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Ecolab Piotroski F-Score

: 6 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Ecolab has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Ecolab's Piotroski F-Score or its related term are showing as below:

ECL' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 6   Max: 9
Current: 6

During the past 13 years, the highest Piotroski F-Score of Ecolab was 9. The lowest was 1. And the median was 6.


Ecolab Piotroski F-Score Historical Data

The historical data trend for Ecolab's Piotroski F-Score 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
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 6.00 7.00 4.00 5.00

Ecolab Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Piotroski F-Score 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 7.00 7.00 5.00 6.00 6.00

Competitive Comparison

For the Specialty Chemicals subindustry, Ecolab's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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 Piotroski F-Score Distribution

For the Chemicals industry and Basic Materials sector, Ecolab's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Ecolab's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was 324.5 + 301 + 171.9 + 308.3 = $1,106 Mil.
Cash Flow from Operations was 622.7 + 640.9 + 170.1 + 322.4 = $1,756 Mil.
Revenue was 3320.8 + 3364.6 + 3266.7 + 3580.6 = $13,533 Mil.
Gross Profit was 1304.1 + 1321.5 + 1193.3 + 1369.5 = $5,188 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(18533.7 + 17926.2 + 21206.4 + 21067.2 + 21163.6) / 5 = $19979.42 Mil.
Total Assets at the begining of this year (Jun21) was $18,534 Mil.
Long-Term Debt & Capital Lease Obligation was $8,460 Mil.
Total Current Assets was $4,905 Mil.
Total Current Liabilities was $3,806 Mil.
Net Income was 246.2 + 300.3 + 193.6 + 310.8 = $1,051 Mil.

Revenue was 3018.6 + 3065.3 + 2885 + 3162.7 = $12,132 Mil.
Gross Profit was 1249 + 1285 + 1173 + 1318.7 = $5,026 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(18082.4 + 18097.1 + 18126 + 18208.1 + 18533.7) / 5 = $18209.46 Mil.
Total Assets at the begining of last year (Jun20) was $18,082 Mil.
Long-Term Debt & Capital Lease Obligation was $6,983 Mil.
Total Current Assets was $5,487 Mil.
Total Current Liabilities was $2,880 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Ecolab's current Net Income (TTM) was 1,106. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Ecolab's current Cash Flow from Operations (TTM) was 1,756. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun21)
=1105.7/18533.7
=0.05965889

ROA (Last Year)=Net Income/Total Assets (Jun20)
=1050.9/18082.4
=0.05811729

Ecolab's return on assets of this year was 0.05965889. Ecolab's return on assets of last year was 0.05811729. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Ecolab's current Net Income (TTM) was 1,106. Ecolab's current Cash Flow from Operations (TTM) was 1,756. ==> 1,756 > 1,106 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=8459.6/19979.42
=0.42341569

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=6982.7/18209.46
=0.38346552

Ecolab's gearing of this year was 0.42341569. Ecolab's gearing of last year was 0.38346552. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun22)=Total Current Assets/Total Current Liabilities
=4905/3806
=1.2887546

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=5487.4/2880.3
=1.90514877

Ecolab's current ratio of this year was 1.2887546. Ecolab's current ratio of last year was 1.90514877. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Ecolab's number of shares in issue this year was 286.6. Ecolab's number of shares in issue last year was 288.8. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=5188.4/13532.7
=0.38339725

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=5025.7/12131.6
=0.41426522

Ecolab's gross margin of this year was 0.38339725. Ecolab's gross margin of last year was 0.41426522. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun21)
=13532.7/18533.7
=0.73016721

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=12131.6/18082.4
=0.67090652

Ecolab's asset turnover of this year was 0.73016721. Ecolab's asset turnover of last year was 0.67090652. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+0+1+0+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Ecolab has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Ecolab  (NYSE:ECL) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Ecolab Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Ecolab's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Ecolab Business Description

Ecolab logo
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

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