ECL Ecolab Inc. - Fundamental Analysis
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ECL Stock | Fundamental Analysis & Investment Insights
NYSE
Basic Materials
Specialty Chemicals
Current Price
Live
$277.07
Analyst Target
$294.95
+6.5%
Upside
52W High
$286.04
52W Low
$221.62
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 17, 2026
Market cap
$78.58B
P/E
39.92
ROE
21.9%
Profit margin
12.5%
Debt/Equity
1.04
Dividend yield
1.05%
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
72%
Analysis Accuracy
Ecolab Inc. (ECL) shows a stable financial health with a Piotroski F-Score of 6/9, indicating moderate strength in fundamentals. Profitability metrics are strong, including a 21.87% ROE and 14.71% operating margin, outperforming sector averages. However, the stock trades at a significant premium with a P/E of 39.92 versus a sector average of 28.82 and a Graham Number of $60.52, suggesting overvaluation. Mixed signals from insider selling and tepid technical trends temper bullishness despite solid revenue growth and analyst buy rating.
Key Strengths
Strong profitability with ROE of 21.87%, well above sector average of 15.61%
High gross margin of 44.36%, reflecting pricing power and cost control
Robust year-over-year revenue growth of 17.80%, significantly above sector average of 5.90%
Stable financial leverage with a Current Ratio of 1.70 and Quick Ratio of 1.26
Conservative dividend payout ratio of 37.41% supports sustainability
Key Risks
Elevated valuation with P/E of 39.92, trading well above Graham Number of $60.52
Lack of Altman Z-Score prevents definitive assessment of bankruptcy risk
Insider selling activity: $6.06M in sales over last 6 months with no buys
High Debt/Equity ratio of 1.04, above sector average of 0.91
Weak technical trend score of 10/100 suggests near-term price pressure
AI Fair Value Estimate
Based on comprehensive analysis
$60.52
-78.2% below current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
62
Strong
40
70
68
75
55
AI Verdict
Neutral with upside potential if growth sustains
Key drivers: Strong profitability and revenue growth, Premium valuation multiples, Mixed insider and technical signals
Confidence
75%
Value
40/100
Ref P/E, PEG, Graham Number
Positives
- Graham Number implies deep value baseline at $60.52
Watchpoints
- Current price of $277.07 reflects extreme premium to Graham Number
- P/E of 39.92 significantly above sector average of 28.82
- Price/Book of 11.81 indicates overvaluation relative to book value
Future
70/100
Ref Growth rates
Positives
- Revenue growth YoY at 17.80%, well above peer average
- Most recent YoY EPS growth of 13.1% supports earnings momentum
- Analyst target price of $294.95 implies 6.4% upside
Watchpoints
- PEG Ratio unavailable limits growth-adjusted valuation insight
Past
68/100
Ref Historical trends
Positives
- Consistent earnings beats in earlier quarters (e.g., +6.5% in 2021)
- Long-term 5Y return of +35.5% outpaces broader market
Watchpoints
- Recent earnings surprises have been minimal or negative (1 beat in last 4 quarters)
- Average surprise in last 4 quarters: -0.11%
Health
75/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Piotroski F-Score of 6/9 indicates stable financial condition
- Current Ratio of 1.70 and Quick Ratio of 1.26 suggest solid liquidity
Watchpoints
- Altman Z-Score not available, limiting distress risk analysis
- Debt/Equity of 1.04 is above sector average and may constrain flexibility
Dividend
55/100
Ref Yield, Payout
Positives
- Dividend payout ratio of 37.41% is sustainable
- Dividend Strength score of 40/100 suggests moderate reliability
Watchpoints
- Low dividend yield of 1.05%, below income investor thresholds
- 5-Year Avg Yield unavailable limits trend analysis
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$277.07
Analyst Target
$294.95
Upside/Downside
+6.5%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for ECL and closest competitors.
Updated 2026-01-16
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
ECL
Ecolab Inc.
Primary
|
+35.5% | +86.8% | +17.1% | +3.6% | +5.8% | +2.0% |
|
FCX
Freeport-McMoRan Inc.
Peer
|
+98.3% | +38.6% | +48.7% | +31.9% | +23.1% | +4.1% |
|
B
Barrick Mining Corporation
Peer
|
+148.8% | +178.8% | +226.4% | +135.0% | +12.4% | +4.8% |
|
SHW
The Sherwin-Williams Company
Peer
|
+54.7% | +48.4% | +1.9% | +5.7% | +9.1% | +1.3% |
|
APD
Air Products and Chemicals, Inc.
Peer
|
+6.0% | -9.9% | -17.2% | -11.4% | +7.1% | -2.3% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
39.92
Forward P/E
32.69
PEG Ratio
N/A
P/B Ratio
11.81
P/S Ratio
4.95
EV/Revenue
5.34
EV/EBITDA
22.28
Market Cap
$78.58B
Profitability
Profit margins and return metrics
Profit Margin
12.49%
Operating Margin
14.71%
Gross Margin
44.36%
ROE
21.87%
ROA
7.75%
Growth
Revenue and earnings growth rates
Revenue Growth
+17.8%
Earnings Growth
N/A
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
N/A
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
1.04
Moderate
Current Ratio
1.7
Good
Quick Ratio
1.26
Good
Cash/Share
$4.9
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-10
$N/A
2025-10-28
$2.07
-0.1% surprise
2025-07-29
$1.89
-0.3% surprise
2025-04-29
$1.5
+0.1% surprise
Basic Materials Sector Comparison
Comparing ECL against 41 companies in the Basic Materials sector
(1 bullish, 21 neutral, 19 bearish)
P/E Ratio
39.92
This Stock
vs
30.38
Sector Avg
+31.4%
(Expensive)
Return on Equity (ROE)
21.87%
This Stock
vs
0.39%
Sector Avg
+5441.4%
(Excellent)
Profit Margin
12.49%
This Stock
vs
-2.52%
Sector Avg
-594.9%
(Weaker)
Debt to Equity
1.04
This Stock
vs
0.61
Sector Avg
+71.6%
(Higher)
Revenue Growth
17.8%
This Stock
vs
14.81%
Sector Avg
+20.2%
(Fast Growth)
Current Ratio
1.7
This Stock
vs
2.28
Sector Avg
-25.5%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
ECL
Ecolab Inc.
|
NEUTRAL | $78.58B | 39.92 | 21.9% | 12.5% | $277.07 | |
|
FCX
Freeport-McMoRan Inc.
|
NEUTRAL | $84.3B | 41.06 | 14.5% | 8.0% | $58.71 | |
|
B
Barrick Mining Corporation
|
NEUTRAL | $87.34B | 23.65 | 15.3% | 24.5% | $51.08 | |
|
SHW
The Sherwin-Williams Company
|
NEUTRAL | $89.22B | 34.88 | 59.9% | 11.0% | $357.83 | |
|
APD
Air Products and Chemicals, Inc.
|
BEARISH | $58.17B | - | -1.9% | -3.3% | $261.35 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-12-31 | MACLENNAN DAVID W | Director | Stock Award | 171 | $11,562 |
| 2025-12-31 | REICH VICTORIA J | Director | Stock Award | 128 | - |
| 2025-12-31 | ALTHOFF JUDSON | Director | Stock Award | 128 | - |
| 2025-12-31 | GROSS MARION K | Director | Stock Award | 128 | - |
| 2025-12-31 | DOUKERIS MICHEL | Director | Stock Award | 128 | - |
| 2025-12-31 | VAUTRINOT SUZANNE M. | Director | Stock Award | 128 | - |
| 2025-12-31 | WHALEN JULIE PATENAUDE | Director | Stock Award | 128 | - |
| 2025-12-31 | MCKIBBEN TRACY B. | Director | Stock Award | 128 | - |
| 2025-12-31 | NOWELL LIONEL L III | Director | Stock Award | 128 | - |
| 2025-12-31 | BALLARD SHARI L | Director | Stock Award | 256 | $33,750 |
| 2025-12-31 | LARSON MICHAEL J | Director | Stock Award | 128 | - |
| 2025-12-31 | GREEN ERIC MARK | Director | Stock Award | 265 | $36,250 |
| 2025-12-31 | ZILLMER JOHN J | Director | Stock Award | 128 | - |
| 2025-12-08 | MACLENNAN DAVID W | Director | Purchase | 750 | $193,198 |
| 2025-12-04 | SALUJA HARPREET | Officer | Stock Award | 1,331 | - |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
21 analysts
Wells Fargo
2026-01-14
Equal-Weight
Equal-Weight
UBS
2026-01-07
Neutral
Neutral
Citigroup
2025-12-18
Buy
Buy
Evercore ISI Group
2025-11-03
In-Line
Outperform
UBS
2025-10-31
Neutral
Neutral
Citigroup
2025-10-29
Buy
Buy
Stifel
2025-10-29
Buy
Buy
JP Morgan
2025-10-29
Neutral
Neutral
Barclays
2025-10-29
Overweight
Overweight
Wells Fargo
2025-10-27
Equal-Weight
Equal-Weight
Past News Coverage
Recent headlines mentioning ECL from our newsroom.
Newest → oldest
No matching news yet.