ZURN ELKAY WATER SOLUTIONS C (ZWS) Stock Fundamental Analysis
USA - NYSE:ZWS - US98983L1089 - Common Stock
46.62 USD
+0.26 (+0.56%)
46.62 USD
0 (0%)
Overall ZWS gets a fundamental rating of 5 out of 10. We evaluated ZWS against 41 industry peers in the Building Products industry. While ZWS has a great profitability rating, there are some minor concerns on its financial health. ZWS is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ZWS had positive earnings in the past year.
In the past year ZWS had a positive cash flow from operations.
In the past 5 years ZWS has always been profitable.
In the past 5 years ZWS always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 6.56%, ZWS perfoms like the industry average, outperforming 51.22% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.12%, ZWS is in line with its industry, outperforming 51.22% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.41%, ZWS is in line with its industry, outperforming 46.34% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ZWS is significantly below the industry average of 12.64%.
The 3 year average ROIC (6.01%) for ZWS is below the current ROIC(8.41%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.56% | ||
| ROE | 11.12% | ||
| ROIC | 8.41% |
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
ZWS has a Profit Margin of 10.78%. This is in the better half of the industry: ZWS outperforms 63.41% of its industry peers.
ZWS's Profit Margin has improved in the last couple of years.
ZWS has a Operating Margin of 16.77%. This is in the better half of the industry: ZWS outperforms 65.85% of its industry peers.
In the last couple of years the Operating Margin of ZWS has remained more or less at the same level.
ZWS's Gross Margin of 45.47% is amongst the best of the industry. ZWS outperforms 92.68% of its industry peers.
ZWS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.77% | ||
| PM (TTM) | 10.78% | ||
| GM | 45.47% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ZWS is destroying value.
Compared to 1 year ago, ZWS has less shares outstanding
Compared to 5 years ago, ZWS has more shares outstanding
The debt/assets ratio for ZWS is higher compared to a year ago.
2.2 Solvency
ZWS has an Altman-Z score of 4.83. This indicates that ZWS is financially healthy and has little risk of bankruptcy at the moment.
ZWS has a Altman-Z score (4.83) which is comparable to the rest of the industry.
The Debt to FCF ratio of ZWS is 1.76, which is an excellent value as it means it would take ZWS, only 1.76 years of fcf income to pay off all of its debts.
ZWS has a Debt to FCF ratio of 1.76. This is in the better half of the industry: ZWS outperforms 78.05% of its industry peers.
ZWS has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
ZWS has a better Debt to Equity ratio (0.32) than 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.76 | ||
| Altman-Z | 4.83 |
ROIC/WACC0.88
WACC9.61%
2.3 Liquidity
A Current Ratio of 2.71 indicates that ZWS has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.71, ZWS is doing good in the industry, outperforming 75.61% of the companies in the same industry.
ZWS has a Quick Ratio of 1.72. 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 1.72, ZWS is doing good in the industry, outperforming 75.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.71 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.80% over the past year.
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 4.74% in the past year.
Measured over the past years, ZWS shows a decrease in Revenue. The Revenue has been decreasing by -5.25% on average per year.
EPS 1Y (TTM)18.8%
EPS 3Y-11.07%
EPS 5Y58.83%
EPS Q2Q%27.27%
Revenue 1Y (TTM)4.74%
Revenue growth 3Y19.81%
Revenue growth 5Y-5.25%
Sales Q2Q%7.89%
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 10.84% on average per year.
ZWS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.60% yearly.
EPS Next Y12.93%
EPS Next 2Y11.69%
EPS Next 3Y10.45%
EPS Next 5Y10.84%
Revenue Next Year6.65%
Revenue Next 2Y5.37%
Revenue Next 3Y5.16%
Revenue Next 5Y5.6%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
Based on the Price/Earnings ratio of 33.54, the valuation of ZWS can be described as expensive.
Based on the Price/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/Earnings ratio of 27.08, ZWS is valued a bit more expensive.
ZWS is valuated quite expensively with a Price/Forward Earnings ratio of 29.20.
73.17% of the companies in the same industry are cheaper than ZWS, based on the Price/Forward Earnings ratio.
ZWS is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.54 | ||
| Fwd PE | 29.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ZWS is valued a bit more expensive than the industry average as 73.17% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as ZWS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.75 | ||
| EV/EBITDA | 22.49 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ZWS may justify a higher PE ratio.
PEG (NY)2.59
PEG (5Y)0.57
EPS Next 2Y11.69%
EPS Next 3Y10.45%
5. Dividend
5.1 Amount
With a yearly dividend of 0.94%, ZWS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.24, ZWS pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.94, ZWS pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
On average, the dividend of ZWS grows each year by 8.28%, which is quite nice.
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
34.02% of the earnings are spent on dividend by ZWS. This is a low number and sustainable payout ratio.
ZWS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.02%
EPS Next 2Y11.69%
EPS Next 3Y10.45%
46.62
+0.26 (+0.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners92.61%
Inst Owner Change-0.11%
Ins Owners2.4%
Ins Owner Change-0.44%
Market Cap7.81B
Revenue(TTM)1.61B
Net Income(TTM)174.00M
Analysts75
Price Target48.09 (3.15%)
Short Float %3.82%
Short Ratio6.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Yearly Dividend0.33
Dividend Growth(5Y)8.28%
DP34.02%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.67%
Min EPS beat(2)5.84%
Max EPS beat(2)15.51%
EPS beat(4)4
Avg EPS beat(4)9.95%
Min EPS beat(4)4.73%
Max EPS beat(4)15.51%
EPS beat(8)8
Avg EPS beat(8)9%
EPS beat(12)11
Avg EPS beat(12)8.02%
EPS beat(16)15
Avg EPS beat(16)21.77%
Revenue beat(2)2
Avg Revenue beat(2)1.92%
Min Revenue beat(2)0.3%
Max Revenue beat(2)3.54%
Revenue beat(4)4
Avg Revenue beat(4)1.01%
Min Revenue beat(4)0.02%
Max Revenue beat(4)3.54%
Revenue beat(8)6
Avg Revenue beat(8)0.55%
Revenue beat(12)8
Avg Revenue beat(12)0.67%
Revenue beat(16)10
Avg Revenue beat(16)-2.07%
PT rev (1m)2.48%
PT rev (3m)25%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)8.44%
EPS NY rev (1m)0%
EPS NY rev (3m)6.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.54 | ||
| Fwd PE | 29.2 | ||
| P/S | 4.84 | ||
| P/FCF | 27.75 | ||
| P/OCF | 25.36 | ||
| P/B | 4.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.49 |
EPS(TTM)1.39
EY2.98%
EPS(NY)1.6
Fwd EY3.42%
FCF(TTM)1.68
FCFY3.6%
OCF(TTM)1.84
OCFY3.94%
SpS9.63
BVpS9.34
TBVpS-0.57
PEG (NY)2.59
PEG (5Y)0.57
Graham Number17.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.56% | ||
| ROE | 11.12% | ||
| ROCE | 11.39% | ||
| ROIC | 8.41% | ||
| ROICexc | 9.19% | ||
| ROICexgc | 38.85% | ||
| OM | 16.77% | ||
| PM (TTM) | 10.78% | ||
| GM | 45.47% | ||
| FCFM | 17.44% |
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 Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.76 | ||
| Debt/EBITDA | 1.37 | ||
| Cap/Depr | 29.51% | ||
| Cap/Sales | 1.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.46% | ||
| Profit Quality | 161.78% | ||
| Current Ratio | 2.71 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z | 4.83 |
F-Score7
WACC9.61%
ROIC/WACC0.88
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)18.8%
EPS 3Y-11.07%
EPS 5Y58.83%
EPS Q2Q%27.27%
EPS Next Y12.93%
EPS Next 2Y11.69%
EPS Next 3Y10.45%
EPS Next 5Y10.84%
Revenue 1Y (TTM)4.74%
Revenue growth 3Y19.81%
Revenue growth 5Y-5.25%
Sales Q2Q%7.89%
Revenue Next Year6.65%
Revenue Next 2Y5.37%
Revenue Next 3Y5.16%
Revenue Next 5Y5.6%
EBIT growth 1Y11.82%
EBIT growth 3Y32.6%
EBIT growth 5Y-4.07%
EBIT Next Year46.7%
EBIT Next 3Y18.76%
EBIT Next 5Y14.85%
FCF growth 1Y52.57%
FCF growth 3Y10.7%
FCF growth 5Y4.97%
OCF growth 1Y53.08%
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 5 / 10 to ZWS.
Can you provide the valuation status for ZURN ELKAY WATER SOLUTIONS C?
ChartMill assigns a valuation rating of 1 / 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 33.54 and the Price/Book (PB) ratio is 4.99.
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 6 / 10.