XYLEM INC (XYL) Stock Fundamental Analysis
USA - NYSE:XYL - US98419M1009 - Common Stock
140.99 USD
+0.27 (+0.19%)
141.84 USD
+0.85 (+0.6%)
Overall XYL gets a fundamental rating of 5 out of 10. We evaluated XYL against 128 industry peers in the Machinery industry. XYL has an average financial health and profitability rating. XYL is quite expensive at the moment. It does show a decent growth rate. Finally XYL also has an excellent dividend rating. This makes XYL very considerable for dividend investing!
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.
XYL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 5.46%, XYL perfoms like the industry average, outperforming 57.81% of the companies in the same industry.
XYL's Return On Equity of 8.47% is in line compared to the rest of the industry. XYL outperforms 50.78% of its industry peers.
XYL has a Return On Invested Capital (6.92%) which is in line with its industry peers.
XYL had an Average Return On Invested Capital over the past 3 years of 6.95%. This is below the industry average of 10.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 8.47% | ||
| ROIC | 6.92% |
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
XYL has a better Profit Margin (10.74%) than 75.78% of its industry peers.
In the last couple of years the Profit Margin of XYL has grown nicely.
The Operating Margin of XYL (13.28%) is better than 64.06% of its industry peers.
XYL's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 37.81%, XYL is in the better half of the industry, outperforming 69.53% 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 | 13.28% | ||
| PM (TTM) | 10.74% | ||
| GM | 37.81% |
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.
XYL has more shares outstanding than it did 1 year ago.
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
XYL has an Altman-Z score of 4.51. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
XYL has a better Altman-Z score (4.51) than 75.00% of its industry peers.
XYL has a debt to FCF ratio of 2.36. This is a good value and a sign of high solvency as XYL would need 2.36 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.36, XYL is doing good in the industry, outperforming 74.22% of the companies in the same industry.
XYL has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
XYL has a better Debt to Equity ratio (0.17) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 4.51 |
ROIC/WACC0.71
WACC9.79%
2.3 Liquidity
A Current Ratio of 1.90 indicates that XYL should not have too much problems paying its short term obligations.
With a Current ratio value of 1.90, XYL perfoms like the industry average, outperforming 44.53% of the companies in the same industry.
A Quick Ratio of 1.43 indicates that XYL should not have too much problems paying its short term obligations.
XYL has a Quick ratio of 1.43. This is in the better half of the industry: XYL outperforms 64.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.37% over the past year.
Measured over the past 5 years, XYL shows a small growth in Earnings Per Share. The EPS has been growing by 7.22% on average per year.
The Revenue has been growing slightly by 3.98% in the past year.
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)15.37%
EPS 3Y19.95%
EPS 5Y7.22%
EPS Q2Q%15.6%
Revenue 1Y (TTM)3.98%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%6.09%
3.2 Future
The Earnings Per Share is expected to grow by 10.56% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.56% on average over the next years.
EPS Next Y13.69%
EPS Next 2Y12.21%
EPS Next 3Y11.67%
EPS Next 5Y10.56%
Revenue Next Year5.42%
Revenue Next 2Y5.33%
Revenue Next 3Y5.3%
Revenue Next 5Y5.56%
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
A Price/Earnings ratio of 30.78 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 61.72% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.20, XYL is valued at the same level.
The Price/Forward Earnings ratio is 26.16, which means the current valuation is very expensive for XYL.
XYL's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of XYL to the average of the S&P500 Index (22.70), we can say XYL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.78 | ||
| Fwd PE | 26.16 |
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 63.28% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, XYL is valued a bit more expensive than the industry average as 64.06% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.66 | ||
| EV/EBITDA | 20.29 |
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.
The decent profitability rating of XYL may justify a higher PE ratio.
PEG (NY)2.25
PEG (5Y)4.26
EPS Next 2Y12.21%
EPS Next 3Y11.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.23%, XYL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.74, XYL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, XYL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
5.2 History
The dividend of XYL is nicely growing with an annual growth rate of 8.36%!
XYL has paid a dividend for at least 10 years, which is 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)8.36%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
XYL pays out 39.55% of its income as dividend. This is a sustainable payout ratio.
The dividend of XYL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP39.55%
EPS Next 2Y12.21%
EPS Next 3Y11.67%
140.99
+0.27 (+0.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97%
Inst Owner Change-2.67%
Ins Owners0.24%
Ins Owner Change0.19%
Market Cap34.32B
Analysts79.23
Price Target161.11 (14.27%)
Short Float %0.94%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
Yearly Dividend1.44
Dividend Growth(5Y)8.36%
DP39.55%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.45%
Min EPS beat(2)6.98%
Max EPS beat(2)7.92%
EPS beat(4)3
Avg EPS beat(4)4.43%
Min EPS beat(4)-0.98%
Max EPS beat(4)7.92%
EPS beat(8)7
Avg EPS beat(8)4.96%
EPS beat(12)11
Avg EPS beat(12)9.17%
EPS beat(16)15
Avg EPS beat(16)9.46%
Revenue beat(2)2
Avg Revenue beat(2)1.67%
Min Revenue beat(2)0.44%
Max Revenue beat(2)2.91%
Revenue beat(4)3
Avg Revenue beat(4)0.39%
Min Revenue beat(4)-4.15%
Max Revenue beat(4)2.91%
Revenue beat(8)7
Avg Revenue beat(8)0.99%
Revenue beat(12)11
Avg Revenue beat(12)2.11%
Revenue beat(16)13
Avg Revenue beat(16)1.71%
PT rev (1m)1.8%
PT rev (3m)13.45%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)4.1%
EPS NY rev (1m)4.04%
EPS NY rev (3m)4.41%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)2.14%
Revenue NY rev (1m)2.14%
Revenue NY rev (3m)2.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.78 | ||
| Fwd PE | 26.16 | ||
| P/S | 3.93 | ||
| P/FCF | 40.66 | ||
| P/OCF | 28.04 | ||
| P/B | 3.1 | ||
| P/tB | 71.05 | ||
| EV/EBITDA | 20.29 |
EPS(TTM)4.58
EY3.25%
EPS(NY)5.39
Fwd EY3.82%
FCF(TTM)3.47
FCFY2.46%
OCF(TTM)5.03
OCFY3.57%
SpS35.87
BVpS45.5
TBVpS1.98
PEG (NY)2.25
PEG (5Y)4.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 8.47% | ||
| ROCE | 7.78% | ||
| ROIC | 6.92% | ||
| ROICexc | 7.51% | ||
| ROICexgc | 32.93% | ||
| OM | 13.28% | ||
| PM (TTM) | 10.74% | ||
| GM | 37.81% | ||
| FCFM | 9.67% |
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 Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.36 | ||
| Debt/EBITDA | 1.11 | ||
| Cap/Depr | 66.32% | ||
| Cap/Sales | 4.35% | ||
| Interest Coverage | 18.4 | ||
| Cash Conversion | 70.67% | ||
| Profit Quality | 89.98% | ||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 4.51 |
F-Score8
WACC9.79%
ROIC/WACC0.71
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)15.37%
EPS 3Y19.95%
EPS 5Y7.22%
EPS Q2Q%15.6%
EPS Next Y13.69%
EPS Next 2Y12.21%
EPS Next 3Y11.67%
EPS Next 5Y10.56%
Revenue 1Y (TTM)3.98%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%6.09%
Revenue Next Year5.42%
Revenue Next 2Y5.33%
Revenue Next 3Y5.3%
Revenue Next 5Y5.56%
EBIT growth 1Y23.43%
EBIT growth 3Y21.85%
EBIT growth 5Y8.97%
EBIT Next Year44.03%
EBIT Next 3Y19.53%
EBIT Next 5Y15.05%
FCF growth 1Y136.42%
FCF growth 3Y41.3%
FCF growth 5Y8.72%
OCF growth 1Y113.61%
OCF growth 3Y32.52%
OCF growth 5Y8.33%