ZURN ELKAY WATER SOLUTIONS C (ZWS)
US98983L1089 - Common Stock
We assign a fundamental rating of 5 out of 10 to ZWS. ZWS was compared to 39 industry peers in the Building Products industry. While ZWS has a great health rating, its profitability is only average at the moment. 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.
Each year in the past 5 years ZWS has been profitable.
Each year in the past 5 years ZWS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.09%, ZWS is doing worse than 64.10% of the companies in the same industry.
The Return On Equity of ZWS (8.68%) is worse than 64.10% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.24%, ZWS is doing worse than 66.67% of the companies in the same industry.
ZWS had an Average Return On Invested Capital over the past 3 years of 6.23%. This is significantly below the industry average of 13.33%.
The last Return On Invested Capital (7.24%) for ZWS is above the 3 year average (6.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.09% | ||
| ROE | 8.68% | ||
| ROIC | 7.24% |
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
Looking at the Profit Margin, with a value of 8.87%, ZWS is in line with its industry, outperforming 51.28% of the companies in the same industry.
In the last couple of years the Profit Margin of ZWS has grown nicely.
The Operating Margin of ZWS (16.27%) is comparable to the rest of the industry.
ZWS's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 45.20%, ZWS belongs to the best of the industry, outperforming 94.87% of the companies in the same industry.
ZWS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.27% | ||
| PM (TTM) | 8.87% | ||
| GM | 45.2% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ZWS is destroying value.
ZWS has less shares outstanding than it did 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
ZWS has an Altman-Z score of 3.89. This indicates that ZWS is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.89, ZWS perfoms like the industry average, outperforming 48.72% of the companies in the same industry.
The Debt to FCF ratio of ZWS is 1.84, which is an excellent value as it means it would take ZWS, only 1.84 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ZWS (1.84) is better than 69.23% 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 line with its industry, outperforming 58.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.84 | ||
| Altman-Z | 3.89 |
ROIC/WACC0.7
WACC10.38%
2.3 Liquidity
ZWS has a Current Ratio of 2.70. This indicates that ZWS is financially healthy and has no problem in meeting its short term obligations.
ZWS has a better Current ratio (2.70) than 71.79% of its industry peers.
ZWS has a Quick Ratio of 1.71. This is a normal value and indicates that ZWS is financially healthy and should not expect problems in meeting its short term obligations.
ZWS has a better Quick ratio (1.71) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.7 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.23% over the past year.
ZWS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.94% yearly.
The Revenue has been growing slightly by 2.55% in the past year.
The Revenue has been decreasing by -3.74% on average over the past years.
EPS 1Y (TTM)40.23%
EPS 3Y-22.43%
EPS 5Y7.94%
EPS Q2Q%17.24%
Revenue 1Y (TTM)2.55%
Revenue growth 3Y-9.55%
Revenue growth 5Y-3.74%
Sales Q2Q%2.91%
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 13.64% on average per year.
Based on estimates for the next years, ZWS will show a small growth in Revenue. The Revenue will grow by 4.66% on average per year.
EPS Next Y28.98%
EPS Next 2Y18.23%
EPS Next 3Y15.95%
EPS Next 5Y13.64%
Revenue Next Year2.53%
Revenue Next 2Y3.13%
Revenue Next 3Y4%
Revenue Next 5Y4.66%
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
ZWS is valuated quite expensively with a Price/Earnings ratio of 30.72.
ZWS's Price/Earnings ratio is a bit more expensive when compared to the industry. ZWS is more expensive than 74.36% of the companies in the same industry.
ZWS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.73.
With a Price/Forward Earnings ratio of 27.64, ZWS can be considered very expensive at the moment.
69.23% of the companies in the same industry are cheaper than ZWS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.83. ZWS is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.72 | ||
| Fwd PE | 27.64 |
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 69.23% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZWS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.56 | ||
| EV/EBITDA | 19.65 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ZWS's earnings are expected to grow with 15.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.06
PEG (5Y)3.87
EPS Next 2Y18.23%
EPS Next 3Y15.95%
5. Dividend
5.1 Amount
With a yearly dividend of 0.97%, ZWS is not a good candidate for dividend investing.
ZWS's Dividend Yield is a higher than the industry average which is at 1.05.
Compared to an average S&P500 Dividend Yield of 2.34, ZWS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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.
The dividend of ZWS decreased recently.
Dividend Growth(5Y)5.27%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
ZWS pays out 40.01% of its income as dividend. 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.
DP40.01%
EPS Next 2Y18.23%
EPS Next 3Y15.95%
ZURN ELKAY WATER SOLUTIONS C
NYSE:ZWS (12/20/2024, 8:04:00 PM)
After market: 37.48 0 (0%)37.48
+0.33 (+0.89%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners85.28%
Inst Owner Change9.72%
Ins Owners2.16%
Ins Owner Change-0.35%
Market Cap6.36B
Analysts73.33
Price Target39.49 (5.36%)
Short Float %4.38%
Short Ratio7.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Dividend Growth(5Y)5.27%
DP40.01%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.34%
Min EPS beat(2)3.96%
Max EPS beat(2)4.73%
EPS beat(4)4
Avg EPS beat(4)7.91%
Min EPS beat(4)3.96%
Max EPS beat(4)11.92%
EPS beat(8)7
Avg EPS beat(8)6.97%
EPS beat(12)11
Avg EPS beat(12)14.7%
EPS beat(16)15
Avg EPS beat(16)20.77%
Revenue beat(2)1
Avg Revenue beat(2)-0.13%
Min Revenue beat(2)-0.29%
Max Revenue beat(2)0.02%
Revenue beat(4)3
Avg Revenue beat(4)0.21%
Min Revenue beat(4)-0.29%
Max Revenue beat(4)0.81%
Revenue beat(8)5
Avg Revenue beat(8)0.73%
Revenue beat(12)7
Avg Revenue beat(12)0.55%
Revenue beat(16)7
Avg Revenue beat(16)-20.94%
PT rev (1m)4.63%
PT rev (3m)7.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.73%
EPS NY rev (1m)0.01%
EPS NY rev (3m)2.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.72 | ||
| Fwd PE | 27.64 | ||
| P/S | 4.1 | ||
| P/FCF | 23.56 | ||
| P/OCF | 22.08 | ||
| P/B | 4.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.65 |
EPS(TTM)1.22
EY3.26%
EPS(NY)1.36
Fwd EY3.62%
FCF(TTM)1.59
FCFY4.24%
OCF(TTM)1.7
OCFY4.53%
SpS9.15
BVpS9.35
TBVpS-0.7
PEG (NY)1.06
PEG (5Y)3.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.09% | ||
| ROE | 8.68% | ||
| ROCE | 10.41% | ||
| ROIC | 7.24% | ||
| ROICexc | 7.85% | ||
| ROICexgc | 32.95% | ||
| OM | 16.27% | ||
| PM (TTM) | 8.87% | ||
| GM | 45.2% | ||
| FCFM | 17.39% |
ROA(3y)5.87%
ROA(5y)4.5%
ROE(3y)35.5%
ROE(5y)24.01%
ROIC(3y)6.23%
ROIC(5y)6.81%
ROICexc(3y)6.81%
ROICexc(5y)7.67%
ROICexgc(3y)21.63%
ROICexgc(5y)25.17%
ROCE(3y)8.97%
ROCE(5y)9.8%
ROICexcg growth 3Y-5.38%
ROICexcg growth 5Y6.08%
ROICexc growth 3Y-11.15%
ROICexc growth 5Y-1.34%
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%
F-Score8
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.84 | ||
| Debt/EBITDA | 1.46 | ||
| Cap/Depr | 20.85% | ||
| Cap/Sales | 1.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.89% | ||
| Profit Quality | 196.08% | ||
| Current Ratio | 2.7 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 3.89 |
F-Score8
WACC10.38%
ROIC/WACC0.7
Cap/Depr(3y)22.75%
Cap/Depr(5y)32.94%
Cap/Sales(3y)1.51%
Cap/Sales(5y)1.75%
Profit Quality(3y)172.32%
Profit Quality(5y)518.58%
High Growth Momentum
Growth
EPS 1Y (TTM)40.23%
EPS 3Y-22.43%
EPS 5Y7.94%
EPS Q2Q%17.24%
EPS Next Y28.98%
EPS Next 2Y18.23%
EPS Next 3Y15.95%
EPS Next 5Y13.64%
Revenue 1Y (TTM)2.55%
Revenue growth 3Y-9.55%
Revenue growth 5Y-3.74%
Sales Q2Q%2.91%
Revenue Next Year2.53%
Revenue Next 2Y3.13%
Revenue Next 3Y4%
Revenue Next 5Y4.66%
EBIT growth 1Y31.15%
EBIT growth 3Y-14.57%
EBIT growth 5Y-4.91%
EBIT Next Year54.11%
EBIT Next 3Y21.14%
EBIT Next 5Y15.99%
FCF growth 1Y1830.77%
FCF growth 3Y-3.3%
FCF growth 5Y4.37%
OCF growth 1Y3101.04%
OCF growth 3Y-5.26%
OCF growth 5Y2.13%