ZURN ELKAY WATER SOLUTIONS C (ZWS)
US98983L1089 - Common Stock
Taking everything into account, ZWS scores 5 out of 10 in our fundamental rating. 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. ZWS is quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years ZWS has always been profitable.
ZWS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.09%, ZWS is doing worse than 66.67% of the companies in the same industry.
The Return On Equity of ZWS (8.68%) is worse than 66.67% of its industry peers.
ZWS has a worse Return On Invested Capital (7.24%) than 69.23% 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 13.66%.
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
ZWS has a Profit Margin (8.87%) which is in line with its industry peers.
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
ZWS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 better debt/assets ratio than last year.
2.2 Solvency
ZWS has an Altman-Z score of 4.06. This indicates that ZWS is financially healthy and has little risk of bankruptcy at the moment.
ZWS has a Altman-Z score (4.06) which is comparable to the rest of the 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.
ZWS's Debt to FCF ratio of 1.84 is fine compared to the rest of the industry. ZWS outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that ZWS is not too dependend on debt financing.
ZWS's Debt to Equity ratio of 0.31 is in line compared to the rest of the industry. ZWS outperforms 56.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.84 | ||
| Altman-Z | 4.06 |
ROIC/WACC0.7
WACC10.29%
2.3 Liquidity
A Current Ratio of 2.70 indicates that ZWS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.70, ZWS is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
A Quick Ratio of 1.71 indicates that ZWS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.71, ZWS is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| 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.
Looking at the last year, ZWS shows a small growth in Revenue. The Revenue has grown by 2.55% in the last 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
The Earnings Per Share is expected to grow by 13.25% 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 4.21% yearly.
EPS Next Y28.96%
EPS Next 2Y17.99%
EPS Next 3Y15.72%
EPS Next 5Y13.25%
Revenue Next Year2.53%
Revenue Next 2Y3.1%
Revenue Next 3Y3.96%
Revenue Next 5Y4.21%
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 32.25.
Based on the Price/Earnings ratio, ZWS is valued a bit more expensive than 76.92% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. ZWS is around the same levels.
The Price/Forward Earnings ratio is 29.14, which means the current valuation is very expensive for ZWS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ZWS indicates a slightly more expensive valuation: ZWS is more expensive than 69.23% of the companies listed in the same industry.
ZWS's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.25 | ||
| Fwd PE | 29.14 |
4.2 Price Multiples
71.79% 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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.73 | ||
| EV/EBITDA | 20.58 |
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's earnings are expected to grow with 15.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.11
PEG (5Y)4.06
EPS Next 2Y17.99%
EPS Next 3Y15.72%
5. Dividend
5.1 Amount
With a yearly dividend of 0.93%, ZWS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.94, ZWS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, ZWS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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.
Dividend Growth(5Y)5.27%
Div Incr Years0
Div Non Decr Years0
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 2Y17.99%
EPS Next 3Y15.72%
ZURN ELKAY WATER SOLUTIONS C
NYSE:ZWS (11/21/2024, 8:04:00 PM)
After market: 39.35 0 (0%)39.35
+0.54 (+1.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.68B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.25 | ||
| Fwd PE | 29.14 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.11
PEG (5Y)4.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.09% | ||
| ROE | 8.68% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.27% | ||
| PM (TTM) | 8.87% | ||
| GM | 45.2% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.7 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)40.23%
EPS 3Y-22.43%
EPS 5Y
EPS Q2Q%
EPS Next Y28.96%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.55%
Revenue growth 3Y-9.55%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y