ZURN ELKAY WATER SOLUTIONS C (ZWS) Fundamental Analysis & Valuation
NYSE:ZWS • US98983L1089
Current stock price
50.88 USD
-1.25 (-2.4%)
At close:
50.88 USD
0 (0%)
After Hours:
This ZWS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. ZWS Profitability Analysis
1.1 Basic Checks
- ZWS had positive earnings in the past year.
- In the past year ZWS had a positive cash flow from operations.
- Each year in the past 5 years ZWS has been profitable.
- In the past 5 years ZWS always reported a positive cash flow from operatings.
1.2 Ratios
- ZWS has a better Return On Assets (7.39%) than 63.41% of its industry peers.
- The Return On Equity of ZWS (12.35%) is better than 63.41% of its industry peers.
- ZWS's Return On Invested Capital of 9.05% is in line compared to the rest of the industry. ZWS outperforms 53.66% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ZWS is below the industry average of 11.86%.
- The last Return On Invested Capital (9.05%) for ZWS is above the 3 year average (7.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.39% | ||
| ROE | 12.35% | ||
| ROIC | 9.05% |
ROA(3y)5.89%
ROA(5y)6.21%
ROE(3y)9.83%
ROE(5y)25.79%
ROIC(3y)7.99%
ROIC(5y)7.53%
1.3 Margins
- ZWS's Profit Margin of 11.68% is fine compared to the rest of the industry. ZWS outperforms 63.41% of its industry peers.
- In the last couple of years the Profit Margin of ZWS has grown nicely.
- The Operating Margin of ZWS (17.01%) is better than 68.29% of its industry peers.
- In the last couple of years the Operating Margin of ZWS has remained more or less at the same level.
- With an excellent Gross Margin value of 45.10%, ZWS belongs to the best of the industry, outperforming 92.68% of the companies in the same industry.
- ZWS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.01% | ||
| PM (TTM) | 11.68% | ||
| GM | 45.1% |
OM growth 3Y21.19%
OM growth 5Y0.12%
PM growth 3Y34.36%
PM growth 5Y7.82%
GM growth 3Y7.49%
GM growth 5Y2.66%
2. ZWS Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ZWS is destroying value.
- ZWS has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ZWS has more shares outstanding
- Compared to 1 year ago, ZWS has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 5.51 indicates that ZWS is not in any danger for bankruptcy at the moment.
- ZWS has a better Altman-Z score (5.51) than 73.17% of its industry peers.
- The Debt to FCF ratio of ZWS is 1.57, which is an excellent value as it means it would take ZWS, only 1.57 years of fcf income to pay off all of its debts.
- ZWS has a better Debt to FCF ratio (1.57) than 78.05% of its industry peers.
- A Debt/Equity ratio of 0.31 indicates that ZWS is not too dependend on debt financing.
- ZWS has a better Debt to Equity ratio (0.31) than 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.57 | ||
| Altman-Z | 5.51 |
ROIC/WACC0.86
WACC10.5%
2.3 Liquidity
- ZWS has a Current Ratio of 3.13. 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 3.13, ZWS belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
- ZWS has a Quick Ratio of 2.07. This indicates that ZWS is financially healthy and has no problem in meeting its short term obligations.
- With an excellent Quick ratio value of 2.07, ZWS belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 2.07 |
3. ZWS Growth Analysis
3.1 Past
- ZWS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.62%, which is quite impressive.
- ZWS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.16% yearly.
- Looking at the last year, ZWS shows a quite strong growth in Revenue. The Revenue has grown by 8.26% in the last year.
- ZWS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.89% yearly.
EPS 1Y (TTM)24.62%
EPS 3Y15.75%
EPS 5Y-3.16%
EPS Q2Q%32.26%
Revenue 1Y (TTM)8.26%
Revenue growth 3Y9.78%
Revenue growth 5Y-3.89%
Sales Q2Q%11.37%
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 9.96% yearly.
- The Revenue is expected to grow by 5.79% on average over the next years.
EPS Next Y10.24%
EPS Next 2Y10.02%
EPS Next 3Y10.08%
EPS Next 5Y9.96%
Revenue Next Year6.21%
Revenue Next 2Y5.67%
Revenue Next 3Y5.62%
Revenue Next 5Y5.79%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. ZWS Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 31.41, ZWS can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of ZWS indicates a slightly more expensive valuation: ZWS is more expensive than 68.29% of the companies listed in the same industry.
- ZWS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.91.
- With a Price/Forward Earnings ratio of 27.65, ZWS can be considered very expensive at the moment.
- ZWS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ZWS is more expensive than 68.29% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 21.99. ZWS is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.41 | ||
| Fwd PE | 27.65 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ZWS is valued a bit more expensive than the industry average as 68.29% of the companies are valued more cheaply.
- ZWS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.92 | ||
| EV/EBITDA | 23.67 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- ZWS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.07
PEG (5Y)N/A
EPS Next 2Y10.02%
EPS Next 3Y10.08%
5. ZWS Dividend Analysis
5.1 Amount
- ZWS has a yearly dividend return of 0.94%, which is pretty low.
- ZWS's Dividend Yield is a higher than the industry average which is at 0.71.
- With a Dividend Yield of 0.94, ZWS pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
- The dividend of ZWS is nicely growing with an annual growth rate of 9.35%!
- ZWS has been paying a dividend for over 5 years, so it has already some track record.
- The dividend of ZWS decreased in the last 3 years.
Dividend Growth(5Y)9.35%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- ZWS pays out 32.27% of its income as dividend. This is a sustainable payout ratio.
- The dividend of ZWS is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP32.27%
EPS Next 2Y10.02%
EPS Next 3Y10.08%
ZWS Fundamentals: All Metrics, Ratios and Statistics
50.88
-1.25 (-2.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Industry Strength22.98
Industry Growth31.06
Earnings (Last)04-21 2026-04-21/amc
Earnings (Next)07-27 2026-07-27/amc
Inst Owners91.91%
Inst Owner Change0.03%
Ins Owners2.39%
Ins Owner Change-0.08%
Market Cap8.52B
Revenue(TTM)1.70B
Net Income(TTM)198.00M
Analysts76
Price Target57.06 (12.15%)
Short Float %3.59%
Short Ratio4.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Yearly Dividend0.38
Dividend Growth(5Y)9.35%
DP32.27%
Div Incr Years2
Div Non Decr Years2
Ex-Date02-20 2026-02-20 (0.11)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.15%
Min EPS beat(2)4.94%
Max EPS beat(2)7.36%
EPS beat(4)4
Avg EPS beat(4)8.41%
Min EPS beat(4)4.94%
Max EPS beat(4)15.51%
EPS beat(8)8
Avg EPS beat(8)8.39%
EPS beat(12)12
Avg EPS beat(12)8.93%
EPS beat(16)15
Avg EPS beat(16)7.86%
Revenue beat(2)2
Avg Revenue beat(2)1.21%
Min Revenue beat(2)0.55%
Max Revenue beat(2)1.87%
Revenue beat(4)4
Avg Revenue beat(4)1.57%
Min Revenue beat(4)0.3%
Max Revenue beat(4)3.54%
Revenue beat(8)7
Avg Revenue beat(8)0.81%
Revenue beat(12)10
Avg Revenue beat(12)1.21%
Revenue beat(16)11
Avg Revenue beat(16)0.6%
PT rev (1m)-0.36%
PT rev (3m)7.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.54%
EPS NY rev (1m)0%
EPS NY rev (3m)0.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.41 | ||
| Fwd PE | 27.65 | ||
| P/S | 5.03 | ||
| P/FCF | 26.92 | ||
| P/OCF | 24.6 | ||
| P/B | 5.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.67 |
EPS(TTM)1.62
EY3.18%
EPS(NY)1.84
Fwd EY3.62%
FCF(TTM)1.89
FCFY3.71%
OCF(TTM)2.07
OCFY4.06%
SpS10.12
BVpS9.57
TBVpS-0.16
PEG (NY)3.07
PEG (5Y)N/A
Graham Number18.6766 (-63.29%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.39% | ||
| ROE | 12.35% | ||
| ROCE | 11.92% | ||
| ROIC | 9.05% | ||
| ROICexc | 10.33% | ||
| ROICexgc | 44.74% | ||
| OM | 17.01% | ||
| PM (TTM) | 11.68% | ||
| GM | 45.1% | ||
| FCFM | 18.67% |
ROA(3y)5.89%
ROA(5y)6.21%
ROE(3y)9.83%
ROE(5y)25.79%
ROIC(3y)7.99%
ROIC(5y)7.53%
ROICexc(3y)8.8%
ROICexc(5y)8.31%
ROICexgc(3y)37.39%
ROICexgc(5y)30.7%
ROCE(3y)10.53%
ROCE(5y)9.91%
ROICexgc growth 3Y47.22%
ROICexgc growth 5Y5.13%
ROICexc growth 3Y39.63%
ROICexc growth 5Y0.22%
OM growth 3Y21.19%
OM growth 5Y0.12%
PM growth 3Y34.36%
PM growth 5Y7.82%
GM growth 3Y7.49%
GM growth 5Y2.66%
F-Score8
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.57 | ||
| Debt/EBITDA | 1.31 | ||
| Cap/Depr | 33.71% | ||
| Cap/Sales | 1.76% | ||
| Interest Coverage | 8.51 | ||
| Cash Conversion | 91.86% | ||
| Profit Quality | 159.9% | ||
| Current Ratio | 3.13 | ||
| Quick Ratio | 2.07 | ||
| Altman-Z | 5.51 |
F-Score8
WACC10.5%
ROIC/WACC0.86
Cap/Depr(3y)27.54%
Cap/Depr(5y)25.33%
Cap/Sales(3y)1.52%
Cap/Sales(5y)1.54%
Profit Quality(3y)178.63%
Profit Quality(5y)169.29%
High Growth Momentum
Growth
EPS 1Y (TTM)24.62%
EPS 3Y15.75%
EPS 5Y-3.16%
EPS Q2Q%32.26%
EPS Next Y10.24%
EPS Next 2Y10.02%
EPS Next 3Y10.08%
EPS Next 5Y9.96%
Revenue 1Y (TTM)8.26%
Revenue growth 3Y9.78%
Revenue growth 5Y-3.89%
Sales Q2Q%11.37%
Revenue Next Year6.21%
Revenue Next 2Y5.67%
Revenue Next 3Y5.62%
Revenue Next 5Y5.79%
EBIT growth 1Y11.78%
EBIT growth 3Y33.05%
EBIT growth 5Y-3.78%
EBIT Next Year34.59%
EBIT Next 3Y14.98%
EBIT Next 5Y14.33%
FCF growth 1Y16.53%
FCF growth 3Y52.43%
FCF growth 5Y4.24%
OCF growth 1Y18.06%
OCF growth 3Y52.87%
OCF growth 5Y3.02%
ZURN ELKAY WATER SOLUTIONS C / ZWS Fundamental Analysis 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 1 / 10 to ZURN ELKAY WATER SOLUTIONS C (ZWS). This can be considered as Overvalued.
What is the profitability of ZWS stock?
ZURN ELKAY WATER SOLUTIONS C (ZWS) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for ZWS stock?
The Price/Earnings (PE) ratio for ZURN ELKAY WATER SOLUTIONS C (ZWS) is 31.41 and the Price/Book (PB) ratio is 5.32.
How financially healthy is ZURN ELKAY WATER SOLUTIONS C?
The financial health rating of ZURN ELKAY WATER SOLUTIONS C (ZWS) is 8 / 10.