NYSE:ECL

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Adequate balance sheet average dividend payer.


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

-0.5%

ECL

0.5%

US Chemicals

0.6%

US Market


1 Year Return

20.1%

ECL

3.5%

US Chemicals

20.8%

US Market

Return vs Industry: ECL exceeded the US Chemicals industry which returned 3.5% over the past year.

Return vs Market: ECL matched the US Market which returned 20.8% over the past year.


Shareholder returns

ECLIndustryMarket
7 Day-0.5%0.5%0.6%
30 Day-2.6%-1.6%2.5%
90 Day-6.7%1.5%4.9%
1 Year21.3%20.1%19.2%3.5%23.5%20.8%
3 Year59.0%54.2%34.8%9.2%46.5%37.0%
5 Year83.7%74.0%45.6%14.3%64.6%46.5%

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?

35.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ECL ($185.5) is trading above our estimate of fair value ($145.65)

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 (35x) compared to the Chemicals industry average (20.4x).

PE vs Market: ECL is poor value based on its PE Ratio (35x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: ECL is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: ECL is overvalued based on its PB Ratio (6.2x) compared to the US Chemicals industry average (2.2x).


Next Steps

Future Growth

How is Ecolab forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

16.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ECL's forecast earnings growth (16.9% per year) is above the savings rate (1.7%).

Earnings vs Market: ECL's earnings (16.9% per year) are forecast to grow faster than the US market (14.4% per year).

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

Revenue vs Market: ECL's revenue (3.1% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: ECL's revenue (3.1% 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 low in 3 years time (20%).


Next Steps

Past Performance

How has Ecolab performed over the past 5 years?

7.8%

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 lower than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: ECL's earnings have grown by 7.8% 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 (-4.5%) over the past year, making it difficult to compare to the Chemicals industry average (-17%).


Return on Equity

High ROE: ECL's Return on Equity (17.9%) 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 ($4.9B) exceed its short term liabilities ($3.9B).

Long Term Liabilities: ECL's short term assets ($4.9B) do not cover its long term liabilities ($8.3B).


Debt to Equity History and Analysis

Debt Level: ECL's debt to equity ratio (78.3%) is considered high.

Reducing Debt: ECL's debt to equity ratio has reduced from 87.6% to 78.3% over the past 5 years.

Debt Coverage: ECL's debt is well covered by operating cash flow (36%).

Interest Coverage: ECL's interest payments on its debt are well covered by EBIT (11.6x 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 0.7x debt).


Next Steps

Dividend

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

1.01%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Ecolab before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years1.1%

Current dividend yield vs market & industry

Notable Dividend: ECL's dividend (1.01%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: ECL's dividend (1.01%) is low compared to the top 25% of dividend payers in the US market (3.71%).


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 (34.8%), 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 (28.1% payout ratio).


Next Steps

Management

What is the CEO of Ecolab's salary, the management and board of directors tenure and is there insider trading?

6.4yrs

Average management tenure


CEO

Doug Baker (60yo)

15.4yrs

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 ($USD14.36M) is above average for companies of similar size in the US market ($USD10.94M).

Compensation vs Earnings: Doug's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.4yrs

Average Tenure

56yo

Average Age

Experienced Management: ECL's management team is seasoned and experienced (6.4 years average tenure).


Board Age and Tenure

9.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: ECL's board of directors are considered experienced (9.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$474,12620 Aug 19
Darrell Brown
EntityIndividual
Role
Unit President
Executive VP & President of the Global Industrial Sector
Shares2,280
Max PriceUS$207.95
SellUS$1,096,56702 Aug 19
Alex Blanco
EntityIndividual
Shares5,400
Max PriceUS$203.07
SellUS$1,981,73018 Jun 19
Timothy Mulhere
EntityIndividual
Role
Senior Key Executive
Executive VP & President of Global Institutional
Shares10,000
Max PriceUS$198.17
SellUS$1,945,24510 Jun 19
Leslie Biller
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares9,975
Max PriceUS$195.01
SellUS$2,327,02307 Jun 19
Michael Hickey
EntityIndividual
Shares12,235
Max PriceUS$190.71
SellUS$361,85507 Jun 19
Angela Busch
EntityIndividual
Shares1,896
Max PriceUS$190.85
SellUS$969,03809 May 19
Jill Wyant
EntityIndividual
Shares5,400
Max PriceUS$179.68
SellUS$544,12003 May 19
Bruno Lavandier
EntityIndividual
Shares2,969
Max PriceUS$183.27
SellUS$3,539,93620 Mar 19
Thomas W. Handley
EntityIndividual
Shares20,326
Max PriceUS$174.16
SellUS$521,43115 Mar 19
Angela Busch
EntityIndividual
Shares3,027
Max PriceUS$172.26
BuyUS$171,05008 Mar 19
David MacLennan
EntityIndividual
Shares1,000
Max PriceUS$171.05
SellUS$562,48206 Mar 19
Larry Berger
EntityIndividual
Role
Chief Technology Officer
Executive VP & CTO
Shares3,302
Max PriceUS$170.35

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Doug Baker (60yo)

    Chairman & CEO

    • Tenure: 15.4yrs
    • Compensation: US$14.36m
  • Dan Schmechel (59yo)

    CFO & Treasurer

    • Tenure: 7.2yrs
    • Compensation: US$3.77m
  • Larry Berger (58yo)

    Executive VP & CTO

    • Tenure: 5.9yrs
  • Andy Hedberg

    Director of Investor Relations

    • Tenure: 0yrs
  • Michael McCormick (56yo)

    Executive VP

    • Tenure: 2.8yrs
  • Christophe Beck (51yo)

    President & COO

    • Tenure: 0.7yrs
    • Compensation: US$2.71m
  • Timothy Mulhere (56yo)

    Executive VP & President of Global Institutional

    • Tenure: 7.8yrs
    • Compensation: US$4.62m
  • Darrell Brown (55yo)

    Executive VP & President of the Global Industrial Sector

    • Tenure: 6.9yrs
    • Compensation: US$4.48m
  • Scott Kirkland (45yo)

    Senior VP

    • Tenure: 0.5yrs
  • Anil Arcalgud

    Executive VP & Chief Information Officer

    • Tenure: 0yrs

Board Members

  • Jeffrey Ettinger (61yo)

    Independent Lead Director

    • Tenure: 2.6yrs
    • Compensation: US$327.68k
  • Les Biller (70yo)

    Independent Director

    • Tenure: 22.9yrs
    • Compensation: US$302.68k
  • Michael Larson (60yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$287.68k
  • Victoria Reich (61yo)

    Independent Director

    • Tenure: 10.1yrs
    • Compensation: US$307.68k
  • Art Higgins (63yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: US$287.68k
  • Doug Baker (60yo)

    Chairman & CEO

    • Tenure: 15.4yrs
    • Compensation: US$14.36m
  • John Zillmer (64yo)

    Independent Director

    • Tenure: 13.6yrs
    • Compensation: US$307.68k
  • Barbara Beck (58yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$302.68k
  • Tracy McKibben (50yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$297.68k
  • Zan Vautrinot (59yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$293.30k

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$53.377b
  • 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
ECLWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1969
ECJETLX (Eurotlx)YesCommon StockITEURJan 1969

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 Indu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 23:36
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.