Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Zurn Elkay Water Solutions's 3-Year RORE % for the quarter that ended in Mar. 2026 was 27.89%.
The industry rank for Zurn Elkay Water Solutions's 3-Year RORE % or its related term are showing as below:
ZWS's 3-Year RORE % is ranked better than 72.33% of 2898
companies
in the Industrial Products industry
Industry Median: 5.34
vs ZWS: 27.89
Zurn Elkay Water Solutions (NYSE:ZWS) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Zurn Elkay Water Solutions 3-Year RORE % Related Terms
Zurn Elkay Water Solutions 3-Year RORE % 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 RORE %, along with its competitors' market caps and 3-Year RORE % 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 RORE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Zurn Elkay Water Solutions's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Zurn Elkay Water Solutions's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Zurn Elkay Water Solutions (ZWS) has a 3-Year RORE % of 27.89 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Zurn Elkay Water Solutions and its competitors. According to the industry distribution chart, Zurn Elkay Water Solutions ranks #802 out of 2898 companies in the Industrial Products industry, placing it in the top 27.7%.
Is Zurn Elkay Water Solutions' 3-Year RORE % too high?
Zurn Elkay Water Solutions' current 3-Year RORE % is 27.89. The Industrial Products industry median 3-Year RORE % is 5.34. Zurn Elkay Water Solutions' value of 27.89 is 422.3% above this industry median. Based on the distribution chart, Zurn Elkay Water Solutions ranks #802 out of 2898 companies in the Industrial Products industry, which is above the industry midpoint. 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 RORE % compare to CECO and PCT?
According to the Industrial Products industry distribution chart, Zurn Elkay Water Solutions ranks #802 out of 2898 companies for 3-Year RORE %. This puts Zurn Elkay Water Solutions in the upper half of its industry. The industry median 3-Year RORE % is 5.34. Zurn Elkay Water Solutions' value of 27.89 is 422.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for an Industrial Products company?
The median 3-Year RORE % among Industrial Products companies is 5.34, based on 2,898 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zurn Elkay Water Solutions's current 3-Year RORE % of 27.89 is 422.3% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Zurn Elkay Water Solutions and its competitors. For the Industrial Products industry, the median 3-Year RORE % is 5.34 — 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 RORE % is 27.89. 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 $40.35, compared to a current price of $48.64 — trading 20.5% above its estimated fair value. The current 3-Year RORE % is 27.89 and 422.3% above the Industrial Products industry median of 5.34. 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 RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Zurn Elkay Water Solutions (ZWS), the current 3-Year RORE % is 27.89 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 $48.64 is trading 20.5% above its estimated GF Value™ of $40.35.
GuruFocus considers Zurn Elkay Water Solutions to be Modestly Overvalued.
Key valuation signals for ZWS:
3-Year RORE %: 27.89
GF Value™: $40.35 vs. price of $48.64 (20.5% above fair value)
Industry Position: 422.3% above the Industrial Products median (#802 of 2898)
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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