Ecolab Inc.
Find Ratings ReportsECOLAB INC's gross profit margin for the fourth quarter of its fiscal year 2023 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. ECOLAB INC has weak liquidity. Currently, the Quick Ratio is 0.91 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 11.17% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 3938.4 | 3671.2 |
EBITDA ($mil) | 855.0 | 738.9 |
EBIT ($mil) | 624.5 | 502.4 |
Net Income ($mil) | 405.2 | 264.4 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 919.5 | 598.6 |
Total Assets ($mil) | 21846.6 | 21464.3 |
Total Debt ($mil) | 8733.4 | 9026.5 |
Equity ($mil) | 8044.7 | 7236.1 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 47.98 | 45.24 |
EBITDA Margin | 21.7 | 20.12 |
Operating Margin | 15.86 | 13.68 |
Sales Turnover | 0.7 | 0.66 |
Return on Assets | 6.28 | 5.08 |
Return on Equity | 17.06 | 15.09 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.3 | 1.3 |
Debt/Capital | 0.52 | 0.56 |
Interest Expense | 94.8 | 73.0 |
Interest Coverage | 6.59 | 6.88 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 285.45 | 284.45 |
Div / share | 0.57 | 0.53 |
EPS | 1.41 | 0.93 |
Book value / share | 28.18 | 25.44 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1171242.0 | 1065781.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 85.83 for the Chemical Manufacturing subsector and a significant premium compared to the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 7.98 indicates a significant premium versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 19.07. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. Upon assessment of these and other key valuation criteria, ECOLAB INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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ECL 46.94 | Peers 85.83 | ECL 26.61 | Peers 38.76 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. ECL is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. ECL is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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ECL 31.18 | Peers 18.08 | ECL 1.43 | Peers 1.16 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. ECL is trading at a significant premium to its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. ECL trades at a premium to its peers. |
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Price/Book |
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Earnings Growth |
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ECL 7.98 | Peers 19.07 | ECL 25.39 | Peers 12.58 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. ECL is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. ECL is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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ECL 4.19 | Peers 84.44 | ECL 7.98 | Peers 42.35 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. ECL is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. ECL significantly trails its peers on the basis of sales growth. |
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