Zurn Elkay Water Solutions Corporation Common Stock (ZWS)

FairStock Score: 51/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Zurn Elkay is a steady industrial that sells the unglamorous plumbing and water-handling equipment buildings need: filters, bottle fillers, faucets, and backflow preventers. That can be a decent business because replacement demand and water-safety codes create repeat purchases, and the 0.77 beta suggests the shares have been less volatile than the market. Filed results show real progress: FY2023 revenue was $1.5B, net income $112.7M, and EPS $0.64; FY2024 revenue was $1.6B, net income $160.2M, and EPS $0.92; FY2025 revenue was $1.7B, net income $198.0M, and EPS $1.15. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $433.0M, net income $58.9M, and EPS $0.35, up from fiscal Q1 2025 revenue of $388.8M, net income $43.6M, and EPS $0.26. The company generates cash: trailing FCF is $378.5M, a 4.8% FCF yield. Financial health is good—D/E 0.33, Altman Z 4.31, Piotroski 8/9—though ROCE of 8.74% is only modest. The Lynch category is Stalwart: five-year profit growth of 21.1% while revenue was -1.7%, so this is not a fast top-line compounder. At the $47.19 close on 2026-10-13, FairStock shows P/E 29.31, P/B 4.72, EV/EBITDA 17.10, PEG 0.24, and a Graham Number of $19.02, giving a -148.11% margin of safety. I see a quality, cash-generative stalwart, but the price already assumes continued profit improvement. I would want a wider discount before calling it a Graham-style bargain.

In plain English: Zurn Elkay Water Solutions makes water fountains, bottle-filling stations, filters, faucets, and water safety valves for buildings. Its profits and cash flow look strong, and the balance sheet is solid, but sales growth has been uneven and the business is not a fast grower. At $47.19 on 2026-10-13, the price looks expensive compared with its asset value and earnings unless profit growth keeps running well ahead of revenue.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer