XYLEM INC (XY6.DE) Stock Fundamental Analysis
FRA:XY6 - Deutsche Boerse Ag - US98419M1009 - Common Stock - Currency: EUR
Overall XY6 gets a fundamental rating of 5 out of 10. We evaluated XY6 against 106 industry peers in the Machinery industry. While XY6 has a great health rating, its profitability is only average at the moment. While showing a medium growth rate, XY6 is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
XY6 had positive earnings in the past year.
In the past year XY6 had a positive cash flow from operations.
XY6 had positive earnings in each of the past 5 years.
XY6 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
XY6 has a Return On Assets of 5.47%. This is in the better half of the industry: XY6 outperforms 71.70% of its industry peers.
XY6 has a Return On Equity of 8.38%. This is comparable to the rest of the industry: XY6 outperforms 54.72% of its industry peers.
XY6 has a Return On Invested Capital (5.40%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for XY6 is below the industry average of 8.48%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.47% | ||
| ROE | 8.38% | ||
| ROIC | 5.4% |
ROA(3y)4.55%
ROA(5y)4.34%
ROE(3y)8.17%
ROE(5y)9.27%
ROIC(3y)5.5%
ROIC(5y)5.55%
1.3 Margins
XY6 has a Profit Margin of 10.54%. This is amongst the best in the industry. XY6 outperforms 88.68% of its industry peers.
XY6's Profit Margin has improved in the last couple of years.
XY6 has a Operating Margin of 12.84%. This is amongst the best in the industry. XY6 outperforms 85.85% of its industry peers.
In the last couple of years the Operating Margin of XY6 has remained more or less at the same level.
XY6's Gross Margin of 37.54% is in line compared to the rest of the industry. XY6 outperforms 50.94% of its industry peers.
XY6'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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), XY6 is destroying value.
Compared to 1 year ago, XY6 has more shares outstanding
The number of shares outstanding for XY6 has been increased compared to 5 years ago.
Compared to 1 year ago, XY6 has an improved debt to assets ratio.
2.2 Solvency
XY6 has an Altman-Z score of 4.52. This indicates that XY6 is financially healthy and has little risk of bankruptcy at the moment.
XY6 has a better Altman-Z score (4.52) than 88.68% of its industry peers.
The Debt to FCF ratio of XY6 is 2.27, which is a good value as it means it would take XY6, 2.27 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.27, XY6 belongs to the top of the industry, outperforming 81.13% of the companies in the same industry.
XY6 has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
XY6 has a better Debt to Equity ratio (0.18) than 68.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | 4.52 |
ROIC/WACC0.56
WACC9.7%
2.3 Liquidity
XY6 has a Current Ratio of 1.89. This is a normal value and indicates that XY6 is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of XY6 (1.89) is better than 66.98% of its industry peers.
A Quick Ratio of 1.41 indicates that XY6 should not have too much problems paying its short term obligations.
XY6's Quick ratio of 1.41 is fine compared to the rest of the industry. XY6 outperforms 77.36% 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.
Measured over the past 5 years, XY6 shows a small growth in Earnings Per Share. The EPS has been growing by 7.22% on average per year.
The Revenue has grown by 8.16% in the past year. This is quite good.
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
Based on estimates for the next years, XY6 will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.50% on average per year.
The Revenue is expected to grow by 5.45% on average over the next years.
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.
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
XY6 is valuated quite expensively with a Price/Earnings ratio of 29.71.
The rest of the industry has a similar Price/Earnings ratio as XY6.
XY6 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 25.26 indicates a quite expensive valuation of XY6.
Based on the Price/Forward Earnings ratio, XY6 is valued a bit more expensive than the industry average as 70.75% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, XY6 is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.71 | ||
| Fwd PE | 25.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, XY6 is valued a bit more expensive than the industry average as 72.64% of the companies are valued more cheaply.
62.26% of the companies in the same industry are cheaper than XY6, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.9 | ||
| EV/EBITDA | 19.83 |
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 XY6 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
XY6 has a Yearly Dividend Yield of 1.21%. Purely for dividend investing, there may be better candidates out there.
XY6's Dividend Yield is comparable with the industry average which is at 2.89.
With a Dividend Yield of 1.21, XY6 pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
5.2 History
The dividend of XY6 is nicely growing with an annual growth rate of 8.34%!
Dividend Growth(5Y)8.34%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
39.74% of the earnings are spent on dividend by XY6. This is a low number and sustainable payout ratio.
The dividend of XY6 is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP39.74%
EPS Next 2Y10.14%
EPS Next 3Y10.22%
FRA:XY6 (7/11/2025, 7:00:00 PM)
112
-1.35 (-1.19%)
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 Cap27.26B
Analysts79.23
Price Target123.99 (10.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend1.23
Dividend Growth(5Y)8.34%
DP39.74%
Div Incr Years4
Div Non Decr Years4
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)-1.86%
PT rev (3m)-9.35%
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 | 29.71 | ||
| Fwd PE | 25.26 | ||
| P/S | 3.71 | ||
| P/FCF | 35.9 | ||
| P/OCF | 26.44 | ||
| P/B | 2.95 | ||
| P/tB | 75.44 | ||
| EV/EBITDA | 19.83 |
EPS(TTM)3.77
EY3.37%
EPS(NY)4.43
Fwd EY3.96%
FCF(TTM)3.12
FCFY2.79%
OCF(TTM)4.24
OCFY3.78%
SpS30.17
BVpS37.96
TBVpS1.48
PEG (NY)3.23
PEG (5Y)4.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.47% | ||
| ROE | 8.38% | ||
| ROCE | 7.67% | ||
| ROIC | 5.4% | ||
| ROICexc | 5.83% | ||
| ROICexgc | 26.43% | ||
| 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)5.5%
ROIC(5y)5.55%
ROICexc(3y)6.18%
ROICexc(5y)6.64%
ROICexgc(3y)24.67%
ROICexgc(5y)26.87%
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 | 4.52 |
F-Score8
WACC9.7%
ROIC/WACC0.56
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%