Zurn Elkay Water Solutions Corporation (ZWS) exhibits 45.1% gross margins and 12.3% return on invested capital within Industrials (Industrial Machinery/Components), balanced against a 22.0x enterprise multiple and 6.8% implied options volatility.
Sustained 45.1% gross profitability converts into 16.4% operating margin and 12.3% ROIC, outpacing sector cost of capital.
ROIC: 12.3% // GM: 45.1%YoY revenue trajectory of +8.3% paired with 3.66% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +8.3% // FCF YLD: 3.66%Altman Z-Score of 4.75 and Piotroski F-Score of 9/9 indicate low near-term refinancing stress.
ALTMAN Z: 4.75 // F-SCORE: 9/9Trading at 37.3x trailing P/E (34.7x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 37.3x // EV/EBITDA: 22.0xOptions market prices a ±6.8% implied move with a 0.82 put/call ratio around $44.00 max pain.
IMPL MOVE: ±6.8% // P/C: 0.82Elevated industry capital intensity and customer concentration in Industrial Machinery/Components require continuous execution to defend 11.7% net margins.
NET MARGIN: 11.7% // D/E: 0.31x| FILER | SIDE | $ VALUE |
|---|---|---|
| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
|---|---|---|
| INSPECT GEX & CHAIN IN OPT <GO> | ||
Unblur the exact $50,000 delta-adjusted ETF/options hedge ratio for ZWS & activate live FRED threshold breach alerts.