do not cover its long term liabilities ($8.5B).
Debt to Equity History and Analysis
Debt Level: ECL's debt to equity ratio (71.1%) is considered high.
Reducing Debt: ECL's debt to equity ratio has reduced from 88.9% to 71.1% over the past 5 years.
Debt Coverage: ECL's debt is well covered by operating cash flow (39.1%).
Interest Coverage: ECL's interest payments on its debt are well covered by EBIT (11.9x coverage).
Balance Sheet
Inventory Level: ECL has a high level of physical assets or inventory.
Debt Coverage by Assets: ECL's debt is not covered by short term assets (assets are 0.8x debt).
Next Steps
Dividend
What is Ecolab's current dividend yield, its reliability and sustainability?
0.91%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: ECL's dividend (0.91%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: ECL's dividend (0.91%) is low compared to the top 25% of dividend payers in the US market (3.73%).
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 (34.2%), 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 (31.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.6yrs
Average management tenure
CEO
Doug Baker (60yo)
15.6yrs
Tenure
US$14,364,033
Compensation
Mr. Douglas M. Baker, Jr., also known as Doug, has been the Chairman of the board and Chief Executive Officer of Ecolab Inc. since May 2006 and July 2004 respectively. Mr. Baker served as President of Ecol ...
CEO Compensation Analysis
Compensation vs Market: Doug's total compensation ($USD14.36M) is above average for companies of similar size in the US market ($USD10.81M).
Compensation vs Earnings: Doug's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 15.6yrs | US$14.36m | 0.25% $147.8m | |
| Chief Financial Officer | 7.3yrs | US$3.77m | 0.057% $34.1m | |
| Executive VP and President of Global Institutional & Specialty Services | 8yrs | US$4.62m | 0.0052% $3.1m | |
| Executive VP & President of the Global Industrial Sector | 7.1yrs | US$4.48m | 0.0029% $1.7m | |
| President & COO | 0.8yrs | US$2.71m | 0.010% $6.2m | |
| Senior VP | 0.7yrs | no data | 0.00078% $466.5k | |
| Executive VP & CTO | 6.1yrs | no data | 0.010% $6.1m | |
| Executive VP & Chief Information Officer | 0yrs | no data | no data | |
| Director of Investor Relations | 0yrs | no data | no data | |
| Executive VP | 2.9yrs | no data | 0.019% $11.3m |
6.6yrs
Average Tenure
56yo
Average Age
Experienced Management: ECL's management team is seasoned and experienced (6.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 15.6yrs | US$14.36m | 0.25% $147.8m | |
| Independent Lead Director | 2.8yrs | US$327.68k | 0.0022% $1.3m | |
| Independent Director | 23.1yrs | US$302.68k | 0.0041% $2.5m | |
| Independent Director | 8.1yrs | US$287.68k | no data | |
| Independent Director | 10.3yrs | US$307.68k | 0.00035% $209.3k | |
| Independent Director | 9.8yrs | US$287.68k | no data | |
| Independent Director | 13.8yrs | US$307.68k | 0.0064% $3.8m | |
| Independent Director | 12yrs | US$302.68k | no data | |
| Independent Director | 5yrs | US$297.68k | no data | |
| Independent Director | 6yrs | US$293.30k | no data |
10.0yrs
Average Tenure
60.5yo
Average Age
Experienced Board: ECL's board of directors are seasoned and experienced ( 10 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if 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$59.811b
- Shares outstanding: 288.24m
- Website: https://investor.ecolab.com
Number of Employees
Location
- Ecolab Inc.
- 1 Ecolab Place
- St. Paul
- Minnesota
- 55102
- 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 |
| ECJ | BRSE (Berne Stock Exchange) | Yes | Common Stock | CH | CHF | 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. The Global Industrial segment offers water treatment and process applications, and cleaning and sanitizing solutions primarily to industrial customers within the manufacturing, food and beverage processing, transportation, chemical, primary metals and mining, power generation, pulp and paper, pharmaceutical, and commercial laundry. The Global Institutional segment provides specialized cleaning and sanitizing products to the foodservice, hospitality, lodging, healthcare, government, education, and retail industries. The Global Energy segment offers the process chemicals and water treatment needs of the petroleum and petrochemical industries in upstream and downstream applications under the Nalco Champion name. This segment also provides additives for drilling and well stimulation, corrosion inhibitors, oil and water separation, scale control, paraffin and asphaltene control, biocides, hydrate control, hydrogen sulfide removal, oil dispersants, foamers and anti-foamers, flow improvers, anti-foulants, crude desalting, monomer inhibitors, anti-oxidants, fuel and lubricant additives, and water treatment. The Other segment offers pest elimination services to detect, eliminate, and prevent pests, such as rodents and insects in restaurants, food and beverage processors, educational and healthcare facilities, hotels, quick service restaurant and grocery operations, and other institutional and commercial customers. This segment also produces and sells colloidal silica for binding and polishing applications in semiconductor, catalyst, and aerospace component manufacturing, as well as chemical industries. Ecolab Inc. sells its products through field sales and corporate account personnel, distributors, and dealers. The company was founded in 1923 and is headquartered in St. Paul, Minnesota.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/23 00:14 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/31 |
| 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.