Zurn Elkay Water SolutionsZWS +0.31%88 ROE % is 14.68% as of Mar. 2026, which is 55% above its 10-year median of 9.49. GuruFocus rates ZWS with a GF Score™ of 88/100 and a GF Value™ of $40.39 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 2,998 Industrial Products companies, Zurn Elkay Water Solutions ranks better than 79.15% on this metric.
The historical rank and industry rank for Zurn Elkay Water Solutions's ROE % or its related term are showing as below:
ZWS'
s ROE % Range Over the Past 10 Years
Min: 2.81 Med: 9.49 Max: 16.82
Current: 13.48
During the past 13 years, Zurn Elkay Water Solutions's highest ROE % was 16.82%. The lowest was 2.81%. And the median was 9.49%.
ZWS's ROE % is ranked better than 79.15% of 2998
companies
in the Industrial Products industry
Industry Median: 5.855
vs ZWS: 13.48
Zurn Elkay Water Solutions (NYSE:ZWS) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* 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.
For the Pollution & Treatment Controls subindustry, Zurn Elkay Water Solutions's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Zurn Elkay Water Solutions's ROE % distribution charts can be found below:
* The bar in red indicates where Zurn Elkay Water Solutions's ROE % falls into.
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Zurn Elkay Water Solutions (ZWS) has a ROE % of 14.68% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Zurn Elkay Water Solutions and its competitors. This is 55% above median its historical median of 9.49. Over the past decade, Zurn Elkay Water Solutions' ROE % has ranged from 2.81 to 16.82. According to the industry distribution chart, Zurn Elkay Water Solutions ranks #625 out of 2998 companies in the Industrial Products industry, placing it in the top 20.8%.
Is Zurn Elkay Water Solutions' ROE % too high?
Zurn Elkay Water Solutions' current ROE % of 14.68% is 55% above median its 10-year median of 9.49. Over the past 10 years, this metric has ranged from a low of 2.81 to a high of 16.82. The Industrial Products industry median ROE % is 5.86. Zurn Elkay Water Solutions' value of 14.68% is 150.7% above this industry median. Based on the distribution chart, Zurn Elkay Water Solutions ranks #625 out of 2998 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' ROE % compare to CECO and PCT?
According to the Industrial Products industry distribution chart, Zurn Elkay Water Solutions ranks #625 out of 2998 companies for ROE %. This places Zurn Elkay Water Solutions in the top 21% of its industry — outperforming the majority of peers. The industry median ROE % is 5.86. Zurn Elkay Water Solutions' value of 14.68% is 150.7% above this benchmark. Historically, Zurn Elkay Water Solutions' own ROE % has ranged from 2.81 to 16.82 over the past decade. While the company's 10-year median is 9.49 vs. the industry median of 5.86, 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 ROE % for an Industrial Products company?
The median ROE % among Industrial Products companies is 5.86, based on 2,998 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zurn Elkay Water Solutions's current ROE % of 14.68% is 150.7% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Zurn Elkay Water Solutions and its competitors. For the Industrial Products industry, the median ROE % is 5.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zurn Elkay Water Solutions's current ROE % is 14.68%, which is 55% above median its own 10-year median of 9.49. 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 $40.39, compared to a current price of $49.16 — trading 21.7% above its estimated fair value. The current ROE % is 14.68%, which is 55% above median its 10-year median of 9.49 and 150.7% above the Industrial Products industry median of 5.86. Zurn Elkay Water Solutions' overall GF Score™ is 88/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Zurn Elkay Water Solutions (ZWS), the current ROE % is 14.68% 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 21.7% above its estimated GF Value™ of $40.39.
GuruFocus considers Zurn Elkay Water Solutions to be Modestly Overvalued.
Key valuation signals for ZWS:
ROE %: 14.68% (55% above median its 10-year median of 9.49)
GF Value™: $40.39 vs. price of $49.16 (21.7% above fair value)
Industry Position: 150.7% above the Industrial Products median (#625 of 2998)
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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