Ecolab Price To Earning vs. Shares Outstanding
| ECL Stock | USD 250.20 1.39 0.56% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.57 | 0.4032 |
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| Net Profit Margin | 0.0545 | 0.0896 |
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| Operating Profit Margin | 0.13 | 0.13 |
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| Pretax Profit Margin | 0.088 | 0.1146 |
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| Return On Assets | 0.0542 | 0.0628 |
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| Return On Equity | 0.13 | 0.1706 |
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For Ecolab profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ecolab to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ecolab Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ecolab's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ecolab Inc over time as well as its relative position and ranking within its peers.
Ecolab |
Ecolab's Revenue Breakdown by Earning Segment
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Is Specialty Chemicals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ecolab. If investors know Ecolab will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ecolab listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.065 | Dividend Share 2.28 | Earnings Share 7.13 | Revenue Per Share 55.042 | Quarterly Revenue Growth 0.178 |
The market value of Ecolab Inc is measured differently than its book value, which is the value of Ecolab that is recorded on the company's balance sheet. Investors also form their own opinion of Ecolab's value that differs from its market value or its book value, called intrinsic value, which is Ecolab's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ecolab's market value can be influenced by many factors that don't directly affect Ecolab's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ecolab's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ecolab is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ecolab's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Ecolab Inc Shares Outstanding vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Ecolab's current stock value. Our valuation model uses many indicators to compare Ecolab value to that of its competitors to determine the firm's financial worth. Ecolab Inc is rated # 3 in price to earning category among its peers. It also is rated # 3 in shares outstanding category among its peers creating about 7,451,631 of Shares Outstanding per Price To Earning. The value of Common Stock Shares Outstanding is expected to slide to about 286.2 M. Comparative valuation analysis is a catch-all technique that is used if you cannot value Ecolab by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Ecolab Shares Outstanding vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Ecolab |
| = | 38.00 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Outstanding Shares are shares of common stock of a public company that were purchased by investors after they were authorized and issued by the company to the public. Outstanding Shares are typically reported on fully diluted basis, including exotic instruments such as options, or convertibles bonds.
Ecolab |
| = | 283.16 M |
Outstanding shares that are stated on company Balance Sheet are used when calculating many important valuation and performance indicators including Return on Equity, Market Cap, EPS and many others.
Ecolab Shares Outstanding Comparison
Ecolab is currently under evaluation in shares outstanding category among its peers.
Ecolab Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Ecolab, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ecolab will eventually generate negative long term returns. The profitability progress is the general direction of Ecolab's change in net profit over the period of time. It can combine multiple indicators of Ecolab, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -1.9 B | -1.8 B | |
| Operating Income | 2 B | 2.1 B | |
| Income Before Tax | 1.8 B | 1.8 B | |
| Total Other Income Expense Net | -236.8 M | -225 M | |
| Net Income | 1.4 B | 1.4 B | |
| Income Tax Expense | 362.5 M | 188.1 M | |
| Net Income Applicable To Common Shares | 1.3 B | 707.3 M | |
| Net Income From Continuing Ops | 1.3 B | 1.2 B | |
| Interest Income | 31.3 M | 29.7 M | |
| Net Interest Income | -295.8 M | -310.6 M | |
| Non Operating Income Net Other | 22.1 M | 43.3 M | |
| Change To Netincome | 20.1 M | 21.1 M | |
| Net Income Per Share | 4.82 | 5.06 | |
| Income Quality | 1.76 | 2.88 | |
| Net Income Per E B T | 0.78 | 0.49 |
Ecolab Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Ecolab. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Ecolab position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Ecolab's important profitability drivers and their relationship over time.
Use Ecolab in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Ecolab position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ecolab will appreciate offsetting losses from the drop in the long position's value.Ecolab Pair Trading
Ecolab Inc Pair Trading Analysis
The ability to find closely correlated positions to Ecolab could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ecolab when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Ecolab - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Ecolab Inc to buy it.
The correlation of Ecolab is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Ecolab moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ecolab Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Ecolab can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Ecolab position
In addition to having Ecolab in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Investing Opportunities. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
To fully project Ecolab's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Ecolab Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Ecolab's income statement, its balance sheet, and the statement of cash flows.