Zurn Elkay Water Solutions Corporation
Zurn Elkay Water Solutions Corporation Fundamental Analysis
Zurn Elkay Water Solutions Corporation (ZWS) shows weak financial fundamentals with a PE ratio of 43.00, profit margin of 11.68%, and ROE of 12.56%. The company generates $1.7B in annual revenue with weak year-over-year growth of 2.35%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ZWS's fundamental strength across five key dimensions:
Efficiency Score
WeakZWS struggles to generate sufficient returns from assets.
Valuation Score
WeakZWS trades at a premium to fair value.
Growth Score
ModerateZWS shows steady but slowing expansion.
Financial Health Score
ExcellentZWS maintains a strong and stable balance sheet.
Profitability Score
WeakZWS struggles to sustain strong margins.
Key Financial Metrics
Is ZWS Expensive or Cheap?
P/E Ratio
ZWS trades at 43.00 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ZWS's PEG of 12.26 indicates potential overvaluation.
Price to Book
The market values Zurn Elkay Water Solutions Corporation at 5.31 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 21.95 times EBITDA. This signals the market has high growth expectations.
How Well Does ZWS Make Money?
Net Profit Margin
For every $100 in sales, Zurn Elkay Water Solutions Corporation keeps $11.68 as profit after all expenses.
Operating Margin
Core operations generate 16.80 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.56 in profit for every $100 of shareholder equity.
ROA
Zurn Elkay Water Solutions Corporation generates $7.39 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Zurn Elkay Water Solutions Corporation produces operating cash flow of $345.75M, showing steady but balanced cash generation.
Free Cash Flow
Zurn Elkay Water Solutions Corporation generates strong free cash flow of $315.91M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.89 in free cash annually.
FCF Yield
ZWS converts 3.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
43.004
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
12.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.010
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.37
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How ZWS Stacks Against Its Sector Peers
| Metric | ZWS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 43.00 | 26.76 | Worse (Expensive) |
| ROE | 12.56% | 1300.00% | Weak |
| Net Margin | 11.68% | -29570.00% (disorted) | Strong |
| Debt/Equity | 0.37 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 3.13 | 10.68 | Strong Liquidity |
| ROA | 7.39% | -1545134.00% (disorted) | Weak |
ZWS outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Zurn Elkay Water Solutions Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
43.51%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-42.13%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-36.06%
Industry Style: Cyclical, Value, Infrastructure
Declining