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Ecolab
(NYSE:ECL)
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Rating:70Outperform
Price Target:
$312.00
▲(13.54% Upside)
Action:Upgraded
Date:05/30/26
The score is driven primarily by solid underlying financial performance (strong profitability with improving leverage, but weaker cash conversion) and a constructive earnings outlook with reiterated EPS growth guidance and continued margin expansion plans. Offsetting factors are mixed technical signals and a relatively expensive valuation (high P/E with a modest dividend yield).
Positive Factors
Recurring consumables + services model
Ecolab’s mix of specialty chemicals, leased/sold equipment, on-site services and digital monitoring creates durable, subscription-like revenue. Route density, long-term customer relationships and cross-selling raise retention and predictability, supporting steady top-line and margin resilience over years.
Negative Factors
Weak cash conversion
Operating cash and free cash conversion lag reported earnings, implying earnings quality issues from working capital or timing. Lower cash conversion constrains internal funding for capex, dividends, and M&A paydown, increasing reliance on external financing and exposing flexibility risk over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring consumables + services model
Ecolab’s mix of specialty chemicals, leased/sold equipment, on-site services and digital monitoring creates durable, subscription-like revenue. Route density, long-term customer relationships and cross-selling raise retention and predictability, supporting steady top-line and margin resilience over years.
Read all positive factors
Ecolab Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down sales across various business areas, indicating which segments are performing well and contributing most to overall revenue growth.
Breaks down sales across various business areas, indicating which segments are performing well and contributing most to overall revenue growth.
Data provided by:
The Fly
The FlyEcolab (ECL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$78.41B
Dividend Yield1.01%
Average Volume (3M)1.82M
Price to Earnings (P/E)37.5
Beta (1Y)0.54
Revenue Growth4.90%
EPS Growth0.42%
CountryUS
Employees48,000
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)7.44
Shares Outstanding281,437,500
10 Day Avg. Volume2,118,929
30 Day Avg. Volume1,820,544
Financial Highlights & Ratios
PEG Ratio-26.61
Price to Book (P/B)7.61
Price to Sales (P/S)4.62
P/FCF Ratio39.05
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue5.13
Enterprise Value/Gross Profit11.59
Enterprise Value/Ebitda23.82
Forecast
1Y Price Target
$321.33Price Target Upside16.93% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
EPS Forecast (FY)8.31
Revenue Forecast (FY)$17.74B
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...
How the Company Makes Money
Ecolab primarily makes money by selling a mix of consumable products, equipment, and ongoing services under long-term customer relationships. A major portion of revenue comes from recurring sales of consumable specialty chemicals and formulations ...
Ecolab Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call presented strong, broad-based top-line momentum, margin expansion, and strategic M&A that accelerate exposure to high-growth, high-margin end markets (Global High Tech, Life Sciences, Pest Intelligence). Management acknowledged near-term headwinds from rising commodity and energy costs, a Q2 transition while surcharges roll in, and short-term EPS dilution from CoolIT financing/amortization, but provided clear plans and confidence that pricing, productivity and mix will offset these impacts with stable H2 margins and unchanged full-year EPS guidance (12%–15% ex-CoolIT). Overall the positives — diversified, accelerating growth engines, margin leverage and strong execution — substantially outweigh manageable, time-bound lowlights.Positive Updates
Adjusted EPS Growth
Adjusted diluted EPS grew 13% in Q1, described as 'right in the middle of our range' and consistent with management's full-year target of 12%–15% (excluding short-term CoolIT impact).
Negative Updates
Commodity and Energy Cost Pressure
Management expects commodity costs to increase high single digits starting in Q2 and to remain elevated through year-end; these higher costs will reduce Q2 EPS growth 'by a few percentage points' before pricing and surcharges take full effect.
Read all updates
Q1-2026 Updates
Positive
Negative
Adjusted EPS Growth
Adjusted diluted EPS grew 13% in Q1, described as 'right in the middle of our range' and consistent with management's full-year target of 12%–15% (excluding short-term CoolIT impact).
Read all positive updates
Company Guidance
The company reiterated full‑year adjusted diluted EPS growth of 12%–15% (ex‑CoolIT), noting Q1 adjusted EPS rose 13%; commodity costs are expected to increase ~9% starting in Q2 (surcharge implemented April 1), which will weigh on Q2 EPS by “a few percentage points” but be largely offset by the end of Q2 as surcharge benefits build, with EPS momentum strengthening in Q3–Q4; organic sales grew 4% in Q1 (3% value pricing, 1% volume) and management now expects organic sales to increase 6%–7% in the second half (with ~1% volume), ex‑OVIVO gross margin would be up ~70–80 bps in H2, and overall organic operating income margin expanded 70 bps to 16.8% in Q1; CoolIT is expected to reduce quarterly EPS by roughly $0.20 in the second half (neutralized in 2027 as Nalco amortization rolls off), CoolIT Q1 growth was well north of 30% (management noted near triple‑digit early growth), OVIVO mid‑teens, Global High Tech & Digital >20%, Life Sciences 11% (bioprocessing >100% q/q), Pest 7%, Specialty 9%, Food & Beverage 5%, SG&A productivity improved (SG&A down ~130 bps in March; ~80 bps full‑year benefit expected), and management remains confident in reaching a ~20% operating income margin target by 2027.Ecolab Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.45B | 16.08B | 15.74B | 15.32B | 14.19B | 12.73B |
| Gross Profit | 7.29B | 7.16B | 6.84B | 6.18B | 5.42B | 5.22B |
| EBITDA | 3.55B | 3.46B | 3.85B | 3.03B | 2.55B | 2.47B |
| Net Income | 2.11B | 2.08B | 2.11B | 1.37B | 1.09B | 1.13B |
Balance Sheet | ||||||
| Total Assets | 25.04B | 24.70B | 22.39B | 21.85B | 21.46B | 21.21B |
| Cash, Cash Equivalents and Short-Term Investments | 519.80M | 646.20M | 1.26B | 919.50M | 598.60M | 359.90M |
| Total Debt | 9.27B | 9.43B | 8.28B | 8.73B | 9.03B | 9.16B |
| Total Liabilities | 15.01B | 14.89B | 13.60B | 13.77B | 14.21B | 13.95B |
| Stockholders Equity | 10.00B | 9.77B | 8.76B | 8.04B | 7.24B | 7.22B |
Cash Flow | ||||||
| Free Cash Flow | 1.87B | 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 | -2.84B | -2.71B | -433.80M | -990.50M | -716.80M | -4.58B |
| Financing Cash Flow | -837.50M | -853.30M | -2.02B | -1.05B | -837.30M | 1.60B |
Ecolab Technical Analysis
Positive
274.80
Price Trends
261.12
Positive
270.88
Positive
268.97
Positive
Market Momentum
5.67
Negative
69.92
Neutral
90.84
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 274.8 is above the 20-day moving average (MA) of 267.10, above the 50-day MA of 261.12, and above the 200-day MA of 268.97, indicating a bullish trend. The MACD of 5.67 indicates Negative momentum. The RSI at 69.92 is Neutral, neither overbought nor oversold. The STOCH value of 90.84 is Negative, 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.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ecolab Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $20.52B | 26.48 | 11.05% | 0.94% | 8.73% | 26.55% | |
70 Outperform | $78.41B | 37.52 | 21.70% | 1.01% | 4.90% | 0.42% | |
67 Neutral | $18.31B | -757.28 | -0.16% | 1.74% | -22.51% | 63.46% | |
65 Neutral | $27.04B | 17.23 | 31.80% | 2.71% | -3.94% | 18.25% | |
64 Neutral | $14.19B | 21.28 | 21.80% | 1.96% | 5.68% | 3.81% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | $65.29B | 31.17 | 13.68% | 2.92% | 3.69% | 37.17% |
* Basic Materials Sector Average
ECL
Ecolab
278.61
8.88
3.29%
APD
Air Products and Chemicals
293.18
13.39
4.79%
PPG
PPG Industries
121.29
7.90
6.97%
RPM
RPM International
111.15
0.91
0.82%
STE
Steris
210.57
-29.54
-12.30%
DD
DuPont de Nemours
135.64
47.62
54.10%
Ecolab Corporate Events
M&A TransactionsPrivate Placements and Financing
Ecolab Completes $5 Billion Senior Notes Offering for Acquisition
Positive
May 29, 2026
On May 19, 2026, Ecolab Inc. entered into an underwriting agreement to issue four series of senior notes and completed the $5 billion offering on May 29, 2026, under its existing shelf registration. The tranches, maturing between 2029 and 2036 wit...
Executive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Ecolab Appoints New Principal Accounting Officer, Affirms Governance
Positive
May 11, 2026
On May 7, 2026, Ecolab’s board elected longtime executive Bryce L. Mewhorter as Senior Vice President and Corporate Controller, naming him principal accounting officer effective after the filing of the company’s second-quarter 2026 For...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Ecolab Secures $4.75 Billion Facility for Frigeo Acquisition
Positive
Apr 15, 2026
On April 10, 2026, Ecolab Inc. entered into a $4.75 billion unsecured committed delayed draw term loan credit facility with a syndicate of lenders led by Citibank, N.A., to finance its previously announced acquisition of Frigeo Holdings LLC and to...
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.