Ecolab (ECL)
NYSE:ECL
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Ecolab
(NYSE:ECL)
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Rating:69Neutral
Price Target:
$278.00
▲(1.16% Upside)
Action:Downgraded
Date:05/12/26
The score is driven primarily by solid and improving profitability and supportive earnings-call guidance, offset by weaker cash conversion and meaningful debt. Technicals are a near-term headwind with the stock below key moving averages, and valuation is a notable drag due to a high P/E and modest yield.
Positive Factors
Recurring, relationship-based revenue model
Ecolab's core business couples consumable chemical sales with recurring on-site services and monitoring, creating highly recurrent revenue and strong customer stickiness. This model supports predictable demand, retention and cross-sell across diverse end markets, underpinning durable revenue streams.
Negative Factors
Sizeable absolute debt burden
Despite improved leverage ratios, the company carries roughly $9.1B of debt that raises exposure to higher interest costs and refinancing risk. Large absolute indebtedness can constrain capital allocation, limit flexibility for opportunistic investments and increase vulnerability in downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring, relationship-based revenue model
Ecolab's core business couples consumable chemical sales with recurring on-site services and monitoring, creating highly recurrent revenue and strong customer stickiness. This model supports predictable demand, retention and cross-sell across diverse end markets, underpinning durable revenue streams.
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
$70.14B
Dividend Yield1.01%
Average Volume (3M)1.45M
Price to Earnings (P/E)43.4
Beta (1Y)0.58
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. Volume1,675,603
30 Day Avg. Volume1,447,125
Financial Highlights & Ratios
PEG Ratio-26.62
Price to Book (P/B)7.61
Price to Sales (P/S)4.62
P/FCF Ratio39.05
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue4.77
Enterprise Value/Gross Profit10.78
Enterprise Value/Ebitda23.93
Forecast
1Y Price Target
$316.33Price Target Upside15.11% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering19
EPS Forecast (FY)8.34
Revenue Forecast (FY)$17.73B
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 ...
How the Company Makes Money
Ecolab primarily makes money by selling consumable chemical and cleaning products and bundling them with recurring service programs delivered by field representatives. Revenue is generated through a mix of (1) product sales—such as detergents, san...
Ecolab Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 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 | 3.28B | 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 | 9.10B | 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
Negative
274.80
Price Trends
264.40
Negative
274.42
Negative
271.10
Negative
Market Momentum
-5.90
Positive
32.57
Neutral
14.12
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ECL, the sentiment is Negative. The current price of 274.8 is above the 20-day moving average (MA) of 257.64, above the 50-day MA of 264.40, and above the 200-day MA of 271.10, indicating a bearish trend. The MACD of -5.90 indicates Positive momentum. The RSI at 32.57 is Neutral, neither overbought nor oversold. The STOCH value of 14.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $20.88B | 27.66 | 11.05% | 0.94% | 8.73% | 26.55% | |
71 Outperform | $19.94B | 29.17 | -0.16% | 1.74% | -22.51% | 63.47% | |
69 Neutral | $70.14B | 43.35 | 21.70% | 1.01% | 4.90% | 0.42% | |
66 Neutral | $65.31B | 22.78 | 13.68% | 2.92% | 3.69% | 37.17% | |
65 Neutral | $23.11B | 15.65 | 31.80% | 2.71% | -3.94% | 18.25% | |
64 Neutral | $12.39B | 70.63 | 21.80% | 1.96% | 5.68% | 3.81% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
ECL
Ecolab
248.64
-9.63
-3.73%
APD
Air Products and Chemicals
289.19
26.57
10.12%
PPG
PPG Industries
104.39
-3.96
-3.66%
RPM
RPM International
98.51
-12.14
-10.97%
STE
Steris
215.97
-27.92
-11.45%
DD
DuPont de Nemours
47.25
19.53
70.45%
Ecolab Corporate Events
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...
Business Operations and StrategyExecutive/Board Changes
Ecolab Restructures Leadership, Splits Chief Operating Role
Positive
Feb 25, 2026
On Feb. 20, 2026, Ecolab’s board approved a restructuring of its senior leadership, appointing chairman and CEO Christophe Beck as president while naming Darrell R. Brown Co-Chief Operating Officer – Global Markets and Greg B. Cook Co-...
Executive/Board Changes
Ecolab Director Victoria Reich to Step Down
Neutral
Feb 23, 2026
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 disagre...
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.