Ecolab looking like a super stock right now, not only do they dominate the commercial cleaning equipment/chemicals game, they are also uniquely poised to excel during times of drought due to their production of water filters / desalination tech.
Overall I can see ECOlab eclipsing $185 by the years end. Manage risk accordingly
Trade active
⋅
Reached End of Year prediction a month and a half early. Great Trade with so much more room to run.
I agree on all accounts of multifaceted profitability... I just hate looking at their valuation metrics. P/E = 41.1, price/sales = 3.3, price/book = 6.4. Between 2020 and 2021 they also took on almost 400M USD in additional short-term debt, which will be rolling over at much higher rates moving forward. Debt/equity ratio is high and their free cash flow is weak as compared to price. I agree that the company is in a strong position with regard to demand for services, moat and monopoly advantages, and desal expansion moving forward, but I will keep hunting for lower price entries. Market pullbacks in October may provide some good DCA opportunities for long-term investment.