Last Updated: 17 Sep 2024
Executive Summary
Zurn Elkay Water Solutions Corporation (ZWS) is a leading designer, manufacturer, and marketer of water system solutions for non-residential buildings. With a market capitalization of $5.6 billion, ZWS has a strong financial performance, with a trailing PE ratio of 45.03 and a forward PE ratio of 24.88. The company's latest stock price of $33.48 is within its 52-week range of $24.83 to $34.41.
Company Overview
ZWS offers a wide range of water-related products and services, including plumbing fixtures, water treatment systems, and flow control devices. The company serves a diverse customer base, including commercial buildings, healthcare facilities, and industrial plants. ZWS has a global presence, with operations in North America, Europe, and Asia.
Fundamental Analysis
ZWS's financial performance has been solid in recent years. The company's revenue has grown steadily, reaching $1.54 billion in the trailing twelve months. ZWS's gross profit margin is 30.2%, and its operating margin is 17.3%. The company's net income margin is 8.8%, and its return on equity is 8.04%.
ZWS has a strong balance sheet, with total assets of $2.2 billion and total liabilities of $1.1 billion. The company's debt-to-equity ratio is 0.51, which is within a reasonable range.
Technical Analysis
ZWS's stock price has been trending sideways in recent months. The stock is currently trading above its 50-day moving average of $31.11 and its 200-day moving average of $30.93. The stock's relative strength index (RSI) is 52, which indicates that the stock is neither overbought nor oversold.
Short Term Outlook
ZWS's stock price is expected to remain range-bound in the short term. The stock's technical indicators do not suggest any major upside or downside potential.
Long Term Outlook
ZWS's long-term outlook is positive. The company's strong financial performance and global presence position it well for continued growth. The company's focus on sustainability and innovation is also expected to drive long-term growth.
Analyst Recommendations
Analysts are generally bullish on ZWS. One analyst has a strong buy rating on the stock, two analysts have buy ratings, and five analysts have hold ratings. The average analyst target price is $36.
