ZURN ELKAY WATER SOLUTIONS C (ZWS) Stock Fundamental Analysis
NYSE:ZWS - US98983L1089 - Common Stock
45.9 USD
0 (0%)
45.9 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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ZWS is quite expensive at the moment. It does show a decent growth rate. These ratings could make ZWS a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year ZWS was profitable.
ZWS had a positive operating cash flow in the past year.
ZWS had positive earnings in each of the past 5 years.
Each year in the past 5 years ZWS had a positive operating cash flow.
1.2 Ratios
ZWS has a Return On Assets of 6.56%. This is comparable to the rest of the industry: ZWS outperforms 51.22% of its industry peers.
ZWS has a Return On Equity (11.12%) which is comparable to the rest of the 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.
ZWS had an Average Return On Invested Capital over the past 3 years of 6.01%. This is significantly below the industry average of 12.76%.
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.
In the last couple of years the Profit Margin of ZWS has grown nicely.
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.
With an excellent Gross Margin value of 45.47%, ZWS belongs to the best of the industry, outperforming 92.68% of the companies in the same industry.
In the last couple of years the Gross Margin of ZWS has grown nicely.
| 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
ZWS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ZWS has less shares outstanding
ZWS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ZWS is higher compared to a year ago.
2.2 Solvency
ZWS has an Altman-Z score of 4.77. This indicates that ZWS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.77, ZWS is in the better half of the industry, outperforming 60.98% of the companies in the same 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.
Looking at the Debt to FCF ratio, with a value of 1.76, ZWS is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that ZWS is not too dependend on debt financing.
ZWS has a Debt to Equity ratio of 0.32. This is in the better half of the industry: ZWS outperforms 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.76 | ||
| Altman-Z | 4.77 |
ROIC/WACC0.82
WACC10.32%
2.3 Liquidity
A Current Ratio of 2.71 indicates that ZWS has no problem at all paying its short term obligations.
ZWS's Current ratio of 2.71 is fine compared to the rest of the industry. ZWS outperforms 73.17% of its industry peers.
A Quick Ratio of 1.72 indicates that ZWS should not have too much problems paying its short term obligations.
ZWS has a better Quick ratio (1.72) than 75.61% of its industry peers.
| 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.
ZWS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 58.83% yearly.
ZWS shows a small growth in Revenue. In the last year, the Revenue has grown by 4.74%.
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 Y12.84%
EPS Next 2Y11.44%
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
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
A Price/Earnings ratio of 33.02 indicates a quite expensive valuation of ZWS.
Compared to the rest of the industry, the Price/Earnings ratio of ZWS indicates a slightly more expensive valuation: ZWS is more expensive than 70.73% of the companies listed in the same industry.
ZWS's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.03.
A Price/Forward Earnings ratio of 28.88 indicates a quite expensive valuation of ZWS.
73.17% of the companies in the same industry are cheaper than ZWS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.54. ZWS is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.02 | ||
| Fwd PE | 28.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ZWS is valued a bit more expensive than 73.17% of the companies in the same industry.
ZWS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.32 | ||
| EV/EBITDA | 22.15 |
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)2.57
PEG (5Y)0.56
EPS Next 2Y11.44%
EPS Next 3Y10.45%
5. Dividend
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 1.13.
With a Dividend Yield of 0.94, ZWS pays less dividend than the S&P500 average, which is at 2.45.
| 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
ZWS pays out 34.02% of its income as dividend. This is a sustainable payout ratio.
The dividend of ZWS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP34.02%
EPS Next 2Y11.44%
EPS Next 3Y10.45%
45.9
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners95%
Inst Owner Change-0.64%
Ins Owners2.47%
Ins Owner Change-0.31%
Market Cap7.69B
Analysts75
Price Target46.48 (1.26%)
Short Float %2.85%
Short Ratio3.98
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)2.24%
PT rev (3m)23.17%
EPS NQ rev (1m)1.09%
EPS NQ rev (3m)6.13%
EPS NY rev (1m)6.62%
EPS NY rev (3m)6.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.04%
Revenue NY rev (1m)3%
Revenue NY rev (3m)3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.02 | ||
| Fwd PE | 28.88 | ||
| P/S | 4.76 | ||
| P/FCF | 27.32 | ||
| P/OCF | 24.97 | ||
| P/B | 4.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.15 |
EPS(TTM)1.39
EY3.03%
EPS(NY)1.59
Fwd EY3.46%
FCF(TTM)1.68
FCFY3.66%
OCF(TTM)1.84
OCFY4%
SpS9.63
BVpS9.34
TBVpS-0.57
PEG (NY)2.57
PEG (5Y)0.56
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%
ROICexcg growth 3Y11.52%
ROICexcg 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 | 4.77 |
F-Score7
WACC10.32%
ROIC/WACC0.82
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 Y12.84%
EPS Next 2Y11.44%
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 Year45.82%
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%