XYLEM INC (XY6.DE) Stock Fundamental Analysis
FRA:XY6 - Deutsche Boerse Ag - US98419M1009 - Common Stock - Currency: EUR
Taking everything into account, XY6 scores 5 out of 10 in our fundamental rating. XY6 was compared to 104 industry peers in the Machinery industry. XY6 has an excellent financial health rating, but there are some minor concerns on its profitability. While showing a medium growth rate, XY6 is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
XY6 had positive earnings in the past year.
In the past year XY6 had a positive cash flow from operations.
XY6 had positive earnings in each of the past 5 years.
Each year in the past 5 years XY6 had a positive operating cash flow.
1.2 Ratios
XY6 has a Return On Assets of 5.39%. This is in the better half of the industry: XY6 outperforms 72.12% of its industry peers.
With a Return On Equity value of 8.36%, XY6 perfoms like the industry average, outperforming 58.65% of the companies in the same industry.
XY6 has a Return On Invested Capital (5.31%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for XY6 is below the industry average of 8.40%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.39% | ||
| ROE | 8.36% | ||
| ROIC | 5.31% |
ROA(3y)4.55%
ROA(5y)4.34%
ROE(3y)8.17%
ROE(5y)9.27%
ROIC(3y)5.5%
ROIC(5y)5.54%
1.3 Margins
XY6 has a better Profit Margin (10.39%) than 91.35% of its industry peers.
XY6's Profit Margin has improved in the last couple of years.
XY6 has a Operating Margin of 12.51%. This is amongst the best in the industry. XY6 outperforms 88.46% of its industry peers.
XY6's Operating Margin has been stable in the last couple of years.
XY6 has a Gross Margin (37.51%) which is in line with its industry peers.
In the last couple of years the Gross Margin of XY6 has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.51% | ||
| PM (TTM) | 10.39% | ||
| GM | 37.51% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), XY6 is destroying value.
Compared to 1 year ago, XY6 has more shares outstanding
Compared to 5 years ago, XY6 has more shares outstanding
XY6 has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.32 indicates that XY6 is not in any danger for bankruptcy at the moment.
The Altman-Z score of XY6 (4.32) is better than 95.19% of its industry peers.
The Debt to FCF ratio of XY6 is 2.17, which is a good value as it means it would take XY6, 2.17 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 2.17, XY6 belongs to the best of the industry, outperforming 82.69% of the companies in the same industry.
A Debt/Equity ratio of 0.19 indicates that XY6 is not too dependend on debt financing.
XY6 has a Debt to Equity ratio of 0.19. This is in the better half of the industry: XY6 outperforms 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.17 | ||
| Altman-Z | 4.32 |
ROIC/WACC0.48
WACC11.06%
2.3 Liquidity
A Current Ratio of 1.76 indicates that XY6 should not have too much problems paying its short term obligations.
XY6 has a better Current ratio (1.76) than 62.50% of its industry peers.
XY6 has a Quick Ratio of 1.33. This is a normal value and indicates that XY6 is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.33, XY6 is doing good in the industry, outperforming 74.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
XY6 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.30%, which is quite good.
XY6 shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.22% yearly.
XY6 shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.27%.
The Revenue has been growing by 10.28% on average over the past years. This is quite good.
EPS 1Y (TTM)16.3%
EPS 3Y19.95%
EPS 5Y7.22%
EPS Q2Q%19.19%
Revenue 1Y (TTM)16.27%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%6.52%
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 10.07% on average per year.
XY6 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.09% yearly.
EPS Next Y9.76%
EPS Next 2Y10.37%
EPS Next 3Y11.4%
EPS Next 5Y10.07%
Revenue Next Year2.82%
Revenue Next 2Y4.05%
Revenue Next 3Y4.56%
Revenue Next 5Y5.09%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 29.91, XY6 can be considered very expensive at the moment.
XY6's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of XY6 to the average of the S&P500 Index (29.35), we can say XY6 is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 27.24, the valuation of XY6 can be described as expensive.
Based on the Price/Forward Earnings ratio, XY6 is valued a bit more expensive than the industry average as 67.31% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.10. XY6 is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.91 | ||
| Fwd PE | 27.24 |
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 70.19% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as XY6.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.4 | ||
| EV/EBITDA | 19.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates XY6 does not grow enough to justify the current Price/Earnings ratio.
XY6 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.06
PEG (5Y)4.14
EPS Next 2Y10.37%
EPS Next 3Y11.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.22%, XY6 has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.63, XY6 has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, XY6's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
5.2 History
On average, the dividend of XY6 grows each year by 8.36%, which is quite nice.
Dividend Growth(5Y)8.36%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
39.33% of the earnings are spent on dividend by XY6. This is a low number and sustainable payout ratio.
The dividend of XY6 is growing, but earnings are growing more, so the dividend growth is sustainable.
DP39.33%
EPS Next 2Y10.37%
EPS Next 3Y11.4%
FRA:XY6 (3/7/2025, 7:00:00 PM)
117.85
-1.25 (-1.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners96.3%
Inst Owner ChangeN/A
Ins Owners0.23%
Ins Owner ChangeN/A
Market Cap28.64B
Analysts79.17
Price Target142.74 (21.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
Yearly Dividend1.33
Dividend Growth(5Y)8.36%
DP39.33%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.41%
Min EPS beat(2)-0.98%
Max EPS beat(2)3.8%
EPS beat(4)3
Avg EPS beat(4)2.89%
Min EPS beat(4)-0.98%
Max EPS beat(4)6.17%
EPS beat(8)7
Avg EPS beat(8)7.63%
EPS beat(12)11
Avg EPS beat(12)10.79%
EPS beat(16)15
Avg EPS beat(16)11.8%
Revenue beat(2)1
Avg Revenue beat(2)-0.89%
Min Revenue beat(2)-4.15%
Max Revenue beat(2)2.36%
Revenue beat(4)3
Avg Revenue beat(4)-0.21%
Min Revenue beat(4)-4.15%
Max Revenue beat(4)2.36%
Revenue beat(8)7
Avg Revenue beat(8)1.82%
Revenue beat(12)11
Avg Revenue beat(12)2.25%
Revenue beat(16)13
Avg Revenue beat(16)2.02%
PT rev (1m)1.84%
PT rev (3m)-1.95%
EPS NQ rev (1m)-5.03%
EPS NQ rev (3m)-6.35%
EPS NY rev (1m)-1.07%
EPS NY rev (3m)-2.16%
Revenue NQ rev (1m)-2.92%
Revenue NQ rev (3m)-3.61%
Revenue NY rev (1m)-1.44%
Revenue NY rev (3m)-2.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.91 | ||
| Fwd PE | 27.24 | ||
| P/S | 3.63 | ||
| P/FCF | 33.4 | ||
| P/OCF | 24.84 | ||
| P/B | 2.92 | ||
| P/tB | 109.89 | ||
| EV/EBITDA | 19.58 |
EPS(TTM)3.94
EY3.34%
EPS(NY)4.33
Fwd EY3.67%
FCF(TTM)3.53
FCFY2.99%
OCF(TTM)4.74
OCFY4.03%
SpS32.45
BVpS40.33
TBVpS1.07
PEG (NY)3.06
PEG (5Y)4.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.39% | ||
| ROE | 8.36% | ||
| ROCE | 7.56% | ||
| ROIC | 5.31% | ||
| ROICexc | 5.77% | ||
| ROICexgc | 27.73% | ||
| OM | 12.51% | ||
| PM (TTM) | 10.39% | ||
| GM | 37.51% | ||
| FCFM | 10.87% |
ROA(3y)4.55%
ROA(5y)4.34%
ROE(3y)8.17%
ROE(5y)9.27%
ROIC(3y)5.5%
ROIC(5y)5.54%
ROICexc(3y)6.17%
ROICexc(5y)6.64%
ROICexgc(3y)24.52%
ROICexgc(5y)26.78%
ROCE(3y)7.81%
ROCE(5y)7.88%
ROICexcg growth 3Y4.76%
ROICexcg growth 5Y-3.61%
ROICexc growth 3Y-8.51%
ROICexc growth 5Y-8.41%
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 | 0.19 | ||
| Debt/FCF | 2.17 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 57.12% | ||
| Cap/Sales | 3.75% | ||
| Interest Coverage | 15.99 | ||
| Cash Conversion | 76.67% | ||
| Profit Quality | 104.61% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 4.32 |
F-Score8
WACC11.06%
ROIC/WACC0.48
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)16.3%
EPS 3Y19.95%
EPS 5Y7.22%
EPS Q2Q%19.19%
EPS Next Y9.76%
EPS Next 2Y10.37%
EPS Next 3Y11.4%
EPS Next 5Y10.07%
Revenue 1Y (TTM)16.27%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%6.52%
Revenue Next Year2.82%
Revenue Next 2Y4.05%
Revenue Next 3Y4.56%
Revenue Next 5Y5.09%
EBIT growth 1Y39.27%
EBIT growth 3Y21.85%
EBIT growth 5Y8.97%
EBIT Next Year41.96%
EBIT Next 3Y19.4%
EBIT Next 5Y16.19%
FCF growth 1Y64.49%
FCF growth 3Y41.3%
FCF growth 5Y8.72%
OCF growth 1Y49.58%
OCF growth 3Y32.52%
OCF growth 5Y8.33%