NYSE:ECL

Stock Analysis Report

Executive Summary

Ecolab Inc. provides water, hygiene, and energy technologies and services worldwide.


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

ECLIndustryMarket
7 Day0.09%-0.9%-1.1%
30 Day4.8%0.4%1.4%
90 Day14.0%-0.05%6.9%
1 Year25.5%24.2%6.3%-7.0%20.3%17.9%
3 Year70.8%65.3%27.7%2.9%47.8%38.3%
5 Year90.1%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

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

company0.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Years1.0%

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

NamePositionTenureCompensationOwnership
Douglas Baker
Chairman & CEO15.6yrsUS$14.36m0.25% $147.8m
Daniel Schmechel
Chief Financial Officer7.3yrsUS$3.77m0.057% $34.1m
Timothy Mulhere
Executive VP and President of Global Institutional & Specialty Services8yrsUS$4.62m0.0052% $3.1m
Darrell Brown
Executive VP & President of the Global Industrial Sector7.1yrsUS$4.48m0.0029% $1.7m
Christophe Beck
President & COO0.8yrsUS$2.71m0.010% $6.2m
Scott Kirkland
Senior VP0.7yrsno data0.00078% $466.5k
Larry Berger
Executive VP & CTO6.1yrsno data0.010% $6.1m
Anil Arcalgud
Executive VP & Chief Information Officer0yrsno datano data
Andy Hedberg
Director of Investor Relations0yrsno datano data
Michael McCormick
Executive VP2.9yrsno data0.019% $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

NamePositionTenureCompensationOwnership
Douglas Baker
Chairman & CEO15.6yrsUS$14.36m0.25% $147.8m
Jeffrey Ettinger
Independent Lead Director2.8yrsUS$327.68k0.0022% $1.3m
Leslie Biller
Independent Director23.1yrsUS$302.68k0.0041% $2.5m
Michael Larson
Independent Director8.1yrsUS$287.68kno data
Victoria Reich
Independent Director10.3yrsUS$307.68k0.00035% $209.3k
Arthur Higgins
Independent Director9.8yrsUS$287.68kno data
John Zillmer
Independent Director13.8yrsUS$307.68k0.0064% $3.8m
Barbara Beck
Independent Director12yrsUS$302.68kno data
Tracy McKibben
Independent Director5yrsUS$297.68kno data
Suzanne Vautrinot
Independent Director6yrsUS$293.30kno 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ECLNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
ECJDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969
ECL *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1969
0IFALSE (London Stock Exchange)YesCommon StockGBUSDJan 1969
ECJBRSE (Berne Stock Exchange)YesCommon StockCHCHFJan 1969
ECLWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1969
ECJETLX (Eurotlx)YesCommon StockITEURJan 1969
E1CL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:14
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.