Zurn Elkay Water Solutions' Review Following 22% Stock Decline Since Q2 Results
Zurn Elkay Water Solutions Corporation (NYSE:ZWS) shares are down around 22% since the company’s Q2 earnings release, with broad market pressure exacerbated by lowered near-term Elkay guidance.
Analysts at Oppenheimer provided their views on the company, noting that they understand investor concerns/pushback regarding the reset of near-term merger expectations, but view the severity of share weakness as materially overdone given the strong setup for core Zurn and still-compelling strategic and medium-term financial upside of the Zurn-Elkay combination.
The analysts anticipate Zurn Elkay will prove resilient over the coming quarters, and consider the company’s valuation excessively discounted given the quality/growth prospects of the combined entity.
The analysts maintained their 2022 EBITDA estimate of $280 million and slightly lowered their 2023 EBITDA estimate to $385 million from $387 million.
| Symbol | Price | %chg |
|---|---|---|
| 6370.T | 5592 | -1.07 |
| 383310.KQ | 24750 | 0.81 |
| 6368.T | 9230 | 0.33 |
| 7004.T | 990 | -0.81 |
Zurn Elkay Water Solutions (NYSE:ZWS) Surpasses Earnings Estimates
- Zurn Elkay Water Solutions (NYSE:ZWS) reported a first-quarter EPS of $0.31, beating the Zacks Consensus Estimate of $0.29.
- The company's revenue was $388.8 million, missing the estimated $424.6 million but still showing growth from the previous year.
- ZWS has a price-to-earnings (P/E) ratio of approximately 33.15 and a debt-to-equity ratio of approximately 0.35, indicating strong financial health and investor confidence.
Zurn Elkay Water Solutions (NYSE:ZWS) is a prominent player in the water solutions industry, focusing on providing innovative water management products. The company operates within the Zacks Waste Removal Services industry, competing with other firms in the sector. On April 22, 2025, ZWS reported its first-quarter earnings, showcasing a strong performance with an earnings per share (EPS) of $0.31, surpassing the estimated $0.29.
The company's EPS of $0.31 not only exceeded the Zacks Consensus Estimate but also marked an improvement from the $0.29 EPS recorded in the same quarter last year. This resulted in an earnings surprise of 6.90%. In the previous quarter, ZWS also outperformed expectations with an EPS of $0.32 against the anticipated $0.29, achieving a 10.34% surprise. Over the past four quarters, ZWS has consistently exceeded consensus EPS estimates, highlighting its strong financial performance.
Despite the impressive earnings, ZWS reported actual revenue of $388.8 million, which fell short of the estimated $424.6 million. However, this revenue figure still represents an increase from the $373.8 million reported in the same period last year. The revenue exceeded the Zacks Consensus Estimate by 1.67%, demonstrating the company's ability to generate growth despite missing the initial target.
ZWS's financial metrics provide further insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 33.15, indicating investor confidence in its earnings potential. The price-to-sales ratio stands at about 3.35, reflecting the value placed on each dollar of sales. Additionally, the enterprise value to sales ratio is around 3.58, offering a perspective on the company's valuation relative to its revenue.
The company's financial health is further supported by a debt-to-equity ratio of approximately 0.35, indicating a relatively low level of debt compared to equity. The current ratio of about 2.91 suggests ZWS's strong ability to cover its short-term liabilities with its short-term assets. These metrics, combined with an earnings yield of about 3.02%, underscore ZWS's solid financial foundation and its potential for continued growth in the water solutions industry.
Zurn Elkay Water Solutions (NYSE:ZWS) Surpasses Earnings Estimates
- Zurn Elkay Water Solutions (NYSE:ZWS) reported a first-quarter EPS of $0.31, beating the Zacks Consensus Estimate of $0.29.
- The company's revenue was $388.8 million, missing the estimated $424.6 million but still showing growth from the previous year.
- ZWS has a price-to-earnings (P/E) ratio of approximately 33.15 and a debt-to-equity ratio of approximately 0.35, indicating strong financial health and investor confidence.
Zurn Elkay Water Solutions (NYSE:ZWS) is a prominent player in the water solutions industry, focusing on providing innovative water management products. The company operates within the Zacks Waste Removal Services industry, competing with other firms in the sector. On April 22, 2025, ZWS reported its first-quarter earnings, showcasing a strong performance with an earnings per share (EPS) of $0.31, surpassing the estimated $0.29.
The company's EPS of $0.31 not only exceeded the Zacks Consensus Estimate but also marked an improvement from the $0.29 EPS recorded in the same quarter last year. This resulted in an earnings surprise of 6.90%. In the previous quarter, ZWS also outperformed expectations with an EPS of $0.32 against the anticipated $0.29, achieving a 10.34% surprise. Over the past four quarters, ZWS has consistently exceeded consensus EPS estimates, highlighting its strong financial performance.
Despite the impressive earnings, ZWS reported actual revenue of $388.8 million, which fell short of the estimated $424.6 million. However, this revenue figure still represents an increase from the $373.8 million reported in the same period last year. The revenue exceeded the Zacks Consensus Estimate by 1.67%, demonstrating the company's ability to generate growth despite missing the initial target.
ZWS's financial metrics provide further insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 33.15, indicating investor confidence in its earnings potential. The price-to-sales ratio stands at about 3.35, reflecting the value placed on each dollar of sales. Additionally, the enterprise value to sales ratio is around 3.58, offering a perspective on the company's valuation relative to its revenue.
The company's financial health is further supported by a debt-to-equity ratio of approximately 0.35, indicating a relatively low level of debt compared to equity. The current ratio of about 2.91 suggests ZWS's strong ability to cover its short-term liabilities with its short-term assets. These metrics, combined with an earnings yield of about 3.02%, underscore ZWS's solid financial foundation and its potential for continued growth in the water solutions industry.
