ZWS

Zurn Water Solutions Corp

Industrial/Transportation


Presented:03/29/2022
Price:$35.88
Cap:$4.51B
Current Price:$36.66
Cap:$6.27B

Presented

Date03/29/2022
Price$35.88
Market Cap$4.51B
Ent Value$5.14B
P/E Ratio23.48x
Book Value$1.01
Div Yield0.41%
Shares O/S125.78M
Ave Daily Vol1,029,202
Short Int2.89%

Current

Price$36.66
Market Cap$6.27B
Zurn Water Solutions Corp. is a growth-oriented, pure-play water business that designs, procures, manufactures, and markets a sustainable product portfolio of solutions to improve health, human safety, and the environment. Its product portfolio includes professional grade water control and safety, water distribution and drainage, finish plumbing, flow systems, and hygienic, environmental, and site works products for public and private spaces. Its products are marketed and sold under various brand names, including Zurn, Wilkins, Green Turtle, World Dryer, StainlessDrains.com, JUST, Hadrian, and Wade. The company was founded by Christopher W. Levalley, F. W. Sivyer and W. A. Draves in 1891 and is headquartered in Milwaukee, WI.

Publicly traded companies mentioned herein: Ecolab Inc (ECL), Evoqua Water Technologies Corp (AQUA), Regal Rexnord Corp (RRX), Zurn Water Solutions Corp (ZWS)

Highlights

The presenter is long shares of Zurn Water Solutions Corp (ZWS), a non-residential plumbing business with a $4.5B market cap, $1B revenue base, and mid-20% EBITDA margins. ZWS has behind-the-wall products (drainage, valves, backflow preventers, etc.), as well as a fast-growing touchless sinks and toilets business that inflected during the pandemic. ZWS was spun out of Rexnord in October 2021, creating a pure-play US water management business that the presenter views as an early-stage compounder that will allocate capital well and is levered to aspects of the market most investors seem bullish on (infrastructure spending, education spending, overall recovery in non-residential markets). 

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Idea Discussion

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