Zurn Elkay Water Solutions Corporation

ZWS

Industrial - Pollution & Treatment Controls · Industrials

Price

$47.73

-0.65 (-1.34%)

Market Cap

$8.00B

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Share count rising — dilution

+36.9% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 125.1M (2021) → 171.3M (2025)

Zurn Elkay Water Solutions makes products that manage, clean, and move water inside buildings. Its lineup includes drains, valves, faucets, drinking water systems, and filtration products sold mainly to commercial construction projects like schools, hospitals, offices, and stadiums. The company was formed when Zurn Industries merged with Elkay Manufacturing in 2022, combining two well-known brands in the commercial plumbing and water management space.

The company sells its products through distributors and contractors, earning revenue from hardware sales rather than subscriptions. It operates primarily in North America and generates roughly $1.4 billion in annual revenue. Its competitive position comes from strong brand recognition, a wide product portfolio, and deep relationships with contractors and distributors who specify its products early in construction projects. The main risk is that its business is closely tied to commercial construction activity, which slows sharply when interest rates rise or the economy weakens, reducing demand for new building projects.

Winston Score History

Politician Trades

1 trades / 12mo

0 Congressional buys and 1 sell on ZWS in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+11.4% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+34.6% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

11.6%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$274M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Zurn Elkay Water Solutions Corporation is a rare growth stock that's already generating positive cash flow while growing at 11%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

47.5%

Healthy — 47.5% gross margin

Operating Margin

19.0%

Healthy — 19.0% operating margin

ROCE

3.9%

Weak — 3.9% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+10.0%

Steady sales growth (10.0% YoY)

EPS YoY

+27.0%

Earnings growing fast (27.0% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

8/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion

164%

Turns 164% of profit into real cash

FCF Margin

18.4%

Converts sales into free cash efficiently (18.4%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity

0.31

Conservative — low debt load (0.31)

Interest Cover

11.04x

Comfortably covers interest (11.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

37.6x

Pricey — P/E 37.6

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+12.1

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (37.6 → 25.5)

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Dividends

Dividend Yield

0.85%

Small dividend — 0.85% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

+20.0%

Dividend growing fast (20.0% YoY)

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