XYLEM INC (1XYL.MI) Stock Fundamental Analysis
BIT:1XYL - Euronext Milan - US98419M1009 - Common Stock - Currency: EUR
1XYL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 107 industry peers in the Machinery industry. 1XYL has an average financial health and profitability rating. 1XYL 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 1XYL was profitable.
1XYL had a positive operating cash flow in the past year.
Each year in the past 5 years 1XYL has been profitable.
Each year in the past 5 years 1XYL had a positive operating cash flow.
1.2 Ratios
1XYL has a better Return On Assets (5.47%) than 69.16% of its industry peers.
With a Return On Equity value of 8.38%, 1XYL perfoms like the industry average, outperforming 50.47% of the companies in the same industry.
1XYL has a Return On Invested Capital (6.82%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for 1XYL is below the industry average of 8.95%.
| 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
1XYL has a Profit Margin of 10.54%. This is amongst the best in the industry. 1XYL outperforms 86.92% of its industry peers.
In the last couple of years the Profit Margin of 1XYL has grown nicely.
1XYL has a Operating Margin of 12.84%. This is amongst the best in the industry. 1XYL outperforms 84.11% of its industry peers.
In the last couple of years the Operating Margin of 1XYL has remained more or less at the same level.
1XYL's Gross Margin of 37.54% is in line compared to the rest of the industry. 1XYL outperforms 48.60% of its industry peers.
In the last couple of years the Gross Margin of 1XYL has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1XYL is destroying value.
Compared to 1 year ago, 1XYL has more shares outstanding
The number of shares outstanding for 1XYL has been increased compared to 5 years ago.
The debt/assets ratio for 1XYL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.46 indicates that 1XYL is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.46, 1XYL belongs to the best of the industry, outperforming 88.78% of the companies in the same industry.
The Debt to FCF ratio of 1XYL is 2.27, which is a good value as it means it would take 1XYL, 2.27 years of fcf income to pay off all of its debts.
1XYL's Debt to FCF ratio of 2.27 is fine compared to the rest of the industry. 1XYL outperforms 79.44% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that 1XYL is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.18, 1XYL is doing good in the industry, outperforming 69.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | 4.46 |
ROIC/WACC0.7
WACC9.75%
2.3 Liquidity
A Current Ratio of 1.89 indicates that 1XYL should not have too much problems paying its short term obligations.
1XYL has a better Current ratio (1.89) than 65.42% of its industry peers.
1XYL has a Quick Ratio of 1.41. This is a normal value and indicates that 1XYL is financially healthy and should not expect problems in meeting its short term obligations.
1XYL has a better Quick ratio (1.41) than 76.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
1XYL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.25%, which is quite good.
1XYL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.22% yearly.
1XYL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.16%.
The Revenue has been growing by 10.28% on average over the past years. This is quite good.
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
1XYL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.50% yearly.
Based on estimates for the next years, 1XYL will show a small growth in Revenue. The Revenue will grow by 5.45% on average per year.
EPS Next Y9.27%
EPS Next 2Y10.14%
EPS Next 3Y10.22%
EPS Next 5Y9.5%
Revenue Next Year3.11%
Revenue Next 2Y3.96%
Revenue Next 3Y4.51%
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
1XYL is valuated quite expensively with a Price/Earnings ratio of 29.55.
The rest of the industry has a similar Price/Earnings ratio as 1XYL.
When comparing the Price/Earnings ratio of 1XYL to the average of the S&P500 Index (27.48), we can say 1XYL is valued inline with the index average.
1XYL is valuated quite expensively with a Price/Forward Earnings ratio of 25.09.
70.09% of the companies in the same industry are cheaper than 1XYL, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.52. 1XYL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.55 | ||
| Fwd PE | 25.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1XYL is valued a bit more expensive than the industry average as 71.96% of the companies are valued more cheaply.
63.55% of the companies in the same industry are cheaper than 1XYL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.66 | ||
| EV/EBITDA | 19.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1XYL does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of 1XYL may justify a higher PE ratio.
PEG (NY)3.19
PEG (5Y)4.09
EPS Next 2Y10.14%
EPS Next 3Y10.22%
5. Dividend
5.1 Amount
1XYL has a Yearly Dividend Yield of 1.22%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.36, 1XYL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, 1XYL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
5.2 History
On average, the dividend of 1XYL grows each year by 8.34%, which is quite nice.
Dividend Growth(5Y)8.34%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1XYL pays out 39.74% of its income as dividend. This is a sustainable payout ratio.
1XYL'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%
BIT:1XYL (7/7/2025, 7:00:00 PM)
112.3
+112.3 (+Infinity%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.23%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap27.33B
Analysts79.23
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
Yearly Dividend1.24
Dividend Growth(5Y)8.34%
DP39.74%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
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)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.55 | ||
| Fwd PE | 25.09 | ||
| P/S | 3.69 | ||
| P/FCF | 35.66 | ||
| P/OCF | 26.27 | ||
| P/B | 2.93 | ||
| P/tB | 74.96 | ||
| EV/EBITDA | 19.48 |
EPS(TTM)3.8
EY3.38%
EPS(NY)4.48
Fwd EY3.99%
FCF(TTM)3.15
FCFY2.8%
OCF(TTM)4.28
OCFY3.81%
SpS30.45
BVpS38.31
TBVpS1.5
PEG (NY)3.19
PEG (5Y)4.09
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 | 4.46 |
F-Score8
WACC9.75%
ROIC/WACC0.7
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 Y9.27%
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 Year3.11%
Revenue Next 2Y3.96%
Revenue Next 3Y4.51%
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%