NYSE:ECL

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet with proven track record.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.4%

ECL

5.4%

US Chemicals

2.9%

US Market


1 Year Return

11.7%

ECL

-2.1%

US Chemicals

8.9%

US Market

Return vs Industry: ECL exceeded the US Chemicals industry which returned -2.8% over the past year.

Return vs Market: ECL exceeded the US Market which returned 9.2% over the past year.


Shareholder returns

ECLIndustryMarket
7 Day4.4%5.4%2.9%
30 Day15.0%16.8%10.6%
90 Day14.2%9.7%5.1%
1 Year12.8%11.7%0.1%-2.1%11.4%8.9%
3 Year71.4%65.9%16.0%-5.4%34.3%25.4%
5 Year105.0%94.3%26.4%-1.2%60.7%42.7%

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?

41.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ECL ($222) is trading above our estimate of fair value ($129.04)

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 (41.4x) compared to the Chemicals industry average (21.8x).

PE vs Market: ECL is poor value based on its PE Ratio (41.4x) compared to the US market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: ECL is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: ECL is overvalued based on its PB Ratio (7.3x) compared to the US Chemicals industry average (1.9x).


Next Steps

Future Growth

How is Ecolab forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

15.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ECL's forecast earnings growth (15.2% per year) is above the savings rate (2.2%).

Earnings vs Market: ECL's earnings (15.2% per year) are forecast to grow slower than the US market (22.2% per year).

High Growth Earnings: ECL's earnings are forecast to grow, but not significantly.

Revenue vs Market: ECL's revenue (2.5% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: ECL's revenue (2.5% 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 low in 3 years time (19%).


Next Steps

Past Performance

How has Ecolab performed over the past 5 years?

8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ECL has high quality earnings.

Growing Profit Margin: ECL's current net profit margins (10.3%) are higher than last year (10.1%).


Past Earnings Growth Analysis

Earnings Trend: ECL's earnings have grown by 8.4% per year over the past 5 years.

Accelerating Growth: ECL's earnings growth over the past year (4.6%) is below its 5-year average (8.4% per year).

Earnings vs Industry: ECL earnings growth over the past year (4.6%) exceeded the Chemicals industry -11.3%.


Return on Equity

High ROE: ECL's Return on Equity (17.7%) is considered low.


Next Steps

Financial Health

How is Ecolab's financial position?


Financial Position Analysis

Short Term Liabilities: ECL's short term assets ($6.4B) exceed its short term liabilities ($4.3B).

Long Term Liabilities: ECL's short term assets ($6.4B) do not cover its long term liabilities ($9.2B).


Debt to Equity History and Analysis

Debt Level: ECL's debt to equity ratio (87.8%) is considered high.

Reducing Debt: ECL's debt to equity ratio has reduced from 103.9% to 87.8% over the past 5 years.

Debt Coverage: ECL's debt is well covered by operating cash flow (31%).

Interest Coverage: ECL's interest payments on its debt are well covered by EBIT (12.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Ecolab's current dividend yield, its reliability and sustainability?

0.85%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: ECL's dividend (0.85%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: ECL's dividend (0.85%) is low compared to the top 25% of dividend payers in the US market (4.39%).


Stability and Growth of Payments

Stable Dividend: ECL is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: ECL is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: ECL is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ECL's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.9yrs

Average management tenure


CEO

Doug Baker (60yo)

15.92yrs

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 ($USD19.80M) is above average for companies of similar size in the US market ($USD11.58M).

Compensation vs Earnings: Doug's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Douglas Baker
Chairman & CEO15.92yrsUS$19.80m0.26% $169.5m
Christophe Beck
President & COO1.17yrsUS$4.90m0.016% $10.5m
Daniel Schmechel
Chief Financial Officer7.67yrsUS$5.24m0.064% $40.9m
Jill Wyant
Executive Vice President of Innovation & Transformation7.67yrsUS$4.57m0.0039% $2.5m
Roberto Inchaustegui
Executive Vice President of Growth Initiatives5.42yrsUS$3.51m0.012% $7.4m
Scott Kirkland
Senior VP1yrno data0.00098% $629.2k
Larry Berger
Executive VP & CTO6.42yrsno data0.010% $6.5m
Anil Arcalgud
Executive VP & Chief Information Officerno datano datano data
Andy Hedberg
Director of Investor Relationsno datano datano data
Michael McCormick
Executive VP3.25yrsno data0.019% $12.4m

5.9yrs

Average Tenure

57yo

Average Age

Experienced Management: ECL's management team is seasoned and experienced (5.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Douglas Baker
Chairman & CEO15.92yrsUS$19.80m0.26% $169.5m
Jeffrey Ettinger
Independent Lead Director3.08yrsUS$320.62k0.0022% $1.4m
David MacLennan
Independent Director4.5yrsUS$290.62k0.0029% $1.9m
Michael Larson
Independent Director8.42yrsUS$280.62k0.0022% $1.4m
Victoria Reich
Independent Director10.58yrsUS$300.62k0.00035% $224.7k
Arthur Higgins
Independent Director10.08yrsUS$280.62k0.0067% $4.3m
John Zillmer
Independent Director14.08yrsUS$300.62k0.0076% $4.9m
Barbara Beck
Independent Director12.33yrsUS$295.62k0.0090% $5.8m
Tracy McKibben
Independent Director5.33yrsUS$290.62k0.0014% $905.3k
Suzanne Vautrinot
Independent Director6.33yrsUS$280.62k0.0017% $1.1m

9.3yrs

Average Tenure

60yo

Average Age

Experienced Board: ECL's board of directors are considered experienced (9.3 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$64.203b
  • Shares outstanding: 289.20m
  • Website: https://www.ecolab.com

Number of Employees


Location

  • Ecolab Inc.
  • 1 Ecolab Place
  • Saint Paul
  • Minnesota
  • 55102-2233
  • 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
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. Its 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, chemical, mining and primary metals, power generation, pulp and paper, and commercial laundry industries. The company’s Global Institutional segment provides specialized cleaning and sanitizing products to the foodservice, hospitality, lodging, healthcare, government, education, and retail industries. Its Global Energy segment offers the process chemicals and water treatment needs of the petroleum and petrochemical industries in upstream and downstream applications. 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 company’s 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 Analysis2020/06/05 02:34
End of Day Share Price2020/06/04 00:00
Earnings2020/03/31
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.