(ZWS) Zurn Elkay Water Solutions - Overview
Sector: Industrials | Industry: Pollution & Treatment Controls | Exchange: NYSE (USA) | Market Cap: 7.813m USD | Total Return: 35.5% in 12m
Avg Turnover: 43.7M
EPS Trend: 98.5%
Qual. Beats: 10
Rev. Trend: 92.4%
Qual. Beats: 4
Warnings
Altman Z'' -0.35 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
Confidence
Zurn Elkay Water Solutions Corporation (NYSE: ZWS) designs and manufactures a broad portfolio of water management systems, including filtration units, dispensing stations, and safety valves. The company serves institutional, commercial, and residential markets through a network of independent representatives and wholesale distributors. Its brand portfolio includes Elkay, Zurn, Wilkins, and Hadrian, covering applications from point-of-use drinking water to large-scale drainage and flow control systems.
The company operates within the building products sector, where demand is heavily influenced by non-residential construction cycles and increasing regulatory standards for water conservation. ZWS utilizes an asset-light business model focused on procurement and assembly, which allows for greater flexibility in managing supply chain costs compared to traditional heavy industrial manufacturing. Investors can examine the companys historical performance and valuation metrics on ValueRay to further their analysis.
- Commercial construction activity levels dictate demand for specification-grade plumbing and drainage products
- PFAS drinking water regulations accelerate adoption of high-margin filtration and dispensing systems
- Institutional renovation cycles drive replacement sales for water-efficient fixtures and bottle fillers
- Realization of Elkay merger synergies improves operating margins through supply chain optimization
| Net Income: 213.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA 1.97 > 1.0 |
| NWC/Revenue: 33.22% < 20% (prev 28.76%; Δ 4.46% < -1%) |
| CFO/TA 0.13 > 3% & CFO 349.7m > Net Income 213.3m |
| Net Debt (316.8m) to EBITDA (390.6m): 0.81 < 3 |
| Current Ratio: 3.24 > 1.5 & < 3 |
| Outstanding Shares: last quarter (169.7m) vs 12m ago -1.46% < -2% |
| Gross Margin: 43.69% > 18% (prev 0.44%; Δ 4.32k% > 0.5%) |
| Asset Turnover: 65.75% > 50% (prev 60.63%; Δ 5.12% > 0%) |
| Interest Coverage Ratio: 11.04 > 6 (EBITDA TTM 390.6m / Interest Expense TTM 27.5m) |
| A: 0.22 (Total Current Assets 836.5m - Total Current Liabilities 258.5m) / Total Assets 2.68b |
| B: -0.42 (Retained Earnings -1.12b / Total Assets 2.68b) |
| C: 0.11 (EBIT TTM 303.6m / Avg Total Assets 2.65b) |
| D: -1.11 (Book Value of Equity -1.20b / Total Liabilities 1.08b) |
| Altman-Z'' = -0.35 = B |
| DSRI: 0.89 (Receivables 242.7m/247.7m, Revenue 1.74b/1.58b) |
| GMI: 1.02 (GM 43.69% / 44.46%) |
| AQI: 0.94 (AQ_t 0.63 / AQ_t-1 0.67) |
| SGI: 1.10 (Revenue 1.74b / 1.58b) |
| TATA: -0.05 (NI 213.3m - CFO 349.7m) / TA 2.68b) |
| Beneish M = -3.12 (Cap -4..+1) = AA |
As of May 24, 2026, the stock is trading at USD 47.58 with a total of 542,077 shares traded.
Over the past week, the price has changed by +0.11%,
over one month by -8.32%,
over three months by -3.64% and
over the past year by +35.51%.
Zurn Elkay Water Solutions has received a consensus analysts rating of 3.75. Therefore, it is recommended to hold ZWS.
- StrongBuy: 3
- Buy: 0
- Hold: 5
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 56.2 | 18.2% |
P/E Forward = 26.9542
P/S = 4.4887
P/B = 5.3163
P/EG = 1.7961
Revenue TTM = 1.74b USD
EBIT TTM = 303.6m USD
EBITDA TTM = 390.6m USD
Long Term Debt = 497.6m USD (from longTermDebt, last quarter)
Short Term Debt = 1.40m USD (from shortTermDebt, last quarter)
Debt = 590.3m USD (from shortLongTermDebtTotal, last quarter) + Leases 53.2m
Net Debt = 316.8m USD (calculated: Debt 590.3m - CCE 273.5m)
Enterprise Value = 8.13b USD (7.81b + Debt 590.3m - CCE 273.5m)
Interest Coverage Ratio = 11.04 (Ebit TTM 303.6m / Interest Expense TTM 27.5m)
EV/FCF = 25.35x (Enterprise Value 8.13b / FCF TTM 320.7m)
FCF Yield = 3.94% (FCF TTM 320.7m / Enterprise Value 8.13b)
FCF Margin = 18.43% (FCF TTM 320.7m / Revenue TTM 1.74b)
Net Margin = 12.26% (Net Income TTM 213.3m / Revenue TTM 1.74b)
Gross Margin = 43.69% ((Revenue TTM 1.74b - Cost of Revenue TTM 979.9m) / Revenue TTM)
Gross Margin QoQ = 47.53% (prev 40.79%)
Tobins Q-Ratio = 3.03 (Enterprise Value 8.13b / Total Assets 2.68b)
Interest Expense / Debt = 4.66% (Interest Expense 27.5m / Debt 590.3m)
Taxrate = 23.41% (18.0m / 76.9m)
NOPAT = 232.5m (EBIT 303.6m * (1 - 23.41%))
Current Ratio = 3.24 (Total Current Assets 836.5m / Total Current Liabilities 258.5m)
Debt / Equity = 0.37 (Debt 590.3m / totalStockholderEquity, last quarter 1.61b)
Debt / EBITDA = 0.81 (Net Debt 316.8m / EBITDA 390.6m)
Debt / FCF = 0.99 (Net Debt 316.8m / FCF TTM 320.7m)
Total Stockholder Equity = 1.59b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.06% (Net Income 213.3m / Total Assets 2.68b)
RoE = 7.86% (Net Income TTM 213.3m / Total Stockholder Equity 2.71b)
RoCE = 9.45% (EBIT 303.6m / Capital Employed (Equity 2.71b + L.T.Debt 497.6m))
RoIC = 9.60% (NOPAT 232.5m / Invested Capital 2.42b)
WACC = 9.63% (E(7.81b)/V(8.40b) * Re(10.09%) + D(590.3m)/V(8.40b) * Rd(4.66%) * (1-Tc(0.23)))
Discount Rate = 10.09% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -86.67 | Cagr: -1.58%
[DCF] Terminal Value 73.93% ; FCFF base≈296.5m ; Y1≈339.8m ; Y5≈500.2m
[DCF] Fair Price = 34.89 (EV 6.14b - Net Debt 316.8m = Equity 5.82b / Shares 166.9m; r=9.63% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 98.54 | EPS CAGR: 26.54% | SUE: 3.38 | # QB: 10
Revenue Correlation: 92.42 | Revenue CAGR: 4.76% | SUE: 2.42 | # QB: 4
EPS current Quarter (2026-06-30): EPS=0.47 | Chg30d=+5.64% | Revisions=+71% | Analysts=10
EPS next Quarter (2026-09-30): EPS=0.48 | Chg30d=+2.52% | Revisions=+67% | Analysts=10
EPS current Year (2026-12-31): EPS=1.76 | Chg30d=+5.91% | Revisions=+71% | GrowthEPS=+15.6% | GrowthRev=+7.8%
EPS next Year (2027-12-31): EPS=1.92 | Chg30d=+5.50% | Revisions=+71% | GrowthEPS=+9.4% | GrowthRev=+5.3%
[Analyst] Revisions Ratio: +71%