XYLEM INC (XY6.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:XY6 - US98419M1009 - Common Stock
117.9 EUR
-2.15 (-1.79%)
Taking everything into account, XY6 scores 5 out of 10 in our fundamental rating. XY6 was compared to 111 industry peers in the Machinery industry. XY6 has an average financial health and profitability rating. XY6 is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year XY6 was profitable.
- 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's Return On Assets of 5.48% is fine compared to the rest of the industry. XY6 outperforms 70.27% of its industry peers.
- With a Return On Equity value of 8.46%, XY6 perfoms like the industry average, outperforming 54.95% of the companies in the same industry.
- XY6 has a Return On Invested Capital (5.77%) which is in line with its industry peers.
- XY6 had an Average Return On Invested Capital over the past 3 years of 5.50%. This is below the industry average of 9.21%.
- The last Return On Invested Capital (5.77%) for XY6 is above the 3 year average (5.50%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.48% | ||
| ROE | 8.46% | ||
| ROIC | 5.77% |
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
- XY6 has a Profit Margin of 10.66%. This is amongst the best in the industry. XY6 outperforms 82.88% of its industry peers.
- In the last couple of years the Profit Margin of XY6 has grown nicely.
- XY6 has a Operating Margin of 13.85%. This is in the better half of the industry: XY6 outperforms 79.28% 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 38.23%, XY6 perfoms like the industry average, outperforming 45.95% of the companies in the same industry.
- 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 | 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), XY6 is destroying value.
- XY6 has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, XY6 has more shares outstanding
- Compared to 1 year ago, XY6 has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.56 indicates that XY6 is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.56, XY6 belongs to the top of the industry, outperforming 86.49% of the companies in the same industry.
- XY6 has a debt to FCF ratio of 2.24. This is a good value and a sign of high solvency as XY6 would need 2.24 years to pay back of all of its debts.
- The Debt to FCF ratio of XY6 (2.24) is better than 78.38% of its industry peers.
- XY6 has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of XY6 (0.17) is better than 72.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 4.56 |
ROIC/WACC0.62
WACC9.35%
2.3 Liquidity
- XY6 has a Current Ratio of 1.96. This is a normal value and indicates that XY6 is financially healthy and should not expect problems in meeting its short term obligations.
- XY6 has a better Current ratio (1.96) than 71.17% of its industry peers.
- XY6 has a Quick Ratio of 1.50. This is a normal value and indicates that XY6 is financially healthy and should not expect problems in meeting its short term obligations.
- XY6 has a Quick ratio of 1.50. This is amongst the best in the industry. XY6 outperforms 81.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 18.34% over the past year.
- The Earnings Per Share has been growing slightly by 7.22% on average over the past years.
- The Revenue has been growing slightly by 5.58% in the past year.
- XY6 shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.28% yearly.
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.
- Based on estimates for the next years, XY6 will show a small growth in Revenue. The Revenue will grow by 5.70% on average per year.
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
- 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 29.04 indicates a quite expensive valuation of XY6.
- The rest of the industry has a similar Price/Earnings ratio as XY6.
- XY6's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.82.
- XY6 is valuated quite expensively with a Price/Forward Earnings ratio of 25.02.
- Based on the Price/Forward Earnings ratio, XY6 is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
- When comparing the Price/Forward Earnings ratio of XY6 to the average of the S&P500 Index (25.95), we can say XY6 is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.04 | ||
| Fwd PE | 25.02 |
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 73.87% of the companies listed in the same industry.
- 63.96% of the companies in the same industry are cheaper than XY6, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.04 | ||
| EV/EBITDA | 19.39 |
4.3 Compensation for Growth
- XY6's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- XY6 has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as XY6's earnings are expected to grow with 13.26% in the coming years.
PEG (NY)1.49
PEG (5Y)4.02
EPS Next 2Y14.6%
EPS Next 3Y13.26%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.15%, XY6 has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.48, XY6 has a dividend in line with its industry peers.
- XY6's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
5.2 History
- The dividend of XY6 is nicely growing with an annual growth rate of 8.36%!
Dividend Growth(5Y)8.36%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- 40.08% of the earnings are spent on dividend by XY6. This is a bit on the high side, but may be sustainable.
- XY6'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 / XY6.DE FAQ
Can you provide the ChartMill fundamental rating for XYLEM INC?
ChartMill assigns a fundamental rating of 5 / 10 to XY6.DE.
What is the valuation status of XYLEM INC (XY6.DE) stock?
ChartMill assigns a valuation rating of 2 / 10 to XYLEM INC (XY6.DE). This can be considered as Overvalued.
How profitable is XYLEM INC (XY6.DE) stock?
XYLEM INC (XY6.DE) has a profitability rating of 6 / 10.
What is the expected EPS growth for XYLEM INC (XY6.DE) stock?
The Earnings per Share (EPS) of XYLEM INC (XY6.DE) is expected to grow by 19.47% in the next year.
How sustainable is the dividend of XYLEM INC (XY6.DE) stock?
The dividend rating of XYLEM INC (XY6.DE) is 4 / 10 and the dividend payout ratio is 40.08%.