ZURN ELKAY WATER SOLUTIONS C (ZWS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZWS - US98983L1089 - Common Stock
46.2 USD
-0.18 (-0.39%)
Overall ZWS gets a fundamental rating of 6 out of 10. We evaluated ZWS against 41 industry peers in the Building Products industry. ZWS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ZWS is quite expensive at the moment. 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.
In the past year ZWS had a positive cash flow from operations.
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
ZWS has a Return On Assets of 7.16%. This is comparable to the rest of the industry: ZWS outperforms 56.10% of its industry peers.
Looking at the Return On Equity, with a value of 12.08%, ZWS is in line with its industry, outperforming 56.10% of the companies in the same industry.
The Return On Invested Capital of ZWS (8.54%) is comparable to the rest of the industry.
ZWS had an Average Return On Invested Capital over the past 3 years of 6.01%. This is significantly below the industry average of 12.52%.
The last Return On Invested Capital (8.54%) for ZWS is above the 3 year average (6.01%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.16% | ||
| ROE | 12.08% | ||
| ROIC | 8.54% |
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's Profit Margin of 11.59% is fine compared to the rest of the industry. ZWS outperforms 63.41% of its industry peers.
In the last couple of years the Profit Margin of ZWS has grown nicely.
ZWS has a better Operating Margin (16.69%) than 65.85% of its industry peers.
In the last couple of years the Operating Margin of ZWS has remained more or less at the same level.
With an excellent Gross Margin value of 44.91%, ZWS belongs to the best of the industry, outperforming 90.24% of the companies in the same industry.
ZWS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.69% | ||
| PM (TTM) | 11.59% | ||
| GM | 44.91% |
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.
The number of shares outstanding for ZWS has been reduced compared to 1 year ago.
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 4.85. This indicates that ZWS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.85, ZWS is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
The Debt to FCF ratio of ZWS is 1.72, which is an excellent value as it means it would take ZWS, only 1.72 years of fcf income to pay off all of its debts.
ZWS's Debt to FCF ratio of 1.72 is fine compared to the rest of the industry. ZWS outperforms 78.05% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that ZWS is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.31, ZWS is doing good in the industry, outperforming 68.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.72 | ||
| Altman-Z | 4.85 |
ROIC/WACC0.89
WACC9.57%
2.3 Liquidity
A Current Ratio of 2.78 indicates that ZWS has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.78, ZWS is doing good in the industry, outperforming 73.17% of the companies in the same industry.
ZWS has a Quick Ratio of 1.83. 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 (1.83) than 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.31% 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.
The Revenue has been growing slightly by 6.88% in the past year.
The Revenue has been decreasing by -5.25% on average over the past years.
EPS 1Y (TTM)21.31%
EPS 3Y-11.07%
EPS 5Y58.83%
EPS Q2Q%26.47%
Revenue 1Y (TTM)6.88%
Revenue growth 3Y19.81%
Revenue growth 5Y-5.25%
Sales Q2Q%11.07%
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 12.36% yearly.
Based on estimates for the next years, ZWS will show a small growth in Revenue. The Revenue will grow by 6.26% on average per year.
EPS Next Y18.67%
EPS Next 2Y14.04%
EPS Next 3Y12.53%
EPS Next 5Y12.36%
Revenue Next Year8.17%
Revenue Next 2Y6.71%
Revenue Next 3Y6.07%
Revenue Next 5Y6.26%
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.
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. Valuation
4.1 Price/Earnings Ratio
ZWS is valuated quite expensively with a Price/Earnings ratio of 31.22.
ZWS's Price/Earnings ratio is a bit more expensive when compared to the industry. ZWS is more expensive than 75.61% of the companies in the same industry.
ZWS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.34.
A Price/Forward Earnings ratio of 27.75 indicates a quite expensive valuation of ZWS.
Based on the Price/Forward Earnings ratio, ZWS is valued a bit more expensive than 70.73% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ZWS to the average of the S&P500 Index (23.56), we can say ZWS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.22 | ||
| Fwd PE | 27.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ZWS is valued a bit more expensive than the industry average as 78.05% of the companies are valued more cheaply.
ZWS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.79 | ||
| EV/EBITDA | 21.81 |
4.3 Compensation for Growth
ZWS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ZWS has a very decent profitability rating, which may justify a higher PE ratio.
ZWS's earnings are expected to grow with 12.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.67
PEG (5Y)0.53
EPS Next 2Y14.04%
EPS Next 3Y12.53%
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 1.31.
With a Dividend Yield of 0.94, ZWS pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
On average, the dividend of ZWS grows each year by 8.28%, 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 recently.
Dividend Growth(5Y)8.28%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
31.57% of the earnings are spent on dividend by ZWS. This is a low number and sustainable payout ratio.
ZWS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP31.57%
EPS Next 2Y14.04%
EPS Next 3Y12.53%
NYSE:ZWS (12/9/2025, 10:28:26 AM)
46.2
-0.18 (-0.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners94.64%
Inst Owner Change0.96%
Ins Owners2.38%
Ins Owner Change-0.66%
Market Cap7.73B
Revenue(TTM)1.66B
Net Income(TTM)192.30M
Analysts75
Price Target51.29 (11.02%)
Short Float %3.74%
Short Ratio6.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Yearly Dividend0.33
Dividend Growth(5Y)8.28%
DP31.57%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.43%
Min EPS beat(2)7.36%
Max EPS beat(2)15.51%
EPS beat(4)4
Avg EPS beat(4)10.61%
Min EPS beat(4)5.84%
Max EPS beat(4)15.51%
EPS beat(8)8
Avg EPS beat(8)9.26%
EPS beat(12)11
Avg EPS beat(12)8.18%
EPS beat(16)15
Avg EPS beat(16)13.68%
Revenue beat(2)2
Avg Revenue beat(2)2.71%
Min Revenue beat(2)1.87%
Max Revenue beat(2)3.54%
Revenue beat(4)4
Avg Revenue beat(4)1.47%
Min Revenue beat(4)0.17%
Max Revenue beat(4)3.54%
Revenue beat(8)7
Avg Revenue beat(8)0.84%
Revenue beat(12)9
Avg Revenue beat(12)0.97%
Revenue beat(16)11
Avg Revenue beat(16)0.78%
PT rev (1m)6.02%
PT rev (3m)10.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)10.09%
EPS NY rev (1m)0.84%
EPS NY rev (3m)5.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.56%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)1.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.22 | ||
| Fwd PE | 27.75 | ||
| P/S | 4.66 | ||
| P/FCF | 26.79 | ||
| P/OCF | 24.28 | ||
| P/B | 4.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.81 |
EPS(TTM)1.48
EY3.2%
EPS(NY)1.66
Fwd EY3.6%
FCF(TTM)1.72
FCFY3.73%
OCF(TTM)1.9
OCFY4.12%
SpS9.92
BVpS9.51
TBVpS-0.31
PEG (NY)1.67
PEG (5Y)0.53
Graham Number17.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.16% | ||
| ROE | 12.08% | ||
| ROCE | 11.56% | ||
| ROIC | 8.54% | ||
| ROICexc | 9.58% | ||
| ROICexgc | 41.57% | ||
| OM | 16.69% | ||
| PM (TTM) | 11.59% | ||
| GM | 44.91% | ||
| FCFM | 17.39% |
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%
ROICexgc growth 3Y11.52%
ROICexgc 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 Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.72 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 33.22% | ||
| Cap/Sales | 1.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.83% | ||
| Profit Quality | 150.08% | ||
| Current Ratio | 2.78 | ||
| Quick Ratio | 1.83 | ||
| Altman-Z | 4.85 |
F-Score7
WACC9.57%
ROIC/WACC0.89
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)21.31%
EPS 3Y-11.07%
EPS 5Y58.83%
EPS Q2Q%26.47%
EPS Next Y18.67%
EPS Next 2Y14.04%
EPS Next 3Y12.53%
EPS Next 5Y12.36%
Revenue 1Y (TTM)6.88%
Revenue growth 3Y19.81%
Revenue growth 5Y-5.25%
Sales Q2Q%11.07%
Revenue Next Year8.17%
Revenue Next 2Y6.71%
Revenue Next 3Y6.07%
Revenue Next 5Y6.26%
EBIT growth 1Y9.66%
EBIT growth 3Y32.6%
EBIT growth 5Y-4.07%
EBIT Next Year49.83%
EBIT Next 3Y19.99%
EBIT Next 5Y15.74%
FCF growth 1Y10.62%
FCF growth 3Y10.7%
FCF growth 5Y4.97%
OCF growth 1Y13.67%
OCF growth 3Y9.49%
OCF growth 5Y2.6%
ZURN ELKAY WATER SOLUTIONS C / ZWS FAQ
What is the fundamental rating for ZWS stock?
ChartMill assigns a fundamental rating of 6 / 10 to ZWS.
Can you provide the valuation status for ZURN ELKAY WATER SOLUTIONS C?
ChartMill assigns a valuation rating of 2 / 10 to ZURN ELKAY WATER SOLUTIONS C (ZWS). This can be considered as Overvalued.
Can you provide the profitability details for ZURN ELKAY WATER SOLUTIONS C?
ZURN ELKAY WATER SOLUTIONS C (ZWS) has a profitability rating of 7 / 10.
What is the valuation of ZURN ELKAY WATER SOLUTIONS C based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ZURN ELKAY WATER SOLUTIONS C (ZWS) is 31.22 and the Price/Book (PB) ratio is 4.86.
What is the financial health of ZURN ELKAY WATER SOLUTIONS C (ZWS) stock?
The financial health rating of ZURN ELKAY WATER SOLUTIONS C (ZWS) is 7 / 10.