Ecolab’s Investor ROE Soars To 2.5% With 7x Net Asset Payout
December 6, 2023
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Ecolab Inc ($NYSE:ECL). is a global leader in water, hygiene, and energy technologies and services that protect people and vital resources. Its products and services help make the world cleaner, safer, and healthier for its customers. Recently, investors in Ecolab have seen a return on equity of 2.5%, a major increase from previous levels. This is due to the company paying out seven times its net assets, greatly increasing the amount of money invested in Ecolab. This has resulted in greater profits for investors in terms of their return on equity. Ecolab has also been able to refine its corporate strategy to increase its long-term value for shareholders by focusing on developing sustainable and innovative solutions to the world’s most pressing environmental challenges.
The company has invested heavily in research and development, as well as in staying up-to-date with the latest technological advancements. These investments are paying off, as Ecolab has made significant strides in improving its performance in water, energy, and food safety regulations. Ecolab’s success as an investor is due to its commitment to creating a better world for its customers through its efficient and effective solutions. By investing in its own business practices, the company has been able to increase the return on equity for investors while also creating a sustainable environment. As a result, Ecolab has become a leader in water, hygiene, and energy solutions that protect people and vital resources worldwide.
Analysis
GoodWhale’s recent analysis of ECOLAB INC. has revealed that the company is classified as a ‘rhino’ on our Star Chart, which we define as a company that has achieved moderate revenue or earnings growth. Based on this classification, investors may be interested in this company due to its strong dividend and profitability, although it is weaker in terms of asset and growth. Additionally, ECOLAB INC has a high health score of 8/10 with regard to its cashflows and debt, indicating that the company is able to pay off debt and fund future operations. Our analysis of ECOLAB INC reveals that it is an attractive investment option for those looking for a moderate return. More…
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% |
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, a global provider of water, hygiene and energy technologies and services, has seen its return on equity (ROE) increase to 2.5% after paying seven times its net assets. This type of investing strategy is often used by investors to increase returns. By investing seven times the net asset value, the return on equity of ECOLAB INC has been improved as a result of the additional funds provided by the investor. The strategy has been successful in driving ROE higher, and may be used more frequently in the future to increase returns for investors in the company.
