ZURN ELKAY WATER SOLUTIONS C (ZWS) Stock Fundamental Analysis
USA - NYSE:ZWS - US98983L1089 - Common Stock
47.46 USD
-0.17 (-0.36%)
47.46 USD
0 (0%)
Overall ZWS gets a fundamental rating of 6 out of 10. We evaluated ZWS against 41 industry peers in the Building Products industry. Both the health and profitability get an excellent rating, making ZWS a very profitable company, without any liquidiy or solvency issues. 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.
ZWS had a positive operating cash flow in the past year.
ZWS had positive earnings in each of the past 5 years.
Each year in the past 5 years ZWS had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 7.16%, ZWS perfoms like the industry average, outperforming 58.54% of the companies in the same industry.
ZWS's Return On Equity of 12.08% is in line compared to the rest of the industry. ZWS outperforms 56.10% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.54%, ZWS is in line with its industry, outperforming 51.22% 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 12.50%.
The 3 year average ROIC (6.01%) for ZWS is below the current ROIC(8.54%), indicating increased profibility in the last year.
| 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 65.85% 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 16.69%, ZWS is in the better half of the industry, outperforming 65.85% 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 90.24% of its industry peers.
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
An Altman-Z score of 4.96 indicates that ZWS is not in any danger for bankruptcy at the moment.
The Altman-Z score of ZWS (4.96) is better than 60.98% 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.
With an excellent Debt to FCF ratio value of 1.72, ZWS belongs to the best of the industry, outperforming 80.49% of the companies in the same industry.
ZWS has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
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 | 4.96 |
ROIC/WACC0.94
WACC9.11%
2.3 Liquidity
A Current Ratio of 2.78 indicates that ZWS has no problem at all paying its short term obligations.
ZWS has a better Current ratio (2.78) than 73.17% of its industry peers.
A Quick Ratio of 1.83 indicates that ZWS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.83, ZWS is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
| 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.
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
The Earnings Per Share is expected to grow by 12.36% on average over the next years. This is quite good.
ZWS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.26% yearly.
EPS Next Y17.68%
EPS Next 2Y13.74%
EPS Next 3Y12.16%
EPS Next 5Y12.36%
Revenue Next Year7.92%
Revenue Next 2Y6.42%
Revenue Next 3Y5.9%
Revenue Next 5Y6.26%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 32.07, 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 70.73% of the companies listed in the same industry.
ZWS's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.83.
With a Price/Forward Earnings ratio of 28.66, ZWS can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, ZWS is valued a bit more expensive than 73.17% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 32.68. ZWS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.07 | ||
| Fwd PE | 28.66 |
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 73.17% 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 | 27.55 | ||
| EV/EBITDA | 22.33 |
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.
A more expensive valuation may be justified as ZWS's earnings are expected to grow with 12.16% in the coming years.
PEG (NY)1.81
PEG (5Y)0.55
EPS Next 2Y13.74%
EPS Next 3Y12.16%
5. Dividend
5.1 Amount
With a yearly dividend of 0.94%, ZWS is not a good candidate for dividend investing.
ZWS's Dividend Yield is a higher than the industry average which is at 1.31.
Compared to an average S&P500 Dividend Yield of 2.37, ZWS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
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
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 2Y13.74%
EPS Next 3Y12.16%
47.46
-0.17 (-0.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners92.61%
Inst Owner Change-1.78%
Ins Owners2.4%
Ins Owner Change-0.46%
Market Cap7.95B
Revenue(TTM)1.66B
Net Income(TTM)192.30M
Analysts75
Price Target48.38 (1.94%)
Short Float %3.82%
Short Ratio6.26
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)0.61%
PT rev (3m)6.41%
EPS NQ rev (1m)9.58%
EPS NQ rev (3m)9.58%
EPS NY rev (1m)4.2%
EPS NY rev (3m)11.19%
Revenue NQ rev (1m)3.56%
Revenue NQ rev (3m)3.56%
Revenue NY rev (1m)1.19%
Revenue NY rev (3m)4.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.07 | ||
| Fwd PE | 28.66 | ||
| P/S | 4.79 | ||
| P/FCF | 27.55 | ||
| P/OCF | 24.97 | ||
| P/B | 5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.33 |
EPS(TTM)1.48
EY3.12%
EPS(NY)1.66
Fwd EY3.49%
FCF(TTM)1.72
FCFY3.63%
OCF(TTM)1.9
OCFY4%
SpS9.9
BVpS9.5
TBVpS-0.31
PEG (NY)1.81
PEG (5Y)0.55
Graham Number17.79
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 | 4.96 |
F-Score7
WACC9.11%
ROIC/WACC0.94
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 Y17.68%
EPS Next 2Y13.74%
EPS Next 3Y12.16%
EPS Next 5Y12.36%
Revenue 1Y (TTM)6.88%
Revenue growth 3Y19.81%
Revenue growth 5Y-5.25%
Sales Q2Q%11.07%
Revenue Next Year7.92%
Revenue Next 2Y6.42%
Revenue Next 3Y5.9%
Revenue Next 5Y6.26%
EBIT growth 1Y9.66%
EBIT growth 3Y32.6%
EBIT growth 5Y-4.07%
EBIT Next Year46.7%
EBIT Next 3Y18.76%
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 32.07 and the Price/Book (PB) ratio is 5.
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.