XYLEM INC (XYL) Stock Fundamental Analysis
NYSE:XYL - New York Stock Exchange, Inc. - US98419M1009 - Common Stock - Currency: USD
Overall XYL gets a fundamental rating of 5 out of 10. We evaluated XYL against 128 industry peers in the Machinery industry. Both the profitability and the financial health of XYL get a neutral evaluation. Nothing too spectacular is happening here. XYL is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
XYL had positive earnings in the past year.
In the past year XYL had a positive cash flow from operations.
XYL had positive earnings in each of the past 5 years.
In the past 5 years XYL always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.47%, XYL is in line with its industry, outperforming 57.81% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.38%, XYL is in line with its industry, outperforming 47.66% of the companies in the same industry.
XYL has a Return On Invested Capital (6.82%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for XYL is below the industry average of 10.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.47% | ||
| ROE | 8.38% | ||
| ROIC | 6.82% |
ROA(3y)4.55%
ROA(5y)4.34%
ROE(3y)8.17%
ROE(5y)9.27%
ROIC(3y)6.95%
ROIC(5y)7%
1.3 Margins
Looking at the Profit Margin, with a value of 10.54%, XYL is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
In the last couple of years the Profit Margin of XYL has grown nicely.
XYL has a Operating Margin of 12.84%. This is in the better half of the industry: XYL outperforms 64.06% of its industry peers.
XYL's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 37.54%, XYL is doing good in the industry, outperforming 67.97% of the companies in the same industry.
XYL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.84% | ||
| PM (TTM) | 10.54% | ||
| GM | 37.54% |
OM growth 3Y3.16%
OM growth 5Y-1.19%
PM growth 3Y8.14%
PM growth 5Y6.35%
GM growth 3Y-0.44%
GM growth 5Y-0.76%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so XYL is destroying value.
Compared to 1 year ago, XYL has more shares outstanding
XYL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, XYL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.50 indicates that XYL is not in any danger for bankruptcy at the moment.
XYL has a Altman-Z score of 4.50. This is in the better half of the industry: XYL outperforms 71.88% of its industry peers.
XYL has a debt to FCF ratio of 2.27. This is a good value and a sign of high solvency as XYL would need 2.27 years to pay back of all of its debts.
XYL's Debt to FCF ratio of 2.27 is fine compared to the rest of the industry. XYL outperforms 75.78% of its industry peers.
XYL has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
XYL has a Debt to Equity ratio of 0.18. This is in the better half of the industry: XYL outperforms 74.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | 4.5 |
ROIC/WACC0.69
WACC9.84%
2.3 Liquidity
A Current Ratio of 1.89 indicates that XYL should not have too much problems paying its short term obligations.
With a Current ratio value of 1.89, XYL perfoms like the industry average, outperforming 42.97% of the companies in the same industry.
A Quick Ratio of 1.41 indicates that XYL should not have too much problems paying its short term obligations.
XYL has a Quick ratio of 1.41. This is in the better half of the industry: XYL outperforms 60.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.25% over the past year.
XYL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.22% yearly.
XYL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.16%.
Measured over the past years, XYL shows a quite strong growth in Revenue. The Revenue has been growing by 10.28% on average per year.
EPS 1Y (TTM)14.25%
EPS 3Y19.95%
EPS 5Y7.22%
EPS Q2Q%14.44%
Revenue 1Y (TTM)8.16%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%1.77%
3.2 Future
The Earnings Per Share is expected to grow by 9.50% on average over the next years. This is quite good.
Based on estimates for the next years, XYL will show a small growth in Revenue. The Revenue will grow by 5.45% on average per year.
EPS Next Y9.2%
EPS Next 2Y10.14%
EPS Next 3Y10.22%
EPS Next 5Y9.5%
Revenue Next Year3.1%
Revenue Next 2Y3.94%
Revenue Next 3Y4.5%
Revenue Next 5Y5.45%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 29.69, the valuation of XYL can be described as expensive.
Based on the Price/Earnings ratio, XYL is valued a bit more expensive than 60.16% of the companies in the same industry.
XYL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 25.22, the valuation of XYL can be described as expensive.
XYL's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. XYL is more expensive than 60.16% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. XYL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.69 | ||
| Fwd PE | 25.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, XYL is valued a bit more expensive than 62.50% of the companies in the same industry.
63.28% of the companies in the same industry are cheaper than XYL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.85 | ||
| EV/EBITDA | 19.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of XYL may justify a higher PE ratio.
PEG (NY)3.23
PEG (5Y)4.11
EPS Next 2Y10.14%
EPS Next 3Y10.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.22%, XYL has a reasonable but not impressive dividend return.
XYL's Dividend Yield is a higher than the industry average which is at 1.81.
With a Dividend Yield of 1.22, XYL pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
5.2 History
The dividend of XYL is nicely growing with an annual growth rate of 8.34%!
XYL has been paying a dividend for at least 10 years, so it has a reliable track record.
XYL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.34%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
XYL pays out 39.74% of its income as dividend. This is a sustainable payout ratio.
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.
DP39.74%
EPS Next 2Y10.14%
EPS Next 3Y10.22%
130.95
-0.65 (-0.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.23%
Inst Owner Change0.07%
Ins Owners0.24%
Ins Owner Change1.48%
Market Cap31.87B
Analysts79.23
Price Target142.01 (8.45%)
Short Float %0.97%
Short Ratio1.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
Yearly Dividend1.44
Dividend Growth(5Y)8.34%
DP39.74%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.39%
Min EPS beat(2)3.8%
Max EPS beat(2)6.98%
EPS beat(4)3
Avg EPS beat(4)3.09%
Min EPS beat(4)-0.98%
Max EPS beat(4)6.98%
EPS beat(8)7
Avg EPS beat(8)6.59%
EPS beat(12)11
Avg EPS beat(12)10.27%
EPS beat(16)15
Avg EPS beat(16)9.26%
Revenue beat(2)2
Avg Revenue beat(2)1.4%
Min Revenue beat(2)0.44%
Max Revenue beat(2)2.36%
Revenue beat(4)3
Avg Revenue beat(4)-0.3%
Min Revenue beat(4)-4.15%
Max Revenue beat(4)2.36%
Revenue beat(8)7
Avg Revenue beat(8)1.07%
Revenue beat(12)11
Avg Revenue beat(12)2.12%
Revenue beat(16)13
Avg Revenue beat(16)1.67%
PT rev (1m)0.57%
PT rev (3m)-4.83%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)1.02%
EPS NY rev (1m)0.29%
EPS NY rev (3m)-0.6%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.69 | ||
| Fwd PE | 25.22 | ||
| P/S | 3.71 | ||
| P/FCF | 35.85 | ||
| P/OCF | 26.4 | ||
| P/B | 2.95 | ||
| P/tB | 75.33 | ||
| EV/EBITDA | 19.67 |
EPS(TTM)4.41
EY3.37%
EPS(NY)5.19
Fwd EY3.96%
FCF(TTM)3.65
FCFY2.79%
OCF(TTM)4.96
OCFY3.79%
SpS35.33
BVpS44.45
TBVpS1.74
PEG (NY)3.23
PEG (5Y)4.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.47% | ||
| ROE | 8.38% | ||
| ROCE | 7.67% | ||
| ROIC | 6.82% | ||
| ROICexc | 7.36% | ||
| ROICexgc | 33.37% | ||
| OM | 12.84% | ||
| PM (TTM) | 10.54% | ||
| GM | 37.54% | ||
| FCFM | 10.34% |
ROA(3y)4.55%
ROA(5y)4.34%
ROE(3y)8.17%
ROE(5y)9.27%
ROIC(3y)6.95%
ROIC(5y)7%
ROICexc(3y)7.8%
ROICexc(5y)8.39%
ROICexgc(3y)31.15%
ROICexgc(5y)33.93%
ROCE(3y)7.81%
ROCE(5y)7.88%
ROICexcg growth 3Y5.31%
ROICexcg growth 5Y-3.31%
ROICexc growth 3Y-8.41%
ROICexc growth 5Y-8.35%
OM growth 3Y3.16%
OM growth 5Y-1.19%
PM growth 3Y8.14%
PM growth 5Y6.35%
GM growth 3Y-0.44%
GM growth 5Y-0.76%
F-Score8
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.27 | ||
| Debt/EBITDA | 1.18 | ||
| Cap/Depr | 55.5% | ||
| Cap/Sales | 3.7% | ||
| Interest Coverage | 16.73 | ||
| Cash Conversion | 71.97% | ||
| Profit Quality | 98.12% | ||
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 4.5 |
F-Score8
WACC9.84%
ROIC/WACC0.69
Cap/Depr(3y)69.14%
Cap/Depr(5y)73.04%
Cap/Sales(3y)3.73%
Cap/Sales(5y)3.79%
Profit Quality(3y)102.28%
Profit Quality(5y)127.3%
High Growth Momentum
Growth
EPS 1Y (TTM)14.25%
EPS 3Y19.95%
EPS 5Y7.22%
EPS Q2Q%14.44%
EPS Next Y9.2%
EPS Next 2Y10.14%
EPS Next 3Y10.22%
EPS Next 5Y9.5%
Revenue 1Y (TTM)8.16%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%1.77%
Revenue Next Year3.1%
Revenue Next 2Y3.94%
Revenue Next 3Y4.5%
Revenue Next 5Y5.45%
EBIT growth 1Y30.04%
EBIT growth 3Y21.85%
EBIT growth 5Y8.97%
EBIT Next Year40.55%
EBIT Next 3Y19.05%
EBIT Next 5Y13.03%
FCF growth 1Y97.56%
FCF growth 3Y41.3%
FCF growth 5Y8.72%
OCF growth 1Y83.43%
OCF growth 3Y32.52%
OCF growth 5Y8.33%