ZURN ELKAY WATER SOLUTIONS C (ZWS)
US98983L1089 - Common Stock
Taking everything into account, ZWS scores 5 out of 10 in our fundamental rating. ZWS was compared to 43 industry peers in the Building Products industry. ZWS is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 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.
ZWS had a positive operating cash flow in the past year.
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
ZWS has a Return On Assets of 4.66%. This is in the lower half of the industry: ZWS underperforms 62.79% of its industry peers.
Looking at the Return On Equity, with a value of 7.70%, ZWS is doing worse than 62.79% of the companies in the same industry.
With a Return On Invested Capital value of 6.57%, ZWS is not doing good in the industry: 62.79% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for ZWS is significantly below the industry average of 13.68%.
The last Return On Invested Capital (6.57%) for ZWS is above the 3 year average (6.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.66% | ||
| ROE | 7.7% | ||
| ROIC | 6.57% |
ROA(3y)5.87%
ROA(5y)4.5%
ROE(3y)35.5%
ROE(5y)24.01%
ROIC(3y)6.23%
ROIC(5y)6.81%
1.3 Margins
ZWS has a Profit Margin of 8.11%. This is comparable to the rest of the industry: ZWS outperforms 53.49% of its industry peers.
In the last couple of years the Profit Margin of ZWS has grown nicely.
ZWS has a better Operating Margin (15.14%) than 60.47% 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 43.69% is amongst the best of the industry. ZWS outperforms 90.70% of its industry peers.
In the last couple of years the Gross Margin of ZWS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.14% | ||
| PM (TTM) | 8.11% | ||
| GM | 43.69% |
OM growth 3Y-5.55%
OM growth 5Y-1.22%
PM growth 3Y-2.77%
PM growth 5Y20.94%
GM growth 3Y2.3%
GM growth 5Y2.11%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ZWS is destroying value.
The number of shares outstanding for ZWS has been reduced compared to 1 year ago.
ZWS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ZWS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.67 indicates that ZWS is not in any danger for bankruptcy at the moment.
ZWS has a Altman-Z score (3.67) which is in line with its industry peers.
ZWS has a debt to FCF ratio of 1.75. This is a very positive value and a sign of high solvency as it would only need 1.75 years to pay back of all of its debts.
The Debt to FCF ratio of ZWS (1.75) is better than 67.44% of its industry peers.
ZWS has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
ZWS's Debt to Equity ratio of 0.31 is in line compared to the rest of the industry. ZWS outperforms 55.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.75 | ||
| Altman-Z | 3.67 |
ROIC/WACC0.59
WACC11.15%
2.3 Liquidity
A Current Ratio of 3.31 indicates that ZWS has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.31, ZWS belongs to the best of the industry, outperforming 81.40% of the companies in the same industry.
ZWS has a Quick Ratio of 1.95. This is a normal value and indicates that ZWS is financially healthy and should not expect problems in meeting its short term obligations.
ZWS's Quick ratio of 1.95 is fine compared to the rest of the industry. ZWS outperforms 76.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.31 | ||
| Quick Ratio | 1.95 |
3. Growth
3.1 Past
ZWS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.39%, which is quite good.
Measured over the past 5 years, ZWS shows a small growth in Earnings Per Share. The EPS has been growing by 7.94% on average per year.
ZWS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.34%.
Measured over the past years, ZWS shows a decrease in Revenue. The Revenue has been decreasing by -3.74% on average per year.
EPS 1Y (TTM)17.39%
EPS 3Y-22.43%
EPS 5Y7.94%
EPS growth Q2Q61.11%
Revenue 1Y (TTM)8.34%
Revenue growth 3Y-9.55%
Revenue growth 5Y-3.74%
Revenue growth Q2Q0.46%
3.2 Future
The Earnings Per Share is expected to grow by 13.25% on average over the next years. This is quite good.
Based on estimates for the next years, ZWS will show a small growth in Revenue. The Revenue will grow by 4.21% on average per year.
EPS Next Y19%
EPS Next 2Y14.86%
EPS Next 3Y14.28%
EPS Next 5Y13.25%
Revenue Next Year1.36%
Revenue Next 2Y2.95%
Revenue Next 3Y3.49%
Revenue Next 5Y4.21%
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. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 30.04, ZWS can be considered very expensive at the moment.
72.09% of the companies in the same industry are cheaper than ZWS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.31. ZWS is around the same levels.
With a Price/Forward Earnings ratio of 25.35, 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 65.12% of the companies in the same industry.
ZWS is valuated rather expensively when we compare the Price/Forward Earnings ratio to 20.48, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.04 | ||
| Fwd PE | 25.35 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZWS indicates a slightly more expensive valuation: ZWS is more expensive than 62.79% of the companies listed 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 | 19.8 | ||
| EV/EBITDA | 18.61 |
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 14.28% in the coming years.
PEG (NY)1.58
PEG (5Y)3.78
EPS Next 2Y14.86%
EPS Next 3Y14.28%
5. Dividend
5.1 Amount
ZWS has a Yearly Dividend Yield of 1.01%.
ZWS's Dividend Yield is a higher than the industry average which is at 1.18.
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 | 1.01% |
5.2 History
The dividend of ZWS has a limited annual growth rate of 5.27%.
ZWS has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)5.27%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
41.87% of the earnings are spent on dividend by ZWS. This is a bit on the high side, but may be sustainable.
ZWS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP41.87%
EPS Next 2Y14.86%
EPS Next 3Y14.28%
ZURN ELKAY WATER SOLUTIONS C
NYSE:ZWS (5/10/2024, 9:58:16 AM)
32.44
+0.05 (+0.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.60B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.04 | ||
| Fwd PE | 25.35 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.58
PEG (5Y)3.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.66% | ||
| ROE | 7.7% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.14% | ||
| PM (TTM) | 8.11% | ||
| GM | 43.69% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.31 | ||
| Quick Ratio | 1.95 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)17.39%
EPS 3Y-22.43%
EPS 5Y
EPS growth Q2Q
EPS Next Y19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.34%
Revenue growth 3Y-9.55%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y