Ecolab Piotroski F Score

ECL
 Stock
  

USD 145.48  4.35  2.90%   

This module uses fundamental data of Ecolab to approximate its Piotroski F score. Ecolab F Score is determined by combining nine binary scores representing 3 distinct fundamental categories of Ecolab Inc. These three categories are profitability, efficiency, and funding. Some research analysts and sophisticated value traders use Piotroski F Score to find opportunities outside of the conventional market and financial statement analysis.They believe that some of the new information about Ecolab financial position does not get reflected in the current market share price suggesting a possibility of arbitrage. Continue to Ecolab Altman Z Score, Ecolab Correlation, Ecolab Valuation, as well as analyze Ecolab Alpha and Beta and Ecolab Hype Analysis.
  
Ecolab Debt Current is relatively stable at the moment as compared to the past year. The company's current value of Debt Current is estimated at 570.69 Million. Issuance Repayment of Debt Securities is expected to hike to about 2.3 B this year, although the value of Total Debt will most likely fall to nearly 8.9 B. Ecolab Inventory Turnover is relatively stable at the moment as compared to the past year. The company's current value of Inventory Turnover is estimated at 6.07. Accounts Payable Turnover is expected to hike to 12.56 this year, although the value of Operating Margin will most likely fall to 11.94.
At this time, it appears that Ecolab's Piotroski F Score is Strong. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..
8.0
Piotroski F Score - Strong
1
Current Return On AssetsPositiveFocus
2
Change in Return on AssetsIncreasedFocus
3
Cash Flow Return on AssetsPositiveFocus
4
Current Quality of Earnings (accrual)DecreasingFocus
5
Asset Turnover GrowthIncreaseFocus
6
Current Ratio ChangeIncreaseFocus
7
Long Term Debt Over Assets ChangeLower LeverageFocus
8
Change In Outstending SharesDecreaseFocus
9
Change in Gross MarginIncreaseFocus

Ecolab Piotroski F Score Drivers

The critical factor to consider when applying the Piotroski F Score to Ecolab is to make sure Ecolab is not a subject of accounting manipulations and runs a healthy internal audit department. So, if Ecolab's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if Ecolab's financial numbers are properly reported.
Current ValueLast YearChange From Last Year 10 Year Trend
Weighted Average Shares Diluted273.1 M289.1 M
Notably Down
Increasing
Slightly volatile
Weighted Average Shares269.7 M286.3 M
Notably Down
Increasing
Slightly volatile
Return on Average Assets6.115.7454
Notably Up
Decreasing
Stable
Net Cash Flow from Operations1.8 B2.1 B
Fairly Down
Increasing
Slightly volatile
Current Liabilities3.3 B3.6 B
Significantly Down
Increasing
Stable
Total Liabilities12.2 B14 B
Fairly Down
Increasing
Slightly volatile
Gross Margin47.2640.189
Fairly Up
Decreasing
Slightly volatile
Total Debt8.9 BB
Fairly Down
Increasing
Slightly volatile
Asset Turnover0.760.6475
Fairly Up
Decreasing
Slightly volatile
Current Assets4.4 B4.7 B
Significantly Down
Increasing
Slightly volatile
Total Assets18.8 B21.2 B
Fairly Down
Increasing
Slightly volatile

Ecolab Inc F Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to project the various growth rates. Understanding the correlation between Ecolab's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Ecolab in a much-optimized way.

About Ecolab Piotroski F Score

F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.

Weighted Average Shares

269.68 Million

Ecolab Weighted Average Shares is relatively stable at the moment as compared to the past year. The company's current value of Weighted Average Shares is estimated at 269.68 Million

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

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.
Ecolab Inc. provides water, hygiene, and infection prevention solutions and services in the United States and internationally. The company was founded in 1923 and is headquartered in Saint Paul, Minnesota. Ecolab operates under Specialty Chemicals classification in the United States and is traded on New York Stock Exchange. It employs 47000 people.

Ecolab Investors Sentiment

The influence of Ecolab's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Ecolab. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Ecolab's public news can be used to forecast risks associated with investment in Ecolab. The trend in average sentiment can be used to explain how an investor holding Ecolab can time the market purely based on public headlines and social activities around Ecolab Inc. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Ecolab's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Ecolab's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Ecolab's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Ecolab.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Ecolab in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Ecolab's short interest history, or implied volatility extrapolated from Ecolab options trading.

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

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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 Altman Z Score, Ecolab Correlation, Ecolab Valuation, as well as analyze Ecolab Alpha and Beta and Ecolab Hype 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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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.