Ecolab Inc (ECL) Stock Analysis
Verdict: HOLD
High-quality recurring revenue model trades at a steep 'safety premium' that masks execution risks from consistent minor earnings misses.
Investment score: 62/100
Analysis as of
Is Ecolab Inc stock worth reviewing? AI model thesis
Ecolab remains a dominant market leader with robust 44% margins, but a high P/E and a streak of earnings misses require a more attractive entry point or a significant beat to re-rate.
7-factor investment score
- Valuation: 40/100 (weight 20%)
- Financial Health: 85/100 (weight 15%)
- Technical Momentum: 60/100 (weight 15%)
- Earnings Quality: 45/100 (weight 15%)
- Insider Sentiment: 50/100 (weight 10%)
- Analyst Consensus: 78/100 (weight 10%)
- Risk-Adjusted Return: 65/100 (weight 15%)
Ecolab Inc opportunities and risks
What speaks for ECL
- Aggressive EPS CAGR Outlook
What speaks against ECL
- Excessive Valuation Premium vs Peers
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| ECL | 36.6x | 4.7x | 26.1x | 44.3% | 12.8% | 2.4% |
| SHW | 30.5x | 3.3x | 20.8x | 49.1% | 10.9% | 3.7% |
| PPG | 17.1x | 1.7x | 11.6x | 40.6% | 9.8% | 4.6% |
| IFF | 23.4x | 1.8x | 12.6x | 36.3% | 7.9% | 2.0% |
| DD | n/a | 2.0x | 12.8x | 33.8% | -0.3% | 5.6% |
| ALB | n/a | 3.6x | 34.8x | 18.5% | -4.2% | 2.9% |
| Peer median | 17.1x | 2.0x | 12.8x | 36.3% | 7.9% | 3.7% |
Frequently asked questions about Ecolab Inc (ECL)
Is ECL stock a good investment?
The cached TradeMates AI model rates Ecolab Inc as HOLD with an investment score of 62/100. Ecolab remains a dominant market leader with robust 44% margins, but a high P/E and a streak of earnings misses require a more attractive entry point or a significant beat to re-rate. This is algorithmic model output, not personal investment advice.
Is ECL stock a buy?
The TradeMates model verdict for ECL is HOLD with an investment score of 62/100. Treat this as a model signal to review, not a personal buy recommendation.