ZURN ELKAY WATER SOLUTIONS C (ZWS) Stock Fundamental Analysis
USA - NYSE:ZWS - US98983L1089 - Common Stock
46.65 USD
+0.91 (+1.99%)
46.65 USD
0 (0%)
Overall ZWS gets a fundamental rating of 5 out of 10. We evaluated ZWS against 41 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.
In the past year ZWS had a positive cash flow from operations.
In the past 5 years ZWS has always been profitable.
Each year in the past 5 years ZWS had a positive operating cash flow.
1.2 Ratios
ZWS has a Return On Assets (6.56%) which is comparable to the rest of the industry.
ZWS's Return On Equity of 11.12% is in line compared to the rest of the industry. ZWS outperforms 51.22% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.41%, ZWS is in line with its industry, outperforming 48.78% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ZWS is significantly below the industry average of 12.70%.
The 3 year average ROIC (6.01%) for ZWS is below the current ROIC(8.41%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.56% | ||
| ROE | 11.12% | ||
| ROIC | 8.41% |
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's Profit Margin of 10.78% is fine compared to the rest of the industry. ZWS outperforms 63.41% of its industry peers.
ZWS's Profit Margin has improved in the last couple of years.
ZWS has a Operating Margin of 16.77%. This is in the better half of the industry: ZWS outperforms 65.85% of its industry peers.
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 45.47%, 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 | 16.77% | ||
| PM (TTM) | 10.78% | ||
| GM | 45.47% |
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.
Compared to 5 years ago, ZWS has more shares outstanding
The debt/assets ratio for ZWS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.75 indicates that ZWS is not in any danger for bankruptcy at the moment.
The Altman-Z score of ZWS (4.75) is comparable to the rest of the industry.
The Debt to FCF ratio of ZWS is 1.76, which is an excellent value as it means it would take ZWS, only 1.76 years of fcf income to pay off all of its debts.
ZWS has a better Debt to FCF ratio (1.76) than 75.61% of its industry peers.
ZWS has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ZWS (0.32) is better than 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.76 | ||
| Altman-Z | 4.75 |
ROIC/WACC0.86
WACC9.73%
2.3 Liquidity
A Current Ratio of 2.71 indicates that ZWS has no problem at all paying its short term obligations.
ZWS's Current ratio of 2.71 is fine compared to the rest of the industry. ZWS outperforms 75.61% of its industry peers.
A Quick Ratio of 1.72 indicates that ZWS should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.72, ZWS is doing good in the industry, outperforming 78.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.71 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
ZWS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.80%, which is quite good.
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 4.74%.
ZWS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.25% yearly.
EPS 1Y (TTM)18.8%
EPS 3Y-11.07%
EPS 5Y58.83%
EPS Q2Q%27.27%
Revenue 1Y (TTM)4.74%
Revenue growth 3Y19.81%
Revenue growth 5Y-5.25%
Sales Q2Q%7.89%
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 10.84% yearly.
The Revenue is expected to grow by 5.60% on average over the next years.
EPS Next Y12.93%
EPS Next 2Y11.52%
EPS Next 3Y10.45%
EPS Next 5Y10.84%
Revenue Next Year6.65%
Revenue Next 2Y5.37%
Revenue Next 3Y5.16%
Revenue Next 5Y5.6%
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 33.56, the valuation of ZWS can be described as expensive.
ZWS's Price/Earnings ratio is a bit more expensive when compared to the industry. ZWS is more expensive than 73.17% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.69. ZWS is valued slightly more expensive when compared to this.
ZWS is valuated quite expensively with a Price/Forward Earnings ratio of 29.30.
ZWS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ZWS is more expensive than 73.17% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.18. ZWS is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.56 | ||
| Fwd PE | 29.3 |
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 73.17% 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 | 27.77 | ||
| EV/EBITDA | 22.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ZWS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.59
PEG (5Y)0.57
EPS Next 2Y11.52%
EPS Next 3Y10.45%
5. Dividend
5.1 Amount
ZWS has a yearly dividend return of 0.94%, which is pretty low.
Compared to an average industry Dividend Yield of 1.25, ZWS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, 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 8.28%, 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 recently.
Dividend Growth(5Y)8.28%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
ZWS pays out 34.02% of its income as dividend. This is a sustainable payout ratio.
The dividend of ZWS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP34.02%
EPS Next 2Y11.52%
EPS Next 3Y10.45%
46.65
+0.91 (+1.99%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners92.61%
Inst Owner Change-0.1%
Ins Owners2.4%
Ins Owner Change-0.44%
Market Cap7.82B
Analysts75
Price Target48.09 (3.09%)
Short Float %3.39%
Short Ratio4.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Yearly Dividend0.33
Dividend Growth(5Y)8.28%
DP34.02%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.67%
Min EPS beat(2)5.84%
Max EPS beat(2)15.51%
EPS beat(4)4
Avg EPS beat(4)9.95%
Min EPS beat(4)4.73%
Max EPS beat(4)15.51%
EPS beat(8)8
Avg EPS beat(8)9%
EPS beat(12)11
Avg EPS beat(12)8.02%
EPS beat(16)15
Avg EPS beat(16)21.77%
Revenue beat(2)2
Avg Revenue beat(2)1.92%
Min Revenue beat(2)0.3%
Max Revenue beat(2)3.54%
Revenue beat(4)4
Avg Revenue beat(4)1.01%
Min Revenue beat(4)0.02%
Max Revenue beat(4)3.54%
Revenue beat(8)6
Avg Revenue beat(8)0.55%
Revenue beat(12)8
Avg Revenue beat(12)0.67%
Revenue beat(16)10
Avg Revenue beat(16)-2.07%
PT rev (1m)2.48%
PT rev (3m)25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.63%
EPS NY rev (1m)0.09%
EPS NY rev (3m)6.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.56 | ||
| Fwd PE | 29.3 | ||
| P/S | 4.84 | ||
| P/FCF | 27.77 | ||
| P/OCF | 25.38 | ||
| P/B | 5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.08 |
EPS(TTM)1.39
EY2.98%
EPS(NY)1.59
Fwd EY3.41%
FCF(TTM)1.68
FCFY3.6%
OCF(TTM)1.84
OCFY3.94%
SpS9.63
BVpS9.34
TBVpS-0.57
PEG (NY)2.59
PEG (5Y)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.56% | ||
| ROE | 11.12% | ||
| ROCE | 11.39% | ||
| ROIC | 8.41% | ||
| ROICexc | 9.19% | ||
| ROICexgc | 38.85% | ||
| OM | 16.77% | ||
| PM (TTM) | 10.78% | ||
| GM | 45.47% | ||
| FCFM | 17.44% |
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%
ROICexcg growth 3Y11.52%
ROICexcg 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 Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.76 | ||
| Debt/EBITDA | 1.37 | ||
| Cap/Depr | 29.51% | ||
| Cap/Sales | 1.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.46% | ||
| Profit Quality | 161.78% | ||
| Current Ratio | 2.71 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z | 4.75 |
F-Score7
WACC9.73%
ROIC/WACC0.86
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)18.8%
EPS 3Y-11.07%
EPS 5Y58.83%
EPS Q2Q%27.27%
EPS Next Y12.93%
EPS Next 2Y11.52%
EPS Next 3Y10.45%
EPS Next 5Y10.84%
Revenue 1Y (TTM)4.74%
Revenue growth 3Y19.81%
Revenue growth 5Y-5.25%
Sales Q2Q%7.89%
Revenue Next Year6.65%
Revenue Next 2Y5.37%
Revenue Next 3Y5.16%
Revenue Next 5Y5.6%
EBIT growth 1Y11.82%
EBIT growth 3Y32.6%
EBIT growth 5Y-4.07%
EBIT Next Year46.7%
EBIT Next 3Y18.76%
EBIT Next 5Y14.85%
FCF growth 1Y52.57%
FCF growth 3Y10.7%
FCF growth 5Y4.97%
OCF growth 1Y53.08%
OCF growth 3Y9.49%
OCF growth 5Y2.6%