Ecolab Inc
Exchange: NYSESector: Basic MaterialsIndustry: Specialty Chemicals
A trusted partner for millions of customers, Ecolab is a global sustainability leader offering water, hygiene and infection prevention solutions and services that protect people and the resources vital to life. Building on more than a century of innovation, Ecolab has annual sales of $16 billion, employs approximately 48,000 associates and operates in more than 170 countries around the world. The company delivers comprehensive science-based solutions, data-driven insights and world-class service to advance food safety, maintain clean and safe environments, and optimize water and energy use. Ecolab's innovative solutions improve operational efficiencies and sustainability for customers in the food, healthcare, high tech, life sciences, hospitality and industrial markets.
Did you know?
Pays a 1.03% dividend yield.
Current Price
$259.51
-0.42%GoodMoat Value
$129.68
50.0% overvaluedProfile
Valuation (TTM)
Market Cap$73.50B
P/E35.41
EV$82.15B
P/B7.52
Shares Out283.24M
P/Sales4.57
Revenue$16.08B
EV/EBITDA21.80
Ecolab Inc (ECL) Stock Analysis
GoodMoat Analysis
Ecolab is a high-quality, moat-protected leader in water treatment and hygiene solutions, but its current valuation appears deeply unfavourable for a value investor. The stock trades at a significant premium to the GoodMoat target price, suggesting a lack of margin of safety. Further investigation should focus on justifying the premium multiple.
Read full analysis
Ecolab Inc. provides water treatment, hygiene, and infection prevention solutions globally, serving critical industries like food service, healthcare, and manufacturing. Applying the GoodMoat framework, the company likely possesses a durable moat (potentially scoring high on criteria like Switching Costs, Niche Dominance, and Strategic Partnerships) given its mission-critical products, long-term contracts, and deep integration into client operations. Its financial quality is strong, with a robust ROE of 21.2% and solid operating margins of 17.0%. However, the valuation assessment is the primary concern. The stock trades at a P/E of 36.6x, and the provided GoodMoat target price of $129.68 implies the current price of $268.54 is overvalued by more than 100%. This suggests a deeply unfavourable or negative margin of safety, far exceeding the 40% threshold for being considered undervalued. According to the Decision Framework, while Ecolab likely passes the 'Moat & Quality Gate,' it fails the 'Valuation & Risk Gate.' The extreme premium to the estimated fair value, coupled with a modest FCF yield of 2.6%, places it in the 'Unfavourable' category for a value investor seeking a margin of safety. Further investigation would require a strong challenge to the valuation assumptions behind the target price.
Market Cap$73.50B
Current Price$259.51
P/E Ratio35.41
Forward P/E—
PEG Ratio1.79
EPS$7.28
Book Value$34.50
P/B Ratio7.52
ECL Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 2.4% FCF growth (CAGR)
Cash vs Debt
Net Debt: 8.2B
Revenue
12.6B
FY19
11.8B
FY20
12.7B
FY21
14.2B
FY22
15.3B
FY23
15.7B
FY24
16.1B
FY25
Net Income
1.6B
FY19
—
FY20
1.1B
FY21
1.1B
FY22
1.4B
FY23
2.1B
FY24
2.1B
FY25
ECL 52-Week Range
$247.56
$307.53
50-Day MA: $275.40200-Day MA: $271.82
Did you know?
Price sits at 20% of its 52-week range.
Ecolab Inc (ECL) Financial Summary
Ecolab Inc (ECL) is a Basic Materials company in the Specialty Chemicals industry, listed on NYSE. The stock currently trades at $259.51 with a market capitalization of $73.50B.
Key valuation metrics include a P/E ratio of 35.41, price-to-book ratio of 7.52, and EPS of $7.28. The company reports a profit margin of 12.9% and return on equity of 21.2%.
ECL Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $73.50B |
| P/E Ratio | 35.41 |
| EPS | $7.28 |
| P/B Ratio | 7.52 |
| P/S Ratio | 4.57 |
| EV/EBITDA | 21.80 |
| Dividend Yield | 1.03% |
| Profit Margin | 12.9% |
| Return on Equity | 21.2% |
| Debt/Equity | 0.90 |
ECL Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $12.56B | $1.56B |
| FY20 | $11.79B | $-1.21B |
| FY21 | $12.73B | $1.13B |
| FY22 | $14.19B | $1.09B |
| FY23 | $15.32B | $1.37B |
| FY24 | $15.74B | $2.11B |
| FY25 | $16.08B | $2.08B |
Ecolab Inc (ECL) Valuation
Based on GoodMoat's DCF model, Ecolab Inc has a fair value estimate of $129.68. At the current price of $259.51, the stock appears 100.1% overvalued relative to our intrinsic value estimate.
ECL Quality Indicators
Ecolab Inc maintains a profit margin of 12.9% and an operating margin of 17.0%. Return on equity stands at 21.2%. The current ratio is 1.08. Debt-to-equity ratio is 0.90.
About Ecolab Inc
A trusted partner for millions of customers, Ecolab is a global sustainability leader offering water, hygiene and infection prevention solutions and services that protect people and the resources vital to life. Building on more than a century of innovation, Ecolab has annual sales of $16 billion, employs approximately 48,000 associates and operates in more than 170 countries around the world. The company delivers comprehensive science-based solutions, data-driven insights and world-class service to advance food safety, maintain clean and safe environments, and optimize water and energy use. Ecolab's innovative solutions improve operational efficiencies and sustainability for customers in the food, healthcare, high tech, life sciences, hospitality and industrial markets.
ECL Free Cash Flow
Ecolab Inc generated $1.96B in trailing twelve-month free cash flow, representing an FCF yield of 2.66%. This moderate FCF yield indicates reasonable cash generation.
ECL Shares Outstanding
Ecolab Inc has 0.28 billion shares outstanding at a share price of $259.51, giving it a market capitalization of $73.50B.
ECL Recent Insider Trades
Recent insider transactions at Ecolab Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Cook Gregory B (EVP & PRES - INST GROUP) | SELL | 3,519 | $1.07M |
| McKibben Tracy B (Director) | SELL | 1,265 | $390454.90 |
| Beck Christophe (CHAIRMAN & CEO) | SELL | 18,120 | $5.57M |