Ecolab Inc.

Consumer Discretionary
Package Goods/Cosmetics
www.ecolab.com

Earnings Score
Moat Score
Safety Score

Market Cap $70.60B
PE 35
Debt $7.62B
Cash $1.26B
EV $76.95B
FCF $2.00B

Earnings

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Sales & Net Margins

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Earnings	$2.04B
EBIT	$2.81B
ROE	24%
ROA	13%
FCF	$2.00B
Equity	$8.58B
Growth Stability	-80%
PE	34.53
PEG	9.09
PB	8.23
P/FCF	35.26
P/S	4.5
Price/Cash	0.02
Debt/Equity	0.89
Debt/FCF	3.8
Net Margins	14%
Gross Margins	43%
Op. Margins	18%
Earnings CAGR	1%
Sales Growth YoY	1%
Sales Growth QoQ	0%
Sales CAGR	1%
FCF CAGR	2%
Equity CAGR	1%
Earnings Stability	0.04
Earnings Growth YoY	82%
Earnings Growth QoQ	50%
Earnings CAGR 5Y	4%

Sales CAGR 5Y	4%
FCF CAGR 5Y	3%
Equity CAGR 5Y	4%
Earnings CAGR 3Y	8%
Sales CAGR 3Y	8%
FCF CAGR 3Y	29%
Equity CAGR 3Y	7%
Market Cap	$70.60B
Revenue	$15.67B
Dividend Yield	1%
Payout Ratio	33%
Assets	$22.10B
Total Debt	$7.62B
Cash	$1.26B
Shares Outstanding	283.16M
EV	76.95B
Earnings Score	6%
Moat Score	94%
Safety Score	57%
Final Score	52%
Working Capital	1.41B
Current Ratio	1.3
Gross Profit	$6.76B
Shares Growth 3y	-0%
Equity Growth QoQ	3%
Equity Growth YoY	10%

Assets & ROA

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Stockholders Equity & ROE

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Ecolab produces and markets cleaning and sanitation products for the hospitality, healthcare, and industrial markets. The firm is the global market share leader in this category with a wide array of products and services, including dish and laundry washing systems, pest control, and infection control products. The company has a strong hold on the U.S. market and is looking to increase its profitability abroad. Additionally, Ecolab serves customers in water, manufacturing, and life sciences end markets, selling customized solutions.

SEC Filings

Direct access to Ecolab Inc. (ECL) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Ecolab Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Ecolab Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 1%

Stability 4%

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Ecolab Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Ecolab Inc..

Years

Calculation mode

= $23B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$2B	$2B	$2.1B	$2.1B	$2.2B	$2.2B	$2.3B	$2.3B	$2.3B	$2.4B	$2.4B	$24B
DCF		$1.9B	$1.7B	$1.6B	$1.5B	$1.4B	$1.3B	$1.2B	$1.1B	$1B	$940M	$9.4B
Value	$23B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	8%	7%	9%	11%	10%	10%	-10%	9%	8%	9%	14%
ROA	-	8%	11%	10%	10%	10%	8%	8%	7%	9%	13%
ROE	-	14%	18%	20%	18%	18%	-19%	16%	15%	17%	24%

Good Net Margins (13.97%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	5.26	5.43	5.63	4.92	3.92	4.88	6.17	7.98	5	3.8
Debt over Equity	0.89	0.93	0.96	0.95	0.87	0.73	1.08	1.21	1.18	1.01	0.89
Growth Stability	-	-	-	100%	100%	100%	-80%	100%	100%	100%	-80%

Neutral Debt/FCF ratio (3.8)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.89)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-80%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-5%	-3%	5%	6%	2%	-21%	8%	11%	8%	4%
Earnings YoY growth	-	-17%	23%	23%	-5%	9%	-177%	-194%	-3%	26%	4%
Equity YoY growth	-	-5%	-0%	10%	5%	8%	-29%	17%	0%	11%	4%
FCF YoY growth	-	15%	0%	6%	10%	13%	-15%	3%	-24%	52%	3%