ZWS

Zurn Elkay Water Solutions Corporation

Fundamental data last updated:November 14, 2026

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company profile

SECTOR

Industrials

industry

Industrial - Machinery

Exchange

NYSE

County of HQ

US

Next Earnings Date

02/02/2027

Business Summary

Zurn Elkay Water Solutions Corporation (ZEWS) is a leading provider of comprehensive water system solutions. The company is involved in the entire lifecycle, from design and procurement to manufacturing and marketing, with a focus on optimizing water quality, safety, flow management, and conservation within and around non-residential structures. ZEWS markets a diverse portfolio of products under several well-known brands. Under its flagship Zurn brand, offerings include finish plumbing fixtures, drainage and interception systems, water control and backflow prevention devices, fire protection equipment, PEX pipe fittings and accessories, and essential repair parts. The World Dryer brand specializes in hand and hair dryers, alongside baby changing stations. Furthermore, its Just Manufacturing brand provides a wide array of robust stainless steel products. This encompasses specialized sinks for academic institutions and classrooms, ADA-compliant commercial sinks and plumbing fixtures for assisted living facilities, various faucets, bubblers, drains, and accessories. These stainless steel solutions also cater to sectors like food service, government, healthcare, hospitality, institutional, and even select residential applications. These solutions are deployed across a broad spectrum of markets, including higher education, healthcare, retail, restaurant, hospitality, general education, government, and fire protection. Incorporated in 2006, the company, formerly known as Zurn Water Solutions Corporation, is headquartered in Milwaukee, Wisconsin.

 


VALUATION

P/E

26.09

Market Cap ($M USD)

$7.50B

Forward P/E

24.42

PEG

1.11

PRICE TO SALES

4.22

PRICE TO BOOK

4.46

EV / EBITDA

18.48

5-Year Average P/E

Free Cash Flow Yield

5.12%

DCF Value

$52.74

Graham Number

$20.01

Price to FCF

19.54

EV to FCF

20.17

Earnings Yield

3.85%

FCF Yield

5.12%

DIVIDEND

Yield

0.97%

Annual Payout

$0.44

Payout Ratio

25.29%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$1.75

Next Year EPS Growth Estimate

$1.86

Next Year Revenue Growth Estimate

$1.86B

Return on Equity (ROE)

17.71%

FREE CASH FLOW

Operating Margin

18.68%

Debt-to-Equity

0.32

Piotroski F-Score

8

Altman Z-Score

4.80

Return on Invested Capital (ROIC)

9.98%

Current Ratio

2.85

Quick Ratio

1.95

Net Debt to EBITDA

0.58

Interest Coverage

13.23

Gross Profit margin

47.13%

FCF PER SHARE

$2.31

REVENUE PER SHARE

$10.69

Gainseekers Quantitative Analysis

Summary

Zurn Elkay Water Solutions Corporation appears to be trading below its intrinsic value, as indicated by its DCF Value of $51.77 compared to the recent snapshot price. The Graham Number further supports this undervaluation narrative. With a Forward P/E of 24.17 and an Earnings Yield of 3.90%, the stock is priced for moderate growth, yet the robust Altman Z-score of 5.16 suggests financial stability and low bankruptcy risk. This combination of undervaluation and financial health makes it an intriguing prospect for discerning investors.

AI Exposure / Tech Reliance

Operating in the Industrial - Machinery sector, Zurn Elkay is well-positioned to integrate AI and modern technologies into its operations. The industry’s focus on efficiency and innovation aligns with AI-driven advancements, potentially enhancing productivity and product offerings. This adaptability could provide a competitive edge in a rapidly evolving market landscape.

The Bull Case

For the value-driven investor, Zurn Elkay offers compelling reasons to buy. The company boasts a strong ROIC of 9.98%, indicating efficient capital use. A Piotroski F-Score of 8 underscores its financial strength, while a healthy FCF Yield of 5.19% suggests solid cash generation. With an operating margin of 18.68%, the company demonstrates significant pricing power, making it a potentially lucrative investment.

The Bear Case

Despite its strengths, Zurn Elkay faces challenges with its high valuation multiples. A Price/Book ratio of 4.40 and Price/Sales of 4.16 suggest the stock is not cheap. The EV to EBITDA of 18.25 further highlights its premium pricing. Additionally, trading close to its 52-week high, the stock could be technically overextended, posing a risk for new investors seeking immediate upside.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$55.17

Institutional Ownership %

1-Year Beta

0.83

Insider Buying % (6 Mo)

Distance to 52-Week High

21.13%

Distance to 52-Week Low

5.54%

EARNINGS SURPRISE %

4.17%

50-DAY SMA

$46.63

200-DAY SMA

$48.24

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.