Zurn Elkay Water Solutions Corporation

ZWS

Industrial - Machinery · Industrials

Winston Score

Winston is happy

A high-quality business with solid fundamentals.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Strong

Growth

Exceptional

Cash Flow

Exceptional

Stability

Exceptional

Valuation

Strong

Dividends

Good

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Winston Score History

The full picture

Zurn Elkay Water Solutions makes products that manage, clean, and move water inside buildings. Its lineup includes drains, valves, faucets, drinking water systems, and filtration products sold mainly to commercial construction projects like schools, hospitals, offices, and stadiums. The company was formed when Zurn Industries merged with Elkay Manufacturing in 2022, combining two well-known brands in the commercial plumbing and water management space.

The company sells its products through distributors and contractors, earning revenue from hardware sales rather than subscriptions. It operates primarily in North America and generates roughly $1.4 billion in annual revenue. Its competitive position comes from strong brand recognition, a wide product portfolio, and deep relationships with contractors and distributors who specify its products early in construction projects. The main risk is that its business is closely tied to commercial construction activity, which slows sharply when interest rates rise or the economy weakens, reducing demand for new building projects.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+20.4% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+126.7% YoY

YoY Growth Rate

EPS growth accelerating

Insider Activity

11.3%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$365M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Zurn Elkay Water Solutions Corporation is a rare growth stock that's already generating positive cash flow while growing at 20%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

58.5%

Premium pricing power — 58.5% gross margin

Profit after running costs

Operating Margin

28.5%

Excellent — 28.5% operating margin

Return on the money invested

ROCE

17.2%

Strong — 17.2% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth

Sales YoY

+13.4%

Fast-growing sales (+13.4% YoY)

Profit growth

EPS YoY

+60.2%

Earnings growing fast (+60.2% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

8/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash

Cash Conversion

145%

Turns 145% of profit into real cash

Spare cash per sale

FCF Margin

20.8%

Converts sales into free cash efficiently (20.8%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

0.32

Conservative — low debt load (0.32)

Covers its interest

Interest Cover

27.61x

Comfortably covers interest (27.6x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

29.7x

no trend

Growth-priced — P/E 29.7

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

+6.6

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (29.7 → 23.1)

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Dividends

Dividend

Dividend Yield

0.82%

no trend

Small dividend — 0.82% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

+22.2%

no trend

Dividend growing fast (22.2% YoY)

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