ZURN ELKAY WATER SOLUTIONS C (ZWS) Fundamental Analysis & Valuation
NYSE:ZWS • US98983L1089
Current stock price
52.47 USD
-0.29 (-0.55%)
At close:
52.47 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.
- ZWS had a positive operating cash flow in the past year.
- 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
- ZWS's Return On Assets of 7.39% is fine compared to the rest of the industry. ZWS outperforms 63.41% of its industry peers.
- Looking at the Return On Equity, with a value of 12.35%, ZWS is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
- 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 11.84%.
- 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
- With a decent Profit Margin value of 11.68%, 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.
- Looking at the Operating Margin, with a value of 17.01%, ZWS is in the better half of 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.
- The Gross Margin of ZWS (45.10%) is better than 92.68% of its industry peers.
- ZWS's Gross Margin has improved in the last couple of years.
| 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
- ZWS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- ZWS has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ZWS has more shares outstanding
- The debt/assets ratio for ZWS has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 5.55 indicates that ZWS is not in any danger for bankruptcy at the moment.
- ZWS has a Altman-Z score of 5.55. This is in the better half of the industry: ZWS outperforms 73.17% of its industry peers.
- 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.
- The Debt to Equity ratio of ZWS (0.31) is better than 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.57 | ||
| Altman-Z | 5.55 |
ROIC/WACC0.88
WACC10.27%
2.3 Liquidity
- ZWS has a Current Ratio of 3.13. This indicates that ZWS is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of ZWS (3.13) is better than 82.93% of its industry peers.
- ZWS has a Quick Ratio of 2.07. This indicates that ZWS is financially healthy and has no problem in meeting its short term obligations.
- ZWS's Quick ratio of 2.07 is amongst the best of the industry. ZWS outperforms 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.
- The Revenue has grown by 8.26% in the past year. This is quite good.
- The Revenue has been decreasing by -3.89% on average over the past years.
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
- The Earnings Per Share is expected to grow by 9.96% on average over the next years. This is quite good.
- The Revenue is expected to grow by 5.79% on average over the next years.
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
- The EPS growth rate is accelerating: in the next years the growth will be better 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. ZWS Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 32.39, the valuation of ZWS can be described as expensive.
- Based on the Price/Earnings ratio, ZWS is valued a bit more expensive than 68.29% of the companies in the same industry.
- ZWS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.42, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 28.52, ZWS can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings 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 average S&P500 Price/Forward Earnings ratio is at 22.29. ZWS is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.39 | ||
| Fwd PE | 28.52 |
4.2 Price Multiples
- ZWS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ZWS is more expensive than 68.29% 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 | 27.77 | ||
| EV/EBITDA | 23.83 |
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)3.16
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 0.71.
- With a Dividend Yield of 0.94, ZWS pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
- The dividend of ZWS is nicely growing with an annual growth rate of 9.35%!
- ZWS has been paying a dividend for over 5 years, so it has already some track record.
- The dividend of ZWS decreased 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
52.47
-0.29 (-0.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
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 Cap8.79B
Revenue(TTM)1.70B
Net Income(TTM)198.00M
Analysts76
Price Target56.04 (6.8%)
Short Float %3.42%
Short Ratio5.06
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 | 32.39 | ||
| Fwd PE | 28.52 | ||
| P/S | 5.18 | ||
| P/FCF | 27.77 | ||
| P/OCF | 25.37 | ||
| P/B | 5.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.83 |
EPS(TTM)1.62
EY3.09%
EPS(NY)1.84
Fwd EY3.51%
FCF(TTM)1.89
FCFY3.6%
OCF(TTM)2.07
OCFY3.94%
SpS10.12
BVpS9.57
TBVpS-0.16
PEG (NY)3.16
PEG (5Y)N/A
Graham Number18.6766 (-64.41%)
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 | 5.55 |
F-Score8
WACC10.27%
ROIC/WACC0.88
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 32.39 and the Price/Book (PB) ratio is 5.48.
How financially healthy is ZURN ELKAY WATER SOLUTIONS C?
The financial health rating of ZURN ELKAY WATER SOLUTIONS C (ZWS) is 8 / 10.