ZURN ELKAY WATER SOLUTIONS C (ZWS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZWS - US98983L1089 - Common Stock
45.88 USD
-0.3 (-0.65%)
45.88 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ZWS. ZWS was compared to 42 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 valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make ZWS suitable 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.
Each year in the past 5 years ZWS has been profitable.
In the past 5 years ZWS always reported a positive cash flow from operatings.
1.2 Ratios
ZWS has a Return On Assets (7.16%) which is in line with its industry peers.
ZWS has a Return On Equity (12.08%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 8.54%, ZWS is in line with its industry, outperforming 50.00% of the companies in the same 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 12.61%.
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
Looking at the Profit Margin, with a value of 11.59%, ZWS is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
In the last couple of years the Profit Margin of ZWS has grown nicely.
Looking at the Operating Margin, with a value of 16.69%, ZWS is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
ZWS's Operating Margin has been stable in the last couple of years.
ZWS's Gross Margin of 44.91% is amongst the best of the industry. ZWS outperforms 90.48% of its industry peers.
In the last couple of years the Gross Margin of ZWS has grown nicely.
| 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.
Compared to 1 year ago, ZWS has less shares outstanding
ZWS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ZWS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.83 indicates that ZWS is not in any danger for bankruptcy at the moment.
ZWS has a better Altman-Z score (4.83) than 61.90% of its industry peers.
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 has a better Debt to FCF ratio (1.72) than 78.57% 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 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.72 | ||
| Altman-Z | 4.83 |
ROIC/WACC0.85
WACC10.01%
2.3 Liquidity
ZWS has a Current Ratio of 2.78. This indicates that ZWS is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ZWS (2.78) is better than 71.43% of its industry peers.
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.
The Quick ratio of ZWS (1.83) is better than 73.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
ZWS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.31%, which is quite impressive.
The Earnings Per Share has been growing by 58.83% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 6.88% in the past 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)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
Based on estimates for the next years, ZWS will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.36% on average per year.
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 Y18.72%
EPS Next 2Y14.13%
EPS Next 3Y12.75%
EPS Next 5Y12.36%
Revenue Next Year8.17%
Revenue Next 2Y6.74%
Revenue Next 3Y6.2%
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.
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 31.00, ZWS can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of ZWS indicates a slightly more expensive valuation: ZWS is more expensive than 73.81% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ZWS to the average of the S&P500 Index (27.00), we can say ZWS is valued inline with the index average.
A Price/Forward Earnings ratio of 27.52 indicates a quite expensive valuation of ZWS.
ZWS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ZWS is more expensive than 71.43% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ZWS to the average of the S&P500 Index (23.70), we can say ZWS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31 | ||
| Fwd PE | 27.52 |
4.2 Price Multiples
78.57% of the companies in the same industry are cheaper than ZWS, based on the Enterprise Value to EBITDA ratio.
ZWS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.6 | ||
| EV/EBITDA | 21.72 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ZWS may justify a higher PE ratio.
A more expensive valuation may be justified as ZWS's earnings are expected to grow with 12.75% in the coming years.
PEG (NY)1.66
PEG (5Y)0.53
EPS Next 2Y14.13%
EPS Next 3Y12.75%
5. Dividend
5.1 Amount
ZWS has a yearly dividend return of 0.95%, which is pretty low.
Compared to an average industry Dividend Yield of 0.73, ZWS pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.95, ZWS pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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.
ZWS has decreased its dividend recently.
Dividend Growth(5Y)8.28%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
ZWS pays out 31.57% of its income as dividend. This is a sustainable payout ratio.
ZWS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP31.57%
EPS Next 2Y14.13%
EPS Next 3Y12.75%
45.88
-0.3 (-0.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners94.67%
Inst Owner Change-0.02%
Ins Owners2.35%
Ins Owner Change-0.9%
Market Cap7.68B
Revenue(TTM)1.66B
Net Income(TTM)192.30M
Analysts75
Price Target52.28 (13.95%)
Short Float %3.64%
Short Ratio6.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend0.33
Dividend Growth(5Y)8.28%
DP31.57%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)1.92%
PT rev (3m)8.71%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)10.07%
EPS NY rev (1m)0.05%
EPS NY rev (3m)5.12%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)3.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31 | ||
| Fwd PE | 27.52 | ||
| P/S | 4.63 | ||
| P/FCF | 26.6 | ||
| P/OCF | 24.11 | ||
| P/B | 4.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.72 |
EPS(TTM)1.48
EY3.23%
EPS(NY)1.67
Fwd EY3.63%
FCF(TTM)1.72
FCFY3.76%
OCF(TTM)1.9
OCFY4.15%
SpS9.92
BVpS9.51
TBVpS-0.31
PEG (NY)1.66
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 | 4.83 |
F-Score7
WACC10.01%
ROIC/WACC0.85
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 Y18.72%
EPS Next 2Y14.13%
EPS Next 3Y12.75%
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 2Y6.74%
Revenue Next 3Y6.2%
Revenue Next 5Y6.26%
EBIT growth 1Y9.66%
EBIT growth 3Y32.6%
EBIT growth 5Y-4.07%
EBIT Next Year49.82%
EBIT Next 3Y20.06%
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.
What is the valuation status for ZWS stock?
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 financial health of ZURN ELKAY WATER SOLUTIONS C (ZWS) stock?
The financial health rating of ZURN ELKAY WATER SOLUTIONS C (ZWS) is 7 / 10.
What is the earnings growth outlook for ZURN ELKAY WATER SOLUTIONS C?
The Earnings per Share (EPS) of ZURN ELKAY WATER SOLUTIONS C (ZWS) is expected to grow by 18.72% in the next year.