📊 ECL Key Takeaways
Is Ecolab Inc.. (ECL) a Good Investment?
Ecolab operates a stable business in an essential sector with solid operating cash flow and manageable debt service, but declining profitability, tight liquidity, and extremely poor capital returns (ROE 4.3%, ROA 1.7%) signal operational stress. The company's weak free cash flow generation and below-threshold current ratio create near-term financial constraints.
Ecolab shows solid fundamental quality, with strong operating profitability, healthy returns on capital, and consistent free cash flow generation. The business appears financially sound with manageable leverage and good interest coverage, though recent growth is modest and earnings have been slightly pressured. Overall, the company looks like a high-quality operator with durable fundamentals rather than a fast grower.
Ecolab Inc.. Key Strengths (ECL)
- Solid operating cash flow of $445.9M demonstrates core business strength
- Strong interest coverage ratio of 8.0x indicates secure debt servicing capability
- Moderate leverage with 0.69x debt-to-equity ratio provides some financial flexibility
- Positioned in essential cleaning and detergent sector with stable demand
- Strong profitability with 17.0% operating margin and 12.9% net margin
- Healthy capital efficiency reflected in 21.2% ROE and 8.4% ROA
- Reliable cash generation with $2.95B operating cash flow and $1.90B free cash flow
ECL Stock Risks: Ecolab Inc.. Investment Risks
- Current ratio of 0.99x and quick ratio of 0.73x indicate tight liquidity and potential working capital stress
- Declining profitability with negative YoY growth in net income (-0.8%) and EPS (-1.2%) despite 2.2% revenue growth signals margin compression
- Critically low returns on equity (4.3%) and assets (1.7%) demonstrate severe capital inefficiency
- Anemic free cash flow of $97.4M (2.4% FCF margin) provides minimal flexibility for debt reduction, growth investment, or shareholder returns
- High long-term debt of $6.9B against modest cash position of $519.8M creates refinancing vulnerability
- Revenue growth is modest at 2.2% YoY, suggesting limited near-term expansion momentum
- Net income and diluted EPS declined slightly year over year, indicating some earnings pressure
- Liquidity is only adequate, with a 1.08x current ratio and 0.81x quick ratio
Key Metrics to Watch
- Free cash flow trend and FCF margin expansion
- Current and quick ratio recovery above 1.0x threshold
- Return on equity and ROA improvement trajectory
- Operating margin sustainability and gross margin realization
- Debt reduction progress and debt-to-EBITDA leverage ratio
- Organic revenue growth and operating margin trend
- Free cash flow conversion and net debt/interest coverage
Ecolab Inc.. (ECL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.4% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
ECL Profit Margin, ROE & Profitability Analysis
ECL vs Consumer Sector: How Ecolab Inc.. Compares
How Ecolab Inc.. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Ecolab Inc.. Stock Overvalued? ECL Valuation Analysis 2026
Based on fundamental analysis, Ecolab Inc.. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Ecolab Inc.. Balance Sheet: ECL Debt, Cash & Liquidity
ECL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Ecolab Inc..'s revenue has grown significantly by 26% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.79 reflects profitable operations.
ECL Revenue Growth, EPS Growth & YoY Performance
ECL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $3.7B | $402.5M | $1.41 |
| Q3 2025 | $4.0B | $585.0M | $2.05 |
| Q2 2025 | $4.0B | $490.9M | $1.71 |
| Q1 2025 | $3.7B | $402.5M | $1.41 |
| Q3 2024 | $4.0B | $404.0M | $1.41 |
| Q2 2024 | $3.9B | $329.7M | $1.15 |
| Q1 2024 | $3.6B | $233.4M | $0.82 |
| Q3 2023 | $3.7B | $347.1M | $1.21 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Ecolab Inc.. Dividends, Buybacks & Capital Allocation
ECL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Ecolab Inc.. (CIK: 0000031462)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 29, 2026 | 8-K | tm2615907d1_8k.htm | View → |
| May 27, 2026 | 4 | xslF345X06/form4-05272026_080505.xml | View → |
| May 19, 2026 | 4 | xslF345X06/form4-05192026_090505.xml | View → |
| May 19, 2026 | 4 | xslF345X06/form4-05192026_090535.xml | View → |
| May 19, 2026 | 4 | xslF345X06/form4-05192026_090514.xml | View → |
❓ Frequently Asked Questions about ECL
What is the AI rating for ECL?
Ecolab Inc.. (ECL) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 73% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ECL's key strengths?
Claude: Solid operating cash flow of $445.9M demonstrates core business strength. Strong interest coverage ratio of 8.0x indicates secure debt servicing capability. ChatGPT: Strong profitability with 17.0% operating margin and 12.9% net margin. Healthy capital efficiency reflected in 21.2% ROE and 8.4% ROA.
What are the risks of investing in ECL?
Claude: Current ratio of 0.99x and quick ratio of 0.73x indicate tight liquidity and potential working capital stress. Declining profitability with negative YoY growth in net income (-0.8%) and EPS (-1.2%) despite 2.2% revenue growth signals margin compression. ChatGPT: Revenue growth is modest at 2.2% YoY, suggesting limited near-term expansion momentum. Net income and diluted EPS declined slightly year over year, indicating some earnings pressure.
What is ECL's revenue and growth?
Ecolab Inc.. reported revenue of $4.1B.
Does ECL pay dividends?
Ecolab Inc.. pays dividends, with $215.9M distributed to shareholders in the trailing twelve months.
Where can I find ECL SEC filings?
Official SEC filings for Ecolab Inc.. (CIK: 0000031462) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ECL's EPS?
Ecolab Inc.. has a diluted EPS of $1.52.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ECL's fundamental grade?
Based on our AI fundamental analysis in June 2026, Ecolab Inc.. has a A grade with 73% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ECL stock overvalued or undervalued?
Valuation metrics for ECL: ROE of 4.3% (sector avg: 18%), net margin of 10.6% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is ECL's AI grade for 2026?
Our dual AI analysis gives Ecolab Inc.. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ECL's free cash flow?
Ecolab Inc..'s operating cash flow is $445.9M, with capital expenditures of $348.5M. FCF margin is 2.4%.
How does ECL compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 10.6% (avg: 8%), ROE 4.3% (avg: 18%), current ratio 0.99 (avg: 1.5).