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%)
Overall ZWS gets a fundamental rating of 5 out of 10. We evaluated ZWS 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.
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
ZWS has a Return On Assets (7.16%) which is comparable to the rest of the industry.
With a Return On Equity value of 12.08%, ZWS perfoms like the industry average, outperforming 54.76% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.54%, ZWS is in line with its industry, outperforming 50.00% of the companies in the same industry.
ZWS had an Average Return On Invested Capital over the past 3 years of 6.01%. This is significantly below the industry average of 12.61%.
The last Return On Invested Capital (8.54%) for ZWS is above the 3 year average (6.01%), which is a sign of increasing profitability.
| 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.
ZWS's Profit Margin has improved in the last couple of years.
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.
Looking at the Gross Margin, with a value of 44.91%, ZWS belongs to the top of the industry, outperforming 90.48% 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 | 16.69% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ZWS is destroying value.
The number of shares outstanding for ZWS has been reduced compared to 1 year ago.
The number of shares outstanding for ZWS has been increased compared to 5 years ago.
The debt/assets ratio for ZWS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.94 indicates that ZWS is not in any danger for bankruptcy at the moment.
ZWS has a Altman-Z score of 4.94. This is comparable to the rest of the industry: ZWS outperforms 59.52% of its industry peers.
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.
The Debt to FCF ratio of ZWS (1.72) is better than 78.57% 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 69.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.72 | ||
| Altman-Z | 4.94 |
ROIC/WACC0.95
WACC8.96%
2.3 Liquidity
A Current Ratio of 2.78 indicates that ZWS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.78, ZWS is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.83, ZWS is in the better half of 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
ZWS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.31%, which is quite impressive.
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%.
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
ZWS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.36% yearly.
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 Y18.72%
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
ZWS is valuated quite expensively with a Price/Earnings ratio of 31.41.
71.43% of the companies in the same industry are cheaper than ZWS, based on the Price/Earnings ratio.
ZWS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.51.
A Price/Forward Earnings ratio of 27.89 indicates a quite expensive valuation of ZWS.
Compared to the rest of the industry, the Price/Forward 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.
ZWS is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.41 | ||
| Fwd PE | 27.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ZWS is valued a bit more expensive than 76.19% of the companies in the same industry.
ZWS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.96 | ||
| EV/EBITDA | 22.24 |
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 12.75% in the coming years.
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.
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 2.00, 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 31.57% 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.
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 | 22.24 |
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 | 4.94 |
F-Score7
WACC8.96%
ROIC/WACC0.95
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.