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Is this Large Market Cap Stock target price reasonable for Ecolab Inc. (NYSE:ECL)?

The company in question is, Ecolab Inc. (NYSE:ECL) currently with a stock price of 122.3 (0.03% today). The market cap for Ecolab Inc. is 35853.97, and is in the sector Consumer Goods, and Cleaning Products industry. The target price for Ecolab Inc. is 125.38. Currently Ecolab Inc. is trading with a P/E of 38.23, and a forward P/E of 24.41. Average volume for Ecolab Inc. is 973.56 and so far today it is 288712.

Performance in the last year for Ecolab Inc. has been 6.79%. For EPS growth, Ecolab Inc. has seen a growth of -15.40%, and is looking to grow in the next year to 12.82%. More long term stats show that EPS growth has been 8.30% over the last five years and could be 11.79% for the next five years. Ecolab Inc. has seen sales growth quarter over quarter at -2.10%, with EPS growth quarter over quarter at -13.10%. The 20-day simple moving average is 2.02%, with the 200-day simple moving average coming to 7.60%.

Since the IPO date for Ecolab Inc. on the 1/5/1988, Ecolab Inc. has seen performance year to date to be 7.56%. With Ecolab Inc. trading at 122.3, the dividend yield is 1.15%, and the EPS is 3.2.

So could Ecolab Inc., be undervalued? Well as said before P/E is 38.23. The PEG is 3.24, P/S is 2.7 and the P/B is at 5.42. The P/cash is 214.18, with P/free cash flow at 35.05.

Ecolab Inc. ability to deal with debt shows that the current ratio is 1, and the quick ratio is 0.7. This is with long term debt/equity at 0.77, and total debt/equity at 1.04.

In terms of margins, Ecolab Inc. has a gross margin of 47.50%, an operating margin of 11.50% and a profit margin of 7.20%.Payout ratio for Ecolab Inc. is 42.50%. Return on assets come to 5.20% with return on investment coming to 9.40%.

Insider ownership for Ecolab Inc., is at 0.40% and institutional ownership comes to 88.60%. Outstanding shares are at 293.26. While shares float is 288.6. The float short is currently 1.35%, and short ratio is 4.01.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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