ZURN ELKAY WATER SOLUTIONS C (ZWS) Stock Fundamental Analysis
NYSE:ZWS - New York Stock Exchange, Inc. - US98983L1089 - Common Stock - Currency: USD
Taking everything into account, ZWS scores 5 out of 10 in our fundamental rating. ZWS was compared to 40 industry peers in the Building Products industry. ZWS has only an average score on both its financial health and profitability. 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.
Each year in the past 5 years ZWS has been profitable.
ZWS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ZWS (6.05%) is worse than 60.00% of its industry peers.
Looking at the Return On Equity, with a value of 10.10%, ZWS is doing worse than 62.50% of the companies in the same industry.
ZWS has a worse Return On Invested Capital (7.94%) than 62.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ZWS is significantly below the industry average of 13.20%.
The 3 year average ROIC (6.01%) for ZWS is below the current ROIC(7.94%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.05% | ||
| ROE | 10.1% | ||
| ROIC | 7.94% |
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
ZWS has a Profit Margin (10.23%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ZWS has grown nicely.
Looking at the Operating Margin, with a value of 16.48%, ZWS is in line with its industry, outperforming 57.50% 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.
Looking at the Gross Margin, with a value of 45.13%, ZWS belongs to the top of the industry, outperforming 95.00% 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 | 16.48% | ||
| PM (TTM) | 10.23% | ||
| GM | 45.13% |
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
ZWS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ZWS has less shares outstanding
Compared to 5 years ago, ZWS has more shares outstanding
ZWS has a worse debt/assets ratio than last year.
2.2 Solvency
ZWS has an Altman-Z score of 3.86. This indicates that ZWS is financially healthy and has little risk of bankruptcy at the moment.
ZWS has a Altman-Z score of 3.86. This is comparable to the rest of the industry: ZWS outperforms 50.00% of its industry peers.
ZWS has a debt to FCF ratio of 1.82. This is a very positive value and a sign of high solvency as it would only need 1.82 years to pay back of all of its debts.
The Debt to FCF ratio of ZWS (1.82) is better than 70.00% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that ZWS is not too dependend on debt financing.
The Debt to Equity ratio of ZWS (0.31) is better than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 3.86 |
ROIC/WACC0.76
WACC10.47%
2.3 Liquidity
ZWS has a Current Ratio of 2.91. This indicates that ZWS is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.91, ZWS is doing good in the industry, outperforming 75.00% of the companies in the same industry.
ZWS has a Quick Ratio of 1.81. This is a normal value and indicates that ZWS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ZWS (1.81) is better than 72.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.96% over the past year.
Measured over the past years, ZWS shows a very strong growth in Earnings Per Share. The EPS has been growing by 58.83% on average per year.
Looking at the last year, ZWS shows a small growth in Revenue. The Revenue has grown by 2.35% in the last year.
Measured over the past years, ZWS shows a decrease in Revenue. The Revenue has been decreasing by -5.25% on average per year.
EPS 1Y (TTM)31.96%
EPS 3Y-11.07%
EPS 5Y58.83%
EPS Q2Q%23.08%
Revenue 1Y (TTM)2.35%
Revenue growth 3Y19.81%
Revenue growth 5Y-5.25%
Sales Q2Q%3.9%
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 9.47% on average per year.
Based on estimates for the next years, ZWS will show a small growth in Revenue. The Revenue will grow by 5.22% on average per year.
EPS Next Y5.93%
EPS Next 2Y8.79%
EPS Next 3Y10.07%
EPS Next 5Y9.47%
Revenue Next Year3.61%
Revenue Next 2Y4.37%
Revenue Next 3Y4.62%
Revenue Next 5Y5.22%
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 decreasing.
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 27.25, ZWS can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ZWS is valued a bit more expensive than 67.50% of the companies in the same industry.
When comparing the Price/Earnings ratio of ZWS to the average of the S&P500 Index (29.63), we can say ZWS is valued inline with the index average.
The Price/Forward Earnings ratio is 25.72, which means the current valuation is very expensive for ZWS.
Based on the Price/Forward Earnings ratio, ZWS is valued a bit more expensive than the industry average as 65.00% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of ZWS to the average of the S&P500 Index (22.68), we can say ZWS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.25 | ||
| Fwd PE | 25.72 |
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 65.00% 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 | 21.83 | ||
| EV/EBITDA | 17.98 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)4.59
PEG (5Y)0.46
EPS Next 2Y8.79%
EPS Next 3Y10.07%
5. Dividend
5.1 Amount
ZWS has a Yearly Dividend Yield of 1.01%. Purely for dividend investing, there may be better candidates out there.
ZWS's Dividend Yield is a higher than the industry average which is at 1.11.
Compared to an average S&P500 Dividend Yield of 2.27, 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 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 35.33% of its income as dividend. This is a 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.
DP35.33%
EPS Next 2Y8.79%
EPS Next 3Y10.07%
34.88
-0.47 (-1.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners85.99%
Inst Owner Change-83.94%
Ins Owners2.27%
Ins Owner Change-44.58%
Market Cap5.93B
Analysts73.33
Price Target41.38 (18.64%)
Short Float %4.26%
Short Ratio6.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
Yearly Dividend0.33
Dividend Growth(5Y)8.28%
DP35.33%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.23%
Min EPS beat(2)4.73%
Max EPS beat(2)13.74%
EPS beat(4)4
Avg EPS beat(4)8.37%
Min EPS beat(4)3.96%
Max EPS beat(4)13.74%
EPS beat(8)8
Avg EPS beat(8)9.18%
EPS beat(12)11
Avg EPS beat(12)7.68%
EPS beat(16)15
Avg EPS beat(16)21.56%
Revenue beat(2)2
Avg Revenue beat(2)0.1%
Min Revenue beat(2)0.02%
Max Revenue beat(2)0.17%
Revenue beat(4)3
Avg Revenue beat(4)0.05%
Min Revenue beat(4)-0.29%
Max Revenue beat(4)0.3%
Revenue beat(8)6
Avg Revenue beat(8)1.03%
Revenue beat(12)7
Avg Revenue beat(12)0.28%
Revenue beat(16)8
Avg Revenue beat(16)-9.65%
PT rev (1m)2.9%
PT rev (3m)4.8%
EPS NQ rev (1m)-3.33%
EPS NQ rev (3m)-4.92%
EPS NY rev (1m)0%
EPS NY rev (3m)0.4%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-1.44%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.25 | ||
| Fwd PE | 25.72 | ||
| P/S | 3.79 | ||
| P/FCF | 21.83 | ||
| P/OCF | 20.21 | ||
| P/B | 3.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.98 |
EPS(TTM)1.28
EY3.67%
EPS(NY)1.36
Fwd EY3.89%
FCF(TTM)1.6
FCFY4.58%
OCF(TTM)1.73
OCFY4.95%
SpS9.21
BVpS9.33
TBVpS-0.58
PEG (NY)4.59
PEG (5Y)0.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.05% | ||
| ROE | 10.1% | ||
| ROCE | 10.75% | ||
| ROIC | 7.94% | ||
| ROICexc | 8.66% | ||
| ROICexgc | 36.89% | ||
| OM | 16.48% | ||
| PM (TTM) | 10.23% | ||
| GM | 45.13% | ||
| FCFM | 17.34% |
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 Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.82 | ||
| Debt/EBITDA | 1.43 | ||
| Cap/Depr | 24.69% | ||
| Cap/Sales | 1.39% | ||
| Interest Coverage | 8.35 | ||
| Cash Conversion | 84.73% | ||
| Profit Quality | 169.6% | ||
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.81 | ||
| Altman-Z | 3.86 |
F-Score7
WACC10.47%
ROIC/WACC0.76
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)31.96%
EPS 3Y-11.07%
EPS 5Y58.83%
EPS Q2Q%23.08%
EPS Next Y5.93%
EPS Next 2Y8.79%
EPS Next 3Y10.07%
EPS Next 5Y9.47%
Revenue 1Y (TTM)2.35%
Revenue growth 3Y19.81%
Revenue growth 5Y-5.25%
Sales Q2Q%3.9%
Revenue Next Year3.61%
Revenue Next 2Y4.37%
Revenue Next 3Y4.62%
Revenue Next 5Y5.22%
EBIT growth 1Y18.34%
EBIT growth 3Y32.6%
EBIT growth 5Y-4.07%
EBIT Next Year38.86%
EBIT Next 3Y18.24%
EBIT Next 5Y15.62%
FCF growth 1Y16.81%
FCF growth 3Y10.7%
FCF growth 5Y4.97%
OCF growth 1Y15.6%
OCF growth 3Y9.49%
OCF growth 5Y2.6%