Zurn Elkay Water Solutions Corporation(ZWS)

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EXPLORE ADVISORIES AND THEIR HISTORY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$46.24
10/08/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Simulated performance—not actual client returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for methodology, assumptions, and limitations.

Advisory Performance History (Simulated)Advisory Performance History info

Simulated performance—not actual client returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for methodology, assumptions, and limitations.

Upturn Advisory & Investor View for ZWS

10/08/2026: ZWS (1-star) is currently NOT-A-BUY. Pass it for now.

Zurn Elkay Water Solutions is a specialized manufacturer of water management and drinking water products for non-residential and residential markets. Its business is anchored by a high-margin, recurring revenue model driven by essential maintenance and replacement parts. The company's primary growth story centers on increasing global demand for water safety and sustainable infrastructure, supported by a strong specification-driven market position. Key risks include cyclical exposure to the commercial building sector, commodity cost fluctuations, and the necessity of effectively managing post-merger integration. It may best suit long-term investors seeking exposure to water infrastructure, with the dividend yield providing additional appeal for income-focused portfolios.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitThe company offers moderate growth through market share gains and sustainability trends but lacks the exponential growth profile of tech peers.
Momentum investorStrong fit while signal remains positiveMomentum investors may favor the stock when it exhibits a clear uptrend supported by strong earnings reports.
Value investorMixed fitValuation is often tied to building cycle expectations, requiring careful entry points.
Dividend investorStrong fitThe company provides a reliable dividend stream supported by recurring aftermarket sales.
Low-risk investorMixed fitWhile the business model is stable, the stock remains sensitive to cyclical construction market volatility.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMedium / highThe stock is sensitive to macroeconomic data regarding the construction sector.
Valuation riskMediumShares are priced based on projected growth in water infrastructure spending.
Competition risk (plumbing & water products)Medium / highThe company faces stiff competition from established plumbing firms for project specifications.
Business qualityStrongThe high recurring revenue base from aftermarket parts provides structural business quality.
Dividend incomeMediumDividends are reliable but not the primary driver of total return for many growth-oriented investors.
Execution riskMediumSuccess depends on effectively integrating business lines and realizing planned synergies.

Price Behavior

Rolling Over
PRICE PATH

Rolling Over

The price momentum is slowing down and beginning to turn downward.

Smooth
PRICE STABILITY

Smooth

The stock has moved along a generally orderly path with only modest fluctuations.

Analysis of Past Performance

Type Stock
Historic Profit -5.97%
Avg. Invested days 43
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 10/08/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
ZWS receives a 4-star rating, supported by solid unit economics, solid company fundamentals, and solid analyst coverage. The rating is constrained by weak price momentum.

Company Fundamentals

★★★★★
ZWS has solid overall fundamentals (4 stars), with solid financial health, solid growth momentum, and strong ownership. In FY2025 versus FY2024, solid earnings growth (+23.6%) and strong cash generation (FCF margin 18.7%) are partially offset by moderate revenue growth (+8.3%).

Financial Health Rating

★★★★★
ZWS's financial health is supported by solid cash strength, including free-cash-flow generation (18.7% of revenue). Profitability is moderate (3 stars), which helps explain the 4-star overall score.

Growth Momentum Score

★★★★★
Earnings growth is ZWS's strongest growth driver at +23.6% FY2025 versus FY2024 (solid, 4 stars). Revenue growth (+8.3%, moderate) and free-cash-flow growth (+16.5%, solid) are also constructive, though not equally high across every growth measure.

Ownership

★★★★★
Institutional ownership is 92.6% and approximately 88.6% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 11.62% supports management-shareholder alignment.

Top 5 Institutional Investors

BlackRock Inc 14.81%
Vanguard Portfolio Management, LLC 5.42%
Kayne Anderson Rudnick Investment Management LLC 5.36%
Vanguard Capital Management, LLC 4.23%
State Street Corp 3.61%

Unit Economics (Per $1K Revenue)

★★★★★
ZWS generates approximately $416 of gross profit, $170 of operating income, and $187 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Solid margins and strong cash conversion support the rating, although capital efficiency remains moderate.

Economic Dimensions

★★★★★
Effective Tax Rate: 24.93%

Quantitative Style Profile

★★★★★
ZWS has a high-quality, liquid profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

Quality TiltSmall / Mid Cap RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 7.71B USD
Price to earnings Ratio 28.87
1Y Target Price 58
Price to earnings Ratio 28.87
1Y Target Price 58
Volume (30-day avg) 889.1K shares
Beta 0.83
52 Weeks Range 42.86 - 54.88
Updated Date 10/08/2026
52 Weeks Range 42.86 - 54.88
Updated Date 10/08/2026
Dividends yield (FY) 0.88%
Basic EPS (TTM) 1.61

How Company Makes Money

Business areaWhat it includesRetail investor read
Water ManagementPlumbing fixtures, valves, and flow control products for commercial and municipal buildings.This is the core of the company, making money from the essential plumbing parts in buildings.
Drinking Water SolutionsWater coolers, filtration systems, and the popular ezH2O bottle filling stations.High-margin product line benefiting from the trend toward healthier, plastic-free hydration.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE 28.87
Forward PE 22.88
Enterprise Value 7.94B
Price to Sales(TTM) 4.32
Enterprise Value 7.94B
Price to Sales(TTM) 4.32
Enterprise Value to Revenue 4.45
Enterprise Value to EBITDA 16.85
Shares Outstanding 165.86M
Shares Floating 147.02M
Shares Outstanding 165.86M
Shares Floating 147.02M
Percent Insiders 11.62
Percent Institutions 92.57

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Zurn Elkay Water Solutions Corporation

Exchange NYSE
Headquarters Milwaukee, WI, United States
IPO Launch date 2012-03-29
CEO & Chairman Mr. Todd A. Adams
Sector Industrials
Industry Pollution & Treatment Controls
Full time employees 2600
Full time employees 2600

Zurn Elkay Water Solutions Corporation engages in design, procurement, manufacture, and marketing of water management solutions in the United States, Canada, and internationally. It offers water dispensing and filtration products, such as filtered bottle filling stations, water fountains and water dispensers, and filtered faucets under the Elkay and Halsey Taylor brand names; filtered units including water filters; and water safety and control products, such as backflow preventers, fire system valves, pressure reducing valves, and thermostatic mixing valves under the Zurn and Wilkins brand names. The company also provides flow systems products comprising point drains, hydrants, fixture carrier systems, and chemical drainage systems; and oil and grease interceptors and separators, acid neutralization systems, and remote monitoring systems under the Zurn, Green Turtle, and Wade brands. In addition, it offers sensor operated flush valves under the Aquaflush, AquaSense, and AquaVantage brands; heavy-duty commercial faucets under the AquaSpec brand; flush valves and faucets under the Hydro X Power brands; water conserving fixtures under the EcoVantage and Zurn One brands; stainless steel, quartz, fireclay-ceramic, and cast iron sinks under the Elkay brand name; stainless steel sinks and plumbing fixtures under the Just brand; restroom partition systems and lockers under the Hadrian brand name; and hand dryers. Further, the company offers its products to institutional, commercial, waterworks, and residential end markets through independent sales representatives, plumbing wholesalers, and industry-specific distributors in the waterworks, foodservice, industrial, janitorial, sanitation, and sitework industries. The company was formerly known as Zurn Water Solutions Corporation and changed its name to Zurn Elkay Water Solutions Corporation in July 2022. Zurn Elkay Water Solutions Corporation was founded in 1900 and is headquartered in Milwaukee, Wisconsin.

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