XYLEM INC (XYL) Stock Fundamental Analysis
NYSE:XYL - New York Stock Exchange, Inc. - US98419M1009 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to XYL. XYL was compared to 128 industry peers in the Machinery industry. XYL has only an average score on both its financial health and profitability. While showing a medium growth rate, XYL is valued expensive at the moment.
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
XYL has a Return On Assets (5.47%) which is in line with its industry peers.
The Return On Equity of XYL (8.38%) is comparable to the rest of the industry.
XYL's Return On Invested Capital of 6.82% is in line compared to the rest of the industry. XYL outperforms 50.78% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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 71.09% of the companies in the same industry.
XYL's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 12.84%, XYL is doing good in the industry, outperforming 64.84% of the companies in the same industry.
XYL's Operating Margin has been stable in the last couple of years.
XYL has a Gross Margin of 37.54%. This is in the better half of the industry: XYL outperforms 67.97% 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 | 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.
The number of shares outstanding for XYL has been increased compared to 1 year ago.
The number of shares outstanding for XYL has been increased compared to 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 4.38. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
XYL has a better Altman-Z score (4.38) than 68.75% of its industry peers.
The Debt to FCF ratio of XYL is 2.27, which is a good value as it means it would take XYL, 2.27 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.27, XYL is doing good in the industry, outperforming 74.22% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that XYL is not too dependend on debt financing.
The Debt to Equity ratio of XYL (0.18) is better than 74.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | 4.38 |
ROIC/WACC0.7
WACC9.79%
2.3 Liquidity
A Current Ratio of 1.89 indicates that XYL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.89, XYL is in line with its industry, outperforming 41.41% of the companies in the same industry.
XYL has a Quick Ratio of 1.41. This is a normal value and indicates that XYL is financially healthy and should not expect problems in meeting its short term obligations.
XYL has a better Quick ratio (1.41) than 60.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
XYL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.25%, which is quite good.
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.
Looking at the last year, XYL shows a quite strong growth in Revenue. The Revenue has grown by 8.16% in the last year.
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, XYL will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.50% on average per year.
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 Y8.89%
EPS Next 2Y10.47%
EPS Next 3Y10.18%
EPS Next 5Y9.5%
Revenue Next Year3.06%
Revenue Next 2Y3.93%
Revenue Next 3Y4.5%
Revenue Next 5Y5.45%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 28.85, XYL can be considered very expensive at the moment.
XYL's Price/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.
When comparing the Price/Earnings ratio of XYL to the average of the S&P500 Index (26.55), we can say XYL is valued inline with the index average.
The Price/Forward Earnings ratio is 24.36, which indicates a rather expensive current valuation of XYL.
Based on the Price/Forward Earnings ratio, XYL is valued a bit more expensive than the industry average as 60.94% of the companies are valued more cheaply.
XYL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.85 | ||
| Fwd PE | 24.36 |
4.2 Price Multiples
64.06% of the companies in the same industry are cheaper than XYL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, XYL is valued a bit more expensive than 63.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.83 | ||
| EV/EBITDA | 19 |
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)3.25
PEG (5Y)3.99
EPS Next 2Y10.47%
EPS Next 3Y10.18%
5. Dividend
5.1 Amount
XYL has a Yearly Dividend Yield of 1.26%.
Compared to an average industry Dividend Yield of 1.91, XYL pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.26, XYL pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
5.2 History
On average, the dividend of XYL grows each year by 8.34%, which is quite nice.
XYL has been paying a dividend for at least 10 years, so it has 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)8.34%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
39.74% of the earnings are spent on dividend by XYL. This is a low number and 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 2Y10.47%
EPS Next 3Y10.18%
NYSE:XYL (6/12/2025, 11:07:44 AM)
127.235
+0.22 (+0.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners96.3%
Inst Owner Change1.35%
Ins Owners0.23%
Ins Owner Change1.24%
Market Cap30.96B
Analysts79.23
Price Target142.01 (11.61%)
Short Float %1.06%
Short Ratio1.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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)0.3%
EPS NQ rev (3m)0.76%
EPS NY rev (1m)-0.64%
EPS NY rev (3m)-0.79%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.91%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.85 | ||
| Fwd PE | 24.36 | ||
| P/S | 3.6 | ||
| P/FCF | 34.83 | ||
| P/OCF | 25.65 | ||
| P/B | 2.86 | ||
| P/tB | 73.2 | ||
| EV/EBITDA | 19 |
EPS(TTM)4.41
EY3.47%
EPS(NY)5.22
Fwd EY4.11%
FCF(TTM)3.65
FCFY2.87%
OCF(TTM)4.96
OCFY3.9%
SpS35.33
BVpS44.45
TBVpS1.74
PEG (NY)3.25
PEG (5Y)3.99
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 | 4.38 |
F-Score8
WACC9.79%
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 Y8.89%
EPS Next 2Y10.47%
EPS Next 3Y10.18%
EPS Next 5Y9.5%
Revenue 1Y (TTM)8.16%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%1.77%
Revenue Next Year3.06%
Revenue Next 2Y3.93%
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%