XYLEM INC (XYL) Stock Fundamental Analysis
USA - NYSE:XYL - US98419M1009 - Common Stock
150.85 USD
-0.68 (-0.45%)
150.5 USD
-0.35 (-0.23%)
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. XYL has only an average score on both its financial health and profitability. XYL is quite expensive at the moment. 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.
Each year in the past 5 years XYL has been profitable.
In the past 5 years XYL always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.48%, XYL is in line with its industry, outperforming 59.23% of the companies in the same industry.
The Return On Equity of XYL (8.46%) is comparable to the rest of the 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 10.00%.
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's Profit Margin of 10.66% is fine compared to the rest of the industry. XYL outperforms 75.38% of its industry peers.
In the last couple of years the Profit Margin of XYL has grown nicely.
XYL's Operating Margin of 13.85% is fine compared to the rest of the industry. XYL outperforms 67.69% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so XYL is destroying value.
XYL has more shares outstanding than it did 1 year ago.
XYL has more shares outstanding than it did 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 4.82. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
XYL's Altman-Z score of 4.82 is fine compared to the rest of the industry. XYL outperforms 75.38% of its industry peers.
The Debt to FCF ratio of XYL is 2.24, which is a good value as it means it would take XYL, 2.24 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.24, XYL is doing good in the industry, outperforming 73.85% of the companies in the same industry.
A Debt/Equity ratio of 0.17 indicates that XYL is not too dependend on debt financing.
XYL has a Debt to Equity ratio of 0.17. This is in the better half of the industry: XYL outperforms 74.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 4.82 |
ROIC/WACC0.77
WACC9.43%
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.
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.
The Quick ratio of XYL (1.50) is better than 64.62% 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.
The Earnings Per Share has been growing slightly by 7.22% on average over the past years.
XYL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.58%.
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
Based on estimates for the next years, XYL will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.56% on average per year.
Based on estimates for the next years, XYL will show a small growth in Revenue. The Revenue will grow by 5.56% on average per year.
EPS Next Y14.12%
EPS Next 2Y12.85%
EPS Next 3Y12.08%
EPS Next 5Y10.56%
Revenue Next Year5.46%
Revenue Next 2Y5.37%
Revenue Next 3Y5.32%
Revenue Next 5Y5.56%
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
XYL is valuated quite expensively with a Price/Earnings ratio of 31.17.
Based on the Price/Earnings ratio, XYL is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 26.10. XYL is around the same levels.
With a Price/Forward Earnings ratio of 27.68, XYL can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, XYL is valued a bit more expensive than 63.85% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.52. XYL is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.17 | ||
| Fwd PE | 27.68 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of XYL indicates a slightly more expensive valuation: XYL is more expensive than 63.08% of the companies listed 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 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.87 | ||
| EV/EBITDA | 20.85 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates XYL does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of XYL may justify a higher PE ratio.
A more expensive valuation may be justified as XYL's earnings are expected to grow with 12.08% in the coming years.
PEG (NY)2.21
PEG (5Y)4.32
EPS Next 2Y12.85%
EPS Next 3Y12.08%
5. Dividend
5.1 Amount
XYL has a Yearly Dividend Yield of 1.10%.
Compared to an average industry Dividend Yield of 1.79, XYL pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.10, XYL pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
On average, the dividend of XYL grows each year by 8.36%, 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 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.
The dividend of XYL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40.08%
EPS Next 2Y12.85%
EPS Next 3Y12.08%
150.85
-0.68 (-0.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.11%
Inst Owner Change0.91%
Ins Owners0.24%
Ins Owner Change-0.23%
Market Cap36.72B
Revenue(TTM)8.89B
Net Income(TTM)948.00M
Analysts79.26
Price Target162.77 (7.9%)
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)0.28%
PT rev (3m)11.81%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)3.67%
EPS NY rev (1m)0.1%
EPS NY rev (3m)4.44%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)1.95%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)2.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.17 | ||
| Fwd PE | 27.68 | ||
| P/S | 4.13 | ||
| P/FCF | 41.87 | ||
| P/OCF | 29.1 | ||
| P/B | 3.28 | ||
| P/tB | 60.39 | ||
| EV/EBITDA | 20.85 |
EPS(TTM)4.84
EY3.21%
EPS(NY)5.45
Fwd EY3.61%
FCF(TTM)3.6
FCFY2.39%
OCF(TTM)5.18
OCFY3.44%
SpS36.54
BVpS46.04
TBVpS2.5
PEG (NY)2.21
PEG (5Y)4.32
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 | 4.82 |
F-Score8
WACC9.43%
ROIC/WACC0.77
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 Y14.12%
EPS Next 2Y12.85%
EPS Next 3Y12.08%
EPS Next 5Y10.56%
Revenue 1Y (TTM)5.58%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%7.79%
Revenue Next Year5.46%
Revenue Next 2Y5.37%
Revenue Next 3Y5.32%
Revenue Next 5Y5.56%
EBIT growth 1Y21.98%
EBIT growth 3Y21.85%
EBIT growth 5Y8.97%
EBIT Next Year45.14%
EBIT Next 3Y19.79%
EBIT Next 5Y15.05%
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 14.12% 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%.