ZURN ELKAY WATER SOLUTIONS C (ZWS) Fundamental Analysis & Valuation
NYSE:ZWS • US98983L1089
Current stock price
51.96 USD
+1.08 (+2.12%)
At close:
51.96 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.
- In the past 5 years ZWS always reported a positive cash flow from operatings.
1.2 Ratios
- ZWS's Return On Assets of 7.39% is fine compared to the rest of the industry. ZWS outperforms 63.41% of its industry peers.
- The Return On Equity of ZWS (12.35%) is better than 63.41% of its industry peers.
- ZWS has a Return On Invested Capital (9.05%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for ZWS is below the industry average of 11.86%.
- The last Return On Invested Capital (9.05%) for ZWS is above the 3 year average (7.99%), which is a sign of increasing profitability.
| 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
- ZWS has a better Profit Margin (11.68%) than 63.41% of its industry peers.
- ZWS's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 17.01%, ZWS is doing good in the industry, outperforming 68.29% of the companies in the same industry.
- In the last couple of years the Operating Margin of ZWS has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 45.10%, ZWS belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
- ZWS has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.50 indicates that ZWS is not in any danger for bankruptcy at the moment.
- The Altman-Z score of ZWS (5.50) is better than 73.17% of its industry peers.
- The Debt to FCF ratio of ZWS is 1.57, which is an excellent value as it means it would take ZWS, only 1.57 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of ZWS (1.57) is better than 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.
- With a decent Debt to Equity ratio value of 0.31, ZWS is doing good in the industry, outperforming 68.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.57 | ||
| Altman-Z | 5.5 |
ROIC/WACC0.86
WACC10.51%
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.
- The Quick ratio of ZWS (2.07) is better 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
- The Earnings Per Share has grown by an impressive 24.62% over the past year.
- Measured over the past years, ZWS shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.16% on average per year.
- ZWS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.26%.
- 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
- Based on estimates for the next years, ZWS will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.96% on average per year.
- The Revenue is expected to grow by 5.79% on average over the next years.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. ZWS Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 32.07, which means the current valuation is very expensive for 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 26.77, which is the current average of the S&P500 Index.
- ZWS is valuated quite expensively with a Price/Forward Earnings ratio of 28.24.
- ZWS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ZWS is 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 21.75, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.07 | ||
| Fwd PE | 28.24 |
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.
- ZWS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.5 | ||
| EV/EBITDA | 23.6 |
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.
- ZWS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.13
PEG (5Y)N/A
EPS Next 2Y10.02%
EPS Next 3Y10.08%
5. ZWS Dividend Analysis
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 0.72.
- 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
- On average, the dividend of ZWS grows each year by 9.35%, which is quite nice.
- 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
- ZWS pays out 32.27% of its income as dividend. This is a sustainable payout ratio.
- ZWS's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP32.27%
EPS Next 2Y10.02%
EPS Next 3Y10.08%
ZWS Fundamentals: All Metrics, Ratios and Statistics
51.96
+1.08 (+2.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Industry Strength22.98
Industry Growth32.92
Earnings (Last)04-21 2026-04-21/amc
Earnings (Next)07-27 2026-07-27/amc
Inst Owners91.91%
Inst Owner Change0.03%
Ins Owners2.39%
Ins Owner Change-0.08%
Market Cap8.71B
Revenue(TTM)1.70B
Net Income(TTM)198.00M
Analysts76
Price Target57.06 (9.82%)
Short Float %3.59%
Short Ratio4.97
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)0.54%
EPS NY rev (1m)0%
EPS NY rev (3m)0.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.07 | ||
| Fwd PE | 28.24 | ||
| P/S | 5.13 | ||
| P/FCF | 27.5 | ||
| P/OCF | 25.12 | ||
| P/B | 5.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.6 |
EPS(TTM)1.62
EY3.12%
EPS(NY)1.84
Fwd EY3.54%
FCF(TTM)1.89
FCFY3.64%
OCF(TTM)2.07
OCFY3.98%
SpS10.12
BVpS9.57
TBVpS-0.16
PEG (NY)3.13
PEG (5Y)N/A
Graham Number18.6766 (-64.06%)
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 | 5.5 |
F-Score8
WACC10.51%
ROIC/WACC0.86
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 32.07 and the Price/Book (PB) ratio is 5.43.
How financially healthy is ZURN ELKAY WATER SOLUTIONS C?
The financial health rating of ZURN ELKAY WATER SOLUTIONS C (ZWS) is 8 / 10.