Zurn Elkay Water Solutions Corporation (ZWS) 10-Year Financial Performance & Capital Metrics

ZWS • • Industrial / General

IndustrialsEnvironmental ServicesWater Treatment & PurificationWater Purification Systems

AboutZurn 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.Show more

Revenue $1.57B +2.4%
EBITDA $333M +19.2%
Net Income $160M +42.1%
EPS (Diluted) 0.92 +43.8%
Gross Margin 45.13% +6.6%
EBITDA Margin 21.25% +16.5%
Operating Margin 15.61% +24.9%
Net Margin 10.23% +38.9%
ROE 10.05% +43.4%
ROIC 9.29% +31.7%
Debt/Equity 0.35 +2.6%
Interest Coverage 7.39 +48.6%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Strong Piotroski F-Score: 7/9
✓FCF machine: 17.3% free cash flow margin
✓High quality earnings: Operating CF exceeds net income
✓Strong 5Y sales CAGR of 17.1%
✓Healthy 5Y average net margin of 11.3%

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y-2.66%

5Y17.14%

3Y19.81%

TTM4.74%

Profit (Net Income) CAGR

10Y6.69%

5Y-2.31%

3Y9.84%

TTM28.32%

EPS CAGR

10Y1.41%

5Y-7.15%

3Y-1.41%

TTM29.73%

ROCE

10Y Avg6.76%

5Y Avg6.44%

3Y Avg8%

Latest10.09%

Peer Comparison

Water Purification Systems

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
ZWSZurn Elkay Water Solutions Corporation	7.91B	47.27	51.38	2.35%	10.78%	11.12%	3.43%	0.35
VLTOVeralto Corporation	25.62B	103.18	30.89	3.43%	16.75%	32.06%	3.2%	1.35

Profit & Loss

	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	1.92B	1.71B	1.85B	2.05B	710.1M	562.7M	910.9M	1.28B	1.53B	1.57B
Revenue Growth %	-0.06%	-0.11%	0.08%	0.11%	-0.65%	-0.21%	0.62%	0.41%	0.19%	0.02%
Cost of Goods Sold+	1.26B	1.09B	1.15B	1.27B	387.5M	309.4M	537.7M	816.3M	882.4M	859.5M
COGS % of Revenue	0.65%	0.63%	0.62%	0.62%	0.55%	0.55%	0.59%	0.64%	0.58%	0.55%
Gross Profit+	665.2M	626.4M	706.5M	784.8M	322.6M	253.3M	373.2M	465.5M	648.1M	707M
Gross Margin %	0.35%	0.37%	0.38%	0.38%	0.45%	0.45%	0.41%	0.36%	0.42%	0.45%
Gross Profit Growth %	-0.11%	-0.06%	0.13%	0.11%	-0.59%	-0.21%	0.47%	0.25%	0.39%	0.09%
Operating Expenses+	490.9M	423.2M	440.1M	479.2M	218.5M	172.3M	266.2M	358.4M	456.7M	462.4M
OpEx % of Revenue	0.26%	0.25%	0.24%	0.23%	0.31%	0.31%	0.29%	0.28%	0.3%	0.3%
Selling, General & Admin	385.7M	356.1M	393.8M	433.1M	196.4M	153.7M	239M	309M	371.3M	389.8M
SG&A % of Revenue	0.2%	0.21%	0.21%	0.21%	0.28%	0.27%	0.26%	0.24%	0.24%	0.25%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	105.2M	67.1M	46.3M	46.1M	22.1M	18.6M	27.2M	49.4M	85.4M	72.6M
Operating Income+	174.3M	203.2M	266.4M	305.6M	104.1M	81M	107M	107.1M	191.4M	244.6M
Operating Margin %	0.09%	0.12%	0.14%	0.15%	0.15%	0.14%	0.12%	0.08%	0.13%	0.16%
Operating Income Growth %	-0.14%	0.17%	0.31%	0.15%	-0.66%	-0.22%	0.32%	0%	0.79%	0.28%
EBITDA+	289.7M	308.6M	356.1M	397.9M	190.7M	148M	184.5M	161.6M	279.3M	332.9M
EBITDA Margin %	0.15%	0.18%	0.19%	0.19%	0.27%	0.26%	0.2%	0.13%	0.18%	0.21%
EBITDA Growth %	-0.08%	0.07%	0.15%	0.12%	-0.52%	-0.22%	0.25%	-0.12%	0.73%	0.19%
D&A (Non-Cash Add-back)	115.4M	105.4M	89.7M	92.3M	86.6M	67M	77.5M	54.5M	87.9M	88.3M
EBIT	177.4M	195.6M	262.2M	308.7M	80M	78.8M	87.1M	110.7M	185.3M	240.1M
Net Interest Income+	-91.4M	-88.3M	-75.1M	-69.9M	-56.6M	-33.3M	-34.7M	-26.9M	-38.5M	-33.1M
Interest Income	0	0	0	0	0	0	0	0	0	0
Interest Expense	91.4M	88.3M	75.1M	69.9M	56.6M	33.3M	34.7M	26.9M	38.5M	33.1M
Other Income/Expense	-88.3M	-95.9M	-79.3M	-66.8M	-80.7M	-35.5M	-54.6M	-23.3M	-44.6M	-37.6M
Pretax Income+	86M	107.3M	187.1M	238.8M	23.4M	45.5M	52.4M	83.8M	146.8M	207M
Pretax Margin %	0.04%	0.06%	0.1%	0.12%	0.03%	0.08%	0.06%	0.07%	0.1%	0.13%
Income Tax+	17.1M	15.6M	-19.5M	53.4M	4.4M	10.5M	2.7M	26.8M	42.6M	48.1M
Effective Tax Rate %	0.79%	0.69%	0.41%	0.14%	7.7%	2.6%	2.31%	0.74%	0.77%	0.77%
Net Income+	67.9M	74.1M	75.9M	34.3M	180.1M	118.2M	120.9M	61.7M	112.7M	160.2M
Net Margin %	0.04%	0.04%	0.04%	0.02%	0.25%	0.21%	0.13%	0.05%	0.07%	0.1%
Net Income Growth %	-0.19%	0.09%	0.02%	-0.55%	4.25%	-0.34%	0.02%	-0.49%	0.83%	0.42%
Net Income (Continuing)	68.9M	91.7M	206.6M	189M	19M	35M	49.7M	57M	104.2M	158.9M
Discontinued Operations	-1.4M	-17.6M	-130.6M	-154.7M	161.1M	83.2M	71.2M	4.7M	8.5M	1.3M
Minority Interest	-600K	0	100K	2.4M	2.4M	3M	0	0	0	0
EPS (Diluted)+	0.66	0.64	0.72	0.28	1.33	0.28	0.96	0.40	0.64	0.92
EPS Growth %	-0.17%	-0.03%	0.13%	-0.61%	3.79%	-0.79%	2.43%	-0.58%	0.6%	0.44%
EPS (Basic)	0.67	0.65	0.73	0.33	1.48	0.29	0.99	0.41	0.65	0.93
Diluted Shares Outstanding	103.31M	104.78M	106M	123.33M	124.26M	123.2M	125.11M	153.84M	177.26M	174.66M
Basic Shares Outstanding	100.84M	102.75M	103.89M	104.64M	111.69M	120.43M	121.49M	151.58M	174.25M	171.69M
Dividend Payout Ratio	-	-	-	-	0.05%	0.24%	0.3%	0.53%	0.45%	0.35%

Balance Sheet

	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	1.18B	1.18B	997.7M	982.9M	982.9M	907.7M	474.8M	757.5M	667.8M	722.1M
Cash & Short-Term Investments	484.6M	490.1M	217.6M	292.5M	292.5M	62.3M	96.6M	124.8M	136.7M	198M
Cash Only	484.6M	490.1M	217.6M	292.5M	292.5M	62.3M	96.6M	124.8M	136.7M	198M
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	317.6M	322.9M	392.3M	337.6M	337.6M	103.6M	177.2M	238M	227.2M	221.8M
Days Sales Outstanding	60.26	68.82	77.33	60.08	173.53	67.2	71	67.77	54.18	51.68
Inventory	327.2M	314.9M	344.8M	316.5M	316.5M	136.1M	184.5M	366.7M	277.6M	272.6M
Days Inventory Outstanding	94.89	105.83	109.9	91.24	298.12	160.56	125.24	163.97	114.83	115.76
Other Current Assets	46.7M	50.2M	43M	36.3M	36.3M	605.7M	16.5M	28M	26.3M	29.7M
Total Non-Current Assets+	2.18B	2.36B	2.43B	2.28B	2.28B	532.8M	602.9M	2.11B	2B	1.93B
Property, Plant & Equipment	397.2M	400.9M	456.4M	383M	383M	87.7M	64.4M	183.8M	226.7M	164M
Fixed Asset Turnover	4.84x	4.27x	4.06x	5.35x	1.85x	6.42x	14.14x	6.97x	6.75x	9.55x
Goodwill	1.19B	1.32B	1.28B	1.3B	1.3B	244.8M	254.1M	777M	796M	794.2M
Intangible Assets	520.9M	558.6M	577.5M	511.5M	511.5M	200.3M	179.1M	1.01B	952.4M	891.6M
Long-Term Investments	-186M	-208.8M	-156.6M	-125.9M	-125.9M	0	-3.1M	0	0	0
Other Non-Current Assets	66.8M	83.5M	116M	-43.3M	82.6M	-532.8M	105.3M	-85.4M	20.8M	76.6M
Total Assets+	3.35B	3.54B	3.42B	3.26B	3.26B	3.4B	1.08B	2.86B	2.67B	2.65B
Asset Turnover	0.57x	0.48x	0.54x	0.63x	0.22x	0.17x	0.85x	0.45x	0.57x	0.59x
Asset Growth %	-0.02%	0.05%	-0.03%	-0.05%	0%	0.04%	-0.68%	1.66%	-0.07%	-0.01%
Total Current Liabilities+	404.4M	400.3M	454.2M	397M	397M	317.5M	240.4M	289.3M	220.9M	247.8M
Accounts Payable	200.8M	197.8M	226M	191.7M	191.7M	41.3M	105.1M	116.9M	56.4M	71.7M
Days Payables Outstanding	58.23	66.47	72.04	55.26	180.57	48.72	71.34	52.27	23.33	30.45
Short-Term Debt	20.2M	16.5M	3.9M	1.2M	1.2M	0	5.6M	5.7M	11.5M	0
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	0	1000K	1000K	1000K	0
Other Current Liabilities	175.1M	175.1M	212.8M	199M	7.3M	234.9M	1.3M	-171.6M	96.6M	145.2M
Current Ratio	2.91x	2.94x	2.20x	2.48x	2.48x	2.86x	1.98x	2.62x	3.02x	2.91x
Quick Ratio	2.10x	2.16x	1.44x	1.68x	1.68x	2.43x	1.21x	1.35x	1.77x	1.81x
Cash Conversion Cycle	96.91	108.18	115.2	96.06	291.08	179.04	124.9	179.47	145.68	137
Total Non-Current Liabilities+	2.36B	2.07B	1.76B	1.63B	1.63B	1.12B	710.9M	959.7M	843.3M	813.9M
Long-Term Debt	1.9B	1.61B	1.35B	1.24B	1.24B	1.12B	533.9M	564.4M	473.6M	475M
Capital Lease Obligations	0	0	0	0	0	0	0	0	0	63.1M
Deferred Tax Liabilities	186M	208.8M	156.6M	125.9M	125.9M	0	3.1M	221.4M	210M	196.5M
Other Non-Current Liabilities	49M	79M	1.52B	269M	1.43B	-1.12B	116.6M	173.9M	159.7M	79.3M
Total Liabilities	2.77B	2.47B	2.21B	2.03B	2.03B	1.96B	951.3M	1.25B	1.06B	1.06B
Total Debt+	1.92B	1.62B	1.36B	1.24B	1.24B	0	539.5M	570.1M	543.2M	551.6M
Net Debt	1.44B	1.13B	1.14B	945.5M	945.5M	-62.3M	442.9M	445.3M	406.5M	353.6M
Debt / Equity	3.27x	1.52x	1.12x	1.01x	1.01x	-	4.27x	0.35x	0.34x	0.35x
Debt / EBITDA	6.63x	5.26x	3.81x	3.11x	6.49x	-	2.92x	3.53x	1.94x	1.66x
Net Debt / EBITDA	4.96x	3.67x	3.20x	2.38x	4.96x	-0.42x	2.40x	2.76x	1.46x	1.06x
Interest Coverage	1.91x	2.30x	3.55x	4.37x	1.84x	2.43x	3.08x	3.98x	4.97x	7.39x
Total Equity+	588M	1.07B	1.21B	1.23B	1.23B	1.44B	126.4M	1.61B	1.6B	1.59B
Equity Growth %	0.06%	0.82%	0.13%	0.02%	0%	0.17%	-0.91%	11.78%	-0.01%	-0.01%
Book Value per Share	5.69	10.22	11.44	9.98	9.91	11.68	1.01	10.50	9.04	9.09
Total Shareholders' Equity	588.6M	1.07B	1.21B	1.23B	1.23B	1.44B	126.4M	1.61B	1.6B	1.59B
Common Stock	1M	1M	1M	1M	1M	1.2M	1.3M	1.8M	1.7M	1.7M
Retained Earnings	-129.6M	-55.5M	8M	30.7M	30.7M	116M	-1.24B	-1.16B	-1.18B	-1.17B
Treasury Stock	-	-	-	-	-	-	-	-	-	0
Accumulated OCI	-139M	-137M	-74.1M	-96.6M	-96.6M	0	-74.9M	-75M	-67.7M	-74.4M
Minority Interest	-600K	0	100K	2.4M	2.4M	3M	0	0	0	0

Cash Flow

	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	219M	195.1M	228.5M	258.1M	298.6M	196.3M	223.6M	97M	253.9M	293.5M
Operating CF Margin %	0.11%	0.11%	0.12%	0.13%	0.42%	0.35%	0.25%	0.08%	0.17%	0.19%
Operating CF Growth %	-0.11%	-0.11%	0.17%	0.13%	0.16%	-0.34%	0.14%	-0.57%	1.62%	0.16%
Net Income	69M	74.1M	76M	34.3M	180.1M	118.2M	120.9M	61.7M	112.7M	160.2M
Depreciation & Amortization	115.4M	105.4M	89.7M	92.3M	86.6M	67M	77.5M	54.5M	87.9M	88.3M
Stock-Based Compensation	7.5M	13.4M	20.5M	22.6M	26.9M	36.6M	51.4M	25M	40M	37.9M
Deferred Taxes	-13.9M	-18.4M	-77.5M	-27.5M	-2.8M	-7M	-12.1M	500K	-4.2M	-14.8M
Other Non-Cash Items	42.6M	8.3M	125.7M	152.2M	38.9M	700K	10.3M	3.2M	-3.1M	12.3M
Working Capital Changes	-1.6M	12.3M	-5.9M	-15.8M	-31.1M	-19.2M	-24.4M	-47.9M	20.6M	9.6M
Change in Receivables	1.5M	-5.8M	-31M	-29.8M	-19.9M	65.1M	-66.6M	15.5M	10.1M	6.3M
Change in Inventory	37.7M	22.5M	11.5M	-24.7M	100K	500K	-79.5M	-17.6M	65M	2.7M
Change in Payables	-32.4M	-5.3M	13M	-1.3M	-3.7M	-65.1M	99.1M	-18.3M	-60.8M	15.8M
Cash from Investing+	-45.2M	-264M	-208.8M	-53.3M	-53.3M	-122.5M	-21.9M	-6.6M	-4.6M	-20.2M
Capital Expenditures	-52.1M	-54.5M	-40.7M	-44.9M	-44.9M	-28.3M	-23.3M	-7.6M	-21.3M	-21.8M
CapEx % of Revenue	0.03%	0.03%	0.02%	0.02%	0.06%	0.05%	0.03%	0.01%	0.01%	0.01%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	5.8M	4.2M	5.5M	15M	15M	7.8M	18.5M	45.8M	16.7M	1.6M
Cash from Financing+	-56.3M	79.9M	-308.8M	-116.7M	114.9M	-409.6M	-356.2M	-61.1M	-239.2M	-207.5M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	-4.4M	-23.2M	-23.2M	-27.2M	-28.8M	-36.4M	-32.5M	-50.4M	-56.6M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	8.2M	-6.5M	-5M	4.7M	28.4M	8.9M	257.8M	1.8M	1.2M	100K
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	166.9M	140.6M	187.8M	213.2M	257.2M	168M	200.3M	89.4M	232.6M	271.7M
FCF Margin %	0.09%	0.08%	0.1%	0.1%	0.36%	0.3%	0.22%	0.07%	0.15%	0.17%
FCF Growth %	-0.15%	-0.16%	0.34%	0.14%	0.21%	-0.35%	0.19%	-0.55%	1.6%	0.17%
FCF per Share	1.62	1.34	1.77	1.73	2.07	1.36	1.60	0.58	1.31	1.56
FCF Conversion (FCF/Net Income)	3.23x	2.63x	3.01x	7.52x	1.66x	1.66x	1.85x	1.57x	2.25x	1.83x
Interest Paid	-	-	-	-	-	-	-	-	-	0
Taxes Paid	-	-	-	-	-	-	-	-	-	0

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	11.91%	8.94%	6.65%	2.81%	14.63%	8.85%	15.44%	7.09%	7%	10.05%
Return on Invested Capital (ROIC)	6.29%	7.21%	8.77%	10.12%	3.59%	3.42%	8.25%	6.11%	7.05%	9.29%
Gross Margin	34.58%	36.58%	38.16%	38.27%	45.43%	45.02%	40.97%	36.32%	42.35%	45.13%
Net Margin	3.53%	4.33%	4.1%	1.67%	25.36%	21.01%	13.27%	4.81%	7.36%	10.23%
Debt / Equity	3.27x	1.52x	1.12x	1.01x	1.01x	-	4.27x	0.35x	0.34x	0.35x
Interest Coverage	1.91x	2.30x	3.55x	4.37x	1.84x	2.43x	3.08x	3.98x	4.97x	7.39x
FCF Conversion	3.23x	2.63x	3.01x	7.52x	1.66x	1.66x	1.85x	1.57x	2.25x	1.83x
Revenue Growth	-6.17%	-10.98%	8.12%	10.76%	-65.38%	-20.76%	61.88%	40.72%	19.4%	2.35%

Revenue by Segment

	2014	2015	2016	2017	2018	2019	2021	2022	2023	2024
Reportable	-	-	-	-	-	-	-	-	-	1.57B
Reportable Growth	-	-	-	-	-	-	-	-	-	-
Process & Motion Control	1.23B	1.1B	1.13B	1.24B	1.38B	1.36B	-	-	-	-
Process & Motion Control Growth	-	-10.56%	3.13%	9.39%	11.23%	-1.62%	-	-	-	-
Water Management	820M	823.5M	783.5M	824.8M	670.3M	710.1M	-	-	-	-
Water Management Growth	-	0.43%	-4.86%	5.27%	-18.73%	5.94%	-	-	-	-

Revenue by Geography

	2014	2015	2016	2017	2018	2019	2021	2022	2023	2024
UNITED STATES	1.38B	1.31B	1.32B	1.39B	1.46B	1.47B	819.9M	1.14B	1.41B	1.43B
UNITED STATES Growth	-	-5.30%	1.03%	5.49%	4.87%	0.83%	-44.33%	38.47%	24.21%	1.33%
CANADA	-	-	-	-	-	-	113.3M	131.1M	133.8M	145.8M
CANADA Growth	-	-	-	-	-	-	-	15.71%	2.06%	8.97%
Other Geographical Areas	-	-	-	-	-	-	-	15.4M	41.7M	47.5M
Other Geographical Areas Growth	-	-	-	-	-	-	-	-	170.78%	13.91%
World	296.2M	246.1M	265.3M	291.6M	262.8M	296.7M	4.8M	-	-	-
World Growth	-	-16.91%	7.80%	9.91%	-9.88%	12.90%	-98.38%	-	-	-
Europe	374M	370.8M	332.6M	381.6M	327.5M	298.9M	-	-	-	-
Europe Growth	-	-0.86%	-10.30%	14.73%	-14.18%	-8.73%	-	-	-	-

Frequently Asked Questions

Valuation & Price

Zurn Elkay Water Solutions Corporation (ZWS) has a price-to-earnings (P/E) ratio of 51.4x. This suggests investors expect higher future growth.

Growth & Financials

Zurn Elkay Water Solutions Corporation (ZWS) reported $1.61B in revenue for fiscal year 2024. This represents a 17% decrease from $1.94B in 2011.

Zurn Elkay Water Solutions Corporation (ZWS) grew revenue by 2.4% over the past year. Growth has been modest.

Yes, Zurn Elkay Water Solutions Corporation (ZWS) is profitable, generating $174.0M in net income for fiscal year 2024 (10.2% net margin).

Dividend & Returns

Yes, Zurn Elkay Water Solutions Corporation (ZWS) pays a dividend with a yield of 0.69%. This makes it attractive for income-focused investors.

Zurn Elkay Water Solutions Corporation (ZWS) has a return on equity (ROE) of 10.0%. This is reasonable for most industries.

Zurn Elkay Water Solutions Corporation (ZWS) generated $281.5M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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