Key Drivers
- Strong margins
- High cash flow
- Intangible-heavy balance sheet
AIAI Summary
Zurn Elkay has shifted from a cyclical plumbing-equipment story to a cash‑generative, productivity‑driven specialty water solutions company where sustained free‑cash‑flow and margin durability—not top‑line cyclicality—are now the primary investment drivers. The key actionable watch is whether filtration converts into recurring consumables/services and management can contain tariff/input‑costs while sustaining adj. EBITDA margins and FCF to justify rich multiples; monitor quarterly FCF conversion, margins, and buyback/M&A pace.
Price Chart
Financial Metrics
Deep Analysis
Research tool. Not personalized advice.
Fundamental Analysis
Key Financial Insights:
- •Strong margins
- •High cash flow
- •Intangible-heavy balance sheet
ZWS combines strong margins, substantial cash generation and low leverage (cash $300.5m, FCF $316.6m, ROIC ~28%) but is offset by high valuation (P/E ~44, EV/EBIT ~31) and balance-sheet concerns from large intangibles and negative retained earnings.
Price Behavior
Key Price Behavior Insights:
- •Below last month SMA
- •Strong resistance band
- •Short-term support
ZWS is in a short-term downtrend—trading below its last month SMA (~$47.96) after a ~14% fall from late‑February highs (~$50.98) to a short-term support at $43.79, with resistance around $48.0–$52.5 and increased downside if $43.79 breaks.
Sharp ~14% decline from ~$50.98 (late‑Feb) to $43.79 on 2026-03-20
Sentiment & News
Key News Insights:
- •Institutional accumulation
- •Strong sustainability
- •Filtration impact
Institutional investors increased stakes in Zurn Elkay while the company highlighted strong 2025 sustainability results, signaling concurrent investor accumulation and a public push on environmental credentials.
Continued fund buying plus sustainability traction should support investor sentiment and may underpin modest upside for ZWS as ESG-driven demand and operational credibility align
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