Ecolab Inc.ECL

Morningstar Rating

Stock Research and Analysis

by Ben Johnson

Ecolab mops the floor with the competition in the cleaning and sanitation business. As the largest player in the market, its primary advantages are its scale and the scope of its services. With more than $6 billion in sales, the firm dwarfs its rivals Read more

Bulls Say

Ecolab estimates that there are $9 billion worth of unsold opportunities within its existing customer base.

Ecolab protects brand reputations. For instance, one case of food contamination can destroy a restaurant's or a food and beverage manufacturer's credibility. Many of Ecolab's customers understand this risk and are willing to pay up for quality products and reliable service. Read more

Bears Say

Cash-strapped consumers have been trading down from casual dining chains and full-service restaurants to quick-service restaurants, where Ecolab's per-unit revenue opportunity is dramatically lower.

Ecolab estimates GCS' break-even sales level is $155 million-$165 million. Current run-rate sales are about $120 million-$125 million. This unit still has a ways to go before it starts chipping in to the bottom line. Read more

Strategy

Ecolab aims to become a one-stop shop for its clients' cleaning and sanitizing needs. To this effect, the company has made strides toward capitalizing on cross-selling opportunities within its existing Read more

Management

CEO Doug Baker took the helm in July 2004. Baker, a 20-year Ecolab veteran, served as COO, a role he had assumed in 2002, prior to taking the top spot at the firm. Executive pay is reasonable, and we think that management deserves credit for its ability Read more

Profile

Ecolab is the global leader in cleaning, sanitizing, and food safety products and services. Its offerings include dishware- and textile-washing systems, infection-control Read more

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How Ecolab Aims to Clean Up in Hospitals
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