| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 33 | 28.2x | 17.8x | Bottom tier | |
Growth | 71 | 7.7% | 7.1% | Top tier | |
Quality | 80 | 9.7% | 4.5% | Top tier | |
Safety | 84 | 0.5x | 2.6x | Top tier | |
Capital Return | 28 | 0.82% | 2.12% | Bottom tier | |
Momentum | 47 | 13.0% | 2.9% | Around median | |
Sentiment | 42 | 6 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Zurn Elkay Water Solutions Corporation operates in water solutions for commercial and institutional buildings, and its portfolio includes water safety and control systems, flow systems, drinking water, and hygienic and environmental products. The company relies on selling products specified in project plans through its relationships with engineers, contractors, and distributors, while approximately 50% of its business comes from maintenance, repair, replacement, and retrofit activity, reducing its dependence on new construction. In Q2 fiscal 2026, drinking water and water safety and control were the fastest-growing categories, followed by flow systems, and these three categories were above the portfolio’s average profit margin, while hygienic and environmental products, the smallest category, remained positive but grew at a slower pace.
Q2 fiscal 2026 sales reached approximately $491 million, with both core and reported growth of 10% year over year, and pricing contributed approximately 5 percentage points of that growth. Adjusted earnings before interest, taxes, depreciation, and amortization were $136 million, and the margin increased 120 basis points to a record 27.7%, exceeding the guidance range of 27% to 27.5%. The company generated free cash flow of $112 million, while net debt leverage was 0.3 times as of June 30, 2026.
EDGAR filings for Q1 fiscal 2026 show revenue of $433.0 million, gross profit of $205.8 million, net income of $58.9 million, and earnings per share of $0.35. On a trailing-twelve-month basis through fiscal 2026, the company recorded revenue of $1.7 billion, gross profit of $789.6 million, net income of $218.5 million, and earnings per share of approximately $1.29. The Q2 fiscal 2026 earnings call materials do not include a GAAP net income figure, so it should not be derived from the reported adjusted earnings.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus on ZWS is Neutral, with an average price target of $58.33 and a target range of $55 to $62; the average is above the top of the 52-week range of $55, while the lowest target equals that high. The 52-week range spans $43.06 to $55, and the data do not provide a valid price-to-earnings multiple, so the stock’s valuation here depends more heavily on achieving the fiscal 2026 outlook, successfully integrating Intellihot, and sustaining margin expansion.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Sales reached $491 million, with both core and reported growth of 10% year over year. Pricing contributed approximately 5 percentage points, while drinking water and water safety and control led performance with growth above the portfolio average, followed by flow systems. Institutional markets also supported growth, despite weakness in residential activity and certain pockets of the commercial market.
ZWS paid $109 million, or approximately $100 million after accounting for a tax asset, to acquire Intellihot in July 2026. The company expects Intellihot to generate approximately $37 million in 2026 sales, including approximately $18 million during the final five months of the year. Management is targeting $100 million in sales and a 30% earnings before interest, taxes, depreciation, and amortization margin within five to six years, compared with a current gross margin of 50% and an operating margin in the low teens.
Elkay Pro Filtration makes filter replacement faster, enables the installation of two filters, provides filter-life notifications and remote flushing capability, and uses a proprietary head that prevents counterfeit filters. Filtration business sales increased from less than $25 million before the Elkay merger to more than $60 million expected in fiscal 2026. The company aims to increase the percentage of filtered drinking water units from 50% in 2023 to more than 60% in 2026 and then to 70% in 2027.
The company expects core sales growth of between 6% and 7% and an adjusted earnings before interest, taxes, depreciation, and amortization margin of approximately 28% in Q3 fiscal 2026. For Q4 fiscal 2026, it expects mid-single-digit core growth. For full-year fiscal 2026, it expects adjusted earnings before interest, taxes, depreciation, and amortization of between $503 million and $513 million and free cash flow of at least $350 million, excluding tariff-related refunds.
The adjusted earnings before interest, taxes, depreciation, and amortization margin increased from 19.5% in Q1 fiscal 2023 to 27.7% in Q2 fiscal 2026. Management attributed the improvement to growth in higher-margin products, the 80/20 methodology, supply chain and manufacturing improvements, and thousands of continuous improvement initiatives. The incremental margin reached 40% in the first half of fiscal 2026, but sustaining it requires continued volume growth, a profitable mix, and productivity gains.
Risks include weakness in the residential market and parts of the commercial market, and the guided slowdown in growth from 10% in Q2 fiscal 2026 to 6%–7% in Q3. Integrating Intellihot also requires increasing its margin from the low teens to 30% within five to six years amid domestic and foreign competition. In addition, the $48 million tariff refund in Q2 was nonrecurring, while the analyst consensus remains Neutral despite the average target of $58.33.
