Zurn Elkay Water Solutions Corp (ZWS) Stock Analysis
Verdict: WATCH (do not buy)
High gross margins and clean balance sheet justify a premium, but weak 30-day price momentum and insider selling cap near-term upside.
Investment score: 58/100
Analysis as of
Is Zurn Elkay Water Solutions Corp stock worth reviewing? The TradeMates thesis
Zurn Elkay boasts industry-leading gross margins (44.8%) and strong balance sheet health (D/E 0.33), but trades at a premium P/E of 27.9x vs peer median of 22.0x while suffering from technical momentum weakness (-12.3% in 30 days) and insider distribution.
7-factor investment score
- Valuation: 50/100 (weight 20%)
- Financial Health: 85/100 (weight 15%)
- Technical Momentum: 35/100 (weight 15%)
- Earnings Quality: 80/100 (weight 15%)
- Insider Sentiment: 20/100 (weight 10%)
- Analyst Consensus: 65/100 (weight 10%)
- Risk-Adjusted Return: 60/100 (weight 15%)
Zurn Elkay Water Solutions Corp opportunities and risks
What speaks for ZWS
- Industry-Leading Gross Margin and Operating Efficiency
What speaks against ZWS
- Valuation Premium Relative to Building Products Peers
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| ZWS | 27.9x | 4.4x | 22.1x | 44.8% | 15.9% | 4.9% |
| LII | 16.3x | 2.4x | 12.8x | 33.1% | 14.6% | 5.9% |
| MAIR | 109.0x | 6.2x | 32.5x | 38.6% | 5.4% | 1.1% |
| WMS | 22.0x | 3.0x | 12.3x | 37.6% | 14.0% | 5.6% |
| OC | n/a | 1.0x | 23.1x | 26.2% | -6.8% | 5.3% |
| MOD | 70.2x | 3.0x | 34.7x | 22.2% | 4.3% | 1.0% |
| Peer median | 22.0x | 3.0x | 23.1x | 33.1% | 5.4% | 5.3% |
Frequently asked questions about Zurn Elkay Water Solutions Corp (ZWS)
Is ZWS stock a good investment?
The TradeMates model rates Zurn Elkay Water Solutions Corp as WATCH (do not buy) with an investment score of 58/100. Zurn Elkay boasts industry-leading gross margins (44.8%) and strong balance sheet health (D/E 0.33), but trades at a premium P/E of 27.9x vs peer median of 22.0x while suffering from technical momentum weakness (-12.3% in 30 days) and insider distribution. This is algorithmic model output, not personal investment advice.
Is ZWS stock a buy?
The TradeMates model verdict for ZWS is WATCH (do not buy) with an investment score of 58/100. Treat this as a model signal to review, not a personal buy recommendation.