Zurn Elkay Water Solutions Corporation (ZWS) AI Stock Analysis

Zurn Elkay Water Solutions Corporation designs, manufactures, and distributes water system solutions that optimize water quality, safety, flow control, and conservation within non-residential buildings. Its product portfolio spans finish plumbing, drainage systems, water control and backflow prevention devices, fire protection equipment, PEX pipe fittings, and repair parts marketed under the Zurn brand. It also supplies hand dryers and baby changing stations under the World Dryer brand, alongside stainless steel sinks, ADA-compliant fixtures, and faucets under the Just Manufacturing brand. The company serves higher education, healthcare, retail, hospitality, institutional, restaurant, government, and fire protection sectors.

Between FY2021 and FY2025, annual revenue grew from $910.9M to $1.70B, supported by an 8.3% top-line increase in FY2025. Over the same span, gross margin moved from 41.0% to 41.6%, while operating margin expanded from 11.7% to 17.0%. Net income climbed from $120.9M in FY2021 to $198.0M in FY2025, resulting in diluted earnings per share of $1.52. Operating cash flow reached $346.5M and free cash flow stood at $316.6M in FY2025. Over the trailing twelve months, revenue totaled $1.79B with an operating margin of 31.4%. In the quarter ended June 30, 2026, revenue increased 10.5% and quarterly earnings surged 132.0% year-over-year.

As of June 30, 2026, Zurn Elkay Water Solutions held $365.0M in cash and short-term investments against $550.5M in total debt, leaving net debt at $185.5M. The company reported a current ratio of 3.05 and a debt-to-equity ratio of 0.33, with shareholders' equity of $1.66B and total assets of $2.78B. During FY2025, capital expenditures totaled $29.9M, while capital return to shareholders consisted of $159.9M in share buybacks and $63.9M in dividends paid.

At a closing price of $47.06 on October 16, 2026, ZWS traded at a trailing P/E of 29.2x and a forward P/E of 22.9x, both at a premium to the median of its US-listed Industrials peers (24.8x and 17.2x, respectively). Enterprise value stood at $7.94B, resulting in an EV-to-EBITDA multiple of 16.9x versus the peer median of 13.9x, and a price-to-sales multiple of 4.4x versus 1.5x for peers. Over the past year, ZWS returned 3.4%, lagging the S&P 500 (SPY) return of 16.8%. Over five years, the stock gained 38.0% compared to 83.0% for the S&P 500.

ZWS pays a quarterly dividend with an annualized forward rate of $0.44 per share, providing a dividend yield of 0.94%. The payout ratio is 25.9%, and the company has paid dividends for 7 consecutive years. Over the trailing five years, dividend growth annualized at 19.8%. The last ex-dividend date was August 20, 2026.

Analyst ratings include 3 Strong Buy, 1 Buy, and 6 Hold recommendations, with 0 Sell ratings. The mean price target of $57.56 implies an upside of 22.3% from the last close of $47.06. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $1.85B and EPS of $1.83, representing expected EPS growth of 20.6%. ZWS beat EPS estimates in each of the last 4 quarters, and its next earnings release is scheduled for October 27, 2026.

This page is an AI-written research summary of Zurn Elkay Water Solutions Corporation (ZWS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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