XYLEM INC (XYL) Stock Fundamental Analysis
USA - NYSE:XYL - US98419M1009 - Common Stock
148.19 USD
+0.06 (+0.04%)
148.19 USD
0 (0%)
Overall XYL gets a fundamental rating of 5 out of 10. We evaluated XYL against 129 industry peers in the Machinery industry. XYL has an average financial health and profitability rating. XYL is valied quite expensively at the moment, while it does show a decent growth rate. Finally XYL also has an excellent dividend rating. These ratings would make XYL suitable for dividend investing!
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.
In the past 5 years XYL always reported a positive cash flow from operatings.
1.2 Ratios
XYL has a Return On Assets (5.46%) which is comparable to the rest of the industry.
With a Return On Equity value of 8.47%, XYL perfoms like the industry average, outperforming 51.16% of the companies in the same industry.
XYL has a Return On Invested Capital (6.92%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for XYL is below the industry average of 10.04%.
| 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 75.97% of the companies in the same industry.
In the last couple of years the Profit Margin of XYL has grown nicely.
The Operating Margin of XYL (13.28%) is better than 65.12% 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 68.99% 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
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
The number of shares outstanding for XYL has been increased compared to 5 years ago.
The debt/assets ratio for XYL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.68 indicates that XYL is not in any danger for bankruptcy at the moment.
The Altman-Z score of XYL (4.68) is better than 73.64% of its industry peers.
The Debt to FCF ratio of XYL is 2.36, which is a good value as it means it would take XYL, 2.36 years of fcf income to pay off all of its debts.
XYL has a better Debt to FCF ratio (2.36) than 75.19% 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 75.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 4.68 |
ROIC/WACC0.73
WACC9.53%
2.3 Liquidity
A Current Ratio of 1.90 indicates that XYL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.90, XYL is in line with its industry, outperforming 44.19% of the companies in the same industry.
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.
With a decent Quick ratio value of 1.43, XYL is doing good in the industry, outperforming 64.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.37% over the past year.
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.
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)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.
The Revenue is expected to grow by 5.56% on average over the next years.
EPS Next Y14%
EPS Next 2Y12.78%
EPS Next 3Y12.06%
EPS Next 5Y10.56%
Revenue Next Year5.42%
Revenue Next 2Y5.33%
Revenue Next 3Y5.3%
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
A Price/Earnings ratio of 32.36 indicates a quite expensive valuation of XYL.
Compared to the rest of the industry, the Price/Earnings ratio of XYL indicates a slightly more expensive valuation: XYL is more expensive than 63.57% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.91, XYL is valued at the same level.
Based on the Price/Forward Earnings ratio of 27.22, the valuation of XYL can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of XYL indicates a slightly more expensive valuation: XYL is more expensive than 63.57% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.30. XYL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.36 | ||
| Fwd PE | 27.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, XYL is valued a bit more expensive than the industry average as 63.57% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of XYL indicates a slightly more expensive valuation: XYL is more expensive than 65.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.74 | ||
| EV/EBITDA | 21.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
XYL has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as XYL's earnings are expected to grow with 12.06% in the coming years.
PEG (NY)2.31
PEG (5Y)4.48
EPS Next 2Y12.78%
EPS Next 3Y12.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.07%, XYL has a reasonable but not impressive dividend return.
XYL's Dividend Yield is a higher than the industry average which is at 1.77.
Compared to an average S&P500 Dividend Yield of 2.44, XYL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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
39.55% of the earnings are spent on dividend by XYL. This is a low number and sustainable payout ratio.
XYL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP39.55%
EPS Next 2Y12.78%
EPS Next 3Y12.06%
148.19
+0.06 (+0.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.11%
Inst Owner Change-0.01%
Ins Owners0.24%
Ins Owner Change-0.16%
Market Cap36.07B
Analysts79.26
Price Target161.56 (9.02%)
Short Float %1.2%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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)1.24%
PT rev (3m)13.76%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)4.1%
EPS NY rev (1m)0.28%
EPS NY rev (3m)4.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.05%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)2.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.36 | ||
| Fwd PE | 27.22 | ||
| P/S | 4.13 | ||
| P/FCF | 42.74 | ||
| P/OCF | 29.47 | ||
| P/B | 3.26 | ||
| P/tB | 74.68 | ||
| EV/EBITDA | 21.3 |
EPS(TTM)4.58
EY3.09%
EPS(NY)5.44
Fwd EY3.67%
FCF(TTM)3.47
FCFY2.34%
OCF(TTM)5.03
OCFY3.39%
SpS35.87
BVpS45.5
TBVpS1.98
PEG (NY)2.31
PEG (5Y)4.48
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 | 4.68 |
F-Score8
WACC9.53%
ROIC/WACC0.73
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 Y14%
EPS Next 2Y12.78%
EPS Next 3Y12.06%
EPS Next 5Y10.56%
Revenue 1Y (TTM)3.98%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%6.09%
Revenue Next Year5.42%
Revenue Next 2Y5.33%
Revenue Next 3Y5.3%
Revenue Next 5Y5.56%
EBIT growth 1Y23.43%
EBIT growth 3Y21.85%
EBIT growth 5Y8.97%
EBIT Next Year45.14%
EBIT Next 3Y19.79%
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%