Zurn Water Solutions (ZWS) AI Stock Analysis

• Market Cap: $7.94B
• Dividend Yield: 0.78%
• Average Volume (3M): 850.44K
• Price to Earnings (P/E): 42.2
• Beta (1Y): 0.98
• Revenue Growth: 6.88%
• EPS Growth: 42.07%
• Country: US
• Employees: 2,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 0.43
• Shares Outstanding: 167,350,810
• 10 Day Avg. Volume: 1,041,154
• 30 Day Avg. Volume: 850,440
• PEG Ratio: 0.93
• Price to Book (P/B): 4.04
• Price to Sales (P/S): 4.09
• P/FCF Ratio: 23.57
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 5.14
• Enterprise Value/Gross Profit: 11.31
• Enterprise Value/Ebitda: 23.94
• 1Y Price Target: $50.25
• Price Target Upside: 5.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.49
• Revenue Forecast (FY): $1.68B

• Rating: 79 Outperform
• Price Target: $53.00 ▲(11.34% Upside)

Zurn Water Solutions' strong financial performance and positive earnings call sentiment are the most significant factors contributing to the overall score. The company's effective cash management and strategic achievements bolster its position. However, the high P/E ratio and low dividend yield weigh on the valuation score, and mixed technical indicators suggest a cautious approach.

Positive Factors

Revenue Growth

Consistent organic revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling strategic investments and shareholder returns, crucial for sustainable growth.

Leverage Reduction

Reducing leverage strengthens the balance sheet, lowers financial risk, and provides more room for strategic initiatives and investments.

Negative Factors

Residential Market Softness

Weakness in the residential market could limit growth opportunities in this segment, affecting overall revenue diversification and stability.

Tariff Impact

Increased tariff costs can pressure margins and profitability, potentially impacting competitive pricing and financial performance.

High P/E Ratio

A high P/E ratio may indicate overvaluation, potentially limiting stock attractiveness and increasing vulnerability to market corrections.

Zurn Water Solutions Business Overview & Revenue Model

Company Description

Zurn Elkay Water Solutions Corporation designs, procures, manufactures, and markets water system solutions that provide and enhance water quality, safety, flow control, and conservation in and around non-residential buildings. It offers finish plumbing, drainage and interceptors, water control and backflow, fire protection, PEX pipe fittings and accessories, and repair parts under the Zurn brand name; and hand and hair dryers, and baby changing stations under the World Dryer brand name. The company also offers stainless steel products under the Just Manufacturing brand name, which include stainless steel sinks for classrooms and academic institutions; ADA commercial stainless-steel sinks and plumbing fixtures for assisted living; faucets, bubblers, drains, and accessories; and stainless steel fixtures and related products for food services, government, healthcare, hospitality, institutional, and residential markets. It serves higher education, healthcare, retail, restaurant, hospitality, education, government, and fire protection markets. The company was formerly known as Zurn Water Solutions Corporation. Zurn Elkay Water Solutions Corporation was incorporated in 2006 and is headquartered in Milwaukee, Wisconsin.

How the Company Makes Money

Zurn Water Solutions generates revenue through multiple key streams. The primary source of income comes from the sale of its extensive product line, which includes plumbing fixtures, drainage products, and water treatment systems. Additionally, ZWS earns revenue from providing maintenance services, consulting, and installation for its products. The company has established significant partnerships with construction firms, property developers, and government agencies, which helps to secure large contracts and create a stable client base. Furthermore, ZWS focuses on innovation and sustainability, which attracts customers looking for eco-friendly solutions, thereby enhancing market competitiveness and driving sales growth.

Zurn Water Solutions Financial Statement Overview

Summary

Zurn Water Solutions demonstrates strong financial performance with consistent revenue growth, solid profitability, and effective cash management. The company has a healthy gross profit margin and a strong free cash flow trajectory, although there is room for improvement in reducing leverage.

Income Statement

Zurn Water Solutions demonstrates strong income statement metrics with consistent revenue growth and improving profitability. The gross profit margin for TTM is a healthy 45.46%, and the net profit margin is at 10.78%. The company shows robust top-line growth, with a TTM revenue growth rate of 3.03%. The EBIT and EBITDA margins are also solid, at 16.13% and 20.65%, respectively, indicating efficient operations and cost management.

Balance Sheet

The balance sheet of Zurn Water Solutions is stable with a strong equity position. The debt-to-equity ratio is at 0.32, reflecting a manageable level of debt relative to equity. The return on equity (ROE) is 11.12%, indicating decent profitability relative to shareholder investment. The equity ratio is 58.96%, suggesting a solid foundation of assets financed by equity, though the balance sheet leverage could be reduced further.

Cash Flow

Zurn Water Solutions shows strong cash flow performance with a TTM free cash flow to net income ratio of 1.84, indicating effective cash generation relative to profits. The operating cash flow to net income ratio is 2.02, demonstrating strong cash conversion from earnings. The free cash flow growth rate is 17.79%, pointing to positive cash flow trajectory and efficient capital expenditure management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.61B	1.57B	1.53B	1.28B	910.90M	562.70M
Gross Profit	733.90M	707.00M	648.10M	465.50M	373.20M	253.30M
EBITDA	346.80M	328.40M	273.20M	165.20M	164.60M	145.80M
Net Income	174.00M	160.20M	112.70M	61.70M	120.90M	118.20M
Balance Sheet
Total Assets	2.65B	2.65B	2.67B	2.86B	1.08B	3.40B
Cash, Cash Equivalents and Short-Term Investments	201.90M	198.00M	136.70M	124.80M	96.60M	62.30M
Total Debt	543.40M	551.60M	543.20M	570.10M	539.50M	0.00
Total Liabilities	1.09B	1.06B	1.06B	1.25B	951.30M	1.96B
Stockholders Equity	1.56B	1.59B	1.60B	1.61B	126.40M	1.44B
Cash Flow
Free Cash Flow	281.50M	271.70M	232.60M	89.40M	200.30M	168.00M
Operating Cash Flow	308.00M	293.50M	253.90M	97.00M	223.60M	196.30M
Investing Cash Flow	-26.50M	-20.20M	-4.60M	-6.60M	-21.90M	-122.50M
Financing Cash Flow	-242.00M	-207.50M	-239.20M	-61.10M	-356.20M	-409.60M

Zurn Water Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 47.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZWS, the sentiment is Positive. The current price of 47.6 is above the 20-day moving average (MA) of 46.81, above the 50-day MA of 46.69, and above the 200-day MA of 39.17, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 55.32 is Neutral, neither overbought nor oversold. The STOCH value of 37.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZWS.

Zurn Water Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZWS	79 Outperform	$7.94B	42.24	11.76%	0.78%	6.88%	42.07%
ATMU	78 Outperform	$3.94B	19.96	71.52%	0.43%	3.72%	11.71%
CECO	77 Outperform	$1.90B	37.65	18.85%	―	29.86%	331.33%
FSS	73 Outperform	$6.91B	29.66	19.08%	0.43%	11.83%	11.08%
ERII	68 Neutral	$740.29M	41.07	9.41%	―	0.10%	1.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PCT	38 Underperform	$1.90B	―	-147.56%	―	―	12.57%

Zurn Water Solutions Corporate Events

Zurn Elkay Water Solutions Reports Strong Q3 2025 Results

Zurn Elkay Water Solutions Corporation is a Milwaukee-based company specializing in water management solutions, offering a wide range of products aimed at improving health, hydration, and environmental safety. The company operates in the water management sector and is recognized for its sustainable growth and responsible business practices.

Zurn Water Solutions Reports Strong Q2 Growth

The latest earnings call from Zurn Water Solutions Corporation painted a picture of robust performance, marked by significant organic growth and enhanced guidance. The company has made notable strides in its sustainability initiatives, yet challenges persist, particularly in the residential market and due to ongoing tariff impacts.

Zurn Elkay Water Solutions Reports Strong Q2 2025 Results

Zurn Elkay Water Solutions Corporation is a Milwaukee-based company specializing in water management solutions, offering a wide range of products aimed at improving health, hydration, human safety, and the environment. The company operates in the water management sector and is recognized for its sustainable growth initiatives.