TakeoverPE & activists

ZWSZurn Elkay Water Solutions Corp

General Industrial Machinery & Equipment · $7.4B market cap · 2,600 employees

0.6×

Less likely than average to be taken private

Top 32% of the Russell 3000 for a buyout by a private-equity firm, holdco or insiders. How it works

Takeover signals

What an activist or buyer would see: cheap, overpaid, diluted or under pressure.

1of 15 firedHow well they predict deals →
14 other checks
  • TSR below peersNo
    —
    3+ of last 5 years
  • High CEO pay despite TSRNo
    —
    Median CEO pay ≥ $15M while TSR trails
  • Earnings not backed by cashNo
    175% of net income
    Cash flow under 80% of net income
  • Dilutive SBCNo
    2% of revenue
    Over 10% of revenue
  • Payouts exceed cash flowNo
    65% of cash flow
    Buybacks + dividends over cash flow
  • Goodwill-heavyNo
    30% of assets
    Over 40% of assets
  • Shareholder dissentNo
    88% lowest support
    Any vote under 80% support
  • Low revenue per employeeNo
    $652K · 79th pct
    Bottom quartile of its SIC industry
  • Quiet on AINo
    4.2 per 10K words · 79th pct
    Bottom quartile of AI mentions in 10-Ks
  • Net cashNo
    0.6× EBITDA net debt
    More cash than debt, positive EBITDA
  • Buyout-sizedNo
    $7.4B market cap
    Market cap $500M–$5B
  • Recurring revenueNo
    3 of 10
    10-K business scored 7+ of 10 for recurring revenue
  • AI-rollup shapedNo
    1 of 10
    10-K business scored 5+ of 10 as an AI-rollup target
  • Active 13DNo
    0 filings
    Active-intent 13D in 18 months

Deal filings

FiledFormAcquirerPricePremium
Jul 21, 2021DEFM14ARegal Beloit Corporation$132.4238.6%

Key numbers

Revenue
$1.7BFY2021: $911MFY2022: $1.3BFY2023: $1.5BFY2024: $1.6BFY2025: $1.7B
8.3% YoY
Operating margin
16.4%FY2021: 11.7%FY2022: 8.4%FY2023: 12.5%FY2024: 15.6%FY2025: 16.4%
5.3% YoY
EBITDA
$309MFY2021: $151MFY2022: $128MFY2023: $221MFY2024: $274MFY2025: $309M
13% YoY
Net debt / EBITDA
0.6×
$193M net debt

Financials

MetricFY2021FY2022FY2023FY2024FY2025YoYTrend
Revenue$911M$1.3B$1.5B$1.6B$1.7B 8.3% FY2021: $911MFY2022: $1.3BFY2023: $1.5BFY2024: $1.6BFY2025: $1.7B
Operating income$107M$107M$191M$245M$279M 14% FY2021: $107MFY2022: $107MFY2023: $191MFY2024: $245MFY2025: $279M
Net income$121M$62M$113M$160M$198M 24% FY2021: $121MFY2022: $62MFY2023: $113MFY2024: $160MFY2025: $198M
Operating cash flow$224M$97M$254M$294M$347M 18% FY2021: $224MFY2022: $97MFY2023: $254MFY2024: $294MFY2025: $347M
Stock-based comp$51M$25M$40M$38M$41M 7.1% FY2021: $51MFY2022: $25MFY2023: $40MFY2024: $38MFY2025: $41M
Buybacks$900K$25M$125M$150M$160M 6.5% FY2021: $900KFY2022: $25MFY2023: $125MFY2024: $150MFY2025: $160M
Dividends$36M$33M$50M$57M$64M 13% FY2021: $36MFY2022: $33MFY2023: $50MFY2024: $57MFY2025: $64M

13D filers

FiledFilerFormStakeIntent
Oct 2, 2024Ice Mountain LLCSC 13D/A13.7%Passive
Jul 12, 2022Halperin Errol R.SC 13D13.9%Active

Insider trading

−$39Mnet selling by insiders, open market, last 12 months
Bought $100K · 1 tradeSold $39M · 24 trades

Pay vs performance

No pay-versus-performance disclosure yet.