XYLEM INC (XYL)
US98419M1009 - Common Stock
Overall XYL gets a fundamental rating of 5 out of 10. We evaluated XYL against 131 industry peers in the Machinery industry. XYL has only an average score on both its financial health and profitability. XYL is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year XYL was profitable.
XYL had a positive operating cash flow in the past year.
XYL had positive earnings in each of the past 5 years.
Each year in the past 5 years XYL had a positive operating cash flow.
1.2 Ratios
XYL has a Return On Assets (4.16%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 6.50%, XYL is in line with its industry, outperforming 45.74% of the companies in the same industry.
XYL's Return On Invested Capital of 6.11% is in line compared to the rest of the industry. XYL outperforms 45.74% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for XYL is below the industry average of 10.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.16% | ||
| ROE | 6.5% | ||
| ROIC | 6.11% |
ROA(3y)4.47%
ROA(5y)4.3%
ROE(3y)9.81%
ROE(5y)10.31%
ROIC(3y)7.2%
ROIC(5y)7.6%
1.3 Margins
XYL has a better Profit Margin (8.34%) than 67.44% of its industry peers.
XYL's Profit Margin has declined in the last couple of years.
XYL has a Operating Margin of 11.83%. This is in the better half of the industry: XYL outperforms 62.02% of its industry peers.
In the last couple of years the Operating Margin of XYL has declined.
With a decent Gross Margin value of 36.77%, XYL is doing good in the industry, outperforming 69.77% of the companies in the same industry.
In the last couple of years the Gross Margin of XYL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.83% | ||
| PM (TTM) | 8.34% | ||
| GM | 36.77% |
OM growth 3Y1.3%
OM growth 5Y-3.87%
PM growth 3Y16.66%
PM growth 5Y-4.74%
GM growth 3Y-0.57%
GM growth 5Y-1.06%
2. Health
2.1 Basic Checks
XYL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for XYL has been increased compared to 1 year ago.
The number of shares outstanding for XYL has been increased compared to 5 years ago.
The debt/assets ratio for XYL has been reduced compared to a year ago.
2.2 Solvency
XYL has an Altman-Z score of 4.59. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.59, XYL is in the better half of the industry, outperforming 74.42% of the companies in the same industry.
XYL has a debt to FCF ratio of 3.50. This is a good value and a sign of high solvency as XYL would need 3.50 years to pay back of all of its debts.
XYL has a Debt to FCF ratio of 3.50. This is in the better half of the industry: XYL outperforms 65.89% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that XYL is not too dependend on debt financing.
XYL has a Debt to Equity ratio of 0.19. This is in the better half of the industry: XYL outperforms 71.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 3.5 | ||
| Altman-Z | 4.59 |
ROIC/WACC0.67
WACC9.06%
2.3 Liquidity
XYL has a Current Ratio of 1.67. This is a normal value and indicates that XYL is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.67, XYL is not doing good in the industry: 68.99% of the companies in the same industry are doing better.
XYL has a Quick Ratio of 1.22. This is a normal value and indicates that XYL is financially healthy and should not expect problems in meeting its short term obligations.
XYL's Quick ratio of 1.22 is in line compared to the rest of the industry. XYL outperforms 50.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.92% over the past year.
The Earnings Per Share has been growing slightly by 4.95% on average over the past years.
Looking at the last year, XYL shows a very strong growth in Revenue. The Revenue has grown by 39.51%.
The Revenue has been growing slightly by 7.18% on average over the past years.
EPS 1Y (TTM)24.92%
EPS 3Y21.34%
EPS 5Y4.95%
EPS Q2Q%25%
Revenue 1Y (TTM)39.51%
Revenue growth 3Y14.73%
Revenue growth 5Y7.18%
Sales Q2Q%40.4%
3.2 Future
The Earnings Per Share is expected to grow by 12.24% on average over the next years. This is quite good.
Based on estimates for the next years, XYL will show a quite strong growth in Revenue. The Revenue will grow by 8.03% on average per year.
EPS Next Y16.06%
EPS Next 2Y14.2%
EPS Next 3Y13.06%
EPS Next 5Y12.24%
Revenue Next Year17.34%
Revenue Next 2Y11.18%
Revenue Next 3Y9.22%
Revenue Next 5Y8.03%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 36.53 indicates a quite expensive valuation of XYL.
Based on the Price/Earnings ratio, XYL is valued a bit more expensive than the industry average as 67.44% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 28.05. XYL is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 29.38, which means the current valuation is very expensive for XYL.
Based on the Price/Forward Earnings ratio, XYL is valued a bit more expensive than 63.57% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.07. XYL is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.53 | ||
| Fwd PE | 29.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of XYL indicates a slightly more expensive valuation: XYL is more expensive than 68.22% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as XYL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.68 | ||
| EV/EBITDA | 24.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates XYL does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as XYL's earnings are expected to grow with 13.06% in the coming years.
PEG (NY)2.28
PEG (5Y)7.38
EPS Next 2Y14.2%
EPS Next 3Y13.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.03%, XYL has a reasonable but not impressive dividend return.
XYL's Dividend Yield is a higher than the industry average which is at 1.66.
Compared to an average S&P500 Dividend Yield of 2.37, XYL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
5.2 History
The dividend of XYL is nicely growing with an annual growth rate of 10.89%!
XYL has been paying a dividend for at least 10 years, so it has a reliable track record.
XYL has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.89%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
XYL pays out 49.32% of its income as dividend. This is a bit on the high side, but may be sustainable.
XYL's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP49.32%
EPS Next 2Y14.2%
EPS Next 3Y13.06%
XYLEM INC
NYSE:XYL (5/31/2024, 7:15:11 PM)
After market: 141.02 0 (0%)141.02
+1.62 (+1.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap34.19B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.53 | ||
| Fwd PE | 29.38 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.28
PEG (5Y)7.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.16% | ||
| ROE | 6.5% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.83% | ||
| PM (TTM) | 8.34% | ||
| GM | 36.77% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)24.92%
EPS 3Y21.34%
EPS 5Y
EPS Q2Q%
EPS Next Y16.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)39.51%
Revenue growth 3Y14.73%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y