XYLEM INC (XY6.DE) Stock Fundamental Analysis
FRA:XY6 - Deutsche Boerse Ag - US98419M1009 - Common Stock - Currency: EUR
Overall XY6 gets a fundamental rating of 5 out of 10. We evaluated XY6 against 103 industry peers in the Machinery industry. XY6 has an average financial health and profitability rating. XY6 is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
XY6 had positive earnings in the past year.
XY6 had a positive operating cash flow in the past year.
In the past 5 years XY6 has always been profitable.
XY6 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
XY6 has a better Return On Assets (5.47%) than 69.90% of its industry peers.
Looking at the Return On Equity, with a value of 8.38%, XY6 is in line with its industry, outperforming 51.46% of the companies in the same industry.
XY6's Return On Invested Capital of 5.40% is in line compared to the rest of the industry. XY6 outperforms 46.60% of 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 8.83%.
| 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
XY6 has a Profit Margin of 10.54%. This is amongst the best in the industry. XY6 outperforms 88.35% of its industry peers.
In the last couple of years the Profit Margin of XY6 has grown nicely.
Looking at the Operating Margin, with a value of 12.84%, XY6 belongs to the top of the industry, outperforming 85.44% of the companies in the same industry.
XY6's Operating Margin has been stable in the last couple of years.
The Gross Margin of XY6 (37.54%) is comparable to the rest of the 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
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
XY6 has more shares outstanding than it did 5 years ago.
The debt/assets ratio for XY6 has been reduced compared to a year ago.
2.2 Solvency
XY6 has an Altman-Z score of 4.52. This indicates that XY6 is financially healthy and has little risk of bankruptcy at the moment.
XY6 has a Altman-Z score of 4.52. This is amongst the best in the industry. XY6 outperforms 86.41% of its industry peers.
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.
With a decent Debt to FCF ratio value of 2.27, XY6 is doing good in the industry, outperforming 78.64% of the companies in the same industry.
XY6 has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of XY6 (0.18) is better than 66.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | 4.52 |
ROIC/WACC0.56
WACC9.59%
2.3 Liquidity
A Current Ratio of 1.89 indicates that XY6 should not have too much problems paying its short term obligations.
XY6's Current ratio of 1.89 is fine compared to the rest of the industry. XY6 outperforms 66.02% of its industry peers.
A Quick Ratio of 1.41 indicates that XY6 should not have too much problems paying its short term obligations.
XY6 has a better Quick ratio (1.41) than 77.67% 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.
XY6 shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.16%.
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
XY6 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.50% yearly.
The Revenue is expected to grow by 5.45% on average over the next years.
EPS Next Y9.2%
EPS Next 2Y10.14%
EPS Next 3Y10.22%
EPS Next 5Y9.5%
Revenue Next Year3.1%
Revenue Next 2Y3.94%
Revenue Next 3Y4.5%
Revenue Next 5Y5.45%
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
Based on the Price/Earnings ratio of 30.07, the valuation of XY6 can be described as expensive.
XY6's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.45. XY6 is around the same levels.
Based on the Price/Forward Earnings ratio of 25.55, 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 69.90% of the companies are valued more cheaply.
XY6 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.07 | ||
| Fwd PE | 25.55 |
4.2 Price Multiples
72.82% of the companies in the same industry are cheaper than XY6, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, XY6 is valued a bit more expensive than the industry average as 62.14% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.32 | ||
| EV/EBITDA | 19.82 |
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)3.27
PEG (5Y)4.16
EPS Next 2Y10.14%
EPS Next 3Y10.22%
5. Dividend
5.1 Amount
XY6 has a Yearly Dividend Yield of 1.21%. Purely for dividend investing, there may be better candidates out there.
XY6's Dividend Yield is comparable with the industry average which is at 2.91.
Compared to an average S&P500 Dividend Yield of 2.38, XY6's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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
XY6 pays out 39.74% of its income as dividend. This is a 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 (7/3/2025, 7:00:00 PM)
112.75
+1.35 (+1.21%)
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 Cap27.44B
Analysts79.23
Price Target123.99 (9.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend1.23
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)-1.86%
PT rev (3m)-9.35%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)1.02%
EPS NY rev (1m)0.29%
EPS NY rev (3m)-0.6%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.07 | ||
| Fwd PE | 25.55 | ||
| P/S | 3.76 | ||
| P/FCF | 36.32 | ||
| P/OCF | 26.75 | ||
| P/B | 2.99 | ||
| P/tB | 76.33 | ||
| EV/EBITDA | 19.82 |
EPS(TTM)3.75
EY3.33%
EPS(NY)4.41
Fwd EY3.91%
FCF(TTM)3.1
FCFY2.75%
OCF(TTM)4.22
OCFY3.74%
SpS30.03
BVpS37.77
TBVpS1.48
PEG (NY)3.27
PEG (5Y)4.16
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 | 4.52 |
F-Score8
WACC9.59%
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 Y9.2%
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 Year3.1%
Revenue Next 2Y3.94%
Revenue Next 3Y4.5%
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%