Aureus
AExcellent

Ecolab Inc.(ECL)

A

Financial data as of Dec 31, 2025Improving · Materials

FCF Margin11.8%Free Cash Flow / Revenue
Cash Conversion142.3%Operating CF / Net Income
Free Cash Flow$1.9B
Revenue$16.1B
Net Cash-$8.4BNet debt position
Debt / FCF4.7xElevated debt burden
Current Ratio1.08Adequate short-term liquidity
YoY FCF Growth+86.2%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+1Strong YoY FCF growth (86.2% YoY)
→
FinalA

Analysis Summary

Strengths

  • Healthy FCF margin (11.8%)
  • Excellent cash conversion (142%)
  • Strong YoY FCF growth (+86.2%)

Concerns

  • Net debt position ($8.4B) — 4.7x FCF, manageable

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin11.8%
Net Margin12.9%
Operating CF Margin18.4%
CapEx Ratio6.5%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$8.4BNet debt position
Debt / FCF4.7xElevated debt burden
Current Ratio1.08Adequate liquidity
Debt / Equity0.92Low leverage

Quarterly FCF Trend

+86.2% YoYImproving (+86.2%)

Free cash flow per quarter

Sector Comparison — Materials

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameEcolab Inc.
SectorMaterials
Free Cash Flow$1.9B
Revenue$16.1B
Net Income$2.1B
Operating Cash Flow$3.0B
Capital Expenditure$1.0B
FCF Margin11.8%
Cash Conversion Rate142.3%
Net Margin12.9%
Total Debt$9.0B
Total Cash$646.2M
Net Cash-$8.4B
Current Ratio1.08
Debt / Equity0.92
Debt / FCF4.7x
YoY FCF Growth+86.2%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance

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The materials sector splits cleanly in half: six companies generating real cash, six burning through it. CF's 29.5% margin sits 1,800 basis points above the sector median.

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