Financial Performance - Fourth quarter net sales were $371 million, a 4% increase from $357 million in the same quarter last year[6] - Net income from continuing operations was $36 million, with diluted EPS of $0.21, compared to $14 million and $0.08 in the prior year[6] - Adjusted EBITDA for the fourth quarter was $91 million, representing 24.6% of net sales, up from $84 million or 23.6% of net sales in the previous year[6] - Full year net sales reached $1,567 million, a 2% increase from $1,531 million in 2023, with core sales growth of 3%[6] - Full year adjusted EBITDA was $390 million, or 24.9% of net sales, compared to $340 million or 22.2% in 2023[6] - Free cash flow for the year was a record $272 million[6] - For the twelve months ended December 31, 2024, net income was $160.2 million, up from $112.7 million in 2023, indicating a year-over-year increase of 42.2%[25] - The company reported an EBITDA of $72.4 million for the three months ended December 31, 2024, compared to $54.4 million in the same period of 2023, an increase of 33.1%[27] - The company’s income from operations for the twelve months ended December 31, 2024, was $244.6 million, compared to $191.4 million in 2023, reflecting a growth of 27.8%[25] - The adjusted net income for the twelve months ended December 31, 2024, was $223.9 million, compared to $172.1 million for the same period in 2023[41] - Net income for the twelve months ended December 31, 2024, increased to $160.2 million, up from $112.7 million in the previous year, representing a growth of 42.2%[50] Cash Flow and Investments - The company repurchased $150 million of common stock and paid $57 million in dividends during the year[6] - Cash provided by operating activities rose to $293.5 million, compared to $253.9 million in the prior year, reflecting an increase of 15.6%[50] - The company reported a free cash flow of $271.7 million for the twelve months ended December 31, 2024, compared to $232.6 million in the prior year[43] - Cash used for investing activities was $20.2 million, compared to $4.6 million in the previous year, indicating a substantial increase in investment outflows[50] - Cash used for financing activities decreased to $207.5 million from $239.2 million, showing a reduction of 13.3%[50] - The company repurchased common stock amounting to $150.2 million, up from $125.1 million in the previous year, indicating a 20.5% increase in buybacks[50] Tax and Income - The provision for income taxes for the twelve months ended December 31, 2024, was $48.1 million, with an effective tax rate of 23.2%[30] - The provision for income taxes indicated a rate of 25.8% for the twelve months ended December 31, 2023[36] Stock and Shares - Basic net income per share for the three months ended December 31, 2024, was $0.21, compared to $0.08 in the same period of 2023, an increase of 162.5%[25] - The weighted-average number of shares outstanding for the three months ended December 31, 2024, was 170,583 thousand, down from 173,119 thousand in the same period of 2023[25] - The diluted earnings per share for the twelve months ended December 31, 2024, was $1.28, an increase from $0.97 in the previous year[41] Sustainability and Strategic Initiatives - The company plans to release its 2024 sustainability report, highlighting progress in sustainability initiatives[7] - The company has undertaken strategic supply chain optimization initiatives, which included accelerated depreciation of $2.0 million for the twelve months ended December 31, 2024[30] Assets and Liabilities - The total assets as of December 31, 2024, were $2,648.5 million, slightly down from $2,667.0 million as of December 31, 2023[48] - The company’s cash and cash equivalents increased to $198.0 million as of December 31, 2024, up from $136.7 million a year earlier[48] - The company experienced a loss on divestiture of asbestos liabilities and certain assets amounting to $9.3 million in the previous year, which was not present in the current year[50] - Accounts payable showed a significant change, increasing by $15.8 million compared to a decrease of $60.8 million in the previous year[50] - The company reported a decrease in inventories, net, to $2.7 million from $65.0 million, indicating a substantial reduction in stock levels[50]

Group 1 - Zurn Water (ZWS) currently has a forward P/E ratio of 30.37, while Eaton (ETN) has a forward P/E of 30.99, indicating ZWS may be slightly more attractive in terms of valuation metrics [1] - ZWS has a PEG ratio of 1.91, which is lower than ETN's PEG ratio of 2.50, suggesting ZWS may offer better value considering its expected earnings growth [1] - ZWS has a Value grade of B, while ETN has a Value grade of C, indicating ZWS is perceived as a better value opportunity [4] Group 2 - ZWS has a P/B ratio of 4.03 compared to ETN's P/B of 6.90, further supporting the notion that ZWS is undervalued relative to its book value [6] - ZWS holds a Zacks Rank of 2 (Buy), while ETN has a Zacks Rank of 3 (Hold), suggesting a more favorable earnings outlook for ZWS [5] - The analysis indicates that ZWS stands out due to its solid earnings outlook and favorable valuation figures, making it the superior value option at this time [9]

Core Insights - Investors in the Manufacturing - Electronics sector should consider Zurn Water (ZWS) and Eaton (ETN) for potential value opportunities [1] Valuation Metrics - Zurn Water has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Eaton has a Zacks Rank of 3 (Hold) [3] - ZWS has a forward P/E ratio of 32.51 compared to ETN's 33.51, and a PEG ratio of 2.05 versus ETN's 2.74, suggesting ZWS may be more attractively valued [5] - ZWS's P/B ratio is 4.32, significantly lower than ETN's P/B of 7.46, indicating a better market value relative to book value [6] Value Grades - ZWS has a Value grade of B, while ETN has a Value grade of C, reflecting stronger estimate revision activity and more favorable valuation metrics for ZWS [7]

Have you been paying attention to shares of Zurn Water (ZWS) ? Shares have been on the move with the stock up 4.8% over the past month. The stock hit a new 52-week high of $40.74 in the previous session. Zurn Water has gained 37.1% since the start of the year compared to the 23.2% move for the Zacks Industrial Products sector and the 24.4% return for the Zacks Manufacturing - Electronics industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't miss ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...

Have you been paying attention to shares of Zurn Water (ZWS) ? Shares have been on the move with the stock up 6.8% over the past month. The stock hit a new 52-week high of $38.8 in the previous session. Zurn Water has gained 30.8% since the start of the year compared to the 11.7% move for the Zacks Industrial Products sector and the 13.5% return for the Zacks Manufacturing - Electronics industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't ...

Zurn Water (ZWS) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors often find it h ...

Core Insights - Zurn Water (ZWS) reported quarterly earnings of $0.34 per share, exceeding the Zacks Consensus Estimate of $0.32 per share, and showing an increase from $0.29 per share a year ago, resulting in an earnings surprise of 6.25% [1] - The company achieved revenues of $410 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.87% and up from $398.4 million year-over-year [2] - Zurn Water has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The future performance of Zurn Water's stock will largely depend on management's commentary during the earnings call and the sustainability of its recent price movements [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.27 on revenues of $365.19 million, and for the current fiscal year, it is $1.21 on revenues of $1.56 billion [7] Industry Context - The Manufacturing - Electronics industry, to which Zurn Water belongs, is currently ranked in the bottom 29% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Zurn Water's stock may also be influenced by the overall outlook for the industry, as historical data shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Exhibit 99.1 | --- | --- | --- | |---------------------------|-------------------------------------------------------|-------| | | Press Release | | | October 29, 2024 | Contact Information: | | | For Immediate Release | Dave Pauli Chief Financial Officer 414.223.7770 | | Zurn Elkay Water Solutions Reports Third Quarter 2024 Financial Results Investor call scheduled for Wednesday, October 30, 2024 at 8:30 a.m. Eastern Time MILWAUKEE, WI (USA) - Zurn Elkay Water Solutions Corporation (NYSE:ZWS) Third Quarter ...

Company Performance - Zurn Water's shares have increased by 7.8% over the past month, reaching a new 52-week high of $34.94 [1] - The stock has gained 15.7% since the beginning of the year, outperforming the Zacks Industrial Products sector (9.7%) and the Zacks Manufacturing - Electronics industry (11.2%) [1] Earnings and Revenue Expectations - For the current fiscal year, Zurn Water is projected to report earnings of $1.21 per share on revenues of $1.56 billion, reflecting a 24.74% increase in EPS and a 1.82% increase in revenues [3] - For the next fiscal year, earnings are expected to rise to $1.33 per share on $1.62 billion in revenues, indicating a year-over-year change of 9.67% in EPS and 4.04% in revenues [3] Valuation Metrics - Zurn Water's current trading multiple is 28.1X the current fiscal year EPS estimates, which is higher than the peer industry average of 22.2X [7] - The stock trades at 22.6X trailing cash flow, compared to the peer group's average of 21.8X, and has a PEG ratio of 1.83 [7] Zacks Rank and Style Scores - Zurn Water holds a Zacks Rank of 2 (Buy) due to favorable earnings estimate revisions from analysts [8] - The stock has a Value Score of C, a Growth Score of A, and a Momentum Score of C, resulting in a combined VGM Score of A [6] Industry Context - The Manufacturing - Electronics industry is positioned in the top 10% of all industries, suggesting favorable conditions for Zurn Water and its peers [12] - Eaton Corporation, a peer in the industry, also shows strong performance with a Zacks Rank of 2 (Buy) and has reported earnings exceeding consensus estimates [10][11]