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A Wide-Moat Upgrade for Ecolab

Switching costs strengthen the cleaning and sanitation firm's moat.


Seth Goldstein: We've recently upgraded Ecolab to a wide moat rating from narrow as we think the company's switching-cost moat source has strengthened.

Ecolab is the largest supplier of cleaning and sanitation products in the world. The company's razor-and-blade business model creates customer switching costs as Ecolab's cleaning equipment requires customers to purchase the firm's proprietary consumables.

Seth Goldstein does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.