Evaluating Ecolab: Insights From 14 Financial Analysts

Ecolab ECL underwent analysis by 14 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Ecolab, revealing an average target of $265.0, a high estimate of $283.00, and a low estimate of $228.00. Witnessing a positive shift, the current average has risen by 3.33% from the previous average price target of $256.46.

Understanding Analyst Ratings: A Comprehensive Breakdown

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: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Ecolab. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Ecolab compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Ecolab's stock. This examination reveals shifts in analysts' expectations over time.

Capture valuable insights into Ecolab's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Ecolab analyst ratings.

About Ecolab

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.

Understanding the Numbers: Ecolab's Finances

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Positive Revenue Trend: Examining Ecolab's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 3.47% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Materials sector.

Net Margin: Ecolab's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 12.32% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Ecolab's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 5.95%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Ecolab's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.3% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Ecolab's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.98.

Understanding the Relevance of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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