Ecolab (ECL) AI Stock Analysis

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Ecolab

(NYSE:ECL)

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Rating:70Outperform

Price Target:$331.00▲(7.52% Upside)

Action:reiterated

Date:10/30/26

The score is driven primarily by improving profitability and a constructive earnings outlook with clear 2027 growth and margin commitments. Offsetting factors include increased leverage and some weakening cash-flow conversion, while technicals show an extended run (overbought signals) and valuation is rich at ~40.6x earnings with only ~1% yield support.

Positive Factors

Recurring integrated modelEcolab’s combination of recurring consumables, installed equipment, digital monitoring, and field service can support durable customer retention and repeat revenue. Long relationships with large multi-site operators also create opportunities to standardize programs and expand wallet share.

Negative Factors

Higher leverageThe sharp increase in debt reduces balance-sheet flexibility and makes Ecolab more sensitive to interest rates and refinancing conditions. Higher leverage can also constrain investment, acquisitions, or shareholder returns if management prioritizes deleveraging over other capital uses.

Ecolab Key Performance Indicators (KPIs)

Operating Income by SegmentShows profitability across different business units, highlighting which segments drive earnings and where there might be challenges or opportunities for growth.

Chart Insights

Ecolab’s operating‑income mix has clearly shifted toward Institutional & Specialty, which shows sustained, accelerating profit contribution into 2026 while legacy Industrial, Healthcare and Other drop to zero after 2024—indicating a reporting/portfolio consolidation into higher‑margin businesses. This matches management’s pivot (Life Sciences, Digital, Global High‑Tech) and their 20% OI margin target, but watch noisy one‑offs (notably a large corporate swing in 2024Q3) and near‑term margin headwinds from commodity inflation and acquisition costs that could obscure organic progress.

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Ecolab (ECL) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $86.29B
Dividend Yield: 0.95%
Average Volume (3M): 1.44M
Price to Earnings (P/E): 41.5
Beta (1Y): 0.48
Revenue Growth: 9.33%
EPS Growth: 5.71%
Country: US
Employees: 48,000
Sector: Basic Materials
Sector Strength: 61
Industry: Chemicals - Specialty

Ecolab Business Overview & Revenue Model

Company Description

Ecolab Inc. provides water, hygiene, and infection prevention solutions and services in the United States and internationally. The company operates through four segments: Global Water, Global Institutional & Specialty, Global Pest Elimination, and Gl...

How the Company Makes Money

Ecolab primarily makes money by selling specialized consumable products (notably cleaning and sanitation chemicals, water treatment chemicals, and related formulations) bundled with service programs and, in many cases, equipment that dispenses, monit...

Ecolab Earnings Call Summary

Earnings Call Date:Oct 27, 2026(Q3-2026)|% Change Since:6.57%|Next Earnings Date:Feb 16, 2027

Earnings Call SentimentPositive

The call was strongly positive. Ecolab reported accelerating organic sales and operating income growth, broad-based business outperformance, strong momentum in Life Sciences, Digital, Pest and Global High-Tech, and confidence in achieving its 2027 growth and margin commitments. The principal challenges were persistent commodity inflation, a declining Institutional market, Middle East-related headwinds, M&A-related amortization and interest costs, and variability in near-term margins and High-Tech quarterly growth.

Positive Updates

Q3 Organic Sales and Operating Income Growth

Ecolab reported 7% organic sales growth in the third quarter. Organic operating income margin expanded to 19.6%, while organic operating income growth accelerated to 11%.

Negative Updates

Persistent Commodity Cost Inflation

Commodity costs remain high and are expected to stay high in the quarters ahead. Ecolab said continued pricing execution and supply chain management will remain critical to offset the impact.

Company Guidance

For 2027, Ecolab expects organic sales growth at the upper end of its 5% to 7% target, adjusted operating income margin to reach the 20%, and adjusted EPS growth to meet or exceed its long-term adjusted EPS growth target of 12% to 15%; underlying earnings growth is expected to be mid-teens type of growth, with roughly 5 percentage point headwind in the first half and a 5 percentage point tailwind in the second half, while first-half volume is expected to be 1% to 2% and pricing 5% to 6%, followed by second-half volume of 2% to 3% and pricing a bit lower. Life Sciences is expected to deliver 10% to 12% top line growth and reach 30% operating income margin in the next few years; Global High-Tech is expected to grow more than 25% annually, reach $4 billion in sales by 2030 and deliver 25% operating income margin; pricing is expected to remain 5% to 6% through the fourth quarter and probably the first half of next year, while DPC is assumed to stay at a high level till the end of next year.

Ecolab Financial Statement Overview

Summary

Strong and improving profitability (TTM net margin ~12% vs ~7.7% in 2022; EBIT margin ~16.8% vs ~11.3%), supporting high-quality earnings. Offsets include materially higher leverage (debt-to-equity ~1.32 TTM vs ~0.97 in 2025) and softer cash-flow durability (FCF ~59% of net income with TTM FCF down ~4.2%), plus slower recent top-line growth (~3.1% TTM).

Income Statement

82Very Positive

Balance Sheet

62Positive

Cash Flow

67Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.37B	16.08B	15.74B	15.32B	14.19B	12.73B
Gross Profit	7.63B	7.16B	6.84B	6.18B	5.42B	5.22B
EBITDA	3.63B	3.46B	3.85B	3.03B	2.55B	2.47B
Net Income	2.08B	2.08B	2.11B	1.37B	1.09B	1.13B
Balance Sheet
Total Assets	31.11B	24.70B	22.39B	21.85B	21.46B	21.21B
Cash, Cash Equivalents and Short-Term Investments	722.30M	646.20M	1.26B	919.50M	598.60M	359.90M
Total Debt	13.77B	9.43B	8.28B	8.73B	9.03B	9.16B
Total Liabilities	20.65B	14.89B	13.60B	13.77B	14.21B	13.95B
Stockholders Equity	10.42B	9.77B	8.76B	8.04B	7.24B	7.22B
Cash Flow
Free Cash Flow	1.80B	1.90B	1.82B	1.64B	1.08B	1.42B
Operating Cash Flow	3.03B	2.95B	2.81B	2.41B	1.79B	2.06B
Investing Cash Flow	-7.60B	-2.71B	-433.80M	-990.50M	-716.80M	-4.58B
Financing Cash Flow	3.32B	-853.30M	-2.02B	-1.05B	-837.30M	1.60B

Ecolab Technical Analysis

Technical Analysis SentimentPositive

Last Price307.86

Price Trends

50DMA285.25Positive

100DMA281.54Positive

200DMA275.97Positive

Market Momentum

MACD6.65Negative

RSI62.47Neutral

STOCH53.16Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ECL, the sentiment is Positive. The current price of 307.86 is above the 20-day moving average (MA) of 297.72, above the 50-day MA of 285.25, and above the 200-day MA of 275.97, indicating a bullish trend. The MACD of 6.65 indicates Negative momentum. The RSI at 62.47 is Neutral, neither overbought nor oversold. The STOCH value of 53.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ECL.

Ecolab Risk Analysis

Ecolab disclosed 24 risk factors in its most recent earnings report. Ecolab reported the most risks in the "Legal & Regulatory" category.

Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

3 New Risks

1.Our operations may present a safety risk to our employees and others.Q4, 2025

2.Our increasing reliance on artificial intelligence ("AI") technologies in our products, services, and operations presents several risks that could adversely impact our business, financial condition, and results of operations.Q4, 2024

3.Our increasing reliance on artificial intelligence (AI) technologies in our products, services, and operations presents several risks that could adversely impact our business, financial condition, and results of operations.Q3, 2024

Ecolab Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

ECL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IOSP	72Outperform	$1.91B	13.78	10.42%	2.29%	4.73%	―
ECL	70Outperform	$85.83B	41.52	20.70%	0.95%	9.33%	5.71%
HWKN	69Neutral	$3.18B	36.75	15.86%	0.51%	9.02%	3.18%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ASH	61Neutral	$3.52B	852.44	0.21%	2.18%	2.08%	―
KWR	60Neutral	$2.65B	27.74	7.02%	1.32%	8.68%	―
SCL	55Neutral	$1.52B	347.05	0.36%	2.40%	10.02%	-90.50%

* Basic Materials Sector Average

Performance Comparison

ECL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
ECL	Ecolab	307.86	48.71	18.80%
ASH	Ashland Global Holdings, Inc.	76.72	25.06	48.52%
HWKN	Hawkins Inc	152.13	25.25	19.90%
IOSP	Innospec	78.29	4.42	5.98%
KWR	Quaker Chemical	155.91	22.35	16.74%
SCL	Stepan Company	65.94	22.68	52.44%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 30, 2026

Ecolab AI Stock Analysis