Assessing Ecolab: Insights From 10 Financial Analysts

In the latest quarter, 10 analysts provided ratings for Ecolab ECL, showcasing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts have set 12-month price targets for Ecolab, revealing an average target of $293.4, a high estimate of $313.00, and a low estimate of $270.00. Witnessing a positive shift, the current average has risen by 2.91% from the previous average price target of $285.11.

Breaking Down Analyst Ratings: A Detailed Examination

The perception of Ecolab by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Ecolab. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Ecolab compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Ecolab's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Ecolab's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Ecolab analyst ratings.

Get to Know Ecolab Better

Ecolab produces and markets cleaning and sanitation products for the industrial manufacturing, hospitality, healthcare, and life sciences markets. The firm is the global market share leader in this category with a wide array of products and services, including dish and laundry washing systems, pest control, and infection control products. Additionally, Ecolab sells customized water management solutions across its end markets. The company has a strong hold on the US market and is growing its presence abroad.

Ecolab's Financial Performance

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Growth: Ecolab's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 1.7%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Materials sector.

Net Margin: Ecolab's net margin is impressive, surpassing industry averages. With a net margin of 11.81%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Ecolab's ROE excels beyond industry benchmarks, reaching 5.47%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.13%, the company showcases effective utilization of assets.

Debt Management: With a below-average debt-to-equity ratio of 0.95, Ecolab adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Basics of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.