Ecolab Inc Stock Fair Value Calculation – Ecolab Takes Legal Action Against Rival Over ‘CleanForce’ Spray Trademark
December 22, 2023
☀️Trending News
ECOLAB INC ($NYSE:ECL) is a global leader in water, hygiene and energy technologies and services that provide clean water, safe food, abundant energy and healthy environments. Recently, ECOLAB has taken legal action against its competitor regarding the trademark infringement of its ‘CleanForce’ spray. On September 2nd, ECOLAB filed a trademark infringement lawsuit against its competitor alleging that its rival used ECOLAB’s ‘CleanForce’ spray name to market a similar product. ECOLAB is seeking an injunction from further use of the mark as well as damages to compensate for the harm caused by the infringement. ECOLAB claims that the ‘CleanForce’ spray is an essential component of their brand identity and that it has been associated with their product line for many years.
The company has invested heavily in marketing campaigns to build and protect its reputation around the ‘CleanForce’ brand. Thus, ECOLAB is arguing that the infringing use of the mark by its competitor reduces customer confusion and damages the goodwill ECOLAB has built up around the ‘CleanForce’ brand. With this legal action, ECOLAB seeks to protect its intellectual property rights and to hold its competitor accountable for infringing on its trademark. The outcome of this case will provide greater clarity on what constitutes trademark infringement as well as how companies can protect their intellectual property rights more effectively.
Stock Price
ECOLAB INC stock opened at $196.1 and closed at $196.9, up by 1.1% from the previous closing price of 194.8. ECOLAB INC is seeking an injunction to prohibit Ecolab Solutions LLC from using the ‘CleanForce’ name, as they believe that it will confuse customers about which company is selling the product. ECOLAB INC has sent cease and desist letters to Ecolab Solutions LLC in an effort to stop them from infringing on their trademark, however, the company has refused to back down. This legal dispute will have significant implications for both ECOLAB INC and Ecolab Solutions LLC, as it will determine who has rights to the ‘CleanForce’ brand name.
Customers will be able to distinguish between the two companies and make informed decisions on which product to purchase. The court’s decision will also set a precedent for other companies looking to protect their trademarks in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ecolab Inc. More…
| Total Revenues | Net Income | Net Margin |
| 15.05k | 1.23k | 9.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ecolab Inc. More…
| Operations | Investing | Financing |
| 2.42k | -852.5 | -630.9 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ecolab Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 21.86k | 14.04k | 27.35 |
Key Ratios Snapshot
Some of the financial key ratios for Ecolab Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.7% | 1.2% | 12.4% |
| FCF Margin | ROE | ROA |
| 11.3% | 15.2% | 5.3% |
Analysis – Ecolab Inc Stock Fair Value Calculation
At GoodWhale, we recently conducted an analysis of ECOLAB INC‘s wellbeing. After thoroughly examining its financials, we have calculated the intrinsic value of ECOLAB INC share at around $208.8, using our proprietary Valuation Line. Currently, ECOLAB INC stock is traded at $196.9, which is a fair price that is slightly undervalued by 5.7%. We believe that now is a good time to invest in ECOLAB INC shares given this attractive pricing. More…
Peers
Ecolab Inc is a US company that provides water, hygiene and energy technologies and services. Its main competitors are Incitec Pivot Ltd, Givaudan SA and C-Bond Systems Inc.
– Incitec Pivot Ltd ($ASX:IPL)
Incitec Pivot Ltd is an Australian manufacturer and supplier of industrial chemicals and fertilizers. It has a market cap of $6.95 billion and a return on equity of 10.44%. The company produces and supplies a range of products including ammonia, urea, nitric acid, and phosphate fertilizers. It also manufactures and supplies explosives for the mining, quarrying, and construction industries.
– Givaudan SA ($OTCPK:GVDNY)
Givaudan SA is a Swiss company that produces flavors and fragrances. The company has a market cap of 27.11B as of 2022 and a Return on Equity of 15.84%. The company’s products are used in food, beverages, cosmetics, and other consumer products.
– C-Bond Systems Inc ($OTCPK:CBNT)
C-Bond Systems Inc is a company that manufactures and sells products that are used to repair and strengthen concrete. The company has a market cap of 3.46M as of 2022 and a ROE of 105.36%. The company’s products are used in a variety of applications, including repairing cracks in concrete, strengthening concrete structures, and sealing concrete surfaces.
Summary
Ecolab Inc. is an American-based corporation that provides water, hygiene, and energy technologies and services. Their products and services are used in industrial, institutional, and governmental markets. Investors may find the company an attractive opportunity due to its long history of providing quality products and services, its strong competitive position in its respective markets, and its financial strength. In recent news, Ecolab is suing a rival company for trademark infringement over their ‘CleanForce’ spray product.
In terms of financials, Ecolab has seen consistent revenue growth over the past few years, with strong operating margins and a low debt-to-equity ratio. As well, their dividend payouts have increased steadily in the past few years. With these positives in mind, Ecolab may be a worthy investment for those seeking a reliable stock with a proven track record.
