Zurn Water Solutions Corp
NYSE:ZWS
Intrinsic Value
Zurn Water Solutions Corp. is a growth-oriented, pure-play water business that designs, procures, manufactures, and markets a sustainable product portfolio of solutions to improve health, human safety... [ Read More ]
The intrinsic value of one ZWS stock under the Base Case scenario is 31.23 USD. Compared to the current market price of 33.47 USD, Zurn Water Solutions Corp is Overvalued by 7%.
Valuation Backtest
Zurn Water Solutions Corp
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Fundamental Analysis
Robust Q4 Drives Optimistic 2024 Outlook
2023-Q4 Earnings Call
The company wrapped up the year strongly, with promising Q4 results showing sales, EBITDA, and free cash flow surpassing forecasts, setting a confident path towards their 2024 goals. They saw a pro forma core sales growth of 3%, impressively expanded EBITDA margins by 320 basis points, and achieved record free cash flow of $233 million, leveraging this for share repurchases, a dividend hike of 14%, and a reduction in leverage ratio to 1.1x. The disposal of asbestos liabilities marked a strategic milestone. With $357 million in Q4 sales (a 900 basis point increase year-over-year), and adjusted EBITDA up 30% to $84 million, the company projects continued strong performance into 2024. Notable is their proactive stance in sustainability, making them a responsible corporate leader with the aim to eliminate over 84 billion single-use plastics and grow their filtered water solutions. For 2024, they forecast positive core sales growth, a 150 basis points rise in EBITDA margins, and about $250 million in free cash flow, despite expecting a modest decline in the overall market.
Balance Sheet Decomposition
Zurn Water Solutions Corp
Current Assets | 667.8m |
Cash & Short-Term Investments | 136.7m |
Receivables | 227.2m |
Other Current Assets | 303.9m |
Non-Current Assets | 2B |
PP&E | 226.7m |
Intangibles | 1.7B |
Other Non-Current Assets | 24.1m |
Current Liabilities | 220.9m |
Accounts Payable | 56.4m |
Accrued Liabilities | 67.2m |
Other Current Liabilities | 97.3m |
Non-Current Liabilities | 843.3m |
Long-Term Debt | 494.4m |
Other Non-Current Liabilities | 348.9m |
Earnings Waterfall
Zurn Water Solutions Corp
Revenue
|
1.5B
USD
|
Cost of Revenue
|
-882.4m
USD
|
Gross Profit
|
648.1m
USD
|
Operating Expenses
|
-430m
USD
|
Operating Income
|
218.1m
USD
|
Other Expenses
|
-105.4m
USD
|
Net Income
|
112.7m
USD
|
Free Cash Flow Analysis
Zurn Water Solutions Corp
What is Free Cash Flow?
ZWS Profitability Score
Profitability Due Diligence
Zurn Water Solutions Corp's profitability score is 59/100. The higher the profitability score, the more profitable the company is.
Score
Zurn Water Solutions Corp's profitability score is 59/100. The higher the profitability score, the more profitable the company is.
ZWS Solvency Score
Solvency Due Diligence
Zurn Water Solutions Corp's solvency score is 57/100. The higher the solvency score, the more solvent the company is.
Score
Zurn Water Solutions Corp's solvency score is 57/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
ZWS Price Targets Summary
Zurn Water Solutions Corp
According to Wall Street analysts, the average 1-year price target for ZWS is 34.24 USD with a low forecast of 30.3 USD and a high forecast of 37.8 USD.
Ownership
ZWS Insider Trading
Buy and sell transactions by insiders
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Shareholder Return
ZWS Price
Zurn Water Solutions Corp
Average Annual Return | 0.78% |
Standard Deviation of Annual Returns | 31.61% |
Max Drawdown | -69% |
Market Capitalization | 5.8B USD |
Shares Outstanding | 171 996 000 |
Percentage of Shares Shorted | 4.04% |
Company Profile
Country
Industry
Market Cap
Dividend Yield
Description
Zurn Water Solutions Corp. is a growth-oriented, pure-play water business that designs, procures, manufactures, and markets a sustainable product portfolio of solutions to improve health, human safety, and the environment. The company is headquartered in Milwaukee, Wisconsin and currently employs 1,300 full-time employees. The company went IPO on 2012-03-29. The firm is engaged in designing, procuring, manufacturing, and marketing products that provide and improve water quality, safety, flow control, and conservation. The company operates across the United States and Canada. The firm serves key markets, such as higher education, healthcare, retail, restaurant, hospitality, education, government, and fire protection. The firm's product portfolio includes professional-grade water safety and control, flow systems, and hygienic and environmental products for public and private spaces. Its brands include Zurn, World Dryer, Hadrian Inc, and Just Manufacturing. Its Zurn Business System (ZBS) enables it to drive satisfaction for its customers and creates value for its shareholders.
Contact
IPO
Employees
Officers
The intrinsic value of one ZWS stock under the Base Case scenario is 31.23 USD.
Compared to the current market price of 33.47 USD, Zurn Water Solutions Corp is Overvalued by 7%.