XYLEM INC (XYL) Stock Fundamental Analysis
NYSE:XYL - US98419M1009 - Common Stock
141.56 USD
-2.45 (-1.7%)
141.56 USD
0 (0%)
XYL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 128 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. XYL is valied quite expensively at the moment, while it does show a decent growth rate. Finally XYL also has an excellent dividend rating. With these ratings, XYL could be worth investigating further for dividend investing!.
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.
XYL had positive earnings in each of the past 5 years.
Each year in the past 5 years XYL had a positive operating cash flow.
1.2 Ratios
XYL has a Return On Assets (5.46%) which is in line with its industry peers.
The Return On Equity of XYL (8.47%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 6.92%, XYL perfoms like the industry average, outperforming 53.13% of the companies in the same industry.
XYL had an Average Return On Invested Capital over the past 3 years of 6.95%. This is below the industry average of 9.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 8.47% | ||
| ROIC | 6.92% |
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
With a decent Profit Margin value of 10.74%, XYL is doing good in the industry, outperforming 75.78% of the companies in the same industry.
In the last couple of years the Profit Margin of XYL has grown nicely.
XYL has a Operating Margin of 13.28%. This is in the better half of the industry: XYL outperforms 64.06% of its industry peers.
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 37.81%, XYL is in the better half of the industry, outperforming 69.53% 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 | 13.28% | ||
| PM (TTM) | 10.74% | ||
| GM | 37.81% |
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.
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
An Altman-Z score of 4.53 indicates that XYL is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.53, XYL is doing good in the industry, outperforming 72.66% of the companies in the same industry.
XYL has a debt to FCF ratio of 2.36. This is a good value and a sign of high solvency as XYL would need 2.36 years to pay back of all of its debts.
The Debt to FCF ratio of XYL (2.36) is better than 75.78% of its industry peers.
XYL has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.17, XYL is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 4.53 |
ROIC/WACC0.71
WACC9.74%
2.3 Liquidity
XYL has a Current Ratio of 1.90. 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 (1.90) which is in line with its industry peers.
XYL has a Quick Ratio of 1.43. 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 1.43 is fine compared to the rest of the industry. XYL outperforms 64.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
XYL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.37%, 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.
The Revenue has been growing slightly by 3.98% in the past year.
The Revenue has been growing by 10.28% on average over the past years. This is quite good.
EPS 1Y (TTM)15.37%
EPS 3Y19.95%
EPS 5Y7.22%
EPS Q2Q%15.6%
Revenue 1Y (TTM)3.98%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%6.09%
3.2 Future
XYL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.56% yearly.
XYL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.56% yearly.
EPS Next Y13.69%
EPS Next 2Y12.21%
EPS Next 3Y11.67%
EPS Next 5Y10.56%
Revenue Next Year5.23%
Revenue Next 2Y5.2%
Revenue Next 3Y5.24%
Revenue Next 5Y5.56%
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
XYL is valuated quite expensively with a Price/Earnings ratio of 30.91.
Based on the Price/Earnings ratio, XYL is valued a bit more expensive than the industry average as 61.72% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of XYL to the average of the S&P500 Index (27.13), we can say XYL is valued inline with the index average.
With a Price/Forward Earnings ratio of 26.27, XYL can be considered very expensive at the moment.
61.72% of the companies in the same industry are cheaper than XYL, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.76. XYL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.91 | ||
| Fwd PE | 26.27 |
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 64.06% of the companies listed in the same industry.
65.63% of the companies in the same industry are cheaper than XYL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.83 | ||
| EV/EBITDA | 20.37 |
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.
PEG (NY)2.26
PEG (5Y)4.28
EPS Next 2Y12.21%
EPS Next 3Y11.67%
5. Dividend
5.1 Amount
XYL has a Yearly Dividend Yield of 1.23%. Purely for dividend investing, there may be better candidates out there.
XYL's Dividend Yield is a higher than the industry average which is at 1.78.
With a Dividend Yield of 1.23, XYL pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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
XYL pays out 39.55% of its income as dividend. This is a sustainable payout ratio.
The dividend of XYL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP39.55%
EPS Next 2Y12.21%
EPS Next 3Y11.67%
141.56
-2.45 (-1.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97%
Inst Owner Change-2.66%
Ins Owners0.24%
Ins Owner Change0.93%
Market Cap34.46B
Analysts79.23
Price Target159.57 (12.72%)
Short Float %0.94%
Short Ratio1.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
Yearly Dividend1.44
Dividend Growth(5Y)8.36%
DP39.55%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.45%
Min EPS beat(2)6.98%
Max EPS beat(2)7.92%
EPS beat(4)3
Avg EPS beat(4)4.43%
Min EPS beat(4)-0.98%
Max EPS beat(4)7.92%
EPS beat(8)7
Avg EPS beat(8)4.96%
EPS beat(12)11
Avg EPS beat(12)9.17%
EPS beat(16)15
Avg EPS beat(16)9.46%
Revenue beat(2)2
Avg Revenue beat(2)1.67%
Min Revenue beat(2)0.44%
Max Revenue beat(2)2.91%
Revenue beat(4)3
Avg Revenue beat(4)0.39%
Min Revenue beat(4)-4.15%
Max Revenue beat(4)2.91%
Revenue beat(8)7
Avg Revenue beat(8)0.99%
Revenue beat(12)11
Avg Revenue beat(12)2.11%
Revenue beat(16)13
Avg Revenue beat(16)1.71%
PT rev (1m)10.44%
PT rev (3m)13%
EPS NQ rev (1m)3.52%
EPS NQ rev (3m)1.48%
EPS NY rev (1m)4.04%
EPS NY rev (3m)4.41%
Revenue NQ rev (1m)1.86%
Revenue NQ rev (3m)1.96%
Revenue NY rev (1m)1.94%
Revenue NY rev (3m)2.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.91 | ||
| Fwd PE | 26.27 | ||
| P/S | 3.95 | ||
| P/FCF | 40.83 | ||
| P/OCF | 28.15 | ||
| P/B | 3.11 | ||
| P/tB | 71.34 | ||
| EV/EBITDA | 20.37 |
EPS(TTM)4.58
EY3.24%
EPS(NY)5.39
Fwd EY3.81%
FCF(TTM)3.47
FCFY2.45%
OCF(TTM)5.03
OCFY3.55%
SpS35.87
BVpS45.5
TBVpS1.98
PEG (NY)2.26
PEG (5Y)4.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 8.47% | ||
| ROCE | 7.78% | ||
| ROIC | 6.92% | ||
| ROICexc | 7.51% | ||
| ROICexgc | 32.93% | ||
| OM | 13.28% | ||
| PM (TTM) | 10.74% | ||
| GM | 37.81% | ||
| FCFM | 9.67% |
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 Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.36 | ||
| Debt/EBITDA | 1.11 | ||
| Cap/Depr | 66.32% | ||
| Cap/Sales | 4.35% | ||
| Interest Coverage | 18.4 | ||
| Cash Conversion | 70.67% | ||
| Profit Quality | 89.98% | ||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 4.53 |
F-Score8
WACC9.74%
ROIC/WACC0.71
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)15.37%
EPS 3Y19.95%
EPS 5Y7.22%
EPS Q2Q%15.6%
EPS Next Y13.69%
EPS Next 2Y12.21%
EPS Next 3Y11.67%
EPS Next 5Y10.56%
Revenue 1Y (TTM)3.98%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%6.09%
Revenue Next Year5.23%
Revenue Next 2Y5.2%
Revenue Next 3Y5.24%
Revenue Next 5Y5.56%
EBIT growth 1Y23.43%
EBIT growth 3Y21.85%
EBIT growth 5Y8.97%
EBIT Next Year44.03%
EBIT Next 3Y19.53%
EBIT Next 5Y15.05%
FCF growth 1Y136.42%
FCF growth 3Y41.3%
FCF growth 5Y8.72%
OCF growth 1Y113.61%
OCF growth 3Y32.52%
OCF growth 5Y8.33%