ZURN ELKAY WATER SOLUTIONS C (ZWS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZWS - US98983L1089 - Common Stock
46.49 USD
-0.83 (-1.75%)
46.49 USD
0 (0%)
ZWS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 42 industry peers in the Building Products industry. While ZWS has a great profitability rating, there are some minor concerns on its financial health. ZWS is quite expensive at the moment. 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.
In the past 5 years ZWS has always been profitable.
In the past 5 years ZWS always reported a positive cash flow from operatings.
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 comparable to the rest of the industry.
The Return On Invested Capital of ZWS (8.54%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for ZWS is significantly below the industry average of 12.61%.
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's Operating Margin of 16.69% is fine compared to the rest 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 better Gross Margin (44.91%) than 90.48% 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
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.
Compared to 1 year ago, ZWS has a worse debt to assets ratio.
2.2 Solvency
ZWS has an Altman-Z score of 4.86. This indicates that ZWS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ZWS (4.86) is comparable to the rest of the industry.
The Debt to FCF ratio of ZWS is 1.72, which is an excellent value as it means it would take ZWS, only 1.72 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.72, ZWS is doing good in the industry, outperforming 78.57% of the companies in the same industry.
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 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.72 | ||
| Altman-Z | 4.86 |
ROIC/WACC0.96
WACC8.94%
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.
ZWS's Current ratio of 2.78 is fine compared to the rest of the industry. ZWS outperforms 73.81% of its industry peers.
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.
The Quick ratio of ZWS (1.83) is better than 76.19% 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.
ZWS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 58.83% yearly.
Looking at the last year, ZWS shows a small growth in Revenue. The Revenue has grown by 6.88% in the last year.
Measured over the past years, ZWS shows a decrease in Revenue. The Revenue has been decreasing by -5.25% on average per year.
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
Based on estimates for the next years, ZWS will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.36% on average per year.
ZWS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.26% yearly.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 31.41, the valuation of ZWS can be described as expensive.
Based on the Price/Earnings ratio, ZWS is valued a bit more expensive than 71.43% of the companies in the same industry.
ZWS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.51.
With a Price/Forward Earnings ratio of 27.89, ZWS can be considered very expensive at the moment.
71.43% of the companies in the same industry are cheaper than ZWS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ZWS to the average of the S&P500 Index (23.13), we can say ZWS is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.41 | ||
| Fwd PE | 27.89 |
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 76.19% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ZWS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.96 | ||
| EV/EBITDA | 21.86 |
4.3 Compensation for Growth
ZWS's 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.
ZWS's earnings are expected to grow with 12.75% in the coming years. This may justify a more expensive valuation.
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 0.72, ZWS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, 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 2Y14.13%
EPS Next 3Y12.75%
46.49
-0.83 (-1.75%)
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 Cap7.78B
Revenue(TTM)1.66B
Net Income(TTM)192.30M
Analysts75
Price Target52.28 (12.45%)
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)11.41%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)10.58%
EPS NY rev (1m)0.88%
EPS NY rev (3m)5.12%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)3.52%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)1.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.41 | ||
| Fwd PE | 27.89 | ||
| P/S | 4.69 | ||
| P/FCF | 26.96 | ||
| P/OCF | 24.43 | ||
| P/B | 4.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.86 |
EPS(TTM)1.48
EY3.18%
EPS(NY)1.67
Fwd EY3.59%
FCF(TTM)1.72
FCFY3.71%
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 | 4.86 |
F-Score7
WACC8.94%
ROIC/WACC0.96
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 5 / 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 6 / 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.