3. Ecolab Inc. (NYSE:ECL)
Number of Hedge Fund Holders: 59
Ecolab Inc. (NYSE:ECL) is a global leader in water, hygiene, and infection prevention solutions, serving industries such as food and beverage, healthcare, hospitality, and manufacturing. The company provides comprehensive water treatment technologies, industrial cleaning solutions, and digital monitoring systems to enhance operational efficiency and sustainability. ECL plays a crucial role in water conservation and quality management, helping businesses optimize water usage, reduce waste, and maintain regulatory compliance. Its innovative approach, driven by data analytics and advanced chemistry, enables clients to improve safety, minimize environmental impact, and extend equipment life.
Ecolab Inc. (NYSE:ECL) serves over 1 million customer locations across 40 industries in more than 170 countries. The company operates through a razor-razor blade model where more than 90% of revenues come from consumable products that are critical to customers’ operations, resulting in predictable revenue streams. ECL company achieved record high operating income margins of 16.8% in 2024 and is confident in reaching its 20% margin target by 2027. The company’s long-term financial targets include 5-7% sales growth, 12-15% adjusted EPS growth, and 90-100% free cash flow conversion. ECL’s total addressable market is approximately $152 billion, with nearly half representing opportunities within existing customers. Innovation is a key driver of growth, with the company anticipating its largest innovation pipeline of $1.7 billion in 2025.
Ecolab Inc. (NYSE:ECL) is well-positioned to capitalize on growing global challenges around public health, food scarcity, water stress, and climate change, leveraging its innovative solutions, digital capabilities, and deep industry expertise to drive consistent financial performance and help its customers achieve their sustainability goals. In the opinion of management, ECL’s balanced business model, strong cash flow, and disciplined capital allocation priorities position the company for continued growth and shareholder value creation.
