XYLEM INC (XYL) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:XYL • US98419M1009

142.12 USD
+2.88 (+2.07%)
At close: Feb 6, 2026
142.12 USD
0 (0%)
After Hours: 2/6/2026, 8:12:24 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall XYL gets a fundamental rating of 5 out of 10. We evaluated XYL against 131 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 quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • XYL had positive earnings in the past year.
  • XYL had a positive operating cash flow in the past year.
  • In the past 5 years XYL has always been profitable.
  • XYL had a positive operating cash flow in each of the past 5 years.
XYL Yearly Net Income VS EBIT VS OCF VS FCFXYL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 5.48%, XYL is in the better half of the industry, outperforming 62.60% of the companies in the same industry.
  • XYL has a Return On Equity of 8.46%. This is comparable to the rest of the industry: XYL outperforms 57.25% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 7.29%, XYL is in line with its industry, outperforming 54.96% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for XYL is below the industry average of 10.26%.
  • The 3 year average ROIC (6.95%) for XYL is below the current ROIC(7.29%), indicating increased profibility in the last year.
Industry RankSector 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%
XYL Yearly ROA, ROE, ROICXYL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

  • XYL's Profit Margin of 10.66% is fine compared to the rest of the industry. XYL outperforms 74.81% of its industry peers.
  • XYL's Profit Margin has improved in the last couple of years.
  • XYL has a Operating Margin of 13.85%. This is in the better half of the industry: XYL outperforms 67.18% 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 38.23%, XYL is in the better half of the industry, outperforming 72.52% of the companies in the same industry.
  • XYL's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
XYL Yearly Profit, Operating, Gross MarginsXYL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so XYL is destroying value.
  • Compared to 1 year ago, XYL has more shares outstanding
  • XYL has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, XYL has an improved debt to assets ratio.
XYL Yearly Shares OutstandingXYL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
XYL Yearly Total Debt VS Total AssetsXYL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

  • An Altman-Z score of 4.59 indicates that XYL is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 4.59, XYL is in the better half of the industry, outperforming 71.76% of the companies in the same industry.
  • 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.
  • XYL has a better Debt to FCF ratio (2.24) than 76.34% 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.
  • XYL's Debt to Equity ratio of 0.17 is fine compared to the rest of the industry. XYL outperforms 73.28% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF 2.24
Altman-Z 4.59
ROIC/WACC0.77
WACC9.47%
XYL Yearly LT Debt VS Equity VS FCFXYL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.3 Liquidity

  • A Current Ratio of 1.96 indicates that XYL should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.96, XYL is in line with its industry, outperforming 45.80% of the companies in the same industry.
  • A Quick Ratio of 1.50 indicates that XYL should not have too much problems paying its short term obligations.
  • The Quick ratio of XYL (1.50) is better than 64.89% of its industry peers.
Industry RankSector Rank
Current Ratio 1.96
Quick Ratio 1.5
XYL Yearly Current Assets VS Current LiabilitesXYL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

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 12.11% on average per year.
  • XYL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.70% yearly.
EPS Next Y19.47%
EPS Next 2Y14.54%
EPS Next 3Y13.17%
EPS Next 5Y12.11%
Revenue Next Year6.36%
Revenue Next 2Y4.85%
Revenue Next 3Y4.86%
Revenue Next 5Y5.7%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • 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.
XYL Yearly Revenue VS EstimatesXYL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B 10B
XYL Yearly EPS VS EstimatesXYL Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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3

4. Valuation

4.1 Price/Earnings Ratio

  • XYL is valuated quite expensively with a Price/Earnings ratio of 29.36.
  • XYL's Price/Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 27.93, XYL is valued at the same level.
  • A Price/Forward Earnings ratio of 25.31 indicates a quite expensive valuation of XYL.
  • The rest of the industry has a similar Price/Forward Earnings ratio as XYL.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.77, XYL is valued at the same level.
Industry RankSector Rank
PE 29.36
Fwd PE 25.31
XYL Price Earnings VS Forward Price EarningsXYL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of XYL is on the same level as its industry peers.
  • XYL's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 39.45
EV/EBITDA 19.59
XYL Per share dataXYL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • 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 13.17% in the coming years.
PEG (NY)1.51
PEG (5Y)4.07
EPS Next 2Y14.54%
EPS Next 3Y13.17%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 1.15%, XYL has a reasonable but not impressive dividend return.
  • XYL's Dividend Yield is a higher than the industry average which is at 1.15.
  • Compared to the average S&P500 Dividend Yield of 1.81, XYL is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.15%

5.2 History

  • The dividend of XYL is nicely growing with an annual growth rate of 8.36%!
  • 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
XYL Yearly Dividends per shareXYL Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

  • XYL pays out 40.08% of its income as dividend. 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 2Y14.54%
EPS Next 3Y13.17%
XYL Yearly Income VS Free CF VS DividendXYL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M
XYL Dividend Payout.XYL Dividend Payout, showing the Payout Ratio.XYL Dividend Payout.PayoutRetained Earnings

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XYLEM INC

NYSE:XYL (2/6/2026, 8:12:24 PM)

After market: 142.12 0 (0%)

142.12

+2.88 (+2.07%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)10-28
Earnings (Next)02-10
Inst Owners95.82%
Inst Owner Change-1.13%
Ins Owners0.24%
Ins Owner Change-1.2%
Market Cap34.60B
Revenue(TTM)8.89B
Net Income(TTM)948.00M
Analysts79.26
Price Target168.63 (18.65%)
Short Float %1.17%
Short Ratio2.11
Dividend
Industry RankSector Rank
Dividend Yield 1.15%
Yearly Dividend1.44
Dividend Growth(5Y)8.36%
DP40.08%
Div Incr Years13
Div Non Decr Years13
Ex-DateN/A
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)-1.16%
PT rev (3m)3.6%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)0.67%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.87%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.09%
Valuation
Industry RankSector Rank
PE 29.36
Fwd PE 25.31
P/S 3.89
P/FCF 39.45
P/OCF 27.42
P/B 3.09
P/tB 56.91
EV/EBITDA 19.59
EPS(TTM)4.84
EY3.41%
EPS(NY)5.62
Fwd EY3.95%
FCF(TTM)3.6
FCFY2.53%
OCF(TTM)5.18
OCFY3.65%
SpS36.53
BVpS46.03
TBVpS2.5
PEG (NY)1.51
PEG (5Y)4.07
Graham Number70.8
Profitability
Industry RankSector 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 RankSector 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 4.59
F-Score8
WACC9.47%
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 Y19.47%
EPS Next 2Y14.54%
EPS Next 3Y13.17%
EPS Next 5Y12.11%
Revenue 1Y (TTM)5.58%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%7.79%
Revenue Next Year6.36%
Revenue Next 2Y4.85%
Revenue Next 3Y4.86%
Revenue Next 5Y5.7%
EBIT growth 1Y21.98%
EBIT growth 3Y21.85%
EBIT growth 5Y8.97%
EBIT Next Year49.52%
EBIT Next 3Y20.36%
EBIT Next 5Y15.88%
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.


Can you provide the valuation status for XYLEM INC?

ChartMill assigns a valuation rating of 3 / 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 valuation of XYLEM INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for XYLEM INC (XYL) is 29.36 and the Price/Book (PB) ratio is 3.09.


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 19.47% in the next year.