3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Zurn Elkay Water Solutions's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was -44.39%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Zurn Elkay Water Solutions's 3-Year ROIIC % or its related term are showing as below:
ZWS's 3-Year ROIIC % is ranked worse than 86.58% of 2936
companies
in the Industrial Products industry
Industry Median: 3.425
vs ZWS: -44.39
Zurn Elkay Water Solutions (NYSE:ZWS) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Zurn Elkay Water Solutions 3-Year ROIIC % Related Terms
Zurn Elkay Water Solutions 3-Year ROIIC % 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.
For the Pollution & Treatment Controls subindustry, Zurn Elkay Water Solutions's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Zurn Elkay Water Solutions's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Zurn Elkay Water Solutions's 3-Year ROIIC % falls into.
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 216.57695 (Dec. 2025) - 83.3245 (Dec. 2022) )
/
( 2298.3 (Dec. 2025) - 2598.5 (Dec. 2022) )
=
133.25245
/
-300.2
=
-44.39%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Zurn Elkay Water Solutions (ZWS) has a 3-Year ROIIC % of -44.39 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Zurn Elkay Water Solutions and its competitors. According to the industry distribution chart, Zurn Elkay Water Solutions ranks #2542 out of 2936 companies in the Industrial Products industry, placing it in the top 86.6%.
Is Zurn Elkay Water Solutions' 3-Year ROIIC % too high?
Zurn Elkay Water Solutions' current 3-Year ROIIC % is -44.39. Based on the distribution chart, Zurn Elkay Water Solutions ranks #2542 out of 2936 companies in the Industrial Products industry, which is in the bottom quartile 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' 3-Year ROIIC % compare to CECO and PCT?
According to the Industrial Products industry distribution chart, Zurn Elkay Water Solutions ranks #2542 out of 2936 companies for 3-Year ROIIC %. This places Zurn Elkay Water Solutions in the lower half of its industry. The industry median 3-Year ROIIC % is 3.43. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for an Industrial Products company?
The median 3-Year ROIIC % among Industrial Products companies is 3.43, based on 2,936 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Zurn Elkay Water Solutions and its competitors. For the Industrial Products industry, the median 3-Year ROIIC % is 3.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zurn Elkay Water Solutions's current 3-Year ROIIC % is -44.39. 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 $40.38, compared to a current price of $49.16 — trading 21.7% above its estimated fair value. The current 3-Year ROIIC % is -44.39. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Zurn Elkay Water Solutions (ZWS), the current 3-Year ROIIC % is -44.39 as of Dec. 2025. 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 $40.38.
GuruFocus considers Zurn Elkay Water Solutions to be Modestly Overvalued.
Key valuation signals for ZWS:
3-Year ROIIC %: -44.39
GF Value™: $40.38 vs. price of $49.16 (21.7% above fair value)
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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