Ecolab Operating Margin

ECL
 Stock
  

USD 145.49  0.01  0.0069%   

Ecolab Inc fundamentals help investors to digest information that contributes to Ecolab's financial success or failures. It also enables traders to predict the movement of Ecolab Stock. The fundamental analysis module provides a way to measure Ecolab's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Ecolab stock.
This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.
  
The value of Operating Margin is estimated to pull down to 11.94.

Ecolab Operating Margin Analysis

Ecolab's Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Ecolab Operating Margin

11.94

Operating Margin 
 = 
Operating Income 
Revenue 
X
100 
More About Operating Margin | All Equity Analysis

Current Ecolab Operating Margin

    
  19.70 %  
Most of Ecolab's fundamental indicators, such as Operating Margin, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Ecolab Inc is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Ecolab Operating Margin Driver Correlations

Understanding the fundamental principles of building solid financial models for Ecolab is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Operating Margin. Since Ecolab's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Ecolab's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Ecolab's interrelated accounts and indicators.

Ecolab Operating Margin Historical Pattern

Today, most investors in Ecolab Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Ecolab's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's operating margin growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Ecolab operating margin as a starting point in their analysis.
   Ecolab Operating Margin   
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       Timeline  
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Compare to competition

Based on the recorded statements, Ecolab Inc has an Operating Margin of 19.7%. This is 1449.32% lower than that of the Basic Materials sector and notably lower than that of the Specialty Chemicals industry. The operating margin for all United States stocks is notably lower than that of the firm.

Ecolab Operating Margin Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Ecolab's direct or indirect competition against its Operating Margin to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Ecolab could also be used in its relative valuation, which is a method of valuing Ecolab by comparing valuation metrics of similar companies.
Ecolab is currently under evaluation in operating margin category among related companies.

Ecolab Current Valuation Drivers

We derive many important indicators used in calculating different scores of Ecolab from analyzing Ecolab's financial statements. These drivers represent accounts that assess Ecolab's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Ecolab's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee31.16 K29.16 K31.05 K(27.31 K)24.04 K23.78 K
Revenue Per Employee285.92 K299.35 K296.94 K267.23 K270.92 K257.15 K
Average Assets19.64 B20.04 B20.86 B19.16 B18.97 B20.52 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA2.61 B2.65 B2.74 B2.05 B2.24 B2.07 B
Earnings Before Interest Taxes and Depreciation Amortization USD2.9 B2.7 B2.81 B74.4 M2.46 B2.58 B
Earnings before Tax1.75 B1.75 B1.85 B(1.03 B)1.4 B1.25 B
Average Equity7.13 B7.85 B8.42 B6.71 B6.79 B7.45 B
Enterprise Value46.11 B49.47 B62.66 B67.95 B72.54 B64.34 B
Free Cash Flow1.23 B1.53 B1.7 B1.38 B1.43 B1.41 B
Invested Capital12.41 B12.44 B15.32 B11.94 B14.05 B14.19 B
Invested Capital Average11.89 B12.33 B13.61 B12.56 B12.4 B12.85 B
Market Capitalization38.77 B42.57 B55.63 B61.76 B67.23 B58.07 B
Tangible Asset Value8.78 B9.2 B12.37 B9.14 B8.92 B9.77 B
Working Capital1.12 B992.1 M1.2 B2.19 B1.13 B1.11 B

Ecolab ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Ecolab's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Ecolab's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

Ecolab Fundamentals

About Ecolab Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Ecolab Inc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Ecolab using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Ecolab Inc based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Last ReportedProjected for 2022
Operating Margin 12.55  11.94 

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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Pair Trading with Ecolab

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.

Moving together with Ecolab

+0.64BGCPBgc Partners Cl Aggressive PushPairCorr
+0.68CCitigroup Fiscal Year End 13th of January 2023 PairCorr
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 equities. 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.
Pair CorrelationCorrelation Matching
Continue to Ecolab Piotroski F Score and Ecolab Altman Z Score analysis. 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

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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
42.4 B
Quarterly Revenue Growth YOY
0.11
Return On Assets
0.0583
Return On Equity
0.16
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.