ZURN ELKAY WATER SOLUTIONS C (ZWS) Fundamental Analysis & Valuation
NYSE:ZWS • US98983L1089
Current stock price
51.96 USD
+1.08 (+2.12%)
At close:
51.96 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
- 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
- With a decent Return On Assets value of 7.39%, ZWS is doing good in the industry, outperforming 63.41% of the companies in the same industry.
- ZWS has a Return On Equity of 12.35%. This is in the better half of the industry: ZWS outperforms 63.41% of its industry peers.
- ZWS has a Return On Invested Capital of 9.05%. This is comparable 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 3 year average ROIC (7.99%) for ZWS is below the current ROIC(9.05%), indicating increased profibility in the last year.
| 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.
- ZWS's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 17.01%, ZWS is doing good in the industry, outperforming 68.29% of the companies in the same industry.
- In the last couple of years the Operating Margin of ZWS has remained more or less at the same level.
- ZWS has a better Gross Margin (45.10%) than 92.68% of its industry peers.
- In the last couple of years the Gross Margin of ZWS has grown nicely.
| 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.
- 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.
- Compared to 1 year ago, ZWS has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 5.40 indicates that ZWS is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 5.40, ZWS is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
- ZWS has a debt to FCF ratio of 1.57. This is a very positive value and a sign of high solvency as it would only need 1.57 years to pay back of all of its debts.
- ZWS's Debt to FCF ratio of 1.57 is fine compared to the rest of the industry. ZWS outperforms 78.05% 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.
- Looking at the Debt to Equity ratio, with a value of 0.31, ZWS is in the better half of the industry, outperforming 68.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.57 | ||
| Altman-Z | 5.4 |
ROIC/WACC0.86
WACC10.51%
2.3 Liquidity
- A Current Ratio of 3.13 indicates that ZWS has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 3.13, ZWS belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
- A Quick Ratio of 2.07 indicates that ZWS has no problem at all paying its short term obligations.
- The Quick ratio of ZWS (2.07) is better than 82.93% of its industry peers.
| 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.
- The Earnings Per Share has been decreasing by -3.16% on average over the past years.
- ZWS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.26%.
- 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.
- Based on estimates for the next years, ZWS will show a small growth in Revenue. The Revenue will grow by 5.79% on average per year.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- The Price/Earnings ratio is 32.07, which means the current valuation is very expensive for ZWS.
- Based on the Price/Earnings ratio, ZWS is valued a bit more expensive than the industry average as 68.29% of the companies are valued more cheaply.
- ZWS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.77, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 28.24, the valuation of ZWS can be described as expensive.
- Based on the Price/Forward Earnings ratio, ZWS is valued a bit more expensive than the industry average as 68.29% of the companies are valued more cheaply.
- ZWS is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.75, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.07 | ||
| Fwd PE | 28.24 |
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 68.29% of the companies listed in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ZWS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.5 | ||
| EV/EBITDA | 23.12 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ZWS does not grow enough to justify the current Price/Earnings ratio.
- ZWS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.13
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 0.72.
- 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
- On average, the dividend of ZWS grows each year by 9.35%, which is quite nice.
- ZWS has been paying a dividend for over 5 years, so it has already some track record.
- ZWS has decreased its dividend in the last 3 years.
Dividend Growth(5Y)9.35%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 32.27% of the earnings are spent on dividend by ZWS. This is a low number and sustainable payout ratio.
- ZWS's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP32.27%
EPS Next 2Y10.02%
EPS Next 3Y10.08%
ZWS Fundamentals: All Metrics, Ratios and Statistics
51.96
+1.08 (+2.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Industry Strength22.98
Industry Growth32.92
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 Cap8.71B
Revenue(TTM)1.70B
Net Income(TTM)198.00M
Analysts76
Price Target57.06 (9.82%)
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 | 32.07 | ||
| Fwd PE | 28.24 | ||
| P/S | 5.13 | ||
| P/FCF | 27.5 | ||
| P/OCF | 25.12 | ||
| P/B | 5.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.12 |
EPS(TTM)1.62
EY3.12%
EPS(NY)1.84
Fwd EY3.54%
FCF(TTM)1.89
FCFY3.64%
OCF(TTM)2.07
OCFY3.98%
SpS10.12
BVpS9.57
TBVpS-0.16
PEG (NY)3.13
PEG (5Y)N/A
Graham Number18.6766 (-64.06%)
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 | 5.4 |
F-Score8
WACC10.51%
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 32.07 and the Price/Book (PB) ratio is 5.43.
How financially healthy is ZURN ELKAY WATER SOLUTIONS C?
The financial health rating of ZURN ELKAY WATER SOLUTIONS C (ZWS) is 8 / 10.