Forensic Analysis · Industrials / Manufacturing / Defense · as of Aug 9, 2026

Zurn Elkay Water Solutions Corp (ZWS)

A forensic read on Zurn Elkay Water Solutions Corp built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.

A · High-quality compounder

Forensic grade

Safe

Financial health

9.0

Distress distance

Clean

Earnings quality

Forensic signals

31.1

P / E (ttm)

12.3%

ROE

$8.5B

Market cap

0.94%

Dividend yield

8.3%

Revenue growth

This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.

Zurn Elkay Water Solutions Corp earns an A (High-quality compounder) forensic quality grade, and its balance-sheet distress test reads 9.0, placing it in the Safe zone. 4 forensic signals were flagged in its latest SEC filings, led by share-count dilution.

What the filings flag

+3.6%/yr

FY2022–FY2025

Share-count dilution. Diluted share count changed +11% over the last 3 years to FY2025 (+3.6%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~3.6% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~10%.

9.9%

FY2025

Return on invested capital. Return on invested capital is 9.9% in the latest fiscal year and rising from 3% — around its ~9% cost of capital, so growth is roughly value-neutral.

2% of rev

FY2025

Stock-based comp load. Stock-based compensation ran 2% of revenue in FY2025 — about $0.24 per diluted share. The cost of it is not in the cash flow — no cash left the business — it is in the count, and there it has run at about 3.9% a year and is falling.

65% of OCF

FY2025

Shareholder returns. Returned $224M to shareholders (buybacks + dividends) in FY2025 — 65% of operating cash flow. Capex isn't disclosed for FY2025, so this is the ceiling on coverage, not the free-cash-flow payout — actual free-cash coverage is tighter than this reads.

Key fundamentals

Latest Revenue$1.70B

Revenue Growth YoY+8.3%

Revenue CAGR (3yr)+9.8%

Net Margin11.7%

Return on Equity12.3%

Debt / Equity0.31x

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Data from SEC EDGAR public filings · metrics as of Aug 9, 2026. Forensic signals flag probability, not certainty.