
58.00 USD (+24.8%)
9 analysts
What does it do?
Zurn Elkay Water Solutions designs, manufactures and sells products and systems for water management in commercial, institutional and industrial buildings, including plumbing, drainage and drinking water solutions.
Key points
from its scores- ✓Very solid balance sheet8.4
- ✓Strong growth8.3
- ✓High-quality business7.7
- ✕Poor share-price trend4.5
- ✕Demanding valuation4.6
AI analysis
bottom line, main risk, context and newsExceptional quality and growth, but the valuation does not offer enough margin of safety for an aggressive entry.
Zurn Elkay presents a very solid financial profile: a healthy balance sheet (Net Debt/EBITDA of 0.40x), high profitability (ROIC of 25.38%) and 132% earnings growth, although its valuation (P/E of 28.87x) already discounts these strengths.
Dependence on the US commercial construction cycle and the ability to sustain the 132% earnings growth are the main risks for Zurn Elkay.
Context and risks
Zurn Elkay shows no material exposure to current macro factors: its water and sanitation solutions business for buildings does not depend on traded commodities, shipping routes or interest rates significantly (Net Debt/EBITDA of 0.40x). The rise in long-term US rates could slightly affect commercial construction demand, but it is not a dominant factor for its valuation.
Is Zurn Elkay Water Solutions stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 15% above the Industrials median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 28.9 | 25.4 | +14% |
| EV / EBITDA | 16.9 | 14.5 | +17% |
| Price / book | 4.7 | 4.1 | +15% |
| Price / sales | 4.3 | 2.1 | +110% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 4.6 out of 10 (median for Industrials: 5.0).
Average analyst target: 58.00 USD, +24.8% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 7.7 (sector 5.8), Growth 8.3 (sector 6.6).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Industrials medianValuation
- P/E
- 28.9
- Forward P/E
- 22.8
- EV / EBITDA
- 16.9
- Price / book
- 4.7
- Price / sales
- 4.3
- PEG
- 1.56
- Market cap
- 7.7B USD
- Enterprise value
- 7.9B USD
Profitability
- ROE
- 16.9%
- ROA
- 8.7%
- ROIC (approx.)
- 25.4%
- Gross margin
- 49.0%
- Operating margin
- 31.4%
- Net margin
- 15.5%
- Free cash flow
- 322.7M USD
- FCF yield
- 4.2%
- Cash conversion
- 69%
Solvency
- Total debt
- 550.5M USD
- Net debt
- 185.5M USD
- Cash
- 365.0M USD
- EBITDA
- 466.3M USD
- Net debt / EBITDA
- 0.40
- Debt / equity
- 33.18
- Current ratio
- 3.05
- Quick ratio
- 2.04
Growth
- Revenue growth
- +10.5%
- Earnings growth
- +132.0%
- EPS (TTM)
- 1.61 USD
- EPS (forward)
- 2.04 USD
Dividend
- Dividend yield
- 0.9%
- Payout
- 26.1%
Risk and market
- Beta
- 0.83
- Analyst consensus
- Buy (9)
- Target price
- 58.00 USD
- 52-week range
- 43.06 – 55.00
Recent news
All ZWS news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about Zurn Elkay Water Solutions
Is Zurn Elkay Water Solutions stock cheap or expensive?
On P/E and EV / EBITDA, it trades 15% above the Industrials median on average. Valuation score: 4.6 out of 10 (median for Industrials: 5.0). Average analyst target: 58.00 USD, +24.8% versus the price. This is not investment advice.
What score does Zurn Elkay Water Solutions get on MeridIAn Screener?
It scores 6.6 out of 10, rank 490 of 2,130 (better than 77% of the companies analysed). Its strongest category is Financial health (8.4) and its weakest, Momentum (4.5). Analysis of 08/10/2026.
What is Zurn Elkay Water Solutions's P/E ratio?
Its P/E is 28.9: the share price equals 28.9 times earnings per share over the last 12 months. The Industrials median is 25.4. Based on the earnings analysts expect, the forward P/E is 22.8.
How much is Zurn Elkay Water Solutions worth on the stock market?
Its market capitalisation is 7.7B USD and its enterprise value, debt included, is 7.9B USD.
How much debt does Zurn Elkay Water Solutions have?
Its net debt (debt minus cash) is 185.5M USD. That is 0.40 times its EBITDA; the Industrials median is 1.58.
Does Zurn Elkay Water Solutions pay a dividend?
Yes: its dividend yield is 0.95% and it pays out 26% of its earnings.
How has Zurn Elkay Water Solutions stock performed over the last year?
It has risen 2.9% over the last year, excluding dividends. Over the last 52 weeks it has traded between 43.06 and 55.00 USD. Past performance does not guarantee future results.
What do analysts think of Zurn Elkay Water Solutions?
9 analysts cover it; their average recommendation is “Buy” and their average target is 58.00 USD (+24.8% versus the price). It is an estimate, not market data.
