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Brief Commentary On Ecolab Inc.’s (NYSE:ECL) Fundamentals

Ray Foley

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Attractive stocks have exceptional fundamentals. In the case of Ecolab Inc. (NYSE:ECL), there’s is a financially-sound , dividend-paying company with a an impressive history of performance. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my broad commentary, read the full report on Ecolab here.

Adequate balance sheet with proven track record and pays a dividend

Over the past year, ECL has grown its earnings by 22%, with its most recent figure exceeding its annual average over the past five years. The strong earnings growth is reflected in impressive double-digit 20% return to shareholders, which paints a buoyant picture for the company. ECL is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. ECL appears to have made good use of debt, producing operating cash levels of 0.3x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NYSE:ECL Income Statement Export February 6th 19

For those seeking income streams from their portfolio, ECL is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 1.2%.

NYSE:ECL Historical Dividend Yield February 6th 19

Next Steps:

For Ecolab, I’ve put together three important factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for ECL’s future growth? Take a look at our free research report of analyst consensus for ECL’s outlook.
  2. Valuation: What is ECL worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ECL is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ECL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.