Ecolab Inc.


SKU: ECL Category:


This is our first report on Ecolab, a major provider of water, hygiene and infection prevention solutions and services. The company delivered a below-par result with revenues just about meeting Wall Street expectations on account of the price increases. However, Ecolab missed out on meeting earnings expectations of analysts. The company saw overall pricing increasing from 9% to 12% and consistent double-digit organic sales growth of 13%. Most notably, accelerating pricing has outpaced persistently strong delivered product cost growth. This, combined with higher productivity increases, resulted in positive growth in fixed currency operating income with gains in the Industrial, Institutional, and Other segments. This represents a significant advancement in their quest to restore their margins and resume robust and consistent profit growth. They also invested in select breakthrough innovations to help customers save more water, energy, and cost, especially in Europe. Additionally, they are hastening Purolite expansion as new capacity is online, enabling them to utilize their sizable order backlog and broaden their use of patented technology in end areas with high rates of growth and profit, such as the medical sciences, nuclear energy, microelectronics, and lithium extraction for EV batteries. We initiate coverage on the stock of Ecolab Inc. with a ‘Hold’ rating.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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