XYLEM INC (XYL) Stock Fundamental Analysis
USA - NYSE:XYL - US98419M1009 - Common Stock
151.31 USD
+0.97 (+0.65%)
151.31 USD
0 (0%)
Taking everything into account, XYL scores 5 out of 10 in our fundamental rating. XYL was compared to 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. 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.
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
XYL has a Return On Assets (5.48%) which is comparable to the rest of the industry.
XYL's Return On Equity of 8.46% is in line compared to the rest of the industry. XYL outperforms 51.54% of its industry peers.
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 10.24%.
The 3 year average ROIC (6.95%) for XYL is below the current ROIC(7.29%), indicating increased profibility in the last year.
| 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 has a Profit Margin of 10.66%. This is in the better half of the industry: XYL outperforms 74.62% of its industry peers.
In the last couple of years the Profit Margin of XYL has grown nicely.
Looking at the Operating Margin, with a value of 13.85%, XYL is in the better half of 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.
Looking at the Gross Margin, with a value of 38.23%, XYL is in the better half of the industry, outperforming 70.77% of the companies in the same industry.
XYL's Gross Margin has been stable in the last couple of years.
| 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
XYL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, XYL has more shares outstanding
Compared to 5 years ago, XYL has more shares outstanding
XYL has a better debt/assets ratio than last year.
2.2 Solvency
XYL has an Altman-Z score of 4.79. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
XYL has a better Altman-Z score (4.79) than 74.62% 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 73.08% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that XYL is not too dependend on debt financing.
The Debt to Equity ratio of XYL (0.17) is better than 74.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 4.79 |
ROIC/WACC0.78
WACC9.4%
2.3 Liquidity
XYL has a Current Ratio of 1.96. 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 Current ratio of 1.96. This is comparable to the rest of the industry: XYL outperforms 45.38% of its industry peers.
XYL has a Quick Ratio of 1.50. This is a normal value and indicates that XYL is financially healthy and should not expect problems in meeting its short term obligations.
XYL's Quick ratio of 1.50 is fine compared to the rest of the industry. XYL outperforms 62.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
XYL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.34%, 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.
XYL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.58%.
XYL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.28% yearly.
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
Based on estimates for the next years, XYL will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.23% on average per year.
Based on estimates for the next years, XYL will show a small growth in Revenue. The Revenue will grow by 5.84% on average per year.
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
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.
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 31.26, XYL can be considered very expensive at the moment.
Based on the Price/Earnings ratio, XYL is valued a bit more expensive than 61.54% of the companies in the same industry.
XYL is valuated rather expensively when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 27.08, which means the current valuation is very expensive for XYL.
XYL's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. XYL is more expensive than 61.54% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, XYL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.26 | ||
| Fwd PE | 27.08 |
4.2 Price Multiples
XYL's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. XYL is more expensive than 64.62% of the companies in the same industry.
XYL's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. XYL is more expensive than 62.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42 | ||
| EV/EBITDA | 20.69 |
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)1.7
PEG (5Y)4.33
EPS Next 2Y14.27%
EPS Next 3Y13.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.10%, XYL has a reasonable but not impressive dividend return.
XYL's Dividend Yield is a higher than the industry average which is at 1.83.
With a Dividend Yield of 1.10, XYL pays less dividend than the S&P500 average, which is at 2.39.
| 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%
151.31
+0.97 (+0.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.11%
Inst Owner Change0.58%
Ins Owners0.24%
Ins Owner Change-0.23%
Market Cap36.83B
Revenue(TTM)8.89B
Net Income(TTM)948.00M
Analysts79.26
Price Target162.77 (7.57%)
Short Float %1.1%
Short Ratio2.34
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)1.03%
PT rev (3m)12.65%
EPS NQ rev (1m)0.43%
EPS NQ rev (3m)1.13%
EPS NY rev (1m)0.1%
EPS NY rev (3m)4.44%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)1.84%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)2.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.26 | ||
| Fwd PE | 27.08 | ||
| P/S | 4.14 | ||
| P/FCF | 42 | ||
| P/OCF | 29.18 | ||
| P/B | 3.29 | ||
| P/tB | 60.58 | ||
| EV/EBITDA | 20.69 |
EPS(TTM)4.84
EY3.2%
EPS(NY)5.59
Fwd EY3.69%
FCF(TTM)3.6
FCFY2.38%
OCF(TTM)5.18
OCFY3.43%
SpS36.54
BVpS46.04
TBVpS2.5
PEG (NY)1.7
PEG (5Y)4.33
Graham Number70.81
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 | 4.79 |
F-Score8
WACC9.4%
ROIC/WACC0.78
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 1 / 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%.