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Ecolab Earnings Yield (Joel Greenblatt) %

: 3.02% (As of Jun. 2022)
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Ecolab's Enterprise Value for the quarter that ended in Jun. 2022 was $52,907 Mil. Ecolab's EBIT for the trailing twelve months (TTM) ended in Jun. 2022 was $1,599 Mil. Ecolab's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2022 was 3.02%.

The historical rank and industry rank for Ecolab's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

ECL' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 1.93   Med: 3.98   Max: 6.48
Current: 2.73

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Ecolab was 6.48%. The lowest was 1.93%. And the median was 3.98%.

ECL's Earnings Yield (Joel Greenblatt) % is ranked worse than
70.36% of 1464 companies
in the Chemicals industry
Industry Median: 5.77 vs ECL: 2.73

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Ecolab's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2022 was -0.76%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Ecolab Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for Ecolab's Earnings Yield (Joel Greenblatt) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Ecolab Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Earnings Yield (Joel Greenblatt) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.43 3.69 3.12 2.17 2.16

Ecolab Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Earnings Yield (Joel Greenblatt) % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.52 2.57 2.16 2.70 3.02

Competitive Comparison

For the Specialty Chemicals subindustry, Ecolab's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Ecolab Earnings Yield (Joel Greenblatt) % Distribution

For the Chemicals industry and Basic Materials sector, Ecolab's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Ecolab's Earnings Yield (Joel Greenblatt) % falls into.



Ecolab Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

Ecolabs Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2021 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=1644.8/76128.771
=2.16 %

Ecolab's EBIT for the trailing twelve months (TTM) ended in Jun. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,599 Mil.



Ecolab  (NYSE:ECL) Earnings Yield (Joel Greenblatt) % Explanation

Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.

Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.


Be Aware

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


Ecolab Earnings Yield (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of Ecolab's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Ecolab Business Description

Ecolab logo
Industry
GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Ecolab Inc (NYSE:ECL) » Definitions » Earnings Yield (Joel Greenblatt) %
Address
1 Ecolab Place, Saint Paul, MN, USA, 55102
Ecolab produces and markets cleaning and sanitation products for the hospitality, healthcare, and industrial markets. The firm is the global market share leader in this category with a wide array of products and services, including dish and laundry washing systems, pest control, and infection control products. The company has a strong hold on the U.S. market and is looking to increase its profitability abroad. Additionally, Ecolab serves customers in water, manufacturing, and life sciences end markets, selling customized solutions.
Executives
Sved Gergely officer: EVP & PRES - HC & LIFE SCI 1 ECOLAB PLACE ST. PAUL MN 55102
Bradway Jennifer J officer: SVP & CORPORATE CONTROLLER 1 ECOLAB PLACE ST. PAUL MN 55102
De Boo Alexander A. officer: EVP & PRES - GLOBAL MARKETS 1 ECOLAB PLACE SAINT PAUL MN 55102
Peterson Gail officer: SVP - Global Mktg & Comms 1 ECOLAB PLACE SAINT PAUL MN 55102
Charton Jerome officer: EVP - Global Regions 1 ECOLAB PLACE SAINT PAUL MN 55102
Duijser Machiel officer: EVP & CSCO 1 ECOLAB PLACE ST. PAUL MN 55102
Zillmer John J director ARAMARK CORP 1101 MARKET ST PHILADELPHIA PA 19107
Biller Leslie S director 10877 WILSHIRE BLVD 17TH FLOOR LOS ANGELES CA 90024
Mckibben Tracy B director 100 RIVERSIDE BOULEVARD #3S NEW YORK NY 10069
Reich Victoria director UNITED STATIONERS SUPPLY CO ONE PARKWAY NORTH BLVD SUITE 100 LAKE FOREST IL 60045
Ettinger Jeffrey M director 1 HORMEL PLACE AUSTINE MN 55912
Beck Barbara director 5301 N IRONWOOD RD MILWAUKEE WI 53217
Higgins Arthur J director C/O ZIMMER, INC. P.O. BOX 708 WARSAW IN 46580
Larson Michael director 2365 CARILLON POINT KIRKLAND WA 98033
Maclennan David director 14701 CHARLSON ROAD EDEN PRAIRIE MN 55347

Ecolab Headlines

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