Ecolab Return On Equity vs. Number Of Shares Shorted
| ECL Stock | USD 235.00 0.31 0.13% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.17058436 | Current Value 0.13 | Quarterly Volatility 0.02949666 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.57 | 0.4032 |
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| Net Profit Margin | 0.0545 | 0.0896 |
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| Operating Profit Margin | 0.096 | 0.141 |
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| Pretax Profit Margin | 0.088 | 0.1146 |
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| Return On Assets | 0.0542 | 0.0628 |
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| Return On Equity | 0.13 | 0.1706 |
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For Ecolab profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ecolab to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ecolab Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ecolab's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ecolab Inc over time as well as its relative position and ranking within its peers.
Ecolab |
Ecolab's Revenue Breakdown by Earning Segment
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Is Ecolab's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ecolab. If investors know Ecolab will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ecolab listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.065 | Dividend Share 2.2 | Earnings Share 5.4 | Revenue Per Share 54.335 | Quarterly Revenue Growth 0.178 |
The market value of Ecolab Inc is measured differently than its book value, which is the value of Ecolab that is recorded on the company's balance sheet. Investors also form their own opinion of Ecolab's value that differs from its market value or its book value, called intrinsic value, which is Ecolab's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ecolab's market value can be influenced by many factors that don't directly affect Ecolab's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ecolab's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ecolab is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ecolab's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Ecolab Inc Number Of Shares Shorted vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Ecolab's current stock value. Our valuation model uses many indicators to compare Ecolab value to that of its competitors to determine the firm's financial worth. Ecolab Inc is rated # 4 in return on equity category among related companies. It is rated below average in number of shares shorted category among related companies making about 9,270,858 of Number Of Shares Shorted per Return On Equity. At this time, Ecolab's Return On Equity is quite stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value Ecolab by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Ecolab's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Ecolab's earnings, one of the primary drivers of an investment's value.Ecolab Number Of Shares Shorted vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Ecolab |
| = | 0.2 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Number of Shares Shorted is the total amount of shares that are currently sold short by investors. When a stock is sold short, the short seller assumes the responsibility of repurchasing the stock at a lower price. The speculator will make money if the stock goes down in price or will experience a loss if the stock price goes up.
Ecolab |
| = | 1.87 M |
If a large number of investors decide to short sell an equity instrument within a small period of time, their combined action can significantly affect the price of the stock.
Ecolab Number Of Shares Shorted Comparison
Ecolab is currently under evaluation in number of shares shorted category among related companies.
Ecolab Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Ecolab, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ecolab will eventually generate negative long term returns. The profitability progress is the general direction of Ecolab's change in net profit over the period of time. It can combine multiple indicators of Ecolab, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -1.9 B | -1.8 B | |
| Operating Income | 2.2 B | 2.3 B | |
| Income Before Tax | 1.8 B | 1.8 B | |
| Total Other Income Expense Net | -405.2 M | -384.9 M | |
| Net Income | 1.4 B | 1.4 B | |
| Income Tax Expense | 362.5 M | 188.1 M | |
| Net Income Applicable To Common Shares | 1.3 B | 707.3 M | |
| Net Income From Continuing Ops | 1.3 B | 1.2 B | |
| Interest Income | 31.3 M | 29.7 M | |
| Net Interest Income | -295.8 M | -310.6 M | |
| Non Operating Income Net Other | 22.1 M | 43.3 M | |
| Change To Netincome | 20.1 M | 21.1 M | |
| Net Income Per Share | 4.82 | 5.06 | |
| Income Quality | 1.76 | 2.88 | |
| Net Income Per E B T | 0.78 | 0.49 |
Ecolab Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Ecolab. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Ecolab position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Ecolab's important profitability drivers and their relationship over time.
Use Ecolab in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Ecolab position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ecolab will appreciate offsetting losses from the drop in the long position's value.Ecolab Pair Trading
Ecolab Inc Pair Trading Analysis
The ability to find closely correlated positions to Ecolab could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ecolab when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Ecolab - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Ecolab Inc to buy it.
The correlation of Ecolab is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Ecolab moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ecolab Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Ecolab can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Ecolab position
In addition to having Ecolab in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Business Services Thematic Idea Now
Business Services
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Business Services theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Business Services Theme or any other thematic opportunities.
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Check out Investing Opportunities. Note that the Ecolab Inc information on this page should be used as a complementary analysis to other Ecolab's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Complementary Tools for Ecolab Stock analysis
When running Ecolab's price analysis, check to measure Ecolab's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Ecolab is operating at the current time. Most of Ecolab's value examination focuses on studying past and present price action to predict the probability of Ecolab's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ecolab's price. Additionally, you may evaluate how the addition of Ecolab to your portfolios can decrease your overall portfolio volatility.
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To fully project Ecolab's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Ecolab Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Ecolab's income statement, its balance sheet, and the statement of cash flows.