ZWS (Zurn Elkay Water Solutions) Financial Strength: 8 (As of Jun. 2026) — 33% Above Median

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ZWS Zurn Elkay Water Solutions Corp ZWS
88 GF Score
Price $50.97
GF Value $43.40
Valuation Modestly Overvalued
! 4 Warning Signs
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What is Zurn Elkay Water Solutions Financial Strength?

Zurn Elkay Water Solutions ZWS +0.47% 88 Financial Strength is 8 as of Jun. 2026, which is 33% above its 10-year median of 6.00. GuruFocus rates ZWS with a GF Score™ of 88/100 and a GF Value™ of $43.40 (Modestly Overvalued). The stock has 4 warning signs investors should review.

Zurn Elkay Water Solutions has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Zurn Elkay Water Solutions Corp shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Zurn Elkay Water Solutions's Interest Coverage for the quarter that ended in Jun. 2026 was 25.26. Zurn Elkay Water Solutions's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.28. As of today, Zurn Elkay Water Solutions's Altman Z-Score is 5.36.


Zurn Elkay Water Solutions  (NYSE:ZWS) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Zurn Elkay Water Solutions has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Zurn Elkay Water Solutions Financial Strength Related Terms


ZWS vs CECO, PCT, ERII: Financial Strength Comparison

For the Pollution & Treatment Controls subindustry, Zurn Elkay Water Solutions's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Zurn Elkay Water Solutions's Financial Strength distribution charts can be found below:

* The bar in red indicates where Zurn Elkay Water Solutions's Financial Strength falls into.


ZWS
88GF Score
Zurn Elkay Water Solutions Corp ZWS
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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Zurn Elkay Water Solutions Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Zurn Elkay Water Solutions's Interest Expense for the months ended in Jun. 2026 was $-6 Mil. Its Operating Income for the months ended in Jun. 2026 was $154 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was $534 Mil.

Zurn Elkay Water Solutions's Interest Coverage for the quarter that ended in Jun. 2026 is

Interest Coverage=-1*Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*154.1/-6.1
=25.26

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Zurn Elkay Water Solutions's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(16.8 + 533.7) / 1964
=0.28

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Zurn Elkay Water Solutions has a Z-score of 5.36, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.36 is strong.

* 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.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 8 mean?
Zurn Elkay Water Solutions (ZWS) has a Financial Strength of 8 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Zurn Elkay Water Solutions and its competitors. This is 33% above median its historical median of 6.00. Over the past decade, Zurn Elkay Water Solutions' Financial Strength has ranged from 3.00 to 8.00.
Is Zurn Elkay Water Solutions' Financial Strength too high?
Zurn Elkay Water Solutions' current Financial Strength of 8 is 33% above median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 8.00. 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' Financial Strength compare to CECO and PCT?
Zurn Elkay Water Solutions' Financial Strength of 8 can be compared against companies in the Industrial Products industry. Historically, Zurn Elkay Water Solutions' own Financial Strength has ranged from 3.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Industrial Products company?
A good Financial Strength depends on the Industrial Products industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Zurn Elkay Water Solutions and its competitors. Zurn Elkay Water Solutions's current Financial Strength is 8, which is 33% above median its own 10-year median of 6.00. 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 $43.40, compared to a current price of $50.97 — trading 17.4% above its estimated fair value. The current Financial Strength is 8, which is 33% above median its 10-year median of 6.00. 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 Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Zurn Elkay Water Solutions (ZWS), the current Financial Strength is 8 as of Jun. 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 $50.97 is trading 17.4% above its estimated GF Value™ of $43.40. GuruFocus considers Zurn Elkay Water Solutions to be Modestly Overvalued.

Key valuation signals for ZWS:

  • Financial Strength: 8 (33% above median its 10-year median of 6.00)
  • GF Value™: $43.40 vs. price of $50.97 (17.4% above fair value)
  • GF Score™: 88/100 with 4 warning signs

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 Business Description

Address 511 West Freshwater Way, Milwaukee, WI, USA, 53204
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

Get the complete analysis for ZWS

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$50.97
Price
$43.40
GF Value