Zurn Water Solutions (4RX0) AI Stock Analysis

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Zurn Water Solutions

(Frankfurt:4RX0)

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Positive Factors

Strong cash generationStrong operating and free cash flow indicates that reported earnings are converting into usable capital at a high rate. This supports reinvestment, acquisitions, debt management, and shareholder returns while providing resilience through normal demand fluctuations.

Negative Factors

Expected 2027 end-market contractionA weaker broad market could reduce project volumes and make revenue growth more dependent on share gains, pricing, and new products. This creates a durable near-term headwind for commercial and institutional demand even though management expects operational execution to continue.

Zurn Water Solutions (4RX0) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 7.28B
Dividend Yield: 0.94%
Average Volume (3M): ―
Price to Earnings (P/E): 25.4
Beta (1Y): 0.37
Revenue Growth: 4.92%
EPS Growth: 46.55%
Country: Germany
Employees: 2,600
Sector: Industrials
Sector Strength: 63
Industry: Industrial - Machinery

Zurn Water Solutions Business Overview & Revenue Model

Company Description

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...

Zurn Water Solutions Earnings Call Summary

Earnings Call Date:Oct 26, 2026(Q3-2026)|% Change Since:-9.13%|Next Earnings Date:Feb 08, 2027

Earnings Call SentimentPositive

The call was predominantly positive. The company reported strong revenue and EBITDA growth, margin expansion, robust free cash flow, increased shareholder returns, low leverage, raised 2026 EBITDA guidance, and progress in hot-water adjacencies. These strengths outweighed the acknowledged challenges from a soft residential market, continued softness in architecture billings, commercial-market volatility, moderating price realization, and a market outlook that currently points to a decline of a couple points in 2027.

Positive Updates

Strong Third-Quarter Revenue Growth

Third-quarter sales totaled $95 million, representing 9% reported growth and 7% core growth year over year, landing at the high end of the company's quarterly guide. Growth was broad-based across most product categories, led by Water Safety and Control and Drinking Water.

Negative Updates

2027 End Markets Expected to Be Challenging

Management said the broader economy and parts of the company's end markets do not appear likely to be a tailwind in 2027. The market is currently expected to be down a couple points next year, although the company has not yet provided formal 2027 guidance.

Company Guidance

For the fourth quarter, the company expects sales in a range of $430 million to $437 million and adjusted EBITDA to be between $120 million and $123 million; for full year 2026, it raised adjusted EBITDA outlook to a range of $512 million to $515 million and maintained full year free cash flow of greater than $350 million excluding the net impact of tariff refunds and taxes. For 2027, the company will not provide guidance until next February, but said 2027 looks like 40% incrementals plus, with SKU simplification providing a benefit to EBITDA of around $5 million or more in 2027, on top of year-over-year 40% incrementals; the market looks to be likely down a couple points next year, while price should be thought of as regular way, a couple points of price in 2027, with no incremental price assumed in the fourth quarter other than what is already been implemented.

Zurn Water Solutions Risk Analysis

Zurn Water Solutions disclosed 26 risk factors in its most recent earnings report. Zurn Water Solutions reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Zurn Water Solutions Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

DE:4RX0 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WTS	82Outperform	$11.86B	31.44	18.56%	0.64%	17.13%	23.21%
BMI	78Outperform	$4.50B	35.08	18.49%	1.07%	-2.21%	-7.84%
MWA	72Outperform	$3.75B	16.48	21.21%	1.19%	5.88%	49.15%
FELE	69Neutral	$4.43B	22.43	14.50%	1.09%	7.28%	45.11%
PNR	68Neutral	$11.27B	18.40	16.02%	1.55%	-3.93%	-4.74%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

* Industrials Sector Average

Performance Comparison

DE:4RX0 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:4RX0	Zurn Water Solutions Corporation	39.80	-1.22	-2.97%
BMI	Badger Meter	152.58	-31.49	-17.11%
FELE	Franklin Electric	100.96	6.28	6.63%
MWA	Mueller Water Products	23.57	-2.21	-8.59%
PNR	Pentair	69.73	-36.63	-34.44%
WTS	Watts Water	360.33	80.12	28.59%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Zurn Water Solutions AI Stock Analysis