ZURN ELKAY WATER SOLUTIONS C (ZWS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZWS - US98983L1089 - Common Stock
46.25 USD
-1.02 (-2.16%)
46.25 USD
0 (0%)
Taking everything into account, ZWS scores 6 out of 10 in our fundamental rating. ZWS was compared to 42 industry peers in the Building Products industry. ZWS gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, ZWS is valued expensive at the moment. These ratings would make ZWS suitable 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.
- In the past 5 years ZWS has always been profitable.
- Each year in the past 5 years ZWS had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of ZWS (7.16%) is comparable to the rest of the industry.
- With a Return On Equity value of 12.08%, ZWS perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
- The Return On Invested Capital of ZWS (8.54%) is comparable to the rest of the industry.
- ZWS had an Average Return On Invested Capital over the past 3 years of 6.01%. This is significantly below the industry average of 12.68%.
- 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
- With a decent Profit Margin value of 11.59%, ZWS is doing good in the industry, outperforming 64.29% of the companies in the same industry.
- In the last couple of years the Profit Margin of ZWS has grown nicely.
- ZWS has a Operating Margin of 16.69%. This is in the better half of the industry: ZWS outperforms 66.67% of its industry peers.
- In the last couple of years the Operating Margin of ZWS has remained more or less at the same level.
- The Gross Margin of ZWS (44.91%) is better than 90.48% of its industry peers.
- ZWS's Gross Margin has improved in the last couple of years.
| 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.
- The debt/assets ratio for ZWS is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.93 indicates that ZWS is not in any danger for bankruptcy at the moment.
- ZWS has a Altman-Z score of 4.93. This is in the better half of the industry: ZWS outperforms 61.90% of its industry peers.
- ZWS has a debt to FCF ratio of 1.72. This is a very positive value and a sign of high solvency as it would only need 1.72 years to pay back of all of its debts.
- ZWS has a better Debt to FCF ratio (1.72) than 78.57% of its industry peers.
- A Debt/Equity ratio of 0.31 indicates that ZWS is not too dependend on debt financing.
- ZWS's Debt to Equity ratio of 0.31 is fine compared to the rest of the industry. ZWS outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.72 | ||
| Altman-Z | 4.93 |
ROIC/WACC0.94
WACC9.08%
2.3 Liquidity
- A Current Ratio of 2.78 indicates that ZWS has no problem at all paying 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 71.43% 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.
- With a decent Quick ratio value of 1.83, ZWS is doing good in the industry, outperforming 76.19% of the companies in the same industry.
| 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.
- Looking at the last year, ZWS shows a small growth in Revenue. The Revenue has grown by 6.88% in the last 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
- ZWS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.36% yearly.
- The Revenue is expected to grow by 6.26% on average over the next years.
EPS Next Y18.72%
EPS Next 2Y14.13%
EPS Next 3Y12.75%
EPS Next 5Y12.36%
Revenue Next Year8.24%
Revenue Next 2Y6.8%
Revenue Next 3Y6.18%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 31.25 indicates a quite expensive valuation of ZWS.
- Based on the Price/Earnings ratio, ZWS is valued a bit more expensive than 71.43% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.94, ZWS is valued at the same level.
- Based on the Price/Forward Earnings ratio of 27.74, the valuation of ZWS can be described as expensive.
- Based on the Price/Forward Earnings ratio, ZWS is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
- When comparing the Price/Forward Earnings ratio of ZWS to the average of the S&P500 Index (23.94), we can say ZWS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.25 | ||
| Fwd PE | 27.74 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ZWS is valued a bit more expensive than the industry average as 76.19% of the companies are valued more cheaply.
- ZWS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.82 | ||
| EV/EBITDA | 22.22 |
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.
- A more expensive valuation may be justified as ZWS's earnings are expected to grow with 12.75% in the coming years.
PEG (NY)1.67
PEG (5Y)0.53
EPS Next 2Y14.13%
EPS Next 3Y12.75%
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 0.67.
- With a Dividend Yield of 0.94, ZWS pays less dividend than the S&P500 average, which is at 1.83.
| 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
- ZWS pays out 31.57% of its income as dividend. This is a sustainable payout ratio.
- ZWS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP31.57%
EPS Next 2Y14.13%
EPS Next 3Y12.75%
46.25
-1.02 (-2.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)10-28 2025-10-28/amc
Earnings (Next)02-02 2026-02-02/amc
Inst Owners94.67%
Inst Owner Change0.14%
Ins Owners2.35%
Ins Owner Change-0.9%
Market Cap7.74B
Revenue(TTM)1.66B
Net Income(TTM)192.30M
Analysts76.92
Price Target52.02 (12.48%)
Short Float %3.22%
Short Ratio5.84
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-DateN/A
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)1.42%
PT rev (3m)8.18%
EPS NQ rev (1m)0.45%
EPS NQ rev (3m)10.08%
EPS NY rev (1m)0.05%
EPS NY rev (3m)5.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.44%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.25 | ||
| Fwd PE | 27.74 | ||
| P/S | 4.66 | ||
| P/FCF | 26.82 | ||
| P/OCF | 24.31 | ||
| P/B | 4.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.22 |
EPS(TTM)1.48
EY3.2%
EPS(NY)1.67
Fwd EY3.6%
FCF(TTM)1.72
FCFY3.73%
OCF(TTM)1.9
OCFY4.11%
SpS9.92
BVpS9.51
TBVpS-0.31
PEG (NY)1.67
PEG (5Y)0.53
Graham Number17.8
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 | 4.93 |
F-Score7
WACC9.08%
ROIC/WACC0.94
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 Y18.72%
EPS Next 2Y14.13%
EPS Next 3Y12.75%
EPS Next 5Y12.36%
Revenue 1Y (TTM)6.88%
Revenue growth 3Y19.81%
Revenue growth 5Y-5.25%
Sales Q2Q%11.07%
Revenue Next Year8.24%
Revenue Next 2Y6.8%
Revenue Next 3Y6.18%
Revenue Next 5Y6.26%
EBIT growth 1Y9.66%
EBIT growth 3Y32.6%
EBIT growth 5Y-4.07%
EBIT Next Year49.82%
EBIT Next 3Y20.06%
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.
What is the valuation status for ZWS stock?
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 financial health of ZURN ELKAY WATER SOLUTIONS C (ZWS) stock?
The financial health rating of ZURN ELKAY WATER SOLUTIONS C (ZWS) is 7 / 10.
What is the earnings growth outlook for ZURN ELKAY WATER SOLUTIONS C?
The Earnings per Share (EPS) of ZURN ELKAY WATER SOLUTIONS C (ZWS) is expected to grow by 18.72% in the next year.