Ecolab (ECL) AI Stock Analysis

• Market Cap: $72.43B
• Dividend Yield: 0.95%
• Average Volume (3M): 1.51M
• Price to Earnings (P/E): 34.7
• Beta (1Y): 0.77
• Revenue Growth: 1.19%
• EPS Growth: 36.31%
• Country: US
• Employees: 48,000
• Sector: Basic Materials
• Sector Strength: 59
• Industry: Chemicals - Specialty
• EPS (TTM): 1.50
• Shares Outstanding: 283,632,540
• 10 Day Avg. Volume: 1,377,147
• 30 Day Avg. Volume: 1,510,239
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 11.61
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $280.00
• Price Target Upside: 9.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

Ecolab exhibits strong financial performance with consistent revenue growth and profitability, supported by effective cost management and strategic investments. Technical analysis suggests positive momentum, though caution is advised due to potential overbought conditions. Valuation remains high, reflecting growth expectations. The earnings call and recent board appointment add positive sentiment, although challenges in the global trade environment present risks. Overall, Ecolab demonstrates a robust position in its industry with promising growth potential.

Positive Factors

Earnings Performance

First-quarter results showed an adjusted EPS increase of 12%, aligning with consensus estimates.

Growth Strategy

ECL's proactive pricing strategies and increased value proposition are expected to contribute to consistent double-digit EPS growth in future years.

Market Position

ECL is viewed as a best-in-class 'safe haven' stock, which is expected to push the stock higher as it demonstrates resilience.

Negative Factors

Organic Growth Concerns

There is investor concern about softer-than-expected organic growth in the Water segment and a fear that a tariff-related price hike might be reactionary.

Tariff Impact

Tariffs pose risks impacting 10% of its raw materials from other geographies.

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 Global Industrial, Global Institutional & Specialty, and Global Healthcare & Life Sciences segments. The Global Industrial segment offers water treatment and process applications, and cleaning and sanitizing solutions to manufacturing, food and beverage processing, transportation, chemical, metals and mining, power generation, pulp and paper, commercial laundry, petroleum, refining, and petrochemical industries. The Global Institutional & Specialty segment provides specialized cleaning and sanitizing products to the foodservice, hospitality, lodging, government and education, and retail industries. Its Global Healthcare & Life Sciences segment offers specialized cleaning and sanitizing products to the healthcare, personal care, and pharmaceutical industries, such as infection prevention and surgical solutions, and end-to-end cleaning and contamination control solutions under the Ecolab, Microtek, and Anios brand names. The company's Other segment offers pest elimination services to detect, eliminate, and prevent pests, such as rodents and insects in restaurants, food and beverage processors, educational and healthcare facilities, hotels, quick service restaurant and grocery operations, and other institutional and commercial customers. This segment also provides colloidal silica for binding and polishing applications in semiconductor, catalyst, and aerospace component manufacturing, as well as chemical industries; and products and services that manage wash process through custom designed programs, premium products, dispensing equipment, water and energy management, and reduction, as well as real time data management. It sells its products through field sales and corporate account personnel, distributors, and dealers. The company was founded in 1923 and is headquartered in Saint Paul, Minnesota.

How the Company Makes Money

Ecolab makes money through a diverse revenue model that includes the sale of products, services, and consultation. Its key revenue streams originate from its three main segments: Global Industrial, Global Institutional & Specialty, and Global Healthcare & Life Sciences. The Global Industrial segment provides water treatment and process applications, cleaning and sanitizing solutions, and services to industries such as food and beverage, manufacturing, and chemicals. The Global Institutional & Specialty segment focuses on serving customers in hospitality, food service, healthcare, and retail with cleaning and sanitizing products and services. The Global Healthcare & Life Sciences segment offers infection prevention and surgical solutions. Ecolab's earnings are significantly enhanced by its customer partnerships, which involve service contracts and long-term agreements, ensuring recurring revenue. Additionally, the company's focus on innovation and sustainability attracts environmentally conscious clients, further driving its business growth.

Ecolab Financial Statement Overview

Summary

Ecolab showcases a strong financial performance, driven by consistent revenue growth and robust profitability margins. The balance sheet reflects a stable capital structure with manageable leverage, while the cash flow position underscores efficient cash generation capabilities. Despite some fluctuations in free cash flow, the overall outlook remains positive, supported by strategic investments and effective cost management.

Income Statement

Ecolab's income statement reflects strong profitability with a consistent increase in gross profit margin from 41.4% in 2020 to 43.7% in TTM 2025. The net profit margin has also improved, reaching 13.4% in TTM 2025, indicating efficient cost management. Revenue growth has been steady, with a notable 21.0% increase from 2020 to 2021 and continued growth across subsequent years, though slightly declining in TTM 2025. EBIT and EBITDA margins have shown robust performance, reflecting operational efficiency. Overall, Ecolab demonstrates solid revenue growth and profitability metrics.

Balance Sheet

Ecolab's balance sheet shows a stable financial position with a debt-to-equity ratio of 0.93 in TTM 2025, highlighting moderate leverage. The return on equity has improved from 15.9% in 2020 to 23.7% in TTM 2025, indicating effective use of shareholder equity. The equity ratio remains reasonable at 39.7%, suggesting a balanced capital structure. However, the company's total debt level, while stable, remains significant, which could pose a risk in adverse economic conditions.

Cash Flow

Ecolab's cash flow statement reveals a healthy free cash flow generation, with a growth rate of 27.5% from 2022 to TTM 2025. The operating cash flow to net income ratio is strong at 1.03 in TTM 2025, indicating solid cash generation relative to net income. However, the decline in free cash flow from 2024 to TTM 2025 suggests potential volatility in cash flow despite overall positive performance. The company maintains a focus on capital investments, supporting future growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
15.74B	15.32B	14.19B	12.73B	11.79B
	Gross Profit
6.84B	6.19B	5.36B	5.12B	4.88B
	EBIT
2.80B	1.99B	788.80M	892.00M	818.50M
	EBITDA
3.85B	3.03B	2.79B	2.71B	2.50B
	Net Income Common Stockholders
2.11B	1.37B	1.09B	1.13B	984.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.26B	919.50M	598.60M	359.90M	1.26B
	Total Assets
22.39B	21.85B	21.46B	21.21B	18.13B
	Total Debt
8.28B	8.73B	8.92B	9.04B	6.99B
	Net Debt
7.03B	7.81B	8.32B	8.68B	5.73B
	Total Liabilities
13.60B	13.77B	14.21B	13.95B	11.92B
	Stockholders Equity
8.76B	8.04B	7.24B	7.22B	6.17B
Cash Flow		Free Cash Flow
1.82B	1.64B	1.08B	1.42B	1.37B
	Operating Cash Flow
2.81B	2.41B	1.79B	2.06B	1.86B
	Investing Cash Flow
-433.80M	-990.50M	-716.80M	-4.58B	-414.50M
	Financing Cash Flow
-2.02B	-1.05B	-837.30M	1.60B	-341.80M

Ecolab Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 255.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 255.38 is above the 20-day moving average (MA) of 239.01, above the 50-day MA of 250.46, and above the 200-day MA of 246.90, indicating a bullish trend. The MACD of 0.58 indicates Negative momentum. The RSI at 62.41 is Neutral, neither overbought nor oversold. The STOCH value of 92.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ECL.

Ecolab Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHW	78 Outperform	$90.13B	34.03	70.22%	0.82%	0.26%	12.82%
ECL	77 Outperform	$72.43B	34.74	24.62%	0.95%	1.19%	36.31%
RPM	69 Neutral	$14.17B	22.09	25.53%	1.80%	-0.61%	15.06%
DD	63 Neutral	$28.14B	40.24	3.12%	2.30%	2.64%	80.37%
PPG	62 Neutral	$25.08B	18.72	18.47%	2.43%	-7.67%	-0.58%
APD	59 Neutral	$61.78B	40.35	10.45%	2.56%	-1.09%	-37.71%
Sector *	49 Neutral	$1.95B	-1.27	-21.38%	3.72%	0.83%	-29.30%

Ecolab Corporate Events

Ecolab Appoints Michel Doukeris to Board of Directors

On February 20, 2025, Ecolab Inc. announced the appointment of Michel Doukeris, CEO of AB InBev, to its board of directors. Doukeris is expected to bring significant global executive experience and strategic insights to Ecolab, enhancing its mission to protect vital resources and drive sustainable growth. His appointment follows the decision of Arthur J. Higgins not to seek re-election at the annual meeting in May 2025. Higgins’ departure is amicable, and the board acknowledged his valuable contributions over the years.