Why is Zurn Elkay Water Solutions Corp. ?
1
Company has a low Debt to Equity ratio (avg) at times
2
The company has declared Positive results for the last 5 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 308 MM
- ROCE(HY) Highest at 10.81%
- INTEREST COVERAGE RATIO(Q) Highest at 1,319.48
3
With ROCE of 13.94%, it has a very expensive valuation with a 3.43 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 17.68%, its profits have risen by 32.5% ; the PEG ratio of the company is 1.1
4
Consistent Returns over the last 3 years
- Along with generating 17.68% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods
How much should you hold?
- Overall Portfolio exposure to Zurn Elkay Water Solutions Corp. should be less than 10%
- Overall Portfolio exposure to Industrial Manufacturing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Zurn Elkay Water Solutions Corp. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Zurn Elkay Water Solutions Corp.
15.08%
1.95
29.38%
S&P 500
13.22%
0.64
20.20%
Quality key factors
Factor
Value
Sales Growth (5y)
-4.28%
EBIT Growth (5y)
-4.24%
EBIT to Interest (avg)
6.35
Debt to EBITDA (avg)
1.70
Net Debt to Equity (avg)
0.22
Sales to Capital Employed (avg)
0.73
Tax Ratio
24.63%
Dividend Payout Ratio
35.98%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
16.24%
ROE (avg)
26.61%
Valuation Key Factors 
Factor
Value
P/E Ratio
36
Industry P/E
Price to Book Value
3.97
EV to EBIT
24.61
EV to EBITDA
18.45
EV to Capital Employed
3.43
EV to Sales
4.10
PEG Ratio
1.05
Dividend Yield
68.99%
ROCE (Latest)
13.94%
ROE (Latest)
11.17%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Bullish
Technical Movement
13What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 308 MM
ROCE(HY)
Highest at 10.81%
INTEREST COVERAGE RATIO(Q)
Highest at 1,319.48
RAW MATERIAL COST(Y)
Fallen by -1.48% (YoY
NET SALES(Q)
Highest at USD 444.5 MM
OPERATING PROFIT(Q)
Highest at USD 101.6 MM
PRE-TAX PROFIT(Q)
Highest at USD 69.8 MM
NET PROFIT(Q)
Highest at USD 51.5 MM
EPS(Q)
Highest at USD 0.3
-2What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Zurn Elkay Water Solutions Corp.
Operating Cash Flow
Highest at USD 308 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Interest Coverage Ratio
Highest at 1,319.48
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales
Highest at USD 444.5 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 101.6 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Pre-Tax Profit
Highest at USD 69.8 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 51.5 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.3
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Raw Material Cost
Fallen by -1.48% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales






