There are no safe havens in the stock market. Every stock carries risk. But some less than others. This column features stocks that have shown one or more of the following characteristics: less volatility, better earnings, larger market caps, safe and increasing dividends. In these times of turmoil, our goal is to show readers better opportunities for investing with fewer risks.

September 15, 2009 - Ecolab Inc. (ECL-NYSE) develops and markets products and services for the hospitality, foodservice, healthcare, and light industrial markets in the United States and internationally. It offers cleaning and sanitizing products and programs, as well as pest elimination, maintenance, and repair services primarily to hotels and restaurants, healthcare and educational facilities, quick service (fast-food and convenience store) units, grocery stores, commercial and institutional laundries, light industry, dairy plants and farms, food and beverage processors, and the vehicle wash industry. The company was founded in 1923 and is headquartered in St. Paul, Minnesota.

As always, several factors are influencing profits, good and bad. The good: more attention to retaining customers and higher prices as well as a new restructuring plan that will reduce headcount and improve the supply chain. The bad: tough global economy and unfavorable currency rates. Net, net: still growing profits but slower.

The company has a large product catalogue and cross sells very successfully. If a client buys for the first time, the odds are good it will buy more of the same as well as many other products over time from ECL. Additionally, ECL has been very innovative, producing new products regularly, suggesting that trend will continue for growth.

The federal government is more involved with health, particularly in the area of outbreaks of disease, one of Ecolabl's sweet spots. It should be benefit from firms that need to comply with any new regulatiaons established by the government for prevention of spreading a disease, such as the swine flu. A case in point: the Obama administration established new regulations to improve the safety of eggs and beef which should mean added business for ECL.

More numbers: Trailing P/E is 30, Forward P/E is 22. Price to sales is 1.77. Price to Book is 5.77. For the last 12 months, Operating margin was 11.98% while Profit margin was 6.15%. Return on equity was 18.12%. Total debt is $1.08 billion or 32% of capital. Current ratio is 1.31. Book value per share is $7.62. There are 236.82 million shares outstanding. Insiders own 12.43%. Institutions have 86%. The dividend for 2009 will be 56 cents for a yield of 1.3%. Dividend take 28% of profits to pay. They have increased from 35 cents in 2005 to 40 cents in 2006, then 46 cents in 2007, followed by 52 cents last year. Value Line gives the company an A for Financial Strength.

Conservative investors will find much to like here although some of the valuations such as Price to book and P/E ratio are high. Still, this company is offering products and services that should only grow over the next several years, something that not many other companies can expect.

- Company Web site: www.ecolab.com

- Ted Allrich