Company Description
Ecolab Inc. develops the chemicals and services for cleaning, pest elimination, sanitizing, and maintenance1. The company provides water, hygiene and energy technologies and services that protect clean water, safe food, abundant energy and healthy environment. The cleaning and sanitizing for domestic market and international market makes up 52% of sales in 20122.
Ecolab Inc. belongs to materials based on GICS and chemicals sub-industry. Due to S&P 500, the company is in the sector of XLK.
The company expands its business to the entire world.
Basic Company Statistics
The company full name is Ecolab Inc, whose ticker is ECL. The current stock price is $109.84, which is in the area of high price based on the historical data in 5 years. The range in 52 weeks is between $77.84 and $111.83. The number of shares for common stock is 301 million. The market cap is $33.04 billion and institutions and mutual fund hold 77.7% of the stock. The number of full time employee …show more content…
is 45,415. The dividend paid in 2013 is $0.69 and average annual dividend yield is 1.3%.
Company Analysis
Stock Price Performance/ Technical Analysis
The stock price is outperformance in the previous year and the price increase from $80 to $110 and the growth rate is 47.32%, so the stock has a better performance than the market.
The stock price still has outperformance in past 3 years. The growth rate is 106.8% and the company had a big decrease in August 2011.
Dividend Policy
The dividend policy form the company is that the dividend keeps increasing from $0.56 in 2009 to $1.03 in 2012. The average growth rate in 5 years is 12.5%, but in the next five years, the predicted growth rate will decrease to 9.5% and the dividend paid will keep the same or small decrease. On the one hand, the company already has a high price which may has limited growth rate, so the dividend will not increase. On the other hand, the future is not sure and the dividend trend will keep the same based on the estimated stable company performance.
Total return
Analysis
Financial Analysis
Key Ratio Analysis
Comparison with Major Competitors
Valuation Analysis
Portfolio Considerations
Risk Factors
Overall Opinion
References
Ecolab Inc. (2013, 3 15). Home Media Center : Publications : Annual Report. Retrieved from Ecolab Inc.: http://www.ecolab.com/media-center/publications
Value Line. (2014, 3 7). Value Line Investment Suvey Report : Ecolab. Retrieved from Value Line: http://www3.valueline.com.libproxy.lamar.edu/secure/vlispdf/stk1700/vlispdf/f2955.pdf