Is Ecolab Stock a Good Investment?

Ecolab Investment Advice

  ECL
To provide specific investment advice or recommendations on Ecolab Inc stock, we recommend investors consider the following general factors when evaluating Ecolab Inc. This will help you to make an informed decision on whether to include Ecolab in one of your diversified portfolios:
  • Examine Ecolab's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research Ecolab's leadership team and their track record. Good management can help Ecolab navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Specialty Chemicals space and any emerging trends that could impact Ecolab's business and its evolving consumer preferences.
  • Compare Ecolab's performance and market position to its competitors. Analyze how Ecolab is positioned in terms of product offerings, innovation, and market share.
  • Check if Ecolab pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about Ecolab's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Ecolab Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Ecolab Inc is a good investment.
 
Sell
 
Buy
Strong Hold
Macroaxis provides advice on Ecolab Inc to complement and cross-verify current analyst consensus on Ecolab Inc. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Ecolab is not overpriced, please confirm all Ecolab Inc fundamentals, including its cash per share, price to earnings to growth, and the relationship between the gross profit and book value per share . Given that Ecolab Inc has a price to earning of 38.00 X, we urge you to verify Ecolab Inc market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Market Performance

OKDetails

Volatility

Very steadyDetails

Hype Condition

Over hypedDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

Very LowDetails

Economic Sensitivity

Barely shadows the marketDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

Not AvailableDetails

Financial Strenth (F Score)

StrongDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Possible ManipulatorDetails

Examine Ecolab Stock

Researching Ecolab's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 90.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 2.33. Ecolab Inc last dividend was issued on the 18th of March 2024. The entity had 2:1 split on the 9th of June 2003.
To determine if Ecolab is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Ecolab's research are outlined below:
Ecolab Inc has a strong financial position based on the latest SEC filings
Over 90.0% of the company shares are held by institutions such as insurance companies
On 15th of April 2024 Ecolab paid $ 0.57 per share dividend to its current shareholders
Ecolab uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Ecolab Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Ecolab's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
13th of February 2024
Upcoming Quarterly Report
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7th of May 2024
Next Financial Report
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31st of December 2023
Next Fiscal Quarter End
View
13th of February 2024
Next Fiscal Year End
View
30th of September 2023
Last Quarter Report
View
31st of December 2022
Last Financial Announcement
View

Ecolab's market capitalization trends

The company currently falls under 'Large-Cap' category with a total capitalization of 62.63 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate Ecolab's market, we take the total number of its shares issued and multiply it by Ecolab's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.

Ecolab's profitablity analysis

Ecolab's profitability indicators refer to fundamental financial ratios that showcase Ecolab's ability to generate income relative to its revenue or operating costs. If, let's say, Ecolab is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, Ecolab's executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of Ecolab's profitability requires more research than a typical breakdown of Ecolab's financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.
The company has Net Profit Margin of 0.09 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.15 %, which entails that for every 100 dollars of revenue, it generated $0.15 of operating income.
Determining Ecolab's profitability involves analyzing its financial statements and using various financial metrics to determine if Ecolab is a good buy. For example, gross profit margin measures Ecolab's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Ecolab's profitability and make more informed investment decisions.
The data published in Ecolab's official financial statements usually reflect Ecolab's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Ecolab Inc. For example, before you start analyzing numbers published by Ecolab accountants, it's critical to develop an understanding of what Ecolab's liquidity, profitability, and earnings quality are in the context of the Chemicals space in which it operates.
Please note, the presentation of Ecolab's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Ecolab's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Ecolab's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Ecolab Inc. Please utilize our Beneish M Score to check the likelihood of Ecolab's management manipulating its earnings.

Basic technical analysis of Ecolab Stock

As of the 17th of April 2024, Ecolab shows the Mean Deviation of 0.8379, coefficient of variation of 864.74, and Downside Deviation of 0.932. Ecolab Inc technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to break down nineteen technical drivers for Ecolab Inc, which can be compared to its peers. Please confirm Ecolab Inc jensen alpha, as well as the relationship between the potential upside and skewness to decide if Ecolab Inc is priced favorably, providing market reflects its regular price of 220.38 per share. Given that Ecolab has jensen alpha of 0.1566, we urge you to verify Ecolab Inc's prevailing market performance to make sure the company can sustain itself at a future point.

Ecolab's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Ecolab insiders, such as employees or executives, is commonly permitted as long as it does not rely on Ecolab's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Ecolab insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

Ecolab's Outstanding Corporate Bonds

Ecolab issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Ecolab Inc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Ecolab bonds can be classified according to their maturity, which is the date when Ecolab Inc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Understand Ecolab's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Ecolab's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider Ecolab's intraday indicators

Ecolab intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Ecolab stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Ecolab time-series forecasting models is one of many Ecolab's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Ecolab's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Ecolab Stock media impact

Far too much social signal, news, headlines, and media speculation about Ecolab that are available to investors today. That information is available publicly through Ecolab media outlets and privately through word of mouth or via Ecolab internal channels. However, regardless of the origin, that massive amount of Ecolab data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Ecolab news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Ecolab relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Ecolab's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Ecolab alpha.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Ecolab without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Ecolab Corporate Directors

Ecolab corporate directors refer to members of an Ecolab board of directors. The board of directors generally takes responsibility for the Ecolab's affairs and long-term direction of the entity. A corporate director does not make decisions for the corporation on his own. As a member of the board of directors, she or he must function as a part of a group that makes decisions on behalf of the business only by the board of directors' meetings. To pass a resolution, a majority of Ecolab's board members must vote for the resolution. The Ecolab board of directors' duties also include the election, removal, and supervision of officers, including the adoption, amendment, and repeal of bylaws.
Stephen ChazenDirectorProfile
Robert LumpkinsIndependent DirectorProfile
Lionel NowellIndependent DirectorProfile
Jerry GrundhoferIndependent DirectorProfile

How to buy Ecolab Stock?

To provide specific investment advice or recommendations on Ecolab Inc stock, we recommend investors consider the following general factors when evaluating Ecolab Inc. This will help you to make an informed decision on whether to include Ecolab in one of your diversified portfolios:
  • Examine Ecolab's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research Ecolab's leadership team and their track record. Good management can help Ecolab navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Specialty Chemicals space and any emerging trends that could impact Ecolab's business and its evolving consumer preferences.
  • Compare Ecolab's performance and market position to its competitors. Analyze how Ecolab is positioned in terms of product offerings, innovation, and market share.
  • Check if Ecolab pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about Ecolab's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Ecolab Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Ecolab Inc is a good investment.

Already Invested in Ecolab Inc?

The danger of trading Ecolab Inc is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Ecolab is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Ecolab. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Ecolab Inc is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Ecolab Inc is a strong investment it is important to analyze Ecolab's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Ecolab's future performance. For an informed investment choice regarding Ecolab Stock, refer to the following important reports:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Ecolab Inc. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in main economic indicators.
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.

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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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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.
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.
In summary, please note that there is a difference between Ecolab's value and its price, as these two are different measures arrived at by various 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.