Stock analysis · Bull Rankings model

ZWS analysis

Zurn Elkay Water Solutions CorporationPollution & Treatment Controls. Scored on the same transparent model behind the daily rankings.

ZWS
Zurn Elkay Water Solutions Corporation · Pollution & Treatment Controls
FCF$308mC
Rev+10.0%B
D/E0.33A-
P/E33.0xB
PEG1.65C+
68.4Score
$52.76$8.8B
1Y Target$58.10Analyst consensus · 10 analysts
5Y Target$85.06Compound horizon
10Y Target$126.19Long-dated conviction
FCF$308mTTM
C
FCF $308m — modest; watch for margin expansion
Rev+10.0%TTM YoY
B
Revenue +10.0% — at or above S&P median
D/E0.33
A-
D/E 0.33 — less debt than most Industrials peers (≈25th pctile)
P/E33.0x
B
P/E 33.0 — near the Industrials median (≈60th pctile)
PEG1.65
C+
PEG 1.65 — modest premium; above fair value

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 68.4
Quality0.73
Growth0.87
Value0.50
Why this score
  • Raising its dividend
Entry · Margin of safety
52-week rangeNear 52-week high
4% off the 12-month high
vs DCF fair value33% aboveest. fair value ~$40
What the price assumes: free cash flow compounding at ~14% a year for the next decade — vs the ~11% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability29% · Bgross profit ÷ total assets (Novy-Marx)
ROIC11.2% · Breturn on invested capital — not score-weighted
Why now
Pollution & Treatment Controls · market cap $8.8b. 4% off the 52-week high of $55.00. Revenue growing +10%, comfortably above the S&P median. 10 sell-side analysts rate this a Buy with a mean 1-yr target of $58.10 (implying +10% upside).
Moat
Net margin 12% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 13% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. FCF converts 145% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
Trailing P/E 33x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Horizon
1-3 yr $58.10 (10-analyst consensus) — fundamentals + valuation re-rating. 5 yr $85.06 at ~10% CAGR — compounding case rests on the competitive position widening. 10 yr $126.19 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

ZWS vs the Top Picks average

PillarZWSBook avgDiff
Quality0.730.84-0.11
Growth0.870.92-0.05
Value0.500.75-0.24

Averaged across the 30 names in today's Top Picks (mean score 82.6). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
+5.1 over 36 daily scores
From 63.3 (Jun 22) → 68.4 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Shares to buy
37
Position size
$1,952
3.9% of portfolio
Stop price
$39.57
25% below $52.76
$ at risk if stopped
$488.03
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Zurn Elkay Water Solutions Corporation (ZWS): score, valuation & FAQ

Zurn Elkay Water Solutions Corporation (ZWS) is a Pollution & Treatment Controls company that scores 68.4 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are D/E (A-). On valuation, ZWS sits about 33% above our discounted-cash-flow fair value — the current price implies roughly 14% annual free-cash-flow growth over the next decade.

Is ZWS a good stock to buy?

Bull Rankings scores ZWS 68.4 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by D/E (A-). A score is a quantitative screen of Zurn Elkay Water Solutions Corporation's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does ZWS score 68.4 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). ZWS earns its highest marks on D/E (A-). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is ZWS overvalued or undervalued?

Based on $52.76, ZWS sits about 33% above our discounted-cash-flow fair value — the current price implies roughly 14% annual free-cash-flow growth over the next decade. It trades at a 33.0x× P/E (graded B). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in ZWS?

Trailing P/E 33x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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