NYSE:ECL

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

1.6%

NYSE:ECL

0.2%

US Chemicals

2.1%

US Market


1 Year Return

40.6%

NYSE:ECL

-16.1%

US Chemicals

-0.04%

US Market

ECL outperformed the Chemicals industry which returned -15.1% over the past year.

ECL outperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

ECLIndustryMarket
7 Day1.6%0.2%2.1%
30 Day3.5%-6.7%-3.2%
90 Day13.4%-1.4%2.8%
1 Year42.1%40.6%-2.7%-16.1%2.2%-0.04%
3 Year74.3%68.5%33.7%9.1%41.5%32.3%
5 Year91.6%80.9%29.8%1.4%55.0%37.8%

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 based on future cash flows and its price relative to the stock market?

39.87x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Ecolab's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Ecolab's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Ecolab is overvalued based on earnings compared to the US Chemicals industry average.

Ecolab is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Ecolab is poor value based on expected growth next year.


Price Based on Value of Assets

Ecolab is overvalued based on assets compared to the US Chemicals industry average.


Next Steps

Future Growth

How is Ecolab expected to perform in the next 1 to 3 years based on estimates from 21 analysts?

15.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Ecolab's revenue is expected to grow by 4.2% yearly, however this is not considered high growth (20% yearly).

Ecolab's earnings are expected to grow by 15.9% yearly, however this is not considered high growth (20% yearly).

Ecolab's revenue growth is positive but not above the United States of America market average.

Ecolab's earnings growth is expected to exceed the United States of America market average.

Ecolab's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Ecolab is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Ecolab performed over the past 5 years?

7.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Ecolab's year on year earnings growth rate has been positive over the past 5 years.

Ecolab's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Ecolab's 1-year earnings growth is negative, it can't be compared to the US Chemicals industry average.


Return on Equity

Ecolab has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Ecolab used its assets more efficiently than the US Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

Ecolab's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Ecolab's financial position?


Financial Position Analysis

Ecolab is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Ecolab's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Ecolab's level of debt (85.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (95.5% vs 85.3% today).

Debt is well covered by operating cash flow (34.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 10.8x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

0.96%

Expected Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield and Payments Analysis

Ecolab's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Ecolab's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.6x coverage).


Next Steps

Management

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

6.1yrs

Average management tenure


CEO

Doug Baker (60yo)

15.1yrs

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

Doug's remuneration is about average for companies of similar size in United States of America.

Doug's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.1yrs

Average Tenure

56yo

Average Age

The average tenure for the Ecolab management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

9.5yrs

Average Tenure

60.5yo

Average Age

The tenure for the Ecolab board of directors is about average.


Insider Trading

Ecolab individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$474,12620 Aug 19
Darrell Brown
EntityIndividual
Role
Senior Key Executive
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
Role
Member of the Board of Directors
Independent Director
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
SellUS$450,88403 Dec 18
Leslie Biller
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,811
Max PriceUS$160.40
SellUS$1,163,52914 Sep 18
Michael Hickey
EntityIndividual
Shares7,468
Max PriceUS$155.80
SellUS$1,431,57612 Sep 18
Larry Berger
EntityIndividual
Role
Chief Technology Officer
Executive VP & CTO
Shares9,317
Max PriceUS$153.65

Ownership Breakdown


Management Team

  • Doug Baker (60yo)

    Chairman & CEO

    • Tenure: 15.1yrs
    • Compensation: US$14.36m
  • Dan Schmechel (59yo)

    CFO & Treasurer

    • Tenure: 6.8yrs
    • Compensation: US$3.77m
  • Larry Berger (58yo)

    Executive VP & CTO

    • Tenure: 5.6yrs
  • Andy Hedberg

    Director of Investor Relations

    • Tenure: 0.0yrs
  • Michael McCormick (56yo)

    Executive VP

    • Tenure: 2.4yrs
  • Christophe Beck (51yo)

    President & COO

    • Tenure: 0.3yrs
    • Compensation: US$2.71m
  • Timothy Mulhere (56yo)

    Executive VP & President of Global Institutional

    • Tenure: 7.5yrs
    • Compensation: US$4.62m
  • Darrell Brown (55yo)

    Executive VP & President of the Global Industrial Sector

    • Tenure: 6.6yrs
    • Compensation: US$4.48m
  • Scott Kirkland (45yo)

    Senior VP

    • Tenure: 0.2yrs
  • Anil Arcalgud

    Executive VP & Chief Information Officer

    • Tenure: 0.0yrs

Board Members

  • Jeffrey Ettinger (61yo)

    Independent Lead Director

    • Tenure: 2.3yrs
    • Compensation: US$327.68k
  • Les Biller (70yo)

    Independent Director

    • Tenure: 22.6yrs
    • Compensation: US$302.68k
  • Drave MacLennan (60yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$297.68k
  • Michael Larson (60yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: US$287.68k
  • Victoria Reich (61yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$307.68k
  • Art Higgins (63yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$287.68k
  • Doug Baker (60yo)

    Chairman & CEO

    • Tenure: 15.1yrs
    • Compensation: US$14.36m
  • John Zillmer (64yo)

    Independent Director

    • Tenure: 13.3yrs
    • Compensation: US$307.68k
  • Barbara Beck (58yo)

    Independent Director

    • Tenure: 11.5yrs
    • Compensation: US$302.68k
  • Zan Vautrinot (59yo)

    Independent Director

    • Tenure: 5.5yrs
    • 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$59.530b
  • Shares outstanding: 287.75m
  • 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

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 Analysis2019/08/22 23:34
End of Day Share Price2019/08/22 00:00
Earnings2019/06/30
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.