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Ecolab Inc (ECL) Stock

Ecolab Inc Stock Details, Movements and Public Alerts

Ecolab Inc (ECL): The $60B Water Treatment Giant Powering Global Industry

When Christophe Beck became CEO in 2021, he inherited Ecolab's market-leading position in water treatment, hygiene, and infection prevention—businesses considered boring until you realize every restaurant, hospital, and factory depends on them daily. Ecolab's 3 million customer locations span food processing plants ensuring safety compliance, hotels maintaining cleanliness standards, and hospitals preventing healthcare-associated infections. This essential services model generates predictable recurring revenue (80%+ of sales), strong pricing power during inflationary periods, and resilient demand through economic cycles. Trading at 32x forward earnings, ECL commands a premium valuation, but the quality justifies the price: recession-resistant revenue, expanding margins in industrial segments, and secular tailwinds from water scarcity and regulatory tightening in food safety and healthcare hygiene.

52-Week Range

$285.35 - $220.55

-8.48% from high · +18.40% from low

Avg Daily Volume

1,669,532

Latest volume

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

37.02

Above market average

Forward P/E

30.77

Earnings expected to grow

PEG Ratio

2.79

Potentially overvalued

Price to Book

7.62

EV/EBITDA

21.98

EPS (TTM)

$7.06

Price to Sales

4.66

Beta

0.98

Less volatile than market

How is ECL valued relative to its earnings and growth?
Ecolab Inc trades at a P/E ratio of 37.02, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 30.77 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 2.79 indicates a premium valuation even accounting for growth.
What is ECL's risk profile compared to the market?
With a beta of 0.98, Ecolab Inc is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 7.62 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

12.50%

Operating Margin

14.70%

EBITDA

$3.81B

Return on Equity

21.90%

Return on Assets

7.75%

Revenue Growth (YoY)

17.80%

Earnings Growth (YoY)

6.50%

How profitable and efficient is ECL's business model?
Ecolab Inc achieves a profit margin of 12.50%, meaning it retains $12.50 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 14.70% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 21.90% and ROA at 7.75%, the company generates strong returns on invested capital.
What are ECL's recent growth trends?
Ecolab Inc's revenue grew by 17.80% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 6.50% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against SPECIALTY CHEMICALS industry averages for proper context.

Dividend Information

Dividend Per Share

$2.60

Dividend Yield

1.01%

Ex-Dividend Date

Dec 16, 2025

Dividend Date

Jan 15, 2026

What dividend income can investors expect from ECL?
Ecolab Inc offers a dividend yield of 1.01%, paying $2.60 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of Dec 16, 2025.
How reliable is ECL's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Ecolab Inc pays $2.60 per share in dividends against earnings of $7.06 per share, resulting in a payout ratio of 36.83%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for Jan 15, 2026.

Company Size & Market

Market Cap

$74.1B

Revenue (TTM)

$15.89B

Revenue/Share (TTM)

$56.06

Shares Outstanding

283.24M

Book Value/Share

$23.46

Asset Type

Common Stock

What is ECL's market capitalization and position?
Ecolab Inc has a market capitalization of $74.1B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 283.24M shares outstanding, the company's ownership is relatively concentrated. As a participant in the SPECIALTY CHEMICALS industry, it competes with other firms in this sector.
How does ECL's price compare to its book value?
Ecolab Inc's book value per share is $23.46, while the current stock price is $261.14, resulting in a price-to-book (P/B) ratio of 11.13. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$291.75

11.72% upside potential

Analyst Recommendations

Strong Buy

3

Buy

11

Hold

12

Sell

0

Strong Sell

0

How reliable are analyst predictions for ECL?
26 analysts cover ECL with 54% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $291.75 implies 11.7% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on ECL?
Current analyst recommendations:3 Strong Buy, 11 Buy, 12 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Dec 13, 2025, 08:24 AM

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Ecolab Inc (ECL) Stock Analysis 2025: Complete Investment Guide

The Hidden Champion of Essential Services

Most investors have never heard of Ecolab, yet they encounter its work daily. That hotel shower? Ecolab chemicals ensure water quality. Your restaurant meal? Ecolab sanitization systems prevent foodborne illness. Hospital surgery? Ecolab infection prevention protocols save lives. Under Christophe Beck's leadership, Ecolab has evolved from a cleaning chemical supplier into a technology-enabled solutions provider combining chemistry, data analytics, and service expertise to solve complex water and hygiene challenges for global enterprises.

This essential services positioning creates a moat competitors struggle to breach. Customers don't switch sanitization providers to save 5%—regulatory compliance, brand reputation, and operational continuity outweigh cost. Ecolab's field service model embeds 25,000 sales and service experts inside customer facilities, optimizing chemical usage and ensuring compliance. The result? 80%+ revenue from recurring contracts and consumables, pricing power during inflation (4-5% annual increases), and customer retention rates exceeding 90% in core segments.

Business Model & Competitive Moat

Ecolab operates three primary segments: Global Industrial (46% of revenue) serves food processing, chemical manufacturing, and mining with water treatment and process optimization; Global Institutional & Specialty (32%) provides cleaning and sanitization for restaurants, hotels, and healthcare; Global Healthcare & Life Sciences (22%) delivers infection prevention, surgical solutions, and equipment reprocessing. Revenue comes from chemical consumables (60%) and equipment/service (40%).

The competitive moat derives from customer switching costs and trusted advisor relationships. Ecolab's on-site service model places technicians inside customer facilities weekly, creating deep integration into operations. Proprietary dispensing equipment locks in chemical purchases. Digital platforms (ECOLAB Science Certified, 3D TRASAR) provide real-time monitoring and optimization, embedding Ecolab into customers' IT infrastructure. In regulated industries (food, healthcare), Ecolab's compliance expertise and audit support create dependency—customers won't risk violations by switching to unproven vendors.

Financial Performance

Ecolab's financial profile reflects a high-quality, recession-resistant business:

  • •Valuation: Forward P/E of 32.3x vs trailing 37.1x shows modest earnings growth expectations
  • •Pricing Power: Sustained 4-5% annual price increases without customer attrition
  • •Recurring Revenue: 80%+ from service contracts and consumables creates visibility
  • •Margins: Operating margins expanding toward 18-20% as industrial segment scales
  • •Free Cash Flow: Strong FCF generation supports dividends and M&A
  • •Dividend Growth: Dividend aristocrat with 30+ years of consecutive increases

Growth Catalysts

  • •Water Scarcity: Global water stress drives demand for Ecolab's water conservation technologies (3D TRASAR reduces usage 20-40%)
  • •Food Safety Regulations: FSMA and global food safety standards increase sanitation requirements and Ecolab adoption
  • •Healthcare Infection Prevention: Post-COVID focus on HAI reduction expands Ecolab's hospital and surgical solutions
  • •Industrial Automation: IoT-enabled chemical monitoring and dispensing creates upsell opportunities
  • •Emerging Market Expansion: Asia-Pacific and Latin America food safety upgrades benefit Ecolab
  • •M&A Tuck-Ins: Bolt-on acquisitions in specialty chemicals and water treatment expand addressable market

Risks & Challenges

  • •Economic Sensitivity: Restaurant and hospitality segments decline during recessions as occupancy/traffic falls
  • •Raw Material Costs: Chemical input volatility (chlorine, surfactants) compresses margins if not passed through
  • •Competition Intensifies: Private equity-backed competitors (Diversey) and chemical giants (BASF) compete on price
  • •Customer Consolidation: Hotel chains and restaurant groups merging creates buyer negotiating power
  • •Labor Shortages: Difficulty hiring field service technicians constrains geographic expansion
  • •Premium Valuation Risk: At 32x forward P/E, limited margin for execution missteps or growth disappointments

Competitive Landscape

Ecolab competes against diversified chemicals companies (BASF, Dow), specialized cleaning firms (Diversey, Sealed Air), and regional players. Ecolab's differentiation lies in the service-led model—competitors sell chemicals, Ecolab sells outcomes (water savings, regulatory compliance, operational efficiency). This consultative approach commands premium pricing but requires field service investments competitors avoid.

Christophe Beck's strategy focuses on high-value segments where service matters most: food processing (safety compliance), healthcare (infection prevention), and industrial water treatment (sustainability). In these verticals, customers prioritize reliability over cost, playing to Ecolab's strengths. The company deliberately de-emphasizes low-margin commodity cleaning where price competition dominates. This strategic discipline maintains Ecolab's premium positioning and justifies its valuation premium versus chemical peers trading at 15-20x earnings.

Who Is This Stock Suitable For?

Perfect For

  • ✓Quality-focused investors willing to pay premium valuations for resilient businesses
  • ✓Dividend growth investors seeking aristocrats with 30+ year increase streaks
  • ✓ESG investors prioritizing water conservation and sustainability solutions
  • ✓Long-term holders (5-10 years) focused on compounding quality over volatility

Less Suitable For

  • ✗Value investors seeking bargain multiples (32x forward P/E is expensive)
  • ✗Growth investors wanting revenue acceleration (Ecolab grows mid-single-digits)
  • ✗Income investors needing high current yield (1.2% dividend yield is modest)
  • ✗Short-term traders (ECL exhibits low volatility and limited price swings)

Investment Thesis

Ecolab exemplifies the "quality at a fair price" investment philosophy. Yes, 32x forward earnings appears expensive, but consider the business quality: 80%+ recurring revenue, 90%+ customer retention, pricing power during inflation, and essential services resistant to economic downturns. Christophe Beck is executing well—industrial segment margins expanding, digital solutions gaining traction, and pricing discipline maintaining profitability despite raw material volatility.

The secular tailwinds are undeniable. Water scarcity affects 2 billion people globally, driving demand for conservation technologies Ecolab provides. Regulatory intensification in food safety and healthcare creates compliance requirements favoring established leaders like Ecolab. Post-COVID focus on hygiene and infection prevention elevates Ecolab's hospital and institutional offerings. For investors seeking defensive growth in a quality business, Ecolab offers compelling long-term compounding potential, albeit at a premium valuation reflecting the business quality.

Conclusion

Ecolab is a HOLD for quality-focused investors, BUY on pullbacks below 28x forward P/E. The business quality—recurring revenue, pricing power, essential services positioning—justifies a premium valuation, but current levels (32x forward) price in steady execution with limited margin for error. For investors building long-term quality portfolios, Ecolab merits core holding status given its defensive characteristics and secular growth drivers (water scarcity, food safety, infection prevention). However, valuation-conscious investors should wait for better entry points rather than chase at current multiples. Ecolab represents a compounding machine for patient investors, but premium prices require premium entry discipline.
Bull Case
$280 (25% upside) - Industrial margins expand, water scarcity accelerates technology adoption
Base Case
$245 (10% upside) - Steady execution, pricing holds, modest multiple expansion
Bear Case
$200 (11% downside) - Recession hits hospitality/restaurants, raw material costs spike

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