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Ecolab Inc (ECL)

Overvalued
Basic MaterialsSpecialty ChemicalsUnited States

Fundamental

67

Price

$274.58

Market Cap

$78.56B

Part 1 · What the company is worth

Overview

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 Global Life Sciences. The Global Water segment offers water treatment and process applications, and cleaning and sanitizing solutions to manufacturing, food and beverage processing, transportation, chemical, primary metals and mining, power generation, global refining, petrochemical, pulp and paper industries. The Global Institutional & Specialty segment provides cleaning and sanitizing products to the foodservice, healthcare, hospitality, lodging, government, education and retail industries. The Global Pest Elimination segment provides pest elimination services to detect, prevent, and eliminate pests comprising rodents and insects in full-service and quick-service restaurants, food and beverage processors, hotels, grocery operations, and other commercial segments, including education, life sciences, and healthcare. The Global Life Sciences segment provides cleaning and contamination control solutions to pharmaceutical and personal care manufacturers. It offers its products under the Ecolab, Kay, Purolite, and Bioquell brand names. The company sells its products through field sales and corporate account personnel, distributors, and dealers. Ecolab Inc. was founded in 1923 and is headquartered in Saint Paul, Minnesota.

No editorial profile for this company yet

Direct competitors

Who this company fights with for the same customers

Compare

Generated on September 18, 2026 with claude-haiku-4-5 — shared with all users

P/E: 24.3Score: 70Market cap: $23.63B

Its ChemTreat arm sells industrial water treatment chemicals and on-site service to power plants, refineries and food and beverage processors, competing head-on with Ecolab's Nalco Water business.

Solenis LLCNot tracked

Since absorbing Diversey in 2023 Solenis sells both industrial water treatment chemistry and cleaning and hygiene programmes, the same two halves of Ecolab's business, to the same food plants, mills, hotels and restaurants.

Veolia Environnement SA (Veolia Water Technologies & Solutions)VIE

Veolia's water technologies arm offers the same package Ecolab does — treatment chemistry, equipment and managed water services — to chemical, microelectronics, mining, power and pharmaceutical plants worldwide.

Kurita Water Industries Ltd. (栗田工業株式会社)6370

The Japanese group sells boiler, cooling and wastewater treatment chemicals plus ultrapure water service to electronics, steel, paper and refining customers, and has pushed into North America and Europe where Ecolab's Nalco Water is strongest.

Balance Sheet & Liquidity

Revenue

$16.84B

Trailing 12 months (through 6/30/2026)

Net Income

$2.12B

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$1.90B

Total Equity

$9.77B

Total Liabilities

$14.89B

Current Ratio

1.84

Interest Coverage

8.65

Debt/EBITDA

3.22

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

CyclicalOvervalued

Fair Value

$195.62

Current Price

$274.58

Margin of Safety

-40.4%

Fair Value Range

$127.16 - $264.09

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$324.95
Discounted cash flow (DCF):Not applicable to this type of company
Earnings multiple (P/E):$227.81
Graham growth formula:Not applicable to this type of company
Earnings power value (EPV):$85.38
Justified P/B:Not applicable to this type of company
Dividend discount (Gordon):Not applicable to this type of company
P/FFO, funds from operations:Not applicable to this type of company
Mid-cycle earnings:$145.70
Revenue multiple:Not applicable to this type of company
Analyst Consensus:Strong Buy (24B / 6H / 0S)
Last Earnings Surprise:-0.55%

Valuation Metrics

P/E Ratio

36.86

ROE

21.2%

P/B Ratio

7.65

P/FCF

41.06

Gross Margin

44.1%

ROIC

9.4%

Profitability Radar

Value Creation (Economic Moat)

ROIC

9.4%

WACC

8.2%

ROIC − WACC

+1.2 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Fundamental Analysis Criteria

Passed (18)

  • EPS shows upward trend
  • EPS CAGR 8.42%
  • Price CAGR 8.95%
  • ROIC 9.4%
  • Gross Margin 44.1%
  • Debt/Equity ratio
  • Operating Margin 16.9%
  • Positive Free Cash Flow
  • Current Ratio
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • ROE 21.4%
  • Revenue Growth 5Y 6.4%
  • Analyst Consensus 80% Buy
  • Earnings Quality (OCF/NI) 1.44
  • Share Dilution -0.5%
  • Piotroski F-Score 6/9

Failed (7)

  • P/FCF 41.06
  • P/B Ratio 7.65
  • CapEx intensity
  • Low reliance on intangibles
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Earnings Surprise avg -0.7%

Unavailable (3)

  • Dividend Payout NaN%
  • PEG Ratio (need PE > 0 and growth > 0)
  • Net Margin Trend (invalid data)

Piotroski F-Score

6/9

Mixed signals: some areas need attention

score
criteria

Earnings Quality

1.44

High quality: earnings backed by cash

Share Dilution

-0.5%

Buying back shares. Shareholder friendly

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. Christophe BeckCEO, President & Chairman of the Board57
Mr. Scott D. KirklandChief Financial Officer51
Ms. Margeaux M. KingExecutive Vice President of Human Resources47
Mr. Darrell R. BrownCo-Chief Operating Officer of Global Markets61
Mr. Gregory Russell B. CookCo-Chief Operating Officer of Global Businesses56
Mr. Bryce L. MewhorterSenior VP, Corporate Controller & Principal Accounting Officer50
Dr. Dan D. LeClouxExecutive VP & Chief Technical Officer-
Mr. Andrew C. HedbergVice President of Investor Relations-
Ms. Jandeen M. Boone J.D.Executive VP, General Counsel, Secretary & Interim Chief Compliance Officer51
Ms. Chris LeongExecutive VP and Chief Marketing & Innovation Officer58

Audit Risk

6

Board Risk

7

Compensation Risk

2

Shareholder Rights Risk

2

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-02-23

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-08-06

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-07-28

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for ECL, sourced from Markets Gazette.

  • 5/19/2026NEUTRAL
    Ecolab Looks to Raise About $4 Billion to Fund CoolIT Takeover

    Ecolab Inc. is reportedly planning to raise approximately $4 billion through investment-grade bond sales. The primary purpose of this debt issuance is to finance the company's acquisition of CoolIT Systems Inc. While the bond sale itself is a financing activity, its success and the terms of the acquisition will be key factors for investors to monitor. The move indicates Ecolab's strategic intent to expand its operations through M&A, which could lead to future growth but also introduces integration risks and increased leverage.

  • 3/30/2026NEUTRAL
    Citi Approaching Lenders to Fund Ecolab’s $4.8 Billion Deal

    Citigroup Inc. is reportedly seeking to syndicate a $4.8 billion financing package for Ecolab Inc.'s acquisition of CoolIT Systems Inc. This move indicates Ecolab's progression in its planned acquisition, which is valued at $4.8 billion. While the financing details are still being arranged, the news highlights the significant capital commitment Ecolab is making. Investors will monitor the final terms of the deal and the strategic rationale behind acquiring CoolIT Systems to assess its long-term impact on Ecolab's financial performance and market position.

  • 3/20/2026POSITIVE
    Ecolab to Buy Data Center Cooling Firm CoolIT for $4.75 Billion

    Ecolab Inc. has announced a definitive agreement to acquire CoolIT Systems Inc. for $4.75 billion in an all-cash transaction. CoolIT Systems is a leading provider of advanced cooling solutions for AI data centers, a rapidly growing segment driven by increasing computational demands. This strategic acquisition is expected to bolster Ecolab's offerings in the high-growth data center market, enhancing its ability to provide comprehensive solutions for thermal management. Investors may view this move positively, as it positions Ecolab to capitalize on the significant expansion in AI infrastructure and data center development.

via Markets Gazette