ZURN ELKAY WATER SOLUTIONS C (ZWS) Stock Fundamental Analysis
USA - NYSE:ZWS - US98983L1089 - Common Stock
47.21 USD
-0.07 (-0.15%)
47.21 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 gets an excellent profitability rating and is at the same time showing great financial health properties. ZWS is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make ZWS a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
ZWS had positive earnings in the past year.
ZWS had a positive operating cash flow in the past year.
ZWS had positive earnings in each of the past 5 years.
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 of 11.12%. This is comparable to the rest of the industry: ZWS outperforms 51.22% of its industry peers.
ZWS has a Return On Invested Capital (8.41%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for ZWS is significantly below the industry average of 12.76%.
The last Return On Invested Capital (8.41%) for ZWS is above the 3 year average (6.01%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 10.78%, ZWS is doing good in the industry, outperforming 63.41% of the companies in the same industry.
ZWS's Profit Margin has improved in the last couple of years.
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.
ZWS's Operating Margin has been stable in the last couple of years.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ZWS is destroying value.
Compared to 1 year ago, ZWS has less shares outstanding
Compared to 5 years ago, ZWS has more shares outstanding
Compared to 1 year ago, ZWS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.90 indicates that ZWS is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.90, ZWS is doing good in the industry, outperforming 63.41% 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.
ZWS's Debt to FCF ratio of 1.76 is fine compared to the rest of the industry. ZWS outperforms 75.61% of its industry peers.
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 | 4.9 |
ROIC/WACC0.82
WACC10.24%
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 75.61% 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.
ZWS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 58.83% yearly.
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
The Earnings Per Share is expected to grow by 10.84% 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 5.60% on average per year.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
A Price/Earnings ratio of 33.96 indicates a quite expensive valuation of ZWS.
75.61% of the companies in the same industry are cheaper than ZWS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ZWS to the average of the S&P500 Index (27.20), we can say ZWS is valued slightly more expensively.
With a Price/Forward Earnings ratio of 29.70, 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 73.17% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, ZWS is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.96 | ||
| Fwd PE | 29.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ZWS is valued a bit more expensive than 75.61% 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 | 28.1 | ||
| EV/EBITDA | 22.8 |
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.
The decent profitability rating of ZWS may justify a higher PE ratio.
PEG (NY)2.65
PEG (5Y)0.58
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.
Compared to an average S&P500 Dividend Yield of 2.38, 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.
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%
47.21
-0.07 (-0.15%)
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-0.41%
Market Cap7.91B
Analysts75
Price Target46.92 (-0.61%)
Short Float %3.05%
Short Ratio4.09
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)3.21%
PT rev (3m)24.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.63%
EPS NY rev (1m)6.62%
EPS NY rev (3m)6.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.4%
Revenue NY rev (1m)3%
Revenue NY rev (3m)3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.96 | ||
| Fwd PE | 29.7 | ||
| P/S | 4.9 | ||
| P/FCF | 28.1 | ||
| P/OCF | 25.68 | ||
| P/B | 5.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.8 |
EPS(TTM)1.39
EY2.94%
EPS(NY)1.59
Fwd EY3.37%
FCF(TTM)1.68
FCFY3.56%
OCF(TTM)1.84
OCFY3.89%
SpS9.63
BVpS9.34
TBVpS-0.57
PEG (NY)2.65
PEG (5Y)0.58
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 | 4.9 |
F-Score7
WACC10.24%
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%