Ecolab Inc (ECL, Financial) has experienced a notable uptick in its stock price, with a 10.62% gain over the past week, contributing to a 23.92% increase over the past three months. The company's market capitalization now stands at $63.07 billion, with the current price per share at $221.18. According to the GF Value, which is set at $201.11, Ecolab is considered Fairly Valued. This is a shift from three months ago when the stock was deemed Modestly Undervalued, with a past GF Value of $223.52. This recent surge in stock price reflects a positive market sentiment and aligns with the company's solid fundamentals.
Introduction to Ecolab Inc
Ecolab Inc, a leader in the chemicals industry, specializes in the production and marketing of cleaning and sanitation products. The company's diverse portfolio caters to various sectors, including industrial manufacturing, hospitality, healthcare, and life sciences. Ecolab's dominance as a global market share leader is supported by its comprehensive range of products and services, such as dish and laundry washing systems, pest control, and infection control products. The company also offers tailored water management solutions. With a strong foothold in the U.S. market and an expanding international presence, Ecolab's strategic positioning promises continued success. 
Assessing Ecolab's Profitability
Ecolab's financial health is robust, as indicated by its Profitability Rank of 7/10. This rank suggests strong profitability relative to other companies. The company's Operating Margin stands at 13.15%, which is higher than 76.72% of its industry peers. Additionally, Ecolab's Return on Equity (ROE) is an impressive 16.64%, outperforming 85.28% of competitors. The Return on Assets (ROA) at 5.75% and Return on Invested Capital (ROIC) at 8.56% both exceed the industry averages, further demonstrating Ecolab's efficient use of its resources. Over the past decade, Ecolab has maintained profitability for nine years, surpassing 59.88% of the industry. 
Ecolab's Growth Trajectory
Ecolab's Growth Rank is also 7/10, reflecting the company's solid growth prospects. The 3-Year Revenue Growth Rate per Share is 4.90%, which is better than 33.04% of industry peers. Although the 5-Year Revenue Growth Rate per Share is more modest at 1.00%, it still ranks higher than 26.59% of competitors. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 6.69%, outpacing 64.9% of the industry. Despite a 3-Year EPS without NRI Growth Rate of -4.30% and a 5-Year EPS without NRI Growth Rate of -1.10%, Ecolab's future EPS Growth Rate (Future 3Y To 5Y Est) is expected to be a robust 13.96%, which is higher than 71.87% of the sector. 
Notable Shareholders in Ecolab
Ecolab's shareholder base includes several prominent investors, signaling confidence in the company's performance and direction. Leading the pack is Bill Gates (Trades, Portfolio), holding 5,218,044 shares, which translates to a 1.83% share percentage. Mairs and Power (Trades, Portfolio) follows with 1,401,841 shares, accounting for 0.49% of the shares, and Baillie Gifford (Trades, Portfolio) with 1,225,068 shares, or 0.43% share percentage. The presence of these significant holders underscores the investment community's belief in Ecolab's value proposition and future potential.
Competitive Landscape
When compared to its competitors, Ecolab's market capitalization of $63.07 billion positions it well within the industry. Air Products & Chemicals Inc (APD, Financial) has a market cap of $48.37 billion, while Sherwin-Williams Co (SHW, Financial) boasts a larger market cap of $78.64 billion. PPG Industries Inc (PPG, Financial) has a market cap of $32.71 billion. Ecolab's recent stock performance and market cap suggest a competitive edge and a strong market position relative to these industry players.
Conclusion
In summary, Ecolab Inc's recent stock performance has been impressive, with a significant 23.92% increase over the past three months. The company's current valuation indicates that it is Fairly Valued, with a GF Value of $201.11. Ecolab's profitability metrics and growth prospects are strong, and its market position is robust when compared to industry averages and competitors. The confidence of notable shareholders, such as Bill Gates (Trades, Portfolio), further solidifies the company's standing. As Ecolab continues to expand its global footprint and capitalize on its market leadership, investors may find the company an attractive option for their portfolios.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
