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what it is
Ecolab sells cleaning, sanitizing, pest control, and maintenance services to restaurants, hospitals, factories, and schools.
how it gets paid
Last year Ecolab made $16.1B in revenue. Global Water was the main engine at $7.9B, or 49% of sales.
why it's growing
Revenue grew 2.2% last year. 4.0% is the number that mattered because it shows Ecolab still clears estimates even while the stock trades at 39.5x trailing earnings.
what just happened
Ecolab beat by 4.0% last quarter, with $2.08 in EPS versus $2.00 expected.
At a glance
A balance sheet — strong enough to weather a downturn
70/100 earnings predictability — reasonably predictable
39.5x trailing p/e — you're paying up for this one
1.0% dividend yield — cash in your pocket every quarter
16.5% return on capital — nothing to write home about
xvary composite: 72/100 — average
What they do
Ecolab sells cleaning, sanitizing, pest control, and maintenance services to restaurants, hospitals, factories, and schools.
Recurring sales → repeat purchases → so what: 92% of revenue keeps the cash register ringing after the first install. One sale turns into many refills. You do not leave the dispenser behind, and your bill keeps coming.
How they make money
$16.1B
annual revenue · their business grew +2.2% last year
Global Water
$7.9B
Global Institutional & Specialty
$6.1B
Global Pest Elimination
$1.3B
Life Sciences
$0.8B
The products that matter
cleaning and sanitation chemicals
Cleaning & Sanitation
inside a $16.1B revenue base
this is the recurring core. Ecolab sells consumables customers need to reorder, which helps explain why 92% of company sales repeat.
recurring core
industrial water management
Water Management
part of the same $16.1B base
water treatment ties Ecolab into plant operations and compliance routines. this snapshot does not separate the revenue, so the right read is strategic importance, not a fabricated segment number.
embedded service
commercial pest elimination
Pest Elimination
served through 25,000 associates
pest service makes the customer relationship broader and stickier. the service network matters because Ecolab wins by being in the account more often, not by selling one-off products.
cross-sell lane
Key numbers
39.5x
price tag
Price-to-earnings → what you pay for $1 of profit → 39.5x says the market still charges luxury pricing.
92%
recurring sales
Recurring sales → repeat purchases → so what: the business keeps billing you after the first install.
16.5%
capital returns
Return on capital → profit from each dollar invested → 16.5% beats most industrial names.
$8.1B
debt
Long-term debt → borrowed money → $8.1B is manageable against 9% of capital.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 2 — safer than 80% of stocks
- price stability 90 / 100
- long-term debt $8.1B (9% of capital)
- net profit margin 13.6% — keeps 14 cents of every dollar in revenue
- return on equity 25% — $0.25 profit for every $1 investors have put in
A with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in ECL 3 years ago → it's now worth $20,420.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
Ecolab beat by 4.0% last quarter, with $2.08 in EPS versus $2.00 expected.
TTM revenue was $16.1B, and the market still cares more about clean execution than fast growth. Value Line's 21.5% operating margin says the business still turns sales into profit at a healthy rate.
$4.0B
revenue
$2.08
eps
21.5%
margin
the number that mattered
4.0% is the number that mattered because it shows Ecolab still clears estimates even while the stock trades at 39.5x trailing earnings.
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why does ecolab’s stock sell at such a consistently high premium?
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for a variety of reasons.the company places a great deal of emphasis on retaining its customer base in order to amass market share and engender client loyalty. it does this by using incentives, discounts, and minimal reordering costs, as well as cultivating a very hands-on personalized approach using its 25,000 associates. ecolab also handles its customers’ regulatory compliance paperwork, and the longer a customer stays, the more other minor services are thrown in.
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that’s why 92% of revenues stem from recurring sales of consumables and services making the top line highly predictable.in addition, ecolab acts as a one-stop shop for many of its blue-chip clients, offering ways to efficiently manage scarce resources, enhance employee safety, eliminate toxic waste and preserve water resources. a great deal of time and effort has gone into nurturing these positive traits, enabling the company to establish itself as a global leader in cleaning, sanitation, and water management on a scale that dwarfs its competitors.
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the aforementioned is permitting ecolab to raise its prices.this has become essential given the fact that higher tariffs and supply-chain costs, not to mention general inflationary pressures, would otherwise be squeezing margins. ecolab started to introduce these selling price hikes toward the end of 2025’s second quarter, and we expect them to continue to be implemented when strictly necessary over the next few quarters.
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this should lead to greater sales and earnings.ecolab is an excellent stock for those long-term investors seeking stability over the next five years and beyond.
source: Yahoo Finance consensus and verification, 2026
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What could go wrong
the top threat is pricing no longer covering input-cost pressure. Ecolab already leaned on price increases starting in late second quarter 2025. if that lever weakens, the premium multiple loses cover fast.
med
cost inflation outruns pricing
tariffs, supply-chain costs, and inflation were already serious enough to trigger price hikes. if customers push back, the 13.6% net margin is the first number to watch.
margin defense is the whole point of paying 39.5x earnings. if margins slip, valuation gets questioned next.
med
customer activity slows
Ecolab sells into hotels, restaurants, food processing, healthcare, and industrial accounts. a softer spending backdrop does not erase demand, but it can slow order volume inside a business that only grew 2.2% last year.
with revenue at $16.1B and growth already modest, there is not much volume cushion if end markets cool.
med
the service machine gets more expensive to run
25,000 associates help drive retention, compliance support, and cross-sell. that's a strength, but it is also a cost base you have to carry.
if the service model stops protecting renewals and pricing, 92% recurring sales stops looking like a moat and starts looking like overhead.
the business quality is real. so is the setup risk: a $16.1B revenue base, a 13.6% net margin, and a 39.5x multiple leave less room for operational drift than the stock's stability score suggests.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next earnings print versus $2.05 quarterly EPS
you want to see whether the business still converts steady sales into earnings at the level investors now expect.
metric
the 92% recurring-sales figure
that is the number underwriting predictability, retention, and the premium multiple. if it weakens, the story changes with it.
risk
whether price increases still cover cost pressure
management started pushing price in late second quarter 2025. watch margin commentary, not just revenue.
trend
institutional buying staying positive
two straight quarters of net buying help support the quality case. if that flips while the chart stays weak, sentiment gets thinner.
Analyst rankings
short-term outlook
average
momentum score 3. in human-speak, analysts see a normal setup, not a near-term catalyst.
risk profile
below average risk
stability score 2 means the stock has been safer than roughly 80% of names in the dataset.
chart momentum
below average
technical score 4 says the chart is not giving you much help right now. quality business, softer tape.
earnings predictability
70 / 100
predictable enough to trust, not so predictable that you stop checking the quarter.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 729 buyers vs. 673 sellers in 3q2025. total institutional holdings: 0.2B shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$246
$371
$288
current price
$309
target midpoint · +7% from current · 3-5yr high: $380 (+30% · 8% ann'l return)
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