XYLEM INC (XYL) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:XYL • US98419M1009
137.87 USD
-0.05 (-0.04%)
At close: Jan 30, 2026
137.87 USD
0 (0%)
After Hours: 1/30/2026, 8:25:15 PM
Taking everything into account, XYL scores 5 out of 10 in our fundamental rating. XYL was compared to 132 industry peers in the Machinery industry. XYL has an average financial health and profitability rating. XYL is quite expensive at the moment. It does show a decent growth rate.
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.
- In the past 5 years XYL has always been profitable.
- XYL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- XYL's Return On Assets of 5.48% is fine compared to the rest of the industry. XYL outperforms 62.88% of its industry peers.
- The Return On Equity of XYL (8.46%) is comparable to the rest of the industry.
- XYL's Return On Invested Capital of 7.29% is in line compared to the rest of the industry. XYL outperforms 54.55% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for XYL is below the industry average of 10.18%.
- The last Return On Invested Capital (7.29%) for XYL is above the 3 year average (6.95%), which is a sign of increasing profitability.
| 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 75.00% of its industry peers.
- In the last couple of years the Profit Margin of XYL has grown nicely.
- XYL has a Operating Margin of 13.85%. This is in the better half of the industry: XYL outperforms 67.42% of its industry peers.
- XYL's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 38.23%, XYL is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
- 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
- XYL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
- The debt/assets ratio for XYL has been reduced compared to a year ago.
2.2 Solvency
- XYL has an Altman-Z score of 4.49. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 4.49, XYL is doing good in the industry, outperforming 69.70% of the companies in the same industry.
- 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 better Debt to FCF ratio (2.24) than 75.00% 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 has a better Debt to Equity ratio (0.17) than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 4.49 |
ROIC/WACC0.76
WACC9.55%
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 (1.96) which is in line with 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.
- Looking at the Quick ratio, with a value of 1.50, XYL is in the better half of the industry, outperforming 64.39% of the companies in the same industry.
| 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.
- XYL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.22% yearly.
- The Revenue has been growing slightly by 5.58% in the past year.
- 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
- The Earnings Per Share is expected to grow by 12.11% on average over the next years. This is quite good.
- The Revenue is expected to grow by 5.70% on average over the next years.
EPS Next Y19.47%
EPS Next 2Y14.6%
EPS Next 3Y13.26%
EPS Next 5Y12.11%
Revenue Next Year6.37%
Revenue Next 2Y4.86%
Revenue Next 3Y4.86%
Revenue Next 5Y5.7%
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 28.49.
- XYL's Price/Earnings is on the same level as the industry average.
- XYL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 24.53, which indicates a rather expensive current valuation of XYL.
- The rest of the industry has a similar Price/Forward Earnings ratio as XYL.
- XYL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.49 | ||
| Fwd PE | 24.53 |
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.
- The rest of the industry has a similar Price/Free Cash Flow ratio as XYL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.28 | ||
| EV/EBITDA | 19.01 |
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 13.26% in the coming years.
PEG (NY)1.46
PEG (5Y)3.94
EPS Next 2Y14.6%
EPS Next 3Y13.26%
5. Dividend
5.1 Amount
- XYL has a Yearly Dividend Yield of 1.15%. 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 1.01.
- XYL's Dividend Yield is slightly below the S&P500 average, which is at 1.83.
| Industry Rank | Sector 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
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 2Y14.6%
EPS Next 3Y13.26%
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 28.49 and the Price/Book (PB) ratio is 3.
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.