Ecolab Stock Buy Hold or Sell Recommendation

ECL
 Stock
  

USD 149.83  4.92  3.40%   

Considering the 90-day investment horizon and your typical level of risk aversion, our recommendation regarding Ecolab Inc is 'Hold'. Macroaxis provides Ecolab buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Ecolab positions. The advice algorithm takes into account all of Ecolab's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Ecolab's buy-and-hold perspective. Continue to Ecolab Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Ecolab and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Ecolab Inc.

Execute Ecolab Buy or Sell Advice

The Ecolab recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Ecolab Inc. Macroaxis does not own or have any residual interests in Ecolab Inc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Ecolab's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell EcolabBuy Ecolab
Hold

Volatility

Details

Hype Condition

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Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

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Analyst Consensus

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Financial Strenth (F Score)

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Financial Leverage

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Reporting Quality (M-Score)

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For the selected time horizon Ecolab Inc has a Risk Adjusted Performance of (0.06), Jensen Alpha of (0.21), Total Risk Alpha of (0.23) and Treynor Ratio of (0.08)
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 book of 6.01 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.

Ecolab Trading Alerts and Improvement Suggestions

Ecolab Inc generated a negative expected return over the last 90 days
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 17th of October 2022 Ecolab paid $ 0.51 per share dividend to its current shareholders
Latest headline from news.google.com: Insider Buying The Ecolab Inc. Independent Director Just Bought 7.3 percent More Shares - Simply Wall St

Ecolab Returns Distribution Density

The distribution of Ecolab's historical returns is an attempt to chart the uncertainty of Ecolab's future price movements. The chart of the probability distribution of Ecolab stock daily returns describes the distribution of returns around its average expected value. We use Ecolab Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Ecolab returns is essential to provide solid investment advice for Ecolab.
Mean Return-0.11Value At Risk-4.02
Potential Upside3.40Standard Deviation2.63
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Ecolab historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Ecolab Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(857.9 M)(750.7 M)(723.8 M)(483.7 M)(630.8 M)(680.6 M)
Depreciation Amortization and Accretion893.3 M730.4 M775.3 M812.7 M843.1 M894.44 M
Net Cash Flow or Change in Cash and Cash Equivalents(169 M)82.6 M(107.6 M)1.07 B(900.3 M)(923.99 M)
Net Cash Flow Business Acquisitions and Disposals(870.4 M)(220.6 M)(384.6 M)(370.8 M)(3.92 B)(4.03 B)
Issuance Purchase of Equity Shares(600.3 M)(562.4 M)(353.7 M)(146.2 M)(106.6 M)(115.02 M)
Issuance Repayment of Debt Securities466.7 M(209.8 M)(652.6 M)143.3 M2.12 B2.29 B
Payment of Dividends and Other Cash Distributions(448.7 M)(494.8 M)(552.9 M)(560.8 M)(566.4 M)(611.12 M)
Net Cash Flow from Financing(522.7 M)(1.17 B)(1.35 B)(341.8 M)1.6 B1.73 B
Net Cash Flow from Investing(1.67 B)(1.03 B)(1.2 B)(414.5 M)(4.58 B)(4.7 B)
Net Cash Flow from Operations2.09 B2.28 B2.42 B1.86 B2.06 B1.82 B
Effect of Exchange Rate Changes on Cash(10.6 M)7.6 M20.4 M(30.1 M)14.3 M15.43 M
Share Based Compensation90.5 M88 M84 M82.1 M89.5 M77.98 M

Ecolab Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Ecolab or Chemicals sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Ecolab's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Ecolab stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.21
β
Beta against NYSE Composite1.38
σ
Overall volatility
2.71
Ir
Information ratio -0.07

Ecolab Volatility Alert

Ecolab Inc exhibits very low volatility with skewness of -0.09 and kurtosis of 1.63. However, we advise investors to further study Ecolab Inc technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Ecolab's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Ecolab's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Ecolab Fundamentals Vs Peers

Comparing Ecolab's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Ecolab's direct or indirect competition across all of the common fundamentals between Ecolab and the related equities. This way, we can detect undervalued stocks with similar characteristics as Ecolab or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Ecolab's fundamental indicators could also be used in its relative valuation, which is a method of valuing Ecolab by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Ecolab to competition
FundamentalsEcolabPeer Average
Return On Equity16.12 %(0.31) %
Return On Asset0.06 %(0.14) %
Profit Margin0.08 %(1.27) %
Operating Margin0.13 %(5.51) %
Current Valuation51.26 B16.62 B
Shares Outstanding284.83 M571.82 M
Shares Owned by Insiders0.49 %10.09 %
Shares Owned by Institutions90.26 %39.21 %
Number of Shares Shorted2.39 M4.71 M
Price to Earning38.00 X28.72 X
Price to Book6.01 X9.51 X
Price to Sales2.97 X11.42 X
Revenue12.73 B9.43 B
Gross Profit5.21 B27.38 B
EBITDA2.47 B3.9 B
Net Income1.13 B570.98 M
Cash and Equivalents359.9 M2.7 B
Cash per Share0.40 X5.01 X
Total Debt8.35 B5.32 B
Debt to Equity1.26 %48.70 %
Current Ratio1.35 X2.16 X
Book Value Per Share24.80 X1.93 K
Cash Flow from Operations2.06 B971.22 M
Short Ratio1.38 X4.00 X
Earnings Per Share3.92 X3.12 X
Price to Earnings To Growth1.99 X4.89 X
Target Price159.25
Number of Employees47 K18.84 K
Beta1.03-0.15
Market Capitalization41.44 B19.03 B
Total Asset21.21 B29.47 B
Retained Earnings8.63 B9.33 B
Working Capital162.11 M1.48 B
   Acquisition by John Zillmer of 209 shares of Ecolab subject to Rule 16b-3 [view details]

Ecolab Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Ecolab . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Ecolab Buy or Sell Advice

When is the right time to buy or sell Ecolab Inc? Buying financial instruments such as Ecolab Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Receivables2.8 B2.27 B2.48 B2.29 B
Inventories1.51 B1.29 B1.49 B1.32 B

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Obamacare Repeal
Obamacare Repeal Theme
Healthcare and drug manufacturing companies that will most likely be affected by the final stages of Obamacare repeal. The Obamacare Repeal theme has 52 constituents at this time.
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Continue to Ecolab Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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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 YOY
0.08
Market Capitalization
41.4 B
Quarterly Revenue Growth YOY
0.11
Return On Assets
0.0583
Return On Equity
16.12
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 Ecolab value 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.