Ecolab (ECL) AI Stock Analysis

• Market Cap: $77.94B
• Dividend Yield: 0.92%
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 36.7
• Beta (1Y): 0.76
• Revenue Growth: 0.57%
• EPS Growth: 25.50%
• Country: US
• Employees: 48,000
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Chemicals - Specialty
• EPS (TTM): 1.89
• Shares Outstanding: 283,624,900
• 10 Day Avg. Volume: 1,097,037
• 30 Day Avg. Volume: 1,167,963
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 5.35
• Enterprise Value/Gross Profit: 12.25
• Enterprise Value/Ebitda: 21.67
• 1Y Price Target: $294.08
• Price Target Upside: 7.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 80 Outperform
• Price Target: $321.00 ▲(17.48% Upside)

Ecolab's overall stock score of 80 reflects its strong financial performance and positive earnings call sentiment, which are the most significant factors. The technical analysis supports a bullish trend, while the valuation indicates a premium price, suggesting high market expectations. The company's strategic focus on high-margin growth businesses and effective cost management further bolster its outlook, despite some challenges in specific segments.

Positive Factors

Acquisitions

Ecolab's acquisition of Ovivo Electronics is set to more than double the size of its existing global high-tech water business.

Earnings Growth

ECL is expected to continue to post double-digit EPS growth from 2025 to 2027, supported by solid pricing and share gains.

Financial Performance

Ecolab's strong margin improvement is driving the company's best return on invested capital (ROIC) in nearly a decade.

Negative Factors

Pricing Concerns

Pricing during the quarter disappointed investors, up 2% in line with 1Q levels despite the tariff surcharge in the U.S. being announced.

Stock Performance

The stock's performance has lagged the broader materials space, and expectations of a modest beat were not met.

Ecolab Business Overview & Revenue Model

Company Description

Ecolab Inc. is a global leader in water, hygiene, and energy technologies and services. The company operates through various sectors, primarily focusing on institutional, industrial, and commercial markets. Ecolab provides a range of products and services, including cleaning and sanitization solutions, water treatment, pest control, and food safety services, aiming to enhance operational efficiency and sustainability for its customers.

How the Company Makes Money

Ecolab generates revenue through multiple streams, primarily by offering a wide array of products and services tailored to various industries, including food and beverage, healthcare, hospitality, and manufacturing. The company's revenue model consists of direct sales of chemical products and equipment, as well as recurring revenue from service contracts and maintenance agreements. Significant partnerships with large corporations and government entities further enhance its earnings potential. Ecolab also invests in innovation and technology to develop new solutions that meet evolving customer needs, thereby driving growth through improved customer retention and expanded market reach.

Ecolab Financial Statement Overview

Summary

Ecolab demonstrates strong financial performance with 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. Potential risks include the high debt level, but the company's growth trajectory and profitability trends are promising.

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	6.18B	5.42B	5.22B	4.90B
EBITDA	3.88B	3.85B	3.03B	2.55B	2.47B	2.22B
Net Income	2.10B	2.11B	1.37B	1.09B	1.13B	-1.21B
Balance Sheet
Total Assets	22.37B	22.39B	21.85B	21.46B	21.21B	18.13B
Cash, Cash Equivalents and Short-Term Investments	1.16B	1.26B	919.50M	598.60M	359.90M	1.26B
Total Debt	8.36B	8.28B	8.73B	9.03B	9.16B	7.11B
Total Liabilities	13.46B	13.60B	13.77B	14.21B	13.95B	11.92B
Stockholders Equity	8.88B	8.76B	8.04B	7.24B	7.22B	6.17B
Cash Flow
Free Cash Flow	1.50B	1.82B	1.64B	1.08B	1.42B	1.37B
Operating Cash Flow	2.53B	2.81B	2.41B	1.79B	2.06B	1.86B
Investing Cash Flow	-456.80M	-433.80M	-990.50M	-716.80M	-4.58B	-414.50M
Financing Cash Flow	-1.38B	-2.02B	-1.05B	-837.30M	1.60B	-341.80M

Ecolab Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 273.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 273.23 is below the 20-day moving average (MA) of 278.42, above the 50-day MA of 271.98, and above the 200-day MA of 255.41, indicating a neutral trend. The MACD of 1.45 indicates Positive momentum. The RSI at 48.87 is Neutral, neither overbought nor oversold. The STOCH value of 12.10 is Positive, 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	80 Outperform	$77.94B	36.75	24.26%	0.92%	0.57%	25.50%
STE	79 Outperform	$23.84B	36.69	9.73%	0.97%	2.47%	63.68%
RPM	78 Outperform	$15.76B	22.95	25.42%	1.63%	0.51%	17.21%
APD	68 Neutral	$65.03B	42.00	10.26%	2.44%	-0.38%	-39.53%
DD	67 Neutral	$31.73B	40.24	0.31%	2.13%	4.55%	-130.25%
PPG	64 Neutral	$24.73B	19.43	16.88%	2.51%	-10.59%	-7.79%
Sector *	61 Neutral	$10.27B	6.37	0.76%	2.91%	3.10%	-36.03%

Ecolab Corporate Events

Ecolab Completes $500 Million Notes Issuance

On August 27, 2025, Ecolab Inc. completed the issuance of $500 million in 5.000% Notes due 2035, following an underwriting agreement with major financial institutions. The proceeds from this offering are intended for general corporate purposes, including funding a previously announced acquisition and debt repayment, potentially impacting the company’s financial flexibility and strategic positioning.

Ecolab Appoints Julie P. Whalen to Board

On August 6, 2025, Ecolab Inc. announced the appointment of Julie P. Whalen to its Board of Directors, where she will also serve on the Audit and Finance Committees. Ms. Whalen brings extensive experience from her previous roles as CFO at Expedia Group and Williams-Sonoma, enhancing Ecolab’s finance and audit capabilities. Her appointment is expected to strengthen Ecolab’s strategic planning and governance, contributing to the company’s ongoing success and shareholder returns.

Ecolab Announces Executive Vice President’s Resignation

On July 14, 2025, Machiel Duijser resigned from his role as Executive Vice President and Chief Supply Chain Officer at Ecolab Inc., effective July 25, 2025, to join another publicly traded company. Ecolab has a succession plan in place and will appoint an internal successor, with Duijser’s departure not stemming from any disagreements with the company’s operations or policies.

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.