ZURN ELKAY WATER SOLUTIONS C (ZWS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZWS - US98983L1089 - Common Stock
46.62 USD
+1.21 (+2.66%)
46.62 USD
0 (0%)
Overall ZWS gets a fundamental rating of 6 out of 10. We evaluated ZWS against 41 industry peers in the Building Products industry. ZWS gets an excellent profitability rating and is at the same time showing great financial health properties. ZWS is valied quite expensively at the moment, while it does show a decent growth rate. This makes ZWS very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year ZWS was profitable.
In the past year ZWS had a positive cash flow from operations.
ZWS had positive earnings in each of the past 5 years.
ZWS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ZWS has a Return On Assets (7.16%) which is comparable to the rest of the industry.
The Return On Equity of ZWS (12.08%) is comparable to the rest of the industry.
ZWS has a Return On Invested Capital (8.54%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ZWS is significantly below the industry average of 12.49%.
The 3 year average ROIC (6.01%) for ZWS is below the current ROIC(8.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.16% | ||
| ROE | 12.08% | ||
| ROIC | 8.54% |
ROA(3y)4.14%
ROA(5y)5.64%
ROE(3y)6.98%
ROE(5y)25.85%
ROIC(3y)6.01%
ROIC(5y)7.19%
1.3 Margins
The Profit Margin of ZWS (11.59%) is better than 63.41% of its industry peers.
ZWS's Profit Margin has improved in the last couple of years.
The Operating Margin of ZWS (16.69%) is better than 65.85% of its industry peers.
ZWS's Operating Margin has been stable in the last couple of years.
ZWS has a Gross Margin of 44.91%. This is amongst the best in the industry. ZWS outperforms 90.24% of its industry peers.
In the last couple of years the Gross Margin of ZWS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.69% | ||
| PM (TTM) | 11.59% | ||
| GM | 44.91% |
OM growth 3Y10.68%
OM growth 5Y1.24%
PM growth 3Y-8.32%
PM growth 5Y80%
GM growth 3Y3.28%
GM growth 5Y3.36%
2. Health
2.1 Basic Checks
ZWS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ZWS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ZWS has been increased compared to 5 years ago.
Compared to 1 year ago, ZWS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.88 indicates that ZWS is not in any danger for bankruptcy at the moment.
ZWS has a better Altman-Z score (4.88) than 63.41% of its industry peers.
The Debt to FCF ratio of ZWS is 1.72, which is an excellent value as it means it would take ZWS, only 1.72 years of fcf income to pay off all of its debts.
ZWS has a Debt to FCF ratio of 1.72. This is in the better half of the industry: ZWS outperforms 78.05% of its industry peers.
ZWS has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ZWS (0.31) is better than 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.72 | ||
| Altman-Z | 4.88 |
ROIC/WACC0.9
WACC9.53%
2.3 Liquidity
ZWS has a Current Ratio of 2.78. This indicates that ZWS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.78, ZWS is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
ZWS has a Quick Ratio of 1.83. This is a normal value and indicates that ZWS is financially healthy and should not expect problems in meeting its short term obligations.
ZWS's Quick ratio of 1.83 is fine compared to the rest of the industry. ZWS outperforms 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
ZWS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.31%, which is quite impressive.
Measured over the past years, ZWS shows a very strong growth in Earnings Per Share. The EPS has been growing by 58.83% on average per year.
The Revenue has been growing slightly by 6.88% in the past year.
The Revenue has been decreasing by -5.25% on average over the past years.
EPS 1Y (TTM)21.31%
EPS 3Y-11.07%
EPS 5Y58.83%
EPS Q2Q%26.47%
Revenue 1Y (TTM)6.88%
Revenue growth 3Y19.81%
Revenue growth 5Y-5.25%
Sales Q2Q%11.07%
3.2 Future
Based on estimates for the next years, ZWS will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.36% on average per year.
ZWS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.26% yearly.
EPS Next Y17.68%
EPS Next 2Y13.74%
EPS Next 3Y12.16%
EPS Next 5Y12.36%
Revenue Next Year7.92%
Revenue Next 2Y6.42%
Revenue Next 3Y5.9%
Revenue Next 5Y6.26%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
ZWS is valuated quite expensively with a Price/Earnings ratio of 31.50.
73.17% of the companies in the same industry are cheaper than ZWS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.47. ZWS is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 28.15, which means the current valuation is very expensive for ZWS.
Based on the Price/Forward Earnings ratio, ZWS is valued a bit more expensive than the industry average as 73.17% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.42, ZWS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.5 | ||
| Fwd PE | 28.15 |
4.2 Price Multiples
75.61% of the companies in the same industry are cheaper than ZWS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZWS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.07 | ||
| EV/EBITDA | 21.95 |
4.3 Compensation for Growth
ZWS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ZWS has a very decent profitability rating, which may justify a higher PE ratio.
ZWS's earnings are expected to grow with 12.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.78
PEG (5Y)0.54
EPS Next 2Y13.74%
EPS Next 3Y12.16%
5. Dividend
5.1 Amount
With a yearly dividend of 0.94%, ZWS is not a good candidate for dividend investing.
ZWS's Dividend Yield is a higher than the industry average which is at 1.42.
With a Dividend Yield of 0.94, ZWS pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
The dividend of ZWS is nicely growing with an annual growth rate of 8.28%!
ZWS has been paying a dividend for over 5 years, so it has already some track record.
The dividend of ZWS decreased recently.
Dividend Growth(5Y)8.28%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
31.57% of the earnings are spent on dividend by ZWS. This is a low number and sustainable payout ratio.
The dividend of ZWS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP31.57%
EPS Next 2Y13.74%
EPS Next 3Y12.16%
46.62
+1.21 (+2.66%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners92.61%
Inst Owner Change0.96%
Ins Owners2.4%
Ins Owner Change-0.66%
Market Cap7.81B
Revenue(TTM)1.66B
Net Income(TTM)192.30M
Analysts75
Price Target51.29 (10.02%)
Short Float %3.86%
Short Ratio6.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Yearly Dividend0.33
Dividend Growth(5Y)8.28%
DP31.57%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.43%
Min EPS beat(2)7.36%
Max EPS beat(2)15.51%
EPS beat(4)4
Avg EPS beat(4)10.61%
Min EPS beat(4)5.84%
Max EPS beat(4)15.51%
EPS beat(8)8
Avg EPS beat(8)9.26%
EPS beat(12)11
Avg EPS beat(12)8.18%
EPS beat(16)15
Avg EPS beat(16)13.68%
Revenue beat(2)2
Avg Revenue beat(2)2.71%
Min Revenue beat(2)1.87%
Max Revenue beat(2)3.54%
Revenue beat(4)4
Avg Revenue beat(4)1.47%
Min Revenue beat(4)0.17%
Max Revenue beat(4)3.54%
Revenue beat(8)7
Avg Revenue beat(8)0.84%
Revenue beat(12)9
Avg Revenue beat(12)0.97%
Revenue beat(16)11
Avg Revenue beat(16)0.78%
PT rev (1m)6.67%
PT rev (3m)10.34%
EPS NQ rev (1m)8.93%
EPS NQ rev (3m)10.09%
EPS NY rev (1m)4.2%
EPS NY rev (3m)4.29%
Revenue NQ rev (1m)3.44%
Revenue NQ rev (3m)3.56%
Revenue NY rev (1m)1.19%
Revenue NY rev (3m)1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.5 | ||
| Fwd PE | 28.15 | ||
| P/S | 4.71 | ||
| P/FCF | 27.07 | ||
| P/OCF | 24.53 | ||
| P/B | 4.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.95 |
EPS(TTM)1.48
EY3.17%
EPS(NY)1.66
Fwd EY3.55%
FCF(TTM)1.72
FCFY3.69%
OCF(TTM)1.9
OCFY4.08%
SpS9.9
BVpS9.5
TBVpS-0.31
PEG (NY)1.78
PEG (5Y)0.54
Graham Number17.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.16% | ||
| ROE | 12.08% | ||
| ROCE | 11.56% | ||
| ROIC | 8.54% | ||
| ROICexc | 9.58% | ||
| ROICexgc | 41.57% | ||
| OM | 16.69% | ||
| PM (TTM) | 11.59% | ||
| GM | 44.91% | ||
| FCFM | 17.39% |
ROA(3y)4.14%
ROA(5y)5.64%
ROE(3y)6.98%
ROE(5y)25.85%
ROIC(3y)6.01%
ROIC(5y)7.19%
ROICexc(3y)6.44%
ROICexc(5y)8.06%
ROICexgc(3y)26.42%
ROICexgc(5y)27.95%
ROCE(3y)8.14%
ROCE(5y)9.74%
ROICexgc growth 3Y11.52%
ROICexgc growth 5Y3.59%
ROICexc growth 3Y-7.79%
ROICexc growth 5Y-1.06%
OM growth 3Y10.68%
OM growth 5Y1.24%
PM growth 3Y-8.32%
PM growth 5Y80%
GM growth 3Y3.28%
GM growth 5Y3.36%
F-Score7
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.72 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 33.22% | ||
| Cap/Sales | 1.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.83% | ||
| Profit Quality | 150.08% | ||
| Current Ratio | 2.78 | ||
| Quick Ratio | 1.83 | ||
| Altman-Z | 4.88 |
F-Score7
WACC9.53%
ROIC/WACC0.9
Cap/Depr(3y)20.96%
Cap/Depr(5y)28.15%
Cap/Sales(3y)1.13%
Cap/Sales(5y)1.59%
Profit Quality(3y)173.63%
Profit Quality(5y)168.36%
High Growth Momentum
Growth
EPS 1Y (TTM)21.31%
EPS 3Y-11.07%
EPS 5Y58.83%
EPS Q2Q%26.47%
EPS Next Y17.68%
EPS Next 2Y13.74%
EPS Next 3Y12.16%
EPS Next 5Y12.36%
Revenue 1Y (TTM)6.88%
Revenue growth 3Y19.81%
Revenue growth 5Y-5.25%
Sales Q2Q%11.07%
Revenue Next Year7.92%
Revenue Next 2Y6.42%
Revenue Next 3Y5.9%
Revenue Next 5Y6.26%
EBIT growth 1Y9.66%
EBIT growth 3Y32.6%
EBIT growth 5Y-4.07%
EBIT Next Year46.7%
EBIT Next 3Y18.76%
EBIT Next 5Y15.74%
FCF growth 1Y10.62%
FCF growth 3Y10.7%
FCF growth 5Y4.97%
OCF growth 1Y13.67%
OCF growth 3Y9.49%
OCF growth 5Y2.6%
ZURN ELKAY WATER SOLUTIONS C / ZWS FAQ
What is the fundamental rating for ZWS stock?
ChartMill assigns a fundamental rating of 6 / 10 to ZWS.
Can you provide the valuation status for ZURN ELKAY WATER SOLUTIONS C?
ChartMill assigns a valuation rating of 2 / 10 to ZURN ELKAY WATER SOLUTIONS C (ZWS). This can be considered as Overvalued.
Can you provide the profitability details for ZURN ELKAY WATER SOLUTIONS C?
ZURN ELKAY WATER SOLUTIONS C (ZWS) has a profitability rating of 7 / 10.
What is the valuation of ZURN ELKAY WATER SOLUTIONS C based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ZURN ELKAY WATER SOLUTIONS C (ZWS) is 31.5 and the Price/Book (PB) ratio is 4.91.
What is the financial health of ZURN ELKAY WATER SOLUTIONS C (ZWS) stock?
The financial health rating of ZURN ELKAY WATER SOLUTIONS C (ZWS) is 7 / 10.