New Lifetime High Reached: Ecolab (ECL)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified Ecolab (ECL) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Ecolab as such a stock due to the following factors:
- ECL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $106.5 million.
- ECL has traded 943,273 shares today.
- ECL is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in ECL with the Ticky from Trade-Ideas. See the FREE profile for ECL NOW at Trade-IdeasMore details on ECL: Ecolab Inc. develops and markets programs, products, and services for hospitality, foodservice, healthcare, industrial, and energy markets worldwide. It operates through four segments: Global Industrial, Global Institutional, Global Energy, and Other. The stock currently has a dividend yield of 0.9%. ECL has a PE ratio of 35.3. Currently there are 11 analysts that rate Ecolab a buy, no analysts rate it a sell, and 4 rate it a hold.The average volume for Ecolab has been 938,900 shares per day over the past 30 days. Ecolab has a market cap of $29.6 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.51 and a short float of 1.6% with 4.18 days to cover. Shares are up 36.8% year to date as of the close of trading on Friday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Ecolab as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.Highlights from the ratings report include:
- ECL's revenue growth has slightly outpaced the industry average of 7.3%. Since the same quarter one year prior, revenues rose by 12.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- ECOLAB INC has improved earnings per share by 11.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ECOLAB INC increased its bottom line by earning $2.36 versus $1.92 in the prior year. This year, the market expects an improvement in earnings ($3.54 versus $2.36).
- Net operating cash flow has significantly increased by 105.76% to $207.00 million when compared to the same quarter last year. In addition, ECOLAB INC has also vastly surpassed the industry average cash flow growth rate of -24.90%.
- The gross profit margin for ECOLAB INC is rather high; currently it is at 51.80%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 6.38% trails the industry average.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 52.08% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- You can view the full Ecolab Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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