Ecolab (ECL) AI Stock Analysis

• Market Cap: $75.71B
• Dividend Yield: 0.91%
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 36.3
• Beta (1Y): 0.74
• Revenue Growth: 1.19%
• EPS Growth: 36.31%
• Country: US
• Employees: 48,000
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Chemicals - Specialty
• EPS (TTM): 1.50
• Shares Outstanding: 283,512,600
• 10 Day Avg. Volume: 1,019,737
• 30 Day Avg. Volume: 1,172,519
• PEG Ratio: -127.69
• Price to Book (P/B): 8.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 52.81
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $280.06
• Price Target Upside: 4.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

• Rating: 77 Outperform
• Price Target: ―

Ecolab demonstrates a robust position in the Chemicals - Specialty industry with strong financial performance driven by consistent revenue growth and effective cost management. Despite the high valuation limiting upside potential, the company's strategic investments in digital technologies and growth initiatives, as well as positive market momentum, support a promising outlook. Challenges in the global trade environment and increased costs due to tariffs present risks, but the overall growth trajectory remains favorable.

Positive Factors

Digital Technology Integration

The integration of digital technology enhances customer experience and addresses labor shortage issues, with digital programs expected to eventually exceed more than $1 billion in revenue.

New Business Wins

New business wins during the quarter were strong and broad-based, which is helping offset pockets of weakness.

Strategic Investments

The company continues to invest for long-term growth in strategic categories like life sciences, pest intelligence, global high tech water, and Ecolab digital, all of which should continue to drive operating margins toward management’s 20% target by 2027.

Negative Factors

Soft End-Markets

End-markets remain soft keeping volumes suppressed.

Tariff Impact

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

Water Segment 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.

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 diversified revenue model that includes the sale of products, equipment, and services across its various sectors. Key revenue streams include its Global Industrial, Global Institutional, and Global Healthcare & Life Sciences divisions. The company generates revenue by providing customized solutions tailored to the specific needs of each sector, often through long-term contracts and service agreements. Significant partnerships with industries such as food and beverage processing, healthcare facilities, and hospitality companies further enhance its revenue potential. Ecolab's ability to drive growth is supported by its focus on innovation, sustainability, and efficiency improvements, which attract and retain a broad customer base.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
15.68B	15.74B	15.32B	14.19B	12.73B	11.79B
	Gross Profit
6.86B	6.84B	6.19B	5.36B	5.12B	4.88B
	EBIT
2.86B	2.80B	1.99B	788.80M	892.00M	818.50M
	EBITDA
3.89B	3.85B	3.03B	2.79B	2.71B	2.50B
	Net Income Common Stockholders
2.10B	2.11B	1.37B	1.09B	1.13B	984.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
598.60M	1.26B	919.50M	598.60M	359.90M	1.26B
	Total Assets
21.46B	22.39B	21.85B	21.46B	21.21B	18.13B
	Total Debt
9.03B	8.28B	8.73B	8.92B	9.04B	6.99B
	Net Debt
8.43B	7.03B	7.81B	8.32B	8.68B	5.73B
	Total Liabilities
14.21B	13.60B	13.77B	14.21B	13.95B	11.92B
	Stockholders Equity
7.24B	8.76B	8.04B	7.24B	7.22B	6.17B
Cash Flow		Free Cash Flow
1.37B	1.82B	1.64B	1.08B	1.42B	1.37B
	Operating Cash Flow
2.16B	2.81B	2.41B	1.79B	2.06B	1.86B
	Investing Cash Flow
-232.80M	-433.80M	-990.50M	-716.80M	-4.58B	-414.50M
	Financing Cash Flow
-1.13B	-2.02B	-1.05B	-837.30M	1.60B	-341.80M

Ecolab Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 266.93
• 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 266.93 is above the 20-day moving average (MA) of 260.27, above the 50-day MA of 250.28, and above the 200-day MA of 249.38, indicating a bullish trend. The MACD of 4.61 indicates Negative momentum. The RSI at 66.40 is Neutral, neither overbought nor oversold. The STOCH value of 89.23 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	$89.65B	33.85	70.22%	0.83%	0.26%	12.82%
ECL	77 Outperform	$75.71B	36.31	24.62%	0.91%	1.19%	36.31%
RPM	72 Outperform	$14.83B	22.96	25.53%	1.72%	-0.61%	15.06%
APD	64 Neutral	$63.04B	41.17	10.45%	2.53%	-1.09%	-37.71%
PPG	64 Neutral	$25.41B	18.85	18.47%	2.43%	-7.67%	-0.58%
DD	63 Neutral	$28.44B	40.24	0.06%	2.33%	4.51%	-121.68%
Sector *	51 Neutral	$2.02B	-1.12	-21.36%	3.65%	2.87%	-30.54%

Ecolab Corporate Events

Ecolab Completes $500 Million Notes Issuance

On June 5, 2025, Ecolab Inc. completed the issuance of $500 million in 4.300% Notes due 2028, following an underwriting agreement with Barclays Capital Inc., BofA Securities, Inc., and Santander US Capital Markets LLC. The proceeds from these Notes, which are part of a series of debt securities, are intended for general corporate purposes, potentially including debt repayment. The Notes, which bear interest payable semi-annually, are subject to redemption and repurchase conditions under certain circumstances, and the issuance is governed by covenants limiting certain financial activities.

The most recent analyst rating on (ECL) stock is a Hold with a $228.00 price target. To see the full list of analyst forecasts on Ecolab stock, see the ECL Stock Forecast page.

Ecolab Appoints Marion K. Gross to Board

On May 7, 2025, Ecolab Inc. appointed Marion K. Gross to its board of directors, where she will also serve on the Compensation & Human Capital Management and Safety, Health & Environment Committees. Gross brings extensive experience from her tenure at McDonald’s, which is expected to enhance Ecolab’s strategic mission and growth plans. The company’s annual meeting on May 8, 2025, resulted in the election of 13 directors and approval of several proposals, including executive compensation and amendments to limit officer liability, reflecting a focus on strengthening governance and operational resilience.