Zurn Elkay Water Solutions Corporation (ZWS)
Industrials · NYQ · US
Fundamentals
Valuation and ratings
Zurn Elkay Water Solutions Corporation trades at USD48.38, close to the USD47.35 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 60 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 38.2 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Zurn Elkay Water Solutions Corporation
Zurn Elkay Water Solutions Corporation engages in design, procurement, manufacture, and marketing of water management solutions in the United States, Canada, and internationally. It offers water dispensing and filtration products, such as filtered bottle filling stations, water fountains and water dispensers, and filtered faucets under the Elkay and Halsey Taylor brand names; filtered units including water filters; and water safety and control products, such as backflow preventers, fire system valves, pressure reducing valves, and thermostatic mixing valves under the Zurn and Wilkins brand names. The company also provides flow systems products comprising point drains, hydrants, fixture carrier systems, and chemical drainage systems; and oil and grease interceptors and separators, acid neutralization systems, and remote monitoring systems under the Zurn, Green Turtle, and Wade brands. In addition, it offers sensor operated flush valves under the Aquaflush, AquaSense, and AquaVantage brands; heavy-duty commercial faucets under the AquaSpec brand; flush valves and faucets under the Hydro X Power brands; water conserving fixtures under the EcoVantage and Zurn One brands; stainless steel, quartz, fireclay-ceramic, and cast iron sinks under the Elkay brand name; stainless steel sinks and plumbing fixtures under the Just brand; restroom partition systems and lockers under the Hadrian brand name; and hand dryers. Further, the company offers its products to institutional, commercial, waterworks, and residential end markets through independent sales representatives, plumbing wholesalers, and industry-specific distributors in the waterworks, foodservice, industrial, janitorial, sanitation, and sitework industries. The company was formerly known as Zurn Water Solutions Corporation and changed its name to Zurn Elkay Water Solutions Corporation in July 2022. Zurn Elkay Water Solutions Corporation was founded in 1900 and is headquartered in Milwaukee, Wisconsin.
ZWS passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
13 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Impax Asset Management, Impax Asset Management Group plc$116.99M · 0.8% of book
- Ken Fisher, Fisher Asset Management, LLC$39.88M · 0.0% of book
- Israel Englander, MILLENNIUM MANAGEMENT LLC$24.24M · 0.0% of book
- Arrowstreet Capital, ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$20.44M · 0.0% of book
- Select Equity Group, Select Equity Group, L.P.$19.24M · 0.1% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Zurn Elkay Water Solutions Corporation (ZWS) undervalued?
Against our discounted cash flow estimate of USD47.35, ZWS at USD48.38 is 2% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own ZWS?
13 of the institutions we track reported a position in ZWS in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is ZWS's P/E ratio?
ZWS trades at 38.2 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.