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 43 industry peers in the Building Products industry. ZWS is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. ZWS is valied quite expensively at the moment, while 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.
ZWS had positive earnings in each of the past 5 years.
In the past 5 years ZWS always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 4.66%, ZWS is not doing good in the industry: 67.44% of the companies in the same industry are doing better.
With a Return On Equity value of 7.70%, ZWS is not doing good in the industry: 62.79% of the companies in the same industry are doing better.
ZWS's Return On Invested Capital of 6.57% is on the low side compared to the rest of the industry. ZWS is outperformed by 62.79% of its industry peers.
ZWS had an Average Return On Invested Capital over the past 3 years of 6.23%. This is significantly below the industry average of 13.42%.
The 3 year average ROIC (6.23%) for ZWS is below the current ROIC(6.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.66% | ||
| ROE | 7.7% | ||
| ROIC | 6.57% |
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
The Profit Margin of ZWS (8.11%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ZWS has grown nicely.
ZWS's Operating Margin of 15.14% is fine compared to the rest of the industry. ZWS outperforms 60.47% of its industry peers.
In the last couple of years the Operating Margin of ZWS has remained more or less at the same level.
With an excellent Gross Margin value of 43.69%, ZWS belongs to the best of the industry, outperforming 93.02% of the companies in the same industry.
ZWS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.14% | ||
| PM (TTM) | 8.11% | ||
| GM | 43.69% |
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
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 better debt/assets ratio than last year.
2.2 Solvency
ZWS has an Altman-Z score of 3.68. This indicates that ZWS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ZWS (3.68) is comparable to the rest of the industry.
ZWS has a debt to FCF ratio of 1.75. This is a very positive value and a sign of high solvency as it would only need 1.75 years to pay back of all of its debts.
ZWS has a better Debt to FCF ratio (1.75) than 69.77% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that ZWS is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.31, ZWS perfoms like the industry average, outperforming 55.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.75 | ||
| Altman-Z | 3.68 |
ROIC/WACC0.57
WACC11.47%
2.3 Liquidity
A Current Ratio of 3.31 indicates that ZWS has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.31, ZWS belongs to the best of the industry, outperforming 81.40% of the companies in the same industry.
A Quick Ratio of 1.95 indicates that ZWS should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.95, ZWS is doing good in the industry, outperforming 79.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.31 | ||
| Quick Ratio | 1.95 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.39% over the past year.
Measured over the past 5 years, ZWS shows a small growth in Earnings Per Share. The EPS has been growing by 7.94% on average per year.
The Revenue has grown by 8.34% in the past year. This is quite good.
The Revenue has been decreasing by -3.74% on average over the past years.
EPS 1Y (TTM)17.39%
EPS 3Y-22.43%
EPS 5Y7.94%
EPS growth Q2Q61.11%
Revenue 1Y (TTM)8.34%
Revenue growth 3Y-9.55%
Revenue growth 5Y-3.74%
Revenue growth Q2Q0.46%
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 13.25% on average per year.
ZWS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.21% yearly.
EPS Next Y19%
EPS Next 2Y14.86%
EPS Next 3Y14.28%
EPS Next 5Y13.25%
Revenue Next Year1.36%
Revenue Next 2Y2.95%
Revenue Next 3Y3.49%
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.
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
Based on the Price/Earnings ratio of 30.12, the valuation of ZWS can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ZWS indicates a slightly more expensive valuation: ZWS is more expensive than 72.09% of the companies listed in the same industry.
ZWS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.60.
The Price/Forward Earnings ratio is 25.42, 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 65.12% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.15, ZWS is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.12 | ||
| Fwd PE | 25.42 |
4.2 Price Multiples
62.79% 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 | 19.85 | ||
| EV/EBITDA | 18.69 |
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 14.28% in the coming years.
PEG (NY)1.59
PEG (5Y)3.79
EPS Next 2Y14.86%
EPS Next 3Y14.28%
5. Dividend
5.1 Amount
With a yearly dividend of 0.99%, ZWS is not a good candidate for dividend investing.
ZWS's Dividend Yield is a higher than the industry average which is at 1.17.
Compared to an average S&P500 Dividend Yield of 2.32, ZWS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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 41.87% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of ZWS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP41.87%
EPS Next 2Y14.86%
EPS Next 3Y14.28%
ZURN ELKAY WATER SOLUTIONS C
NYSE:ZWS (5/17/2024, 7:04:00 PM)
After market: 32.53 0 (0%)32.53
+0.18 (+0.56%)
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 Cap5.62B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.12 | ||
| Fwd PE | 25.42 | ||
| 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)1.59
PEG (5Y)3.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.66% | ||
| ROE | 7.7% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.14% | ||
| PM (TTM) | 8.11% | ||
| GM | 43.69% | ||
| 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 Turnover0.58
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 | 3.31 | ||
| Quick Ratio | 1.95 | ||
| 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)
Growth
EPS 1Y (TTM)17.39%
EPS 3Y-22.43%
EPS 5Y
EPS growth Q2Q
EPS Next Y19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.34%
Revenue growth 3Y-9.55%
Revenue growth 5Y
Revenue growth 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