ZURN ELKAY WATER SOLUTIONS C (ZWS) Stock Fundamental Analysis
NYSE:ZWS - New York Stock Exchange, Inc. - US98983L1089 - Common Stock - Currency: USD
Overall ZWS gets a fundamental rating of 5 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. While showing a medium growth rate, ZWS is valued expensive at the moment.
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.
ZWS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.56%, ZWS is in line with its industry, outperforming 51.22% of the companies in the same industry.
ZWS has a Return On Equity (11.12%) which is in line with its industry peers.
ZWS's Return On Invested Capital of 8.41% is in line compared to the rest of the industry. ZWS outperforms 46.34% of its industry peers.
ZWS had an Average Return On Invested Capital over the past 3 years of 6.01%. This is significantly below the industry average of 13.12%.
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 better Profit Margin (10.78%) than 60.98% of its industry peers.
In the last couple of years the Profit Margin of ZWS has grown nicely.
With a decent Operating Margin value of 16.77%, ZWS is doing good in the industry, outperforming 65.85% of the companies in the same industry.
ZWS's Operating Margin has been stable in the last couple of years.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ZWS is destroying value.
Compared to 1 year ago, ZWS has less shares outstanding
ZWS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ZWS has a worse debt to assets ratio.
2.2 Solvency
ZWS has an Altman-Z score of 4.72. This indicates that ZWS is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.72, ZWS is doing good in the industry, outperforming 60.98% of the companies in the same industry.
ZWS has a debt to FCF ratio of 1.76. This is a very positive value and a sign of high solvency as it would only need 1.76 years to pay back of 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 75.61% 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's Debt to Equity ratio of 0.32 is fine compared to the rest of the industry. ZWS outperforms 60.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.76 | ||
| Altman-Z | 4.72 |
ROIC/WACC0.82
WACC10.27%
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.
The Quick ratio of ZWS (1.72) is better than 78.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.71 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
ZWS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.80%, which is quite good.
The Earnings Per Share has been growing by 58.83% on average over the past years. This is a very strong growth
Looking at the last year, ZWS shows a small growth in Revenue. The Revenue has grown by 4.74% in the last year.
The Revenue has been decreasing by -5.25% on average over the past years.
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 9.47% on average per year.
The Revenue is expected to grow by 4.49% on average over the next years.
EPS Next Y5.83%
EPS Next 2Y7.7%
EPS Next 3Y8.14%
EPS Next 5Y9.47%
Revenue Next Year3.55%
Revenue Next 2Y4.1%
Revenue Next 3Y4.19%
Revenue Next 5Y4.49%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 32.46 indicates a quite expensive valuation of ZWS.
ZWS's Price/Earnings ratio is a bit more expensive when compared to the industry. ZWS is more expensive than 70.73% of the companies in the same industry.
ZWS is valuated rather expensively when we compare the Price/Earnings ratio to 26.93, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 30.39, ZWS can be considered very expensive at the moment.
75.61% of the companies in the same industry are cheaper than ZWS, based on the Price/Forward Earnings ratio.
ZWS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 35.31, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.46 | ||
| Fwd PE | 30.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ZWS is valued a bit more expensive than 70.73% of the companies in the same industry.
ZWS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.86 | ||
| EV/EBITDA | 21.92 |
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)5.56
PEG (5Y)0.55
EPS Next 2Y7.7%
EPS Next 3Y8.14%
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 1.14, ZWS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, ZWS's dividend is way lower than the S&P500 average.
| 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.
ZWS has decreased its dividend 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 around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP34.02%
EPS Next 2Y7.7%
EPS Next 3Y8.14%
NYSE:ZWS (8/15/2025, 10:07:01 AM)
45.12
-0.28 (-0.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners95%
Inst Owner Change0.66%
Ins Owners2.47%
Ins Owner Change-45.29%
Market Cap7.56B
Analysts75
Price Target45.46 (0.75%)
Short Float %3.27%
Short Ratio6.55
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)20.46%
PT rev (3m)23.32%
EPS NQ rev (1m)7.45%
EPS NQ rev (3m)4.98%
EPS NY rev (1m)0%
EPS NY rev (3m)1.13%
Revenue NQ rev (1m)4.48%
Revenue NQ rev (3m)4.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.46 | ||
| Fwd PE | 30.39 | ||
| P/S | 4.68 | ||
| P/FCF | 26.86 | ||
| P/OCF | 24.54 | ||
| P/B | 4.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.92 |
EPS(TTM)1.39
EY3.08%
EPS(NY)1.48
Fwd EY3.29%
FCF(TTM)1.68
FCFY3.72%
OCF(TTM)1.84
OCFY4.07%
SpS9.63
BVpS9.34
TBVpS-0.57
PEG (NY)5.56
PEG (5Y)0.55
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 | 4.72 |
F-Score7
WACC10.27%
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 Y5.83%
EPS Next 2Y7.7%
EPS Next 3Y8.14%
EPS Next 5Y9.47%
Revenue 1Y (TTM)4.74%
Revenue growth 3Y19.81%
Revenue growth 5Y-5.25%
Sales Q2Q%7.89%
Revenue Next Year3.55%
Revenue Next 2Y4.1%
Revenue Next 3Y4.19%
Revenue Next 5Y4.49%
EBIT growth 1Y11.82%
EBIT growth 3Y32.6%
EBIT growth 5Y-4.07%
EBIT Next Year45.82%
EBIT Next 3Y18.76%
EBIT Next 5Y15.35%
FCF growth 1Y52.57%
FCF growth 3Y10.7%
FCF growth 5Y4.97%
OCF growth 1Y53.08%
OCF growth 3Y9.49%
OCF growth 5Y2.6%