XYLEM INC (XY6.DE) Stock Fundamental Analysis
FRA:XY6 - Deutsche Boerse Ag - US98419M1009 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to XY6. XY6 was compared to 107 industry peers in the Machinery industry. XY6 has only an average score on both its financial health and profitability. While showing a medium growth rate, XY6 is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year XY6 was profitable.
XY6 had a positive operating cash flow in the past year.
Each year in the past 5 years XY6 has been profitable.
In the past 5 years XY6 always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.47%, XY6 is in the better half of the industry, outperforming 69.16% of the companies in the same industry.
With a Return On Equity value of 8.38%, XY6 perfoms like the industry average, outperforming 50.47% of the companies in the same industry.
XY6 has a Return On Invested Capital (5.40%) which is comparable to the rest of the industry.
XY6 had an Average Return On Invested Capital over the past 3 years of 5.50%. This is below the industry average of 8.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.47% | ||
| ROE | 8.38% | ||
| ROIC | 5.4% |
ROA(3y)4.55%
ROA(5y)4.34%
ROE(3y)8.17%
ROE(5y)9.27%
ROIC(3y)5.5%
ROIC(5y)5.55%
1.3 Margins
Looking at the Profit Margin, with a value of 10.54%, XY6 belongs to the top of the industry, outperforming 86.92% of the companies in the same industry.
In the last couple of years the Profit Margin of XY6 has grown nicely.
XY6 has a Operating Margin of 12.84%. This is amongst the best in the industry. XY6 outperforms 84.11% of its industry peers.
In the last couple of years the Operating Margin of XY6 has remained more or less at the same level.
With a Gross Margin value of 37.54%, XY6 perfoms like the industry average, outperforming 48.60% of the companies in the same industry.
XY6's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.84% | ||
| PM (TTM) | 10.54% | ||
| GM | 37.54% |
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
XY6 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
XY6 has more shares outstanding than it did 1 year ago.
The number of shares outstanding for XY6 has been increased compared to 5 years ago.
Compared to 1 year ago, XY6 has an improved debt to assets ratio.
2.2 Solvency
XY6 has an Altman-Z score of 4.48. This indicates that XY6 is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.48, XY6 belongs to the best of the industry, outperforming 88.78% of the companies in the same industry.
XY6 has a debt to FCF ratio of 2.27. This is a good value and a sign of high solvency as XY6 would need 2.27 years to pay back of all of its debts.
The Debt to FCF ratio of XY6 (2.27) is better than 78.50% of its industry peers.
XY6 has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
XY6 has a better Debt to Equity ratio (0.18) than 68.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | 4.48 |
ROIC/WACC0.56
WACC9.63%
2.3 Liquidity
XY6 has a Current Ratio of 1.89. This is a normal value and indicates that XY6 is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.89, XY6 is in the better half of the industry, outperforming 64.49% of the companies in the same industry.
XY6 has a Quick Ratio of 1.41. This is a normal value and indicates that XY6 is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of XY6 (1.41) is better than 75.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.25% over the past year.
Measured over the past 5 years, XY6 shows a small growth in Earnings Per Share. The EPS has been growing by 7.22% on average per year.
The Revenue has grown by 8.16% in the past year. This is quite good.
The Revenue has been growing by 10.28% on average over the past years. This is quite good.
EPS 1Y (TTM)14.25%
EPS 3Y19.95%
EPS 5Y7.22%
EPS Q2Q%14.44%
Revenue 1Y (TTM)8.16%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%1.77%
3.2 Future
Based on estimates for the next years, XY6 will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.50% on average per year.
XY6 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.45% yearly.
EPS Next Y9.27%
EPS Next 2Y10.14%
EPS Next 3Y10.22%
EPS Next 5Y9.5%
Revenue Next Year3.11%
Revenue Next 2Y3.96%
Revenue Next 3Y4.51%
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
Based on the Price/Earnings ratio of 30.79, the valuation of XY6 can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of XY6 is on the same level as its industry peers.
XY6 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 26.16, which means the current valuation is very expensive for XY6.
XY6's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. XY6 is more expensive than 70.09% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.44. XY6 is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.79 | ||
| Fwd PE | 26.16 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of XY6 indicates a slightly more expensive valuation: XY6 is more expensive than 71.96% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, XY6 is valued a bit more expensive than the industry average as 63.55% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.18 | ||
| EV/EBITDA | 19.6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
XY6 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.32
PEG (5Y)4.26
EPS Next 2Y10.14%
EPS Next 3Y10.22%
5. Dividend
5.1 Amount
XY6 has a Yearly Dividend Yield of 1.22%. Purely for dividend investing, there may be better candidates out there.
XY6's Dividend Yield is comparable with the industry average which is at 2.36.
With a Dividend Yield of 1.22, XY6 pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
5.2 History
The dividend of XY6 is nicely growing with an annual growth rate of 8.34%!
Dividend Growth(5Y)8.34%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
39.74% of the earnings are spent on dividend by XY6. This is a low number and sustainable payout ratio.
XY6's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP39.74%
EPS Next 2Y10.14%
EPS Next 3Y10.22%
FRA:XY6 (7/18/2025, 7:00:00 PM)
117.3
+4.05 (+3.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.23%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap28.54B
Analysts79.23
Price Target123.99 (5.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
Yearly Dividend1.24
Dividend Growth(5Y)8.34%
DP39.74%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.39%
Min EPS beat(2)3.8%
Max EPS beat(2)6.98%
EPS beat(4)3
Avg EPS beat(4)3.09%
Min EPS beat(4)-0.98%
Max EPS beat(4)6.98%
EPS beat(8)7
Avg EPS beat(8)6.59%
EPS beat(12)11
Avg EPS beat(12)10.27%
EPS beat(16)15
Avg EPS beat(16)9.26%
Revenue beat(2)2
Avg Revenue beat(2)1.4%
Min Revenue beat(2)0.44%
Max Revenue beat(2)2.36%
Revenue beat(4)3
Avg Revenue beat(4)-0.3%
Min Revenue beat(4)-4.15%
Max Revenue beat(4)2.36%
Revenue beat(8)7
Avg Revenue beat(8)1.07%
Revenue beat(12)11
Avg Revenue beat(12)2.12%
Revenue beat(16)13
Avg Revenue beat(16)1.67%
PT rev (1m)-1.08%
PT rev (3m)-9.35%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)0.89%
EPS NY rev (1m)0.35%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.77%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.79 | ||
| Fwd PE | 26.16 | ||
| P/S | 3.84 | ||
| P/FCF | 37.18 | ||
| P/OCF | 27.38 | ||
| P/B | 3.06 | ||
| P/tB | 78.14 | ||
| EV/EBITDA | 19.6 |
EPS(TTM)3.81
EY3.25%
EPS(NY)4.48
Fwd EY3.82%
FCF(TTM)3.16
FCFY2.69%
OCF(TTM)4.28
OCFY3.65%
SpS30.51
BVpS38.39
TBVpS1.5
PEG (NY)3.32
PEG (5Y)4.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.47% | ||
| ROE | 8.38% | ||
| ROCE | 7.67% | ||
| ROIC | 5.4% | ||
| ROICexc | 5.83% | ||
| ROICexgc | 26.43% | ||
| OM | 12.84% | ||
| PM (TTM) | 10.54% | ||
| GM | 37.54% | ||
| FCFM | 10.34% |
ROA(3y)4.55%
ROA(5y)4.34%
ROE(3y)8.17%
ROE(5y)9.27%
ROIC(3y)5.5%
ROIC(5y)5.55%
ROICexc(3y)6.18%
ROICexc(5y)6.64%
ROICexgc(3y)24.67%
ROICexgc(5y)26.87%
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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.27 | ||
| Debt/EBITDA | 1.18 | ||
| Cap/Depr | 55.5% | ||
| Cap/Sales | 3.7% | ||
| Interest Coverage | 16.73 | ||
| Cash Conversion | 71.97% | ||
| Profit Quality | 98.12% | ||
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 4.48 |
F-Score8
WACC9.63%
ROIC/WACC0.56
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)14.25%
EPS 3Y19.95%
EPS 5Y7.22%
EPS Q2Q%14.44%
EPS Next Y9.27%
EPS Next 2Y10.14%
EPS Next 3Y10.22%
EPS Next 5Y9.5%
Revenue 1Y (TTM)8.16%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%1.77%
Revenue Next Year3.11%
Revenue Next 2Y3.96%
Revenue Next 3Y4.51%
Revenue Next 5Y5.45%
EBIT growth 1Y30.04%
EBIT growth 3Y21.85%
EBIT growth 5Y8.97%
EBIT Next Year40.55%
EBIT Next 3Y19.05%
EBIT Next 5Y13.03%
FCF growth 1Y97.56%
FCF growth 3Y41.3%
FCF growth 5Y8.72%
OCF growth 1Y83.43%
OCF growth 3Y32.52%
OCF growth 5Y8.33%