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    Should New School Filtration Mandates Boosting Recurring Filter Revenue Require Action From Zurn Elkay (ZWS) Investors?

    Simply Wall St·12/23/2025 16:11:37
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    • Recently, Zurn Elkay Water Solutions has benefited from Michigan’s implemented “Filter First” law and similar state-level initiatives that are driving demand for filtered water stations and associated replacement filters.
    • This legislative push is reinforcing a higher-margin, recurring filter replacement stream that could meaningfully influence expectations for Zurn Elkay’s long-term earnings power.
    • We’ll now examine how Michigan’s “Filter First” law and growing school filtration mandates could reshape Zurn Elkay’s existing investment narrative.

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    Zurn Elkay Water Solutions Investment Narrative Recap

    To own Zurn Elkay, you need to believe in a long run shift toward higher standards for water quality in schools and public buildings, and in the company’s ability to turn that into recurring, higher margin filtration revenue. Michigan’s “Filter First” law directly reinforces that thesis in the near term, while the main risk remains that legislative momentum or funding in education and healthcare slows, which would temper what is currently the most important demand catalyst.

    Against this backdrop, Zurn Elkay’s steady pattern of dividend increases, most recently the 22% lift to an annual US$0.44 per share in October 2025, underlines management’s confidence in cash generation from this filtration upgrade cycle, even as investors weigh how dependent that outlook is on continued adoption of school filtration mandates in other states.

    Yet investors should also be aware that if future school funding or regulatory timelines shift, the filtration story could look very different...

    Read the full narrative on Zurn Elkay Water Solutions (it's free!)

    Zurn Elkay Water Solutions' narrative projects $1.9 billion revenue and $266.9 million earnings by 2028. This requires 5.1% yearly revenue growth and about a $96 million earnings increase from $170.7 million today.

    Uncover how Zurn Elkay Water Solutions' forecasts yield a $51.25 fair value, a 6% upside to its current price.

    Exploring Other Perspectives

    ZWS 1-Year Stock Price Chart
    ZWS 1-Year Stock Price Chart

    Two fair value estimates from the Simply Wall St Community currently span roughly US$47.84 to US$51.25 per share, showing how differently individual investors are sizing Zurn Elkay’s opportunity. You can weigh these views against the reliance on school filtration legislation to understand how changing regulatory momentum might affect the company’s longer term performance.

    Explore 2 other fair value estimates on Zurn Elkay Water Solutions - why the stock might be worth as much as 6% more than the current price!

    Build Your Own Zurn Elkay Water Solutions Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.