ZURN ELKAY WATER SOLUTIONS C (ZWS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZWS - US98983L1089 - Common Stock
46.15 USD
-0.7 (-1.49%)
46.15 USD
0 (0%)
ZWS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 42 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. This makes ZWS very considerable for quality investing!
1. Profitability
1.1 Basic Checks
- ZWS had positive earnings in the past year.
- In the past year ZWS had a positive cash flow from operations.
- Each year in the past 5 years ZWS has been profitable.
- In the past 5 years ZWS always reported a positive cash flow from operatings.
1.2 Ratios
- ZWS's Return On Assets of 7.16% is in line compared to the rest of the industry. ZWS outperforms 54.76% of its industry peers.
- ZWS's Return On Equity of 12.08% is in line compared to the rest of the industry. ZWS outperforms 52.38% of its industry peers.
- 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.
- Measured over the past 3 years, the Average Return On Invested Capital for ZWS is significantly below the industry average of 12.68%.
- 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
- ZWS has a better Profit Margin (11.59%) 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.
- ZWS has a Gross Margin of 44.91%. This is amongst the best in the industry. ZWS outperforms 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.
- Compared to 1 year ago, ZWS has less shares outstanding
- ZWS has more shares outstanding than it did 5 years ago.
- ZWS has a worse debt/assets ratio than last year.
2.2 Solvency
- ZWS has an Altman-Z score of 4.89. This indicates that ZWS is financially healthy and has little risk of bankruptcy at the moment.
- ZWS has a better Altman-Z score (4.89) than 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.
- ZWS has a better Debt to FCF ratio (1.72) than 78.57% of its industry peers.
- A Debt/Equity ratio of 0.31 indicates that ZWS is not too dependend on debt financing.
- The Debt to Equity ratio of ZWS (0.31) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.72 | ||
| Altman-Z | 4.89 |
ROIC/WACC0.94
WACC9.1%
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.
- The Current ratio of ZWS (2.78) is better than 71.43% of its industry peers.
- A Quick Ratio of 1.83 indicates that ZWS should not have too much problems paying its short term obligations.
- With a decent Quick ratio value of 1.83, ZWS is doing good in the industry, outperforming 76.19% of the companies in the same industry.
| 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.
- ZWS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 58.83% yearly.
- ZWS shows a small growth in Revenue. In the last year, the Revenue has grown by 6.88%.
- 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 Y18.68%
EPS Next 2Y14.33%
EPS Next 3Y12.61%
EPS Next 5Y12.36%
Revenue Next Year8.17%
Revenue Next 2Y6.86%
Revenue Next 3Y6.22%
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
- Based on the Price/Earnings ratio of 31.18, 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 71.43% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, ZWS is valued at the same level.
- Based on the Price/Forward Earnings ratio of 27.58, the valuation of ZWS can be described as expensive.
- 71.43% of the companies in the same industry are cheaper than ZWS, based on the Price/Forward Earnings ratio.
- ZWS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.18 | ||
| Fwd PE | 27.58 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ZWS is valued a bit more expensive than the industry average as 76.19% of the companies are valued more cheaply.
- 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 | 26.76 | ||
| EV/EBITDA | 22.03 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- 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 12.61% in the coming years.
PEG (NY)1.67
PEG (5Y)0.53
EPS Next 2Y14.33%
EPS Next 3Y12.61%
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 0.66.
- Compared to an average S&P500 Dividend Yield of 1.82, 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
- ZWS pays out 31.57% of its income as dividend. This is a sustainable payout ratio.
- ZWS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP31.57%
EPS Next 2Y14.33%
EPS Next 3Y12.61%
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 18.68% in the next year.