Ecolab Return On Equity

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.
  
Average Equity is expected to hike to about 7.4 B this year.

Ecolab Return On Equity Analysis

Ecolab's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Return on Equity 
 = 
Net Income 
Total Equity 
X
100 
More About Return On Equity | All Equity Analysis

Current Ecolab Return On Equity

    
  16.29 %  
Most of Ecolab's fundamental indicators, such as Return On Equity, 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 Return On Equity 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 Return On Equity. 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 Return On Equity 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 return on equity 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 return on equity as a starting point in their analysis.
   Ecolab Return On Equity   
Share
       Timeline  
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Compare to competition

Ecolab Shareholders Equity

Shareholders Equity

6.61 Billion

Ecolab Shareholders Equity is relatively stable at the moment as compared to the past year. The company's current value of Shareholders Equity is estimated at 6.61 Billion
Based on the latest financial disclosure, Ecolab Inc has a Return On Equity of 16.29%. This is much higher than that of the Basic Materials sector and 176.57% higher than that of the Specialty Chemicals industry. The return on equity for all United States stocks is notably lower than that of the firm.

Ecolab Return On Equity 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 Return On Equity 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 return on equity 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
Average Equity6.8 B7.4 B

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

+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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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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.