📊 ZWS Key Takeaways
Is Zurn Elkay Water Solutions Corp (ZWS) a Good Investment?
ZWS demonstrates solid operational execution with revenue growth of 8.3% YoY accompanied by stronger net income expansion of 23.6%, indicating improving operational leverage and margin management. The company maintains a fortress balance sheet with 3.24x current ratio, 0.31x debt/equity, and robust 9.3x interest coverage, while generating healthy free cash flow of $41.8M with minimal capex requirements, positioning it as a fundamentally sound business with low financial risk.
Zurn Elkay Water Solutions Corp Key Strengths (ZWS)
- Net income growing 2.8x faster than revenue (+23.6% vs +8.3%) demonstrates improving operational leverage and cost management
- Strong profitability margins across the board (gross 47.5%, operating 19.0%, net 13.6%) with excellent cash conversion
- Conservative balance sheet with 3.24x current ratio, 0.31x debt/equity, and 9.3x interest coverage ratio providing financial flexibility
- Efficient capital deployment with low capex ($4.3M) and healthy free cash flow generation ($41.8M, 9.7% of revenue)
ZWS Stock Risks: Zurn Elkay Water Solutions Corp Investment Risks
- Very low return on equity (3.7%) and return on assets (2.2%) indicate significant capital inefficiency despite profitability
- Moderate revenue growth rate (8.3%) may be insufficient for long-term shareholder value creation in competitive industrial markets
- Substantial long-term debt ($499M) represents 31% of equity base and constrains financial flexibility despite manageable coverage ratios
- Cyclical business exposure as industrial machinery supplier leaves cash generation vulnerable to economic downturns
Key Metrics to Watch
- Revenue growth trajectory and margin sustainability as operational leverage gains are realized
- Return on equity trend and capital efficiency improvements to validate business model strength
- Free cash flow generation and debt reduction pace to enhance financial position
Zurn Elkay Water Solutions Corp (ZWS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.24x current ratio provides a solid financial cushion.
ZWS Profit Margin, ROE & Profitability Analysis
ZWS vs Industrial Sector: How Zurn Elkay Water Solutions Corp Compares
How Zurn Elkay Water Solutions Corp compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Zurn Elkay Water Solutions Corp Stock Overvalued? ZWS Valuation Analysis 2026
Based on fundamental analysis, Zurn Elkay Water Solutions Corp has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Zurn Elkay Water Solutions Corp Balance Sheet: ZWS Debt, Cash & Liquidity
ZWS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Zurn Elkay Water Solutions Corp's revenue has grown significantly by 86% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.64 reflects profitable operations.
ZWS Revenue Growth, EPS Growth & YoY Performance
ZWS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $388.8M | $43.6M | $0.26 |
| Q3 2025 | $410.0M | $43.5M | $0.25 |
| Q2 2025 | $412.0M | $46.0M | $0.27 |
| Q1 2025 | $373.8M | $34.3M | $0.19 |
| Q3 2024 | $398.4M | $41.4M | $0.24 |
| Q2 2024 | $403.2M | $34.6M | $0.20 |
| Q1 2024 | $372.1M | $22.8M | $0.13 |
| Q3 2023 | $398.4M | -$19.1M | $-0.11 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Zurn Elkay Water Solutions Corp Dividends, Buybacks & Capital Allocation
ZWS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Zurn Elkay Water Solutions Corp (CIK: 0001439288)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ZWS
What is the AI rating for ZWS?
Zurn Elkay Water Solutions Corp (ZWS) has an AI grade of A with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are ZWS's key strengths?
Claude: Net income growing 2.8x faster than revenue (+23.6% vs +8.3%) demonstrates improving operational leverage and cost management. Strong profitability margins across the board (gross 47.5%, operating 19.0%, net 13.6%) with excellent cash conversion.
What are the risks of investing in ZWS?
Claude: Very low return on equity (3.7%) and return on assets (2.2%) indicate significant capital inefficiency despite profitability. Moderate revenue growth rate (8.3%) may be insufficient for long-term shareholder value creation in competitive industrial markets.
What is ZWS's revenue and growth?
Zurn Elkay Water Solutions Corp reported revenue of $433.0M.
Does ZWS pay dividends?
Zurn Elkay Water Solutions Corp pays dividends, with $18.4M distributed to shareholders in the trailing twelve months.
Where can I find ZWS SEC filings?
Official SEC filings for Zurn Elkay Water Solutions Corp (CIK: 0001439288) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ZWS's EPS?
Zurn Elkay Water Solutions Corp has a diluted EPS of $0.35.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ZWS's fundamental grade?
Based on our AI fundamental analysis in June 2026, Zurn Elkay Water Solutions Corp has a A grade with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ZWS stock overvalued or undervalued?
Valuation metrics for ZWS: ROE of 3.7% (sector avg: 15%), net margin of 13.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is ZWS's AI grade for 2026?
Our dual AI analysis gives Zurn Elkay Water Solutions Corp a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ZWS's free cash flow?
Zurn Elkay Water Solutions Corp's operating cash flow is $46.1M, with capital expenditures of $4.3M. FCF margin is 9.7%.
How does ZWS compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 13.6% (avg: 10%), ROE 3.7% (avg: 15%), current ratio 3.24 (avg: 1.8).