Ecolab (ECL) AI Stock Analysis

• Market Cap: $86.89B
• Dividend Yield: 1.01%
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): 42.0
• Beta (1Y): 0.59
• Revenue Growth: 1.38%
• EPS Growth: -2.54%
• Country: US
• Employees: 48,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 2.08
• Shares Outstanding: 281,969,450
• 10 Day Avg. Volume: 1,361,810
• 30 Day Avg. Volume: 1,204,608
• PEG Ratio: -26.62
• Price to Book (P/B): 7.61
• Price to Sales (P/S): 4.62
• P/FCF Ratio: 39.05
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 5.94
• Enterprise Value/Gross Profit: 13.36
• Enterprise Value/Ebitda: 28.88
• 1Y Price Target: $324.53
• Price Target Upside: 5.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $344.00 ▲(11.63% Upside)
• Action: Upgraded Date: 02/24/26
• Date: Action: Upgraded 02/24/26

The score is driven primarily by strong fundamentals (profitability, improving leverage, solid free cash flow) and a bullish earnings outlook with clear margin expansion levers (pricing/mix and One Ecolab savings). Technicals support the uptrend but are stretched (overbought signals). The main drag is valuation, with a high P/E and low dividend yield limiting upside if execution or end-market recovery disappoints.

Positive Factors

Margin Strength

Ecolab delivered record 2025 margins driven by pricing, mix and productivity. Management expects another 100–150 bps of operating margin expansion (to >19%) supported by One Ecolab savings and pricing, a durable driver of structural profit improvement.

Consistent Cash Generation

Stable operating cash flow and robust FCF provide durable financial flexibility to fund capex, R&D, acquisitions (e.g., Ovivo), buybacks and debt reduction. Persistent cash generation underpins reinvestment and supports margin expansion initiatives over the medium term.

High‑Growth Strategy & Assets

Ecolab’s shift toward growth engines (digital, life sciences, global high‑tech) and the Ovivo Electronics deal diversify revenue into higher‑margin, double‑digit growth end markets. This structural reweighting supports recurring, faster growth and improves portfolio resilience long term.

Negative Factors

Sizeable Absolute Debt

A multibillion-dollar debt stock constrains financial flexibility if macro or rates swing. Although leverage improved, operating cash flow covers only ~53% of debt, implying paydown is gradual and interest or liquidity stress could compress strategic options over the medium term.

Cyclical End‑Market Exposure

Material exposure to cyclical basic industries and paper creates recurrent downside in slower cycles; these end markets can reduce consolidated growth and margins relative to core, more defensive segments, making results sensitive to macro and commodity swings.

Elevated Cash Intensity & Restructuring

Higher planned capex and a broadening One Ecolab restructuring raise near‑term cash outflows and execution risk. Savings will be structural if realized, but the upfront cash and restructuring charges increase pressure on FCF and require sustained operational execution to justify the spend.

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 generates revenue primarily through the sale of its products and services across its diverse sectors. The company's revenue model is built on a combination of product sales, subscription services, and long-term contracts, particularly in water treatment and cleaning solutions. Key revenue streams include the sale of chemicals and equipment for water treatment, sanitation products for the foodservice and healthcare industries, and pest control services. Ecolab also benefits from significant partnerships with major companies and organizations, enabling it to secure large contracts and expand its market presence. Additionally, the company's focus on sustainability and efficiency solutions aligns with increasing global demand for environmentally responsible practices, further bolstering its earnings potential.

Ecolab Financial Statement Overview

Summary

Strong, steady revenue growth and healthy profitability (2025 gross margin ~44.5%, net margin ~12.9%) with consistently positive earnings post-2020. Balance sheet leverage is improving (debt-to-equity ~0.90) and ROE is strong (~21%), while cash generation is solid (FCF ~1.9B). Main constraints are the still sizable absolute debt load (~$8.8B), OCF covering ~53% of debt, and slight margin softening in 2025 vs. 2024.

Income Statement

Revenue has grown steadily from 2021–2025 (2025 up ~2.7% vs. 2024), with strong profitability for a specialty chemicals business: 2025 gross margin ~44.5% and net margin ~12.9%. Operating profitability has improved materially versus 2022–2023, and net income remains consistently positive since 2021; however, margins softened slightly in 2025 versus 2024 and the 2020 loss highlights that earnings can be pressured in tougher cycles.

Balance Sheet

Leverage is moderate: 2025 debt-to-equity is ~0.90 (improved from >1.0 in 2021–2023), while equity has expanded over time. Returns on equity are strong (about ~21% in 2025), supporting the view that the company is using capital efficiently. The main offset is the still-meaningful absolute debt load (about $8.8B in 2025), which can reduce flexibility if rates rise or growth slows.

Cash Flow

Cash generation is solid with 2025 operating cash flow of about $3.0B and free cash flow of about $1.9B, and free cash flow growth was strong in 2025. Free cash flow tracks net income reasonably well (free cash flow at ~65% of net income in 2025). Still, operating cash flow covers only about ~53% of total debt in 2025 (and was similar in prior years), indicating debt paydown would take time without continued strong cash generation.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.08B	15.74B	15.32B	14.19B	12.73B
Gross Profit	7.16B	6.84B	6.18B	5.42B	5.22B
EBITDA	2.79B	3.85B	3.03B	2.55B	2.47B
Net Income	2.08B	2.11B	1.37B	1.09B	1.13B
Balance Sheet
Total Assets	24.70B	22.39B	21.85B	21.46B	21.21B
Cash, Cash Equivalents and Short-Term Investments	646.20M	1.26B	919.50M	598.60M	359.90M
Total Debt	9.43B	8.28B	8.73B	9.03B	9.16B
Total Liabilities	14.89B	13.60B	13.77B	14.21B	13.95B
Stockholders Equity	9.77B	8.76B	8.04B	7.24B	7.22B
Cash Flow
Free Cash Flow	1.90B	1.82B	1.64B	1.08B	1.42B
Operating Cash Flow	2.95B	2.81B	2.41B	1.79B	2.06B
Investing Cash Flow	-2.71B	-433.80M	-990.50M	-716.80M	-4.58B
Financing Cash Flow	-853.30M	-2.02B	-1.05B	-837.30M	1.60B

Ecolab Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 308.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 308.16 is above the 20-day moving average (MA) of 293.93, above the 50-day MA of 279.02, and above the 200-day MA of 269.81, indicating a bullish trend. The MACD of 7.95 indicates Negative momentum. The RSI at 73.63 is Negative, neither overbought nor oversold. The STOCH value of 91.97 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
ECL	75 Outperform	$86.89B	42.00	22.40%	1.01%	1.38%	-2.54%
RPM	71 Outperform	$14.98B	22.52	22.72%	1.96%	3.09%	12.25%
STE	69 Neutral	$24.46B	34.50	10.44%	0.94%	5.15%	60.30%
PPG	68 Neutral	$28.06B	18.12	21.34%	2.71%	-12.98%	-11.34%
DD	65 Neutral	$20.88B	-27.38	-0.80%	1.74%	2.42%	-196.54%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
APD	57 Neutral	$62.23B	-186.24	-2.03%	2.92%	-0.52%	-110.29%

Ecolab Corporate Events

Ecolab Director Victoria Reich to Step Down

On February 18, 2026, Ecolab director Victoria J. Reich informed the board that she will not stand for re-election at the company’s annual meeting scheduled for May 7, 2026. The company emphasized that her decision was not due to any disagreement with Ecolab and publicly recognized her as a valued board colleague, signaling an orderly and non-contentious transition in its board leadership.

The most recent analyst rating on (ECL) stock is a Buy with a $312.00 price target. To see the full list of analyst forecasts on Ecolab stock, see the ECL Stock Forecast page.

Ecolab Expands One Ecolab Restructuring, Targets Higher Savings

Ecolab reported record results for 2025, with fourth-quarter net sales up 5% to about $4.2 billion and organic sales up 3%, led by strong growth in Food & Beverage, Pest Elimination, Life Sciences, Specialty and Global High-Tech, while basic industries and Paper were headwinds. Reported operating income rose 22%, organic operating income increased 12%, and diluted EPS climbed 19% to $1.98, or $2.08 on an adjusted basis, up 15% from a year earlier.

The company also expanded its One Ecolab initiative, first launched on July 30, 2024, into a broader restructuring program announced on February 10, 2026, with expected restructuring costs of $334 million and special charges of $91 million by 2027, mainly tied to severance from global functional realignment. Management raised targeted annualized productivity savings from One Ecolab to $325 million by 2027 and, supported by the Ovivo Electronics acquisition and ongoing margin expansion, forecast 2026 adjusted EPS of $8.43 to $8.63, implying 12% to 15% growth and signaling sustained earnings momentum despite near-term pressures in basic industries and Paper.

Ecolab’s fourth-quarter 2025 performance included a 140-basis-point increase in organic operating income margin to 18.5%, aided by improved productivity and partially offset by growth investments. Ecolab Digital sales advanced 24% to $99 million, currency translation added $0.05 to EPS, the adjusted tax rate rose to 19.4% on geographic mix, and the company repurchased about 1.5 million shares, underscoring a focus on shareholder returns alongside growth and restructuring.

The most recent analyst rating on (ECL) stock is a Hold with a $307.00 price target. To see the full list of analyst forecasts on Ecolab stock, see the ECL Stock Forecast page.