XYLEM INC (XYL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:XYL - US98419M1009 - Common Stock
140.87 USD
-0.02 (-0.01%)
140.87 USD
0 (0%)
Overall XYL gets a fundamental rating of 5 out of 10. We evaluated XYL against 130 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.
XYL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of XYL (5.48%) is better than 63.08% of its industry peers.
Looking at the Return On Equity, with a value of 8.46%, XYL is in line with its industry, outperforming 55.38% of the companies in the same industry.
The Return On Invested Capital of XYL (7.29%) is comparable to the rest of the industry.
XYL had an Average Return On Invested Capital over the past 3 years of 6.95%. This is below the industry average of 10.39%.
The last Return On Invested Capital (7.29%) for XYL is above the 3 year average (6.95%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.48% | ||
| ROE | 8.46% | ||
| ROIC | 7.29% |
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's Profit Margin of 10.66% is fine compared to the rest of the industry. XYL outperforms 76.92% of its industry peers.
XYL's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 13.85%, XYL is doing good in the industry, outperforming 66.92% of the companies in the same industry.
In the last couple of years the Operating Margin of XYL has remained more or less at the same level.
XYL has a Gross Margin of 38.23%. This is in the better half of the industry: XYL outperforms 70.77% of its industry peers.
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 | 13.85% | ||
| PM (TTM) | 10.66% | ||
| GM | 38.23% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), XYL is destroying value.
Compared to 1 year ago, XYL has more shares outstanding
Compared to 5 years ago, XYL has more shares outstanding
The debt/assets ratio for XYL has been reduced compared to a year ago.
2.2 Solvency
XYL has an Altman-Z score of 4.56. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of XYL (4.56) is better than 72.31% of its industry peers.
XYL has a debt to FCF ratio of 2.24. This is a good value and a sign of high solvency as XYL would need 2.24 years to pay back of all of its debts.
XYL has a Debt to FCF ratio of 2.24. This is in the better half of the industry: XYL outperforms 75.38% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that XYL is not too dependend on debt financing.
XYL's Debt to Equity ratio of 0.17 is fine compared to the rest of the industry. XYL outperforms 75.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 4.56 |
ROIC/WACC0.79
WACC9.26%
2.3 Liquidity
A Current Ratio of 1.96 indicates that XYL should not have too much problems paying its short term obligations.
XYL has a Current ratio (1.96) which is comparable to the rest of the industry.
A Quick Ratio of 1.50 indicates that XYL should not have too much problems paying its short term obligations.
The Quick ratio of XYL (1.50) is better than 63.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.34% over the past year.
The Earnings Per Share has been growing slightly by 7.22% on average over the past years.
The Revenue has been growing slightly by 5.58% 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)18.34%
EPS 3Y19.95%
EPS 5Y7.22%
EPS Q2Q%23.42%
Revenue 1Y (TTM)5.58%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%7.79%
3.2 Future
XYL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.23% yearly.
XYL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.84% yearly.
EPS Next Y18.44%
EPS Next 2Y14.27%
EPS Next 3Y13.24%
EPS Next 5Y11.23%
Revenue Next Year6.26%
Revenue Next 2Y5.18%
Revenue Next 3Y5.17%
Revenue Next 5Y5.84%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 29.11, XYL can be considered very expensive at the moment.
XYL's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.41, XYL is valued at the same level.
With a Price/Forward Earnings ratio of 25.21, XYL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of XYL is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 35.40. XYL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.11 | ||
| Fwd PE | 25.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, XYL is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
XYL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.11 | ||
| EV/EBITDA | 19.42 |
4.3 Compensation for Growth
XYL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
XYL has a very decent profitability rating, which may justify a higher PE ratio.
XYL's earnings are expected to grow with 13.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.58
PEG (5Y)4.03
EPS Next 2Y14.27%
EPS Next 3Y13.24%
5. Dividend
5.1 Amount
XYL has a Yearly Dividend Yield of 1.10%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.90, XYL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, XYL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.36%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
40.08% of the earnings are spent on dividend by XYL. This is a bit on the high side, but may be sustainable.
XYL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP40.08%
EPS Next 2Y14.27%
EPS Next 3Y13.24%
140.87
-0.02 (-0.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.11%
Inst Owner Change0.57%
Ins Owners0.24%
Ins Owner Change-1.16%
Market Cap34.30B
Revenue(TTM)8.89B
Net Income(TTM)948.00M
Analysts79.26
Price Target170.99 (21.38%)
Short Float %1.32%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend1.44
Dividend Growth(5Y)8.36%
DP40.08%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.97%
Min EPS beat(2)7.92%
Max EPS beat(2)10.02%
EPS beat(4)4
Avg EPS beat(4)7.18%
Min EPS beat(4)3.8%
Max EPS beat(4)10.02%
EPS beat(8)7
Avg EPS beat(8)4.88%
EPS beat(12)11
Avg EPS beat(12)8.4%
EPS beat(16)15
Avg EPS beat(16)9.74%
Revenue beat(2)2
Avg Revenue beat(2)1.99%
Min Revenue beat(2)1.07%
Max Revenue beat(2)2.91%
Revenue beat(4)4
Avg Revenue beat(4)1.69%
Min Revenue beat(4)0.44%
Max Revenue beat(4)2.91%
Revenue beat(8)7
Avg Revenue beat(8)0.71%
Revenue beat(12)11
Avg Revenue beat(12)2.04%
Revenue beat(16)14
Avg Revenue beat(16)1.96%
PT rev (1m)5.05%
PT rev (3m)7.16%
EPS NQ rev (1m)6.76%
EPS NQ rev (3m)7.47%
EPS NY rev (1m)3.79%
EPS NY rev (3m)4.18%
Revenue NQ rev (1m)0.34%
Revenue NQ rev (3m)0.46%
Revenue NY rev (1m)0.76%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.11 | ||
| Fwd PE | 25.21 | ||
| P/S | 3.86 | ||
| P/FCF | 39.11 | ||
| P/OCF | 27.18 | ||
| P/B | 3.06 | ||
| P/tB | 56.41 | ||
| EV/EBITDA | 19.42 |
EPS(TTM)4.84
EY3.44%
EPS(NY)5.59
Fwd EY3.97%
FCF(TTM)3.6
FCFY2.56%
OCF(TTM)5.18
OCFY3.68%
SpS36.53
BVpS46.03
TBVpS2.5
PEG (NY)1.58
PEG (5Y)4.03
Graham Number70.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.48% | ||
| ROE | 8.46% | ||
| ROCE | 8.2% | ||
| ROIC | 7.29% | ||
| ROICexc | 7.92% | ||
| ROICexgc | 33.84% | ||
| OM | 13.85% | ||
| PM (TTM) | 10.66% | ||
| GM | 38.23% | ||
| FCFM | 9.86% |
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%
ROICexgc growth 3Y5.31%
ROICexgc 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 | 2.24 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 67.07% | ||
| Cap/Sales | 4.33% | ||
| Interest Coverage | 20.2 | ||
| Cash Conversion | 69.88% | ||
| Profit Quality | 92.51% | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 4.56 |
F-Score8
WACC9.26%
ROIC/WACC0.79
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)18.34%
EPS 3Y19.95%
EPS 5Y7.22%
EPS Q2Q%23.42%
EPS Next Y18.44%
EPS Next 2Y14.27%
EPS Next 3Y13.24%
EPS Next 5Y11.23%
Revenue 1Y (TTM)5.58%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%7.79%
Revenue Next Year6.26%
Revenue Next 2Y5.18%
Revenue Next 3Y5.17%
Revenue Next 5Y5.84%
EBIT growth 1Y21.98%
EBIT growth 3Y21.85%
EBIT growth 5Y8.97%
EBIT Next Year45.14%
EBIT Next 3Y19.79%
EBIT Next 5Y15.48%
FCF growth 1Y72.98%
FCF growth 3Y41.3%
FCF growth 5Y8.72%
OCF growth 1Y69.62%
OCF growth 3Y32.52%
OCF growth 5Y8.33%
XYLEM INC / XYL FAQ
Can you provide the ChartMill fundamental rating for XYLEM INC?
ChartMill assigns a fundamental rating of 5 / 10 to XYL.
What is the valuation status of XYLEM INC (XYL) stock?
ChartMill assigns a valuation rating of 3 / 10 to XYLEM INC (XYL). This can be considered as Overvalued.
What is the profitability of XYL stock?
XYLEM INC (XYL) has a profitability rating of 6 / 10.
What is the expected EPS growth for XYLEM INC (XYL) stock?
The Earnings per Share (EPS) of XYLEM INC (XYL) is expected to grow by 18.44% in the next year.
Can you provide the dividend sustainability for XYL stock?
The dividend rating of XYLEM INC (XYL) is 6 / 10 and the dividend payout ratio is 40.08%.