In a remarkable display of market confidence, Zurn Water Solutions Corp (ZWS) stock has surged to a 52-week high, touching a price level of $40.74. According to InvestingPro data, the company maintains strong financial health with a current ratio of 2.7x, indicating robust liquidity. Seven analysts have recently revised their earnings expectations upward. This peak reflects a significant uptrend for the company, which has seen an impressive 1-year change with a 34.67% increase. The momentum extends beyond the short term, with a remarkable 32% gain over the past six months and a year-to-date return of 38.32%. Investors have shown growing enthusiasm for ZWS, as the company continues to capitalize on strategic initiatives, potentially leading to this year's robust performance and the stock's new high-water mark. InvestingPro subscribers can access 14 additional investment tips and a comprehensive Pro Research Report for deeper insights into ZWS's valuation and growth prospects.
In other recent news, Zurn Elkay Water Solutions Corporation reported a strong third quarter in 2024, exceeding its guidance with a 4% core growth and a 9% increase in adjusted EBITDA. This has led to a significant margin improvement and an increase in the quarterly dividend by 12.5%. The company's total Q3 sales reached $410 million, primarily driven by growth in non-residential markets.
Zurn Elkay also raised its full-year free cash flow outlook to approximately $260 million, reflecting confidence in its financial health. The company's net debt stands at $308 million, with a leverage ratio of 0.8 times.
Looking forward, Zurn Elkay expects a low single-digit core sales growth in Q4 2024 and maintains a strong EBITDA margin of 25% year-to-date. The company's projections for non-residential construction starts in 2025 show improvement, and they remain cautiously optimistic until bid conversions occur.
Zurn Elkay's capital allocation strategy focuses on increasing shareholder returns and exploring merger and acquisition opportunities. These recent developments suggest the company's commitment to sustaining growth and profitability amid market complexities.
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