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ECL (Ecolab) Earnings Yield (Joel Greenblatt) % : 3.22% (As of Jun. 2024)


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What is Ecolab Earnings Yield (Joel Greenblatt) %?

Ecolab's Enterprise Value for the quarter that ended in Jun. 2024 was $75,340 Mil. Ecolab's EBIT for the trailing twelve months (TTM) ended in Jun. 2024 was $2,890 Mil. Ecolab's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2024 was 3.22%.

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: 3.18   Max: 5.26
Current: 3.67

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Ecolab was 5.26%. The lowest was 1.93%. And the median was 3.18%.

ECL's Earnings Yield (Joel Greenblatt) % is ranked worse than
55.6% of 1588 companies
in the Chemicals industry
Industry Median: 3.89 vs ECL: 3.67

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. 2024 was 5.77%. 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 Earnings Yield (Joel Greenblatt) % Chart

Ecolab Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Earnings Yield (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.12 2.17 2.16 3.20 3.26

Ecolab Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Earnings Yield (Joel Greenblatt) % Get a 7-Day Free Trial 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 3.30 3.26 3.08 3.22 -

Competitive Comparison of Ecolab's Earnings Yield (Joel Greenblatt) %

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's Earnings Yield (Joel Greenblatt) % Distribution in the Chemicals Industry

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. 2023 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=2104.4/64460.20915
=3.26 %

Ecolab's EBIT for the trailing twelve months (TTM) ended in Jun. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $2,890 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

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 industrial manufacturing, hospitality, healthcare, and life sciences 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. Additionally, Ecolab sells customized water management solutions across its end markets. The company has a strong hold on the US market and is growing its presence abroad.
Executives
Victoria Reich director UNITED STATIONERS SUPPLY CO, ONE PARKWAY NORTH BLVD SUITE 100, LAKE FOREST IL 60045
Gregory B Cook officer: EVP & PRES - INST GROUP 1 ECOLAB PLACE, SAINT PAUL MN 55102
Nicholas J. Alfano officer: EVP & PRES - GLOBAL INDUSTRIAL 1 ECOLAB PLACE, SAINT PAUL MN 55102
Laurie M Marsh officer: Senior VP - Human Resources 1601 W. DIEHL ROAD, NAPERVILLE IL 60563
David Maclennan director 14701 CHARLSON ROAD, EDEN PRAIRIE MN 55347
Arthur J Higgins director C/O ZIMMER, INC., P.O. BOX 708, WARSAW IN 46580
Jennifer J Bradway officer: SVP & CORPORATE CONTROLLER 1 ECOLAB PLACE, ST. PAUL MN 55102
Angela M Busch officer: SVP - Corporate Development 1 ECOLAB PLACE, SAINT PAUL MN 55102
Nicolas A Granucci officer: EVP & PRES - GLOBAL PEST 1 ECOLAB PLACE, SAINT PAUL MN 55102
Larry L Berger officer: Chief Technical Officer & SVP 1 ECOLAB PLACE, SAINT PAUL MN 55102
Gail Peterson officer: SVP - Global Mktg & Comms 1 ECOLAB PLACE, SAINT PAUL MN 55102
Christophe Beck officer: Executive V.P., Instit. NA 370 WABASHA STREET NORTH, SAINT PAUL MN 55102
Eric Mark Green director 530 HERMAN O. WEST DRIVE, EXTON PA 19341
Gates William H Iii 10 percent owner 2365 CARILLON POINT, KIRKLAND WA 98033
Michael C. Mccormick officer: Ex.VP, GC & Asst. Secretary 1 ECOLAB PLACE, ST. PAUL MN 55102