ZURN ELKAY WATER SOLUTIONS C (ZWS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZWS - US98983L1089 - Common Stock
47.5 USD
+0.14 (+0.3%)
47.5 USD
0 (0%)
Taking everything into account, ZWS scores 6 out of 10 in our fundamental rating. ZWS was compared to 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. With these ratings, ZWS could be worth investigating further 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.
Each year in the past 5 years ZWS has been profitable.
Each year in the past 5 years ZWS had a positive operating cash flow.
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 in line with 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.
Measured over the past 3 years, the Average Return On Invested Capital for ZWS is significantly below the industry average of 12.58%.
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 has a Profit Margin of 11.59%. This is in the better half of the industry: ZWS outperforms 63.41% of its industry peers.
ZWS's Profit Margin has improved in the last couple of years.
The Operating Margin of ZWS (16.69%) is better than 65.85% 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 90.24% 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.
ZWS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ZWS has more shares outstanding
The debt/assets ratio for ZWS is higher compared to a year ago.
2.2 Solvency
ZWS has an Altman-Z score of 4.94. This indicates that ZWS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ZWS (4.94) is better than 63.41% 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.
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.
ZWS has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
ZWS has a Debt to Equity ratio of 0.31. This is in the better half of the industry: ZWS outperforms 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.72 | ||
| Altman-Z | 4.94 |
ROIC/WACC0.89
WACC9.56%
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.
Looking at the Current ratio, with a value of 2.78, ZWS is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
A Quick Ratio of 1.83 indicates that ZWS should not have too much problems paying its short term obligations.
ZWS's Quick ratio of 1.83 is fine compared to the rest of the industry. ZWS outperforms 75.61% 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.
ZWS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.25% yearly.
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.
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
With a Price/Earnings ratio of 32.09, ZWS can be considered very expensive at the moment.
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.
When comparing the Price/Earnings ratio of ZWS to the average of the S&P500 Index (26.38), we can say ZWS is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 28.53, the valuation of ZWS can be described as expensive.
Based on the Price/Forward Earnings ratio, ZWS is valued a bit more expensive than 70.73% of the companies in the same industry.
ZWS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.09 | ||
| Fwd PE | 28.53 |
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 78.05% 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 | 27.54 | ||
| EV/EBITDA | 22.26 |
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 12.53% in the coming years.
PEG (NY)1.72
PEG (5Y)0.55
EPS Next 2Y14.04%
EPS Next 3Y12.53%
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 0.72, 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 1.87.
| 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 2Y14.04%
EPS Next 3Y12.53%
47.5
+0.14 (+0.3%)
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-0.9%
Market Cap7.95B
Revenue(TTM)1.66B
Net Income(TTM)192.30M
Analysts75
Price Target51.29 (7.98%)
Short Float %3.69%
Short Ratio6.68
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)9.32%
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 | 32.09 | ||
| Fwd PE | 28.53 | ||
| P/S | 4.79 | ||
| P/FCF | 27.54 | ||
| P/OCF | 24.97 | ||
| P/B | 4.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.26 |
EPS(TTM)1.48
EY3.12%
EPS(NY)1.66
Fwd EY3.5%
FCF(TTM)1.72
FCFY3.63%
OCF(TTM)1.9
OCFY4.01%
SpS9.92
BVpS9.51
TBVpS-0.31
PEG (NY)1.72
PEG (5Y)0.55
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 | 4.94 |
F-Score7
WACC9.56%
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 32.09 and the Price/Book (PB) ratio is 4.99.
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.