Zurn Elkay Water Solutions Corporation (ZWS) Stock

Zurn Elkay Water Solutions Corporation (ZWS) is a Industrials stock trading at $46.06 (as of 2026-09-18), with a market capitalization of $7.69B and a trailing P/E of 27.8. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Zurn Elkay Water Solutions Corporation designs, manufactures, and markets water system and plumbing products for non-residential buildings and related markets. Its portfolio includes Zurn-branded plumbing, drainage/interceptors, water control and backflow, fire protection, and repair parts, plus World Dryer hand and hair dryers and baby changing stations, and Just Manufacturing stainless steel sinks and fixtures for applications including education, healthcare, government, hospitality, and food service.

Understand Zurn Elkay Water Solutions Corporation: how it makes money

Zurn Elkay makes water-system components (plumbing, filtration, fire protection, PEX fittings, hand dryers) for commercial and institutional buildings, selling through distributors and contractors. Growth leans on an expanding installed base of non-residential sites, where recurring filtration, service, and replacement demand drive revenue independent of new construction cycles.

Each installed water-system site becomes a recurring revenue stream (filtration, maintenance, parts), so compounding the installed base matters more than any single construction cycle.

Business quality (Solid): Solid: 47.5% gross margin, 19% operating margin, and 11% revenue growth in a niche industrial space with low customer concentration, though the 38x multiple prices in continued execution.

Valuation: At 38× earnings, ZWS trades 20% above the Machinery average (32×).

Bull case

  • Installed-base filtration compounds growth: Management noted filtration and the installed base continue growing above double digits, meaning each additional site adds recurring consumables and service revenue that is less sensitive to new-construction cycles.
  • Three-year EBITDA margin expansion: Adjusted EBITDA margins improved 630 basis points over three years, showing the mix shift toward higher-value filtration and service is lifting returns without proportional cost growth.

Bear case

  • Residential softness caps addressable demand: Management flagged that residential softness remains an end-market constraint, limiting new-construction plumbing and fixture orders that historically supplement commercial demand.
  • Unresolved tariff and input-cost risk: Current tariffs are price-cost positive, but management acknowledged future tariff changes remain unresolved and that commodity, freight, and geopolitical inflation persist as pricing risks for a manufacturing-heavy business.
  • Premium multiple leaves thin cushion: The stock trades at 38.2x earnings versus a 32x Machinery industry average (20% above peers), so any growth deceleration or margin softening compresses the multiple before earnings catch up.
Valuation — source: SEC EDGAR (first-party)
Price$46.06
Market Cap$7.69B
P/E Ratio27.8
EV / EBITDA17.1
Price / Book4.63
Price / Sales4.30
Dividend Yield0.9%
DCF Value (model)$16.41
DCF Upside vs Price-64.4%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$1.70B
Net Margin11.7%
Return on Equity16.6%
Debt / Equity0.30
Current Ratio3.05
Revenue Growth (YoY)10.5%
EPS Growth (YoY)126.7%
Financial Health — source: SEC EDGAR
Altman Z-Score4.96 (safe)
Piotroski F-Score8/9 (strong)
Valuation vs Sector & Industry
Stock P/E27.8
Sector P/E (Industrials)26.8
Industry P/E (Machinery)29.9
vs Sector3.8%
vs Industry-6.9%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderBlackRock, Inc. ($1.24B)
Institutional Holders Tracked10
Company
SectorIndustrials
IndustryMachinery
CEOTodd A. Adams
Employees2,500
CountryUS
IPO Date2012-03-29

Zurn Elkay Water Solutions Corporation earnings call transcripts

  • ZWS Q2 FY26 earnings call transcript (reported 2026-07-28) · analysis
  • ZWS Q1 FY26 earnings call transcript (reported 2026-04-21) · analysis
  • ZWS Q4 FY25 earnings call transcript (reported 2026-02-03) · analysis
  • ZWS Q3 FY25 earnings call transcript (reported 2025-10-28) · analysis

All ZWS earnings calls

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  • Graham Corporation (GHM)
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ZWS earnings history · ZWS institutional & insider holders · ZWS KPIs & operating metrics · ZWS financials · ZWS filings, presentations & press releases · ZWS investor presentations & press releases · ZWS SEC filings · ZWS peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-09-18.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.