ZURN ELKAY WATER SOLUTIONS C (ZWS) Fundamental Analysis & Valuation
NYSE:ZWS • US98983L1089
Current stock price
52.76 USD
+0.28 (+0.53%)
At close:
52.76 USD
0 (0%)
After Hours:
This ZWS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. ZWS Profitability Analysis
1.1 Basic Checks
- In the past year ZWS was profitable.
- 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
- Looking at the Return On Assets, with a value of 7.39%, ZWS is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
- ZWS has a Return On Equity of 12.35%. This is in the better half of the industry: ZWS outperforms 63.41% of its industry peers.
- The Return On Invested Capital of ZWS (9.05%) is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ZWS is below the industry average of 11.89%.
- The 3 year average ROIC (7.99%) for ZWS is below the current ROIC(9.05%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.39% | ||
| ROE | 12.35% | ||
| ROIC | 9.05% |
ROA(3y)5.89%
ROA(5y)6.21%
ROE(3y)9.83%
ROE(5y)25.79%
ROIC(3y)7.99%
ROIC(5y)7.53%
1.3 Margins
- The Profit Margin of ZWS (11.68%) is better than 63.41% of its industry peers.
- ZWS's Profit Margin has improved in the last couple of years.
- The Operating Margin of ZWS (17.01%) is better than 68.29% of its industry peers.
- In the last couple of years the Operating Margin of ZWS has remained more or less at the same level.
- The Gross Margin of ZWS (45.10%) is better than 92.68% of its industry peers.
- In the last couple of years the Gross Margin of ZWS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.01% | ||
| PM (TTM) | 11.68% | ||
| GM | 45.1% |
OM growth 3Y21.19%
OM growth 5Y0.12%
PM growth 3Y34.36%
PM growth 5Y7.82%
GM growth 3Y7.49%
GM growth 5Y2.66%
2. ZWS Health Analysis
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.
- ZWS has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for ZWS has been increased compared to 5 years ago.
- ZWS has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.57 indicates that ZWS is not in any danger for bankruptcy at the moment.
- The Altman-Z score of ZWS (5.57) is better than 73.17% of its industry peers.
- ZWS has a debt to FCF ratio of 1.57. This is a very positive value and a sign of high solvency as it would only need 1.57 years to pay back of all of its debts.
- The Debt to FCF ratio of ZWS (1.57) is better than 78.05% of its industry peers.
- A Debt/Equity ratio of 0.31 indicates that ZWS is not too dependend on debt financing.
- 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 | 1.57 | ||
| Altman-Z | 5.57 |
ROIC/WACC0.88
WACC10.24%
2.3 Liquidity
- A Current Ratio of 3.13 indicates that ZWS has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 3.13, ZWS belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
- A Quick Ratio of 2.07 indicates that ZWS has no problem at all paying its short term obligations.
- ZWS has a better Quick ratio (2.07) than 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 2.07 |
3. ZWS Growth Analysis
3.1 Past
- ZWS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.62%, which is quite impressive.
- The Earnings Per Share has been decreasing by -3.16% on average over the past years.
- The Revenue has grown by 8.26% in the past year. This is quite good.
- ZWS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.89% yearly.
EPS 1Y (TTM)24.62%
EPS 3Y15.75%
EPS 5Y-3.16%
EPS Q2Q%32.26%
Revenue 1Y (TTM)8.26%
Revenue growth 3Y9.78%
Revenue growth 5Y-3.89%
Sales Q2Q%11.37%
3.2 Future
- ZWS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.96% yearly.
- Based on estimates for the next years, ZWS will show a small growth in Revenue. The Revenue will grow by 5.79% on average per year.
EPS Next Y10.24%
EPS Next 2Y10.02%
EPS Next 3Y10.08%
EPS Next 5Y9.96%
Revenue Next Year6.21%
Revenue Next 2Y5.67%
Revenue Next 3Y5.62%
Revenue Next 5Y5.79%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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. ZWS Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 32.57 indicates a quite expensive valuation of ZWS.
- Based on the Price/Earnings ratio, ZWS is valued a bit more expensive than 68.29% of the companies in the same industry.
- ZWS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
- ZWS is valuated quite expensively with a Price/Forward Earnings ratio of 28.68.
- Based on the Price/Forward Earnings ratio, ZWS is valued a bit more expensive than 68.29% of the companies in the same industry.
- ZWS is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.62, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.57 | ||
| Fwd PE | 28.68 |
4.2 Price Multiples
- 68.29% of the companies in the same industry are cheaper than ZWS, based on the Enterprise Value to EBITDA ratio.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ZWS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.92 | ||
| EV/EBITDA | 23.95 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ZWS does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of ZWS may justify a higher PE ratio.
PEG (NY)3.18
PEG (5Y)N/A
EPS Next 2Y10.02%
EPS Next 3Y10.08%
5. ZWS Dividend Analysis
5.1 Amount
- ZWS has a yearly dividend return of 0.94%, which is pretty low.
- ZWS's Dividend Yield is a higher than the industry average which is at 0.75.
- With a Dividend Yield of 0.94, ZWS pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
- The dividend of ZWS is nicely growing with an annual growth rate of 9.35%!
- ZWS has been paying a dividend for over 5 years, so it has already some track record.
- ZWS has decreased its dividend in the last 3 years.
Dividend Growth(5Y)9.35%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 32.27% of the earnings are spent on dividend by ZWS. This is a low number and sustainable payout ratio.
- The dividend of ZWS is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP32.27%
EPS Next 2Y10.02%
EPS Next 3Y10.08%
ZWS Fundamentals: All Metrics, Ratios and Statistics
52.76
+0.28 (+0.53%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)04-21 2026-04-21/amc
Earnings (Next)07-27 2026-07-27/amc
Inst Owners91.91%
Inst Owner Change-0.03%
Ins Owners2.39%
Ins Owner Change-0.08%
Market Cap8.84B
Revenue(TTM)1.70B
Net Income(TTM)198.00M
Analysts76
Price Target56.04 (6.22%)
Short Float %3.42%
Short Ratio5.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Yearly Dividend0.38
Dividend Growth(5Y)9.35%
DP32.27%
Div Incr Years2
Div Non Decr Years2
Ex-Date02-20 2026-02-20 (0.11)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.15%
Min EPS beat(2)4.94%
Max EPS beat(2)7.36%
EPS beat(4)4
Avg EPS beat(4)8.41%
Min EPS beat(4)4.94%
Max EPS beat(4)15.51%
EPS beat(8)8
Avg EPS beat(8)8.39%
EPS beat(12)12
Avg EPS beat(12)8.93%
EPS beat(16)15
Avg EPS beat(16)7.86%
Revenue beat(2)2
Avg Revenue beat(2)1.21%
Min Revenue beat(2)0.55%
Max Revenue beat(2)1.87%
Revenue beat(4)4
Avg Revenue beat(4)1.57%
Min Revenue beat(4)0.3%
Max Revenue beat(4)3.54%
Revenue beat(8)7
Avg Revenue beat(8)0.81%
Revenue beat(12)10
Avg Revenue beat(12)1.21%
Revenue beat(16)11
Avg Revenue beat(16)0.6%
PT rev (1m)-0.36%
PT rev (3m)7.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.47%
EPS NY rev (1m)0%
EPS NY rev (3m)0.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.57 | ||
| Fwd PE | 28.68 | ||
| P/S | 5.21 | ||
| P/FCF | 27.92 | ||
| P/OCF | 25.51 | ||
| P/B | 5.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.95 |
EPS(TTM)1.62
EY3.07%
EPS(NY)1.84
Fwd EY3.49%
FCF(TTM)1.89
FCFY3.58%
OCF(TTM)2.07
OCFY3.92%
SpS10.12
BVpS9.57
TBVpS-0.16
PEG (NY)3.18
PEG (5Y)N/A
Graham Number18.6766 (-64.6%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.39% | ||
| ROE | 12.35% | ||
| ROCE | 11.92% | ||
| ROIC | 9.05% | ||
| ROICexc | 10.33% | ||
| ROICexgc | 44.74% | ||
| OM | 17.01% | ||
| PM (TTM) | 11.68% | ||
| GM | 45.1% | ||
| FCFM | 18.67% |
ROA(3y)5.89%
ROA(5y)6.21%
ROE(3y)9.83%
ROE(5y)25.79%
ROIC(3y)7.99%
ROIC(5y)7.53%
ROICexc(3y)8.8%
ROICexc(5y)8.31%
ROICexgc(3y)37.39%
ROICexgc(5y)30.7%
ROCE(3y)10.53%
ROCE(5y)9.91%
ROICexgc growth 3Y47.22%
ROICexgc growth 5Y5.13%
ROICexc growth 3Y39.63%
ROICexc growth 5Y0.22%
OM growth 3Y21.19%
OM growth 5Y0.12%
PM growth 3Y34.36%
PM growth 5Y7.82%
GM growth 3Y7.49%
GM growth 5Y2.66%
F-Score8
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.57 | ||
| Debt/EBITDA | 1.31 | ||
| Cap/Depr | 33.71% | ||
| Cap/Sales | 1.76% | ||
| Interest Coverage | 8.51 | ||
| Cash Conversion | 91.86% | ||
| Profit Quality | 159.9% | ||
| Current Ratio | 3.13 | ||
| Quick Ratio | 2.07 | ||
| Altman-Z | 5.57 |
F-Score8
WACC10.24%
ROIC/WACC0.88
Cap/Depr(3y)27.54%
Cap/Depr(5y)25.33%
Cap/Sales(3y)1.52%
Cap/Sales(5y)1.54%
Profit Quality(3y)178.63%
Profit Quality(5y)169.29%
High Growth Momentum
Growth
EPS 1Y (TTM)24.62%
EPS 3Y15.75%
EPS 5Y-3.16%
EPS Q2Q%32.26%
EPS Next Y10.24%
EPS Next 2Y10.02%
EPS Next 3Y10.08%
EPS Next 5Y9.96%
Revenue 1Y (TTM)8.26%
Revenue growth 3Y9.78%
Revenue growth 5Y-3.89%
Sales Q2Q%11.37%
Revenue Next Year6.21%
Revenue Next 2Y5.67%
Revenue Next 3Y5.62%
Revenue Next 5Y5.79%
EBIT growth 1Y11.78%
EBIT growth 3Y33.05%
EBIT growth 5Y-3.78%
EBIT Next Year34.59%
EBIT Next 3Y14.98%
EBIT Next 5Y14.33%
FCF growth 1Y16.53%
FCF growth 3Y52.43%
FCF growth 5Y4.24%
OCF growth 1Y18.06%
OCF growth 3Y52.87%
OCF growth 5Y3.02%
ZURN ELKAY WATER SOLUTIONS C / ZWS Fundamental Analysis 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 1 / 10 to ZURN ELKAY WATER SOLUTIONS C (ZWS). This can be considered as Overvalued.
What is the profitability of ZWS stock?
ZURN ELKAY WATER SOLUTIONS C (ZWS) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for ZWS stock?
The Price/Earnings (PE) ratio for ZURN ELKAY WATER SOLUTIONS C (ZWS) is 32.57 and the Price/Book (PB) ratio is 5.51.
How financially healthy is ZURN ELKAY WATER SOLUTIONS C?
The financial health rating of ZURN ELKAY WATER SOLUTIONS C (ZWS) is 8 / 10.