Zurn Elkay Water SolutionsZWS +0.31%88 Operating Margin % is 19.17% as of Mar. 2026, which is 32% above its 10-year median of 14.54. GuruFocus rates ZWS with a GF Score™ of 88/100 and a GF Value™ of $40.37 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 3,032 Industrial Products companies, Zurn Elkay Water Solutions ranks better than 88.13% on this metric.
Zurn Elkay Water Solutions (NYSE:ZWS) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Zurn Elkay Water Solutions Operating Margin % Related Terms
Zurn Elkay Water Solutions Operating Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Zurn Elkay Water Solutions Operating Margin % Chart
ZWS vs CECO, PCT, ERII: Operating Margin % Comparison
For the Pollution & Treatment Controls subindustry, Zurn Elkay Water Solutions's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Zurn Elkay Water Solutions Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Zurn Elkay Water Solutions's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Zurn Elkay Water Solutions's Operating Margin % falls into.
Zurn Elkay Water Solutions Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Zurn Elkay Water Solutions's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Zurn Elkay Water Solutions (ZWS) has a Operating Margin % of 19.17% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Zurn Elkay Water Solutions and its competitors. This is 32% above median its historical median of 14.54. Over the past decade, Zurn Elkay Water Solutions' Operating Margin % has ranged from 9.56 to 17.61. According to the industry distribution chart, Zurn Elkay Water Solutions ranks #360 out of 3032 companies in the Industrial Products industry, placing it in the top 11.9%.
Is Zurn Elkay Water Solutions' Operating Margin % too high?
Zurn Elkay Water Solutions' current Operating Margin % of 19.17% is 32% above median its 10-year median of 14.54. Over the past 10 years, this metric has ranged from a low of 9.56 to a high of 17.61. The Industrial Products industry median Operating Margin % is 6.54. Zurn Elkay Water Solutions' value of 19.17% is 193.3% above this industry median. Based on the distribution chart, Zurn Elkay Water Solutions ranks #360 out of 3032 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Zurn Elkay Water Solutions has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zurn Elkay Water Solutions' Operating Margin % compare to CECO and PCT?
According to the Industrial Products industry distribution chart, Zurn Elkay Water Solutions ranks #360 out of 3032 companies for Operating Margin %. This places Zurn Elkay Water Solutions in the top 12% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.54. Zurn Elkay Water Solutions' value of 19.17% is 193.3% above this benchmark. Historically, Zurn Elkay Water Solutions' own Operating Margin % has ranged from 9.56 to 17.61 over the past decade. While the company's 10-year median is 14.54 vs. the industry median of 6.54, Zurn Elkay Water Solutions has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.54, based on 3,032 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zurn Elkay Water Solutions's current Operating Margin % of 19.17% is 193.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Zurn Elkay Water Solutions and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zurn Elkay Water Solutions's current Operating Margin % is 19.17%, which is 32% above median its own 10-year median of 14.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zurn Elkay Water Solutions stock overvalued right now?
Based on GuruFocus' analysis, Zurn Elkay Water Solutions (ZWS) is currently considered Modestly Overvalued. The stock's GF Value™ is $40.37, compared to a current price of $49.16 — trading 21.8% above its estimated fair value. The current Operating Margin % is 19.17%, which is 32% above median its 10-year median of 14.54 and 193.3% above the Industrial Products industry median of 6.54. Zurn Elkay Water Solutions' overall GF Score™ is 88/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Zurn Elkay Water Solutions (ZWS), the current Operating Margin % is 19.17% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Zurn Elkay Water Solutions (ZWS) Overvalued in 2026?
Based on GuruFocus' analysis, Zurn Elkay Water Solutions stock appears to be overvalued.
The current stock price of $49.16 is trading 21.8% above its estimated GF Value™ of $40.37.
GuruFocus considers Zurn Elkay Water Solutions to be Modestly Overvalued.
Key valuation signals for ZWS:
Operating Margin %: 19.17% (32% above median its 10-year median of 14.54)
GF Value™: $40.37 vs. price of $49.16 (21.8% above fair value)
Industry Position: 193.3% above the Industrial Products median (#360 of 3032)
No single metric tells the full story. See the ZWS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zurn Elkay Water Solutions Corp is a growth-oriented, pure-play water management business that designs, procures, manufactures, and markets the broadest sustainable product portfolio of specification-driven water management solutions to improve health, hydration, human safety and the environment. Its product portfolio includes professional grade water safety and control products, flow systems products, hygienic and environmental products, and filtered drinking water products for public and private spaces that deliver superior value to building owners, positively impact the environment and human hygiene and reduce product installation time.
88GF Score
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