Company name Ecolab Inc.
Stock ticker ECL
Live stock price [stckqut]ECL[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Good
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $130.04
Target stock price (averages with growth) $158.95
Target stock price (averages with no growth) $116.75
Target stock price (manual assumptions) $126.96

The following company description is from Google Finance: http://www.google.com/finance?q=ecl

Ecolab Inc. (Ecolab) develops and markets products and services for the hospitality, foodservice, healthcare and industrial markets. The Company provides cleaning and sanitizing products and programs, as well as pest elimination, equipment maintenance and repair services primarily to customers in the foodservice, food and beverage processing, hospitality, healthcare, government and education, retail, textile care, commercial facilities management and vehicle wash sectors. The Company business segments include United States Cleaning & Sanitizing segment, United States Other Services segment, International segment, Water Services segment, Paper Services segment and Energy Services segment. In April 2013, it acquired Champion Technologies and its related company Corsicana Technologies. In August 2013, Ecolab Inc. sold all the capital equipment design and build business of its Mobotec air emissions control business to The Power Industrial Group.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Ecolab Inc. as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $102.19

Growth: 0.15

Current EPS (TTM): $2.99

P/E: 34

Future EPS Calc: $6.01

Future Stock Price Calc: $204.47

Target stock price: $126.96

I hope that this makes you a better investor. [/s2If]