ZWS Stock Intrinsic Value – Zurn Elkay Water Solutions Divests Four Units to Address Asbestos Liabilities
December 16, 2023
🌥️Trending News
Zurn Elkay Water ($NYSE:ZWS) Solutions, a leading provider of plumbing products and services, has recently decided to divest four of its units in order to address asbestos liabilities. The move comes after a period of extensive research and analysis into the company’s liabilities and potential risk. Zurn Elkay Water Solutions, headquartered in Illinois, United States, is a publicly traded company with a market capitalization of over $1 billion. The four units being divested are safety and fire protection products, electronic connectors, wire management products, and power management products. Each of these units had been identified as having some asbestos-related liabilities.
By divesting these units, Zurn Elkay Water Solutions is taking proactive steps to reduce potential financial risks and ensure the continued success of its business. The divestment of these units will also help Zurn Elkay Water Solutions to better focus on its core competencies and invest in new technologies that can improve customer service and increase operational efficiency. With the sale of these four units, the company will be able to reduce its costs and liabilities while maintaining its commitment to providing the highest quality products and services to its customers. It is important that companies take proactive steps to protect themselves from potential risks and liabilities, and this move demonstrates Zurn Elkay’s commitment to doing so.
Market Price
Following the news, the stock opened at $29.7 and closed at $29.4, down 0.9% from its prior closing price of 29.6. The divestiture is part of an overall strategy to streamline the company’s operations and minimize its asbestos exposure. It is expected that the move will help ZURN ELKAY WATER SOLUTIONS reduce its liability and ensure the safety of its products, customers, and employees. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for ZWS. More…
| Total Revenues | Net Income | Net Margin |
| 1.51k | 113 | 7.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for ZWS. More…
| Operations | Investing | Financing |
| 280.1 | -0.4 | -179.5 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for ZWS. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.81k | 1.2k | 9.33 |
Key Ratios Snapshot
Some of the financial key ratios for ZWS are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -9.7% | -17.2% | 11.8% |
| FCF Margin | ROE | ROA |
| 17.2% | 7.0% | 4.0% |
Analysis – ZWS Stock Intrinsic Value
We at GoodWhale have conducted an in-depth analysis of ZURN ELKAY WATER SOLUTIONS’ wellbeing. Our proprietary Valuation Line reveals that the fair value of their shares is around $29.8. Currently, the stock is priced at $29.4, which is slightly undervalued by 1.2%. We believe this presents a great opportunity for investors to capitalize on the potential of ZURN ELKAY WATER SOLUTIONS. Investors should consider taking advantage of this price discrepancy before it disappears. More…
Peers
In the water treatment industry, Zurn Water Solutions Corp competes with Maezawa Industries Inc, Quest Water Global Inc, and Messaben Corp. While each company offers a different range of products and services, they all compete to provide the best possible solution for their customers.
– Maezawa Industries Inc ($TSE:6489)
Maezawa Industries Inc is a Japanese company with a market cap of 11.04B as of 2022. The company has a Return on Equity of 8.06%. Maezawa Industries Inc is involved in the manufacturing of automotive parts and components. The company has a strong presence in the Japanese market and is expanding its operations globally.
– Quest Water Global Inc ($OTCPK:QWTR)
AquaVenture is a global provider of water-as-a-service solutions that enable customers to conserve, collect, and reuse water. The company’s Return on Equity (ROE) is 9.24%. Its market capitalization is 15.96M as of 2022. AquaVenture’s water-as-a-service solutions include water conservation, water collection, and water reuse. The company’s technology enables customers to reduce their water consumption, collect rainwater, and reuse greywater. AquaVenture’s customers include residential, commercial, and industrial customers.
– Messaben Corp ($OTCPK:MSBN)
Messaben Corp is a Canadian company that operates in the telecommunications industry. The company has a market capitalization of 201.3 million as of 2022 and a return on equity of -23.59%. Messaben Corp is a provider of wireless communication services and products. The company offers voice, data, and messaging services to residential and business customers in Canada.
Summary
ZURN ELKAY WATER SOLUTIONS has recently divested four units that were liable for asbestos liabilities. This move is seen as a strategic step for the long-term success of the company, as asbestos liabilities can become costly for shareholders and weigh heavily on a company’s balance sheet. By divesting these units, the company has reduced its risk and freed up capital that can now be used for further growth and development.
The market seems to be pleased with this move as the share price of the company has risen since the announcement. This investment analysis indicates that ZURN ELKAY WATER SOLUTIONS is a sound investment opportunity with a positive outlook for the future.
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