XYLEM INC (XYL) Stock Fundamental Analysis
NYSE:XYL - New York Stock Exchange, Inc. - US98419M1009 - Common Stock - Currency: USD
Overall XYL gets a fundamental rating of 5 out of 10. We evaluated XYL against 128 industry peers in the Machinery industry. XYL has an average financial health and profitability rating. While showing a medium growth rate, XYL is valued expensive at the moment.
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.
XYL's Return On Equity of 8.47% is in line compared to the rest of the industry. XYL outperforms 47.66% of its industry peers.
The Return On Invested Capital of XYL (6.92%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for XYL is below the industry average of 10.71%.
| 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
The Profit Margin of XYL (10.74%) is better than 74.22% of its industry peers.
XYL's Profit Margin has improved in the last couple of years.
XYL has a better Operating Margin (13.28%) than 63.28% of its industry peers.
XYL's Operating Margin has been stable in the last couple of years.
XYL has a Gross Margin of 37.81%. This is in the better half of the industry: XYL outperforms 68.75% of its industry peers.
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.
Compared to 1 year ago, XYL has more shares outstanding
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
An Altman-Z score of 4.57 indicates that XYL is not in any danger for bankruptcy at the moment.
XYL's Altman-Z score of 4.57 is fine compared to the rest of the industry. XYL outperforms 74.22% of its industry peers.
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.
XYL has a better Debt to FCF ratio (2.36) than 73.44% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that XYL is not too dependend on debt financing.
The Debt to Equity ratio of XYL (0.17) is better than 72.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 4.57 |
ROIC/WACC0.73
WACC9.51%
2.3 Liquidity
A Current Ratio of 1.90 indicates that XYL should not have too much problems paying its short term obligations.
XYL has a Current ratio of 1.90. This is comparable to the rest of the industry: XYL outperforms 43.75% of its industry peers.
A Quick Ratio of 1.43 indicates that XYL should not have too much problems paying its short term obligations.
The Quick ratio of XYL (1.43) is better than 61.72% 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.
XYL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.22% yearly.
Looking at the last year, XYL shows a small growth in Revenue. The Revenue has grown by 3.98% in the last 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
The Earnings Per Share is expected to grow by 9.50% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.45% on average over the next years.
EPS Next Y9.27%
EPS Next 2Y10.14%
EPS Next 3Y10.22%
EPS Next 5Y9.5%
Revenue Next Year3.22%
Revenue Next 2Y4.02%
Revenue Next 3Y4.52%
Revenue Next 5Y5.45%
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
A Price/Earnings ratio of 31.15 indicates a quite expensive valuation of XYL.
Based on the Price/Earnings ratio, XYL is valued a bit more expensive than the industry average as 63.28% of the companies are valued more cheaply.
XYL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.48.
The Price/Forward Earnings ratio is 27.47, which means the current valuation is very expensive for XYL.
61.72% of the companies in the same industry are cheaper than XYL, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.04, XYL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.15 | ||
| Fwd PE | 27.47 |
4.2 Price Multiples
66.41% of the companies in the same industry are cheaper than XYL, based on the Enterprise Value to EBITDA ratio.
XYL's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. XYL is more expensive than 63.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.13 | ||
| EV/EBITDA | 20.64 |
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)3.36
PEG (5Y)4.31
EPS Next 2Y10.14%
EPS Next 3Y10.22%
5. Dividend
5.1 Amount
XYL has a Yearly Dividend Yield of 1.23%.
XYL's Dividend Yield is a higher than the industry average which is at 1.91.
Compared to an average S&P500 Dividend Yield of 2.40, XYL's dividend is way lower than the S&P500 average.
| 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 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 39.55% of its income as dividend. This is a sustainable payout ratio.
The dividend of XYL is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP39.55%
EPS Next 2Y10.14%
EPS Next 3Y10.22%
142.65
-0.83 (-0.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97%
Inst Owner Change-0.73%
Ins Owners0.24%
Ins Owner Change1.48%
Market Cap34.71B
Analysts79.23
Price Target158.26 (10.94%)
Short Float %0.9%
Short Ratio1.88
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)1.74%
PT rev (3m)3.5%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)0.96%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-0.29%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.15 | ||
| Fwd PE | 27.47 | ||
| P/S | 3.98 | ||
| P/FCF | 41.13 | ||
| P/OCF | 28.36 | ||
| P/B | 3.13 | ||
| P/tB | 71.87 | ||
| EV/EBITDA | 20.64 |
EPS(TTM)4.58
EY3.21%
EPS(NY)5.19
Fwd EY3.64%
FCF(TTM)3.47
FCFY2.43%
OCF(TTM)5.03
OCFY3.53%
SpS35.87
BVpS45.51
TBVpS1.98
PEG (NY)3.36
PEG (5Y)4.31
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 | 4.57 |
F-Score8
WACC9.51%
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 Y9.27%
EPS Next 2Y10.14%
EPS Next 3Y10.22%
EPS Next 5Y9.5%
Revenue 1Y (TTM)3.98%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%6.09%
Revenue Next Year3.22%
Revenue Next 2Y4.02%
Revenue Next 3Y4.52%
Revenue Next 5Y5.45%
EBIT growth 1Y23.43%
EBIT growth 3Y21.85%
EBIT growth 5Y8.97%
EBIT Next Year44.03%
EBIT Next 3Y19.53%
EBIT Next 5Y13.03%
FCF growth 1Y136.42%
FCF growth 3Y41.3%
FCF growth 5Y8.72%
OCF growth 1Y113.61%
OCF growth 3Y32.52%
OCF growth 5Y8.33%