ZURN ELKAY WATER SOLUTIONS C (ZWS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZWS - US98983L1089 - Common Stock
46.55 USD
+0.39 (+0.84%)
46.55 USD
0 (0%)
Taking everything into account, ZWS scores 6 out of 10 in our fundamental rating. ZWS was compared to 42 industry peers in the Building Products industry. ZWS gets an excellent profitability rating and is at the same time showing great financial health properties. ZWS is valied quite expensively at the moment, while 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.
- ZWS had a positive operating cash flow in the past year.
- 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
- With a Return On Assets value of 7.16%, ZWS perfoms like the industry average, outperforming 54.76% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 12.08%, ZWS is in line with its industry, outperforming 54.76% of the companies in the same industry.
- ZWS's Return On Invested Capital of 8.54% is in line compared to the rest of the industry. ZWS outperforms 50.00% of its industry peers.
- ZWS had an Average Return On Invested Capital over the past 3 years of 6.01%. This is significantly below the industry average of 12.63%.
- 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
- The Profit Margin of ZWS (11.59%) is better than 64.29% of its industry peers.
- In the last couple of years the Profit Margin of ZWS has grown nicely.
- ZWS has a Operating Margin of 16.69%. This is in the better half of the industry: ZWS outperforms 66.67% of its industry peers.
- ZWS's Operating Margin has been stable in the last couple of years.
- The Gross Margin of ZWS (44.91%) is better than 90.48% 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
- 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.
- The number of shares outstanding for ZWS has been increased compared to 5 years ago.
- Compared to 1 year ago, ZWS has a worse debt to assets ratio.
2.2 Solvency
- ZWS has an Altman-Z score of 4.87. This indicates that ZWS is financially healthy and has little risk of bankruptcy at the moment.
- ZWS's Altman-Z score of 4.87 is fine compared to the rest of the industry. ZWS outperforms 61.90% of its industry peers.
- ZWS has a debt to FCF ratio of 1.72. This is a very positive value and a sign of high solvency as it would only need 1.72 years to pay back of all of its debts.
- The Debt to FCF ratio of ZWS (1.72) is better than 78.57% of its industry peers.
- ZWS has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
- ZWS's Debt to Equity ratio of 0.31 is fine compared to the rest of the industry. ZWS outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.72 | ||
| Altman-Z | 4.87 |
ROIC/WACC0.88
WACC9.71%
2.3 Liquidity
- A Current Ratio of 2.78 indicates that ZWS has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.78, ZWS is in the better half of the industry, outperforming 71.43% 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 Quick ratio of 1.83. This is in the better half of the industry: ZWS outperforms 73.81% 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.
- 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.
- 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.
- The Revenue is expected to grow by 6.26% on average over the next years.
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
- 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.
- 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
- A Price/Earnings ratio of 31.45 indicates a quite expensive valuation of ZWS.
- Based on the Price/Earnings ratio, ZWS is valued a bit more expensive than 73.81% of the companies in the same industry.
- ZWS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.33.
- ZWS is valuated quite expensively with a Price/Forward Earnings ratio of 27.92.
- 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.
- ZWS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.45 | ||
| Fwd PE | 27.92 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ZWS is valued a bit more expensive than 76.19% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZWS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.99 | ||
| EV/EBITDA | 21.89 |
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)1.68
PEG (5Y)0.53
EPS Next 2Y14.13%
EPS Next 3Y12.75%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.94%, ZWS is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.70, ZWS pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.94, ZWS pays less dividend than the S&P500 average, which is at 1.91.
| 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.
- The dividend of ZWS decreased 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.
- The dividend of ZWS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP31.57%
EPS Next 2Y14.13%
EPS Next 3Y12.75%
46.55
+0.39 (+0.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)10-28 2025-10-28/amc
Earnings (Next)02-02 2026-02-02/amc
Inst Owners94.67%
Inst Owner Change0.09%
Ins Owners2.35%
Ins Owner Change-0.89%
Market Cap7.79B
Revenue(TTM)1.66B
Net Income(TTM)192.30M
Analysts76.92
Price Target52.28 (12.31%)
Short Float %3.64%
Short Ratio6.45
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-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 | 31.45 | ||
| Fwd PE | 27.92 | ||
| P/S | 4.69 | ||
| P/FCF | 26.99 | ||
| P/OCF | 24.47 | ||
| P/B | 4.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.89 |
EPS(TTM)1.48
EY3.18%
EPS(NY)1.67
Fwd EY3.58%
FCF(TTM)1.72
FCFY3.7%
OCF(TTM)1.9
OCFY4.09%
SpS9.92
BVpS9.51
TBVpS-0.31
PEG (NY)1.68
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 | 4.87 |
F-Score7
WACC9.71%
ROIC/WACC0.88
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.