Ecolab (ECL) AI Stock Analysis

• Market Cap: $73.26B
• Dividend Yield: 1.03%
• Average Volume (3M): 1.48M
• Price to Earnings (P/E): 37.2
• Beta (1Y): 0.72
• Revenue Growth: 1.38%
• EPS Growth: -2.54%
• Country: US
• Employees: 48,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 2.07
• Shares Outstanding: 283,235,660
• 10 Day Avg. Volume: 1,749,706
• 30 Day Avg. Volume: 1,476,074
• PEG Ratio: 0.58
• Price to Book (P/B): 7.61
• Price to Sales (P/S): 4.23
• P/FCF Ratio: 36.61
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 5.35
• Enterprise Value/Gross Profit: 12.08
• Enterprise Value/Ebitda: 24.89
• 1Y Price Target: $296.00
• Price Target Upside: 16.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21
• EPS Forecast (FY): 7.53
• Revenue Forecast (FY): $16.05B

• Rating: 66 Neutral
• Price Target: $278.00 ▲(9.86% Upside)

Ecolab's overall score is driven by strong financial performance and positive earnings call insights, indicating robust growth prospects. However, technical analysis suggests bearish momentum, and valuation metrics indicate the stock may be overvalued, which tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, enhancing Ecolab's long-term market position and financial stability.

Innovation and Growth Engines

Ecolab's focus on innovation and growth engines positions it well for sustained competitive advantage and market share expansion, driving future profitability.

Operating Income Margin Expansion

Improving operating income margins reflect enhanced operational efficiency and cost management, which are crucial for long-term profitability and shareholder value.

Negative Factors

Cash Flow Challenges

Negative free cash flow growth suggests potential liquidity issues, which could limit Ecolab's ability to invest in growth opportunities and manage debt effectively.

Market Softness in Key Segments

Declines in key segments like Basic Industries and Paper can hinder overall growth, affecting Ecolab's revenue and profitability if not addressed.

Capacity Constraints

Capacity constraints in critical areas like water purification can limit Ecolab's ability to meet demand, potentially affecting future growth and market competitiveness.

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 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 profitability. The balance sheet is stable with improved leverage ratios, but cash flow challenges indicate potential issues in liquidity management.

Income Statement

Ecolab's income statement shows a solid performance with a consistent revenue growth trajectory, evidenced by a 5.9% increase in TTM revenue. The gross profit margin remains strong at 32.6%, although it has decreased from the previous year. The net profit margin is healthy at 12.5%, indicating effective cost management. However, there is a slight decline in EBIT and EBITDA margins compared to the previous year, suggesting potential pressure on operating efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.89, showing improvement from previous years. The return on equity is robust at 21.6%, indicating effective use of equity capital. However, the equity ratio is moderate, suggesting a balanced approach to financing through debt and equity.

Cash Flow

Cash flow analysis reveals challenges with a negative free cash flow growth rate of -130.9% in the TTM period, indicating potential issues in cash generation. The operating cash flow to net income ratio is 0.63, showing a reasonable conversion of net income to cash. However, the free cash flow to net income ratio has decreased, highlighting potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.89B	15.74B	15.32B	14.19B	12.73B	11.79B
Gross Profit	7.04B	6.84B	6.18B	5.42B	5.22B	4.90B
EBITDA	3.42B	3.85B	3.03B	2.55B	2.47B	2.22B
Net Income	1.98B	2.11B	1.37B	1.09B	1.13B	-1.21B
Balance Sheet
Total Assets	23.90B	22.39B	21.85B	21.46B	21.21B	18.13B
Cash, Cash Equivalents and Short-Term Investments	1.96B	1.26B	919.50M	598.60M	359.90M	1.26B
Total Debt	8.83B	8.28B	8.73B	9.03B	9.16B	7.11B
Total Liabilities	14.14B	13.60B	13.77B	14.21B	13.95B	11.92B
Stockholders Equity	9.72B	8.76B	8.04B	7.24B	7.22B	6.17B
Cash Flow
Free Cash Flow	1.55B	1.82B	1.64B	1.08B	1.42B	1.37B
Operating Cash Flow	2.63B	2.81B	2.41B	1.79B	2.06B	1.86B
Investing Cash Flow	-1.36B	-433.80M	-990.50M	-716.80M	-4.58B	-414.50M
Financing Cash Flow	-561.80M	-2.02B	-1.05B	-837.30M	1.60B	-341.80M

Ecolab Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 253.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 253.06 is below the 20-day moving average (MA) of 268.50, below the 50-day MA of 270.51, and below the 200-day MA of 261.65, indicating a bearish trend. The MACD of -4.59 indicates Positive momentum. The RSI at 31.89 is Neutral, neither overbought nor oversold. The STOCH value of 17.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ECL.

Ecolab Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STE	77 Outperform	$23.95B	34.63	10.13%	0.99%	5.15%	60.30%
RPM	69 Neutral	$13.86B	20.18	24.05%	1.96%	3.09%	12.25%
PPG	67 Neutral	$21.30B	16.94	16.31%	2.89%	-12.98%	-11.34%
ECL	66 Neutral	$73.26B	37.20	21.73%	1.03%	1.38%	-2.54%
APD	64 Neutral	$53.58B	34.61	10.26%	2.76%	-0.38%	-39.53%
DD	62 Neutral	$15.81B	―	0.31%	1.72%	4.55%	-130.25%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Ecolab Corporate Events

Ecolab’s Earnings Call: Strong Growth Amid Challenges

Ecolab’s recent earnings call conveyed a generally positive sentiment, underscoring strong double-digit earnings growth driven by innovations and significant sales increases in key segments such as Ecolab Digital and Global High-Tech. While the company faces challenges in Basic Industries and Paper, as well as capacity constraints, the positive aspects of their performance notably outweigh these concerns.

Ecolab Reports Strong Earnings Growth Amid Strategic Expansion

Ecolab is a global leader in water, hygiene, and infection prevention solutions, operating in over 170 countries and serving industries such as food, healthcare, and hospitality. The company reported strong third-quarter results with a 13% increase in adjusted diluted earnings per share, driven by pricing strategies and volume growth. Key segments like Institutional & Specialty, Pest Elimination, and Life Sciences showed robust performance, while the Water segment saw growth in Food & Beverage and Global High-Tech. Despite a decrease in reported operating income due to last year’s asset sale, organic operating income rose by 10%. Looking ahead, Ecolab is optimistic about continued growth, projecting a 12% to 14% increase in adjusted EPS for 2025, supported by strategic investments and innovation.

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.

The most recent analyst rating on (ECL) stock is a Buy with a $294.00 price target. To see the full list of analyst forecasts on Ecolab stock, see the ECL Stock Forecast page.

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.

The most recent analyst rating on (ECL) stock is a Hold with a $255.00 price target. To see the full list of analyst forecasts on Ecolab stock, see the ECL Stock Forecast page.

Ecolab’s Earnings Call: Strong Growth Amid Challenges

Ecolab’s recent earnings call revealed a strong sentiment of growth and optimism. Despite facing challenges in certain segments like paper and basic industries, the company showcased robust earnings growth and margin expansion. The management expressed confidence in their future earnings potential, although they acknowledged capacity limitations and uncertainties in the trade environment as potential hurdles.