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. XYL is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
XYL had positive earnings in the past year.
XYL had a positive operating cash flow in the past year.
XYL had positive earnings in each of the past 5 years.
XYL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 5.47%, XYL perfoms like the industry average, outperforming 57.81% of the companies in the same industry.
The Return On Equity of XYL (8.38%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 6.82%, XYL perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
XYL had an Average Return On Invested Capital over the past 3 years of 6.95%. This is below the industry average of 10.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.47% | ||
| ROE | 8.38% | ||
| ROIC | 6.82% |
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
Looking at the Profit Margin, with a value of 10.54%, XYL is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
In the last couple of years the Profit Margin of XYL has grown nicely.
The Operating Margin of XYL (12.84%) is better than 64.06% of its industry peers.
XYL's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 37.54%, XYL is in the better half of the industry, outperforming 67.97% of the companies in the same industry.
In the last couple of years the Gross Margin of XYL has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so XYL 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
XYL has an Altman-Z score of 4.50. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
XYL has a better Altman-Z score (4.50) than 71.88% of its industry peers.
XYL has a debt to FCF ratio of 2.27. This is a good value and a sign of high solvency as XYL would need 2.27 years to pay back of all of its debts.
XYL has a better Debt to FCF ratio (2.27) than 75.78% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that XYL is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.18, XYL is in the better half of the industry, outperforming 74.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | 4.5 |
ROIC/WACC0.7
WACC9.77%
2.3 Liquidity
A Current Ratio of 1.89 indicates that XYL should not have too much problems paying its short term obligations.
XYL's Current ratio of 1.89 is in line compared to the rest of the industry. XYL outperforms 42.97% of its industry peers.
XYL has a Quick Ratio of 1.41. This is a normal value and indicates that XYL is financially healthy and should not expect problems in meeting its short term obligations.
XYL has a Quick ratio of 1.41. This is in the better half of the industry: XYL outperforms 60.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
XYL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.25%, 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 quite strong growth in Revenue. The Revenue has grown by 8.16% in the last year.
Measured over the past years, XYL shows a quite strong growth in Revenue. The Revenue has been growing by 10.28% on average per year.
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
The Earnings Per Share is expected to grow by 9.50% on average over the next years. This is quite good.
XYL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.45% yearly.
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
With a Price/Earnings ratio of 29.69, XYL can be considered very expensive at the moment.
Based on the Price/Earnings ratio, XYL is valued a bit more expensive than the industry average as 60.16% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.30. XYL is around the same levels.
The Price/Forward Earnings ratio is 25.22, which means the current valuation is very expensive for XYL.
XYL's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. XYL is more expensive than 60.16% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of XYL to the average of the S&P500 Index (21.76), we can say XYL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.69 | ||
| Fwd PE | 25.22 |
4.2 Price Multiples
XYL's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. XYL is more expensive than 62.50% of the companies in the same industry.
63.28% of the companies in the same industry are cheaper than XYL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.85 | ||
| EV/EBITDA | 19.67 |
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.
XYL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.23
PEG (5Y)4.11
EPS Next 2Y10.14%
EPS Next 3Y10.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.21%, XYL has a reasonable but not impressive dividend return.
XYL's Dividend Yield is a higher than the industry average which is at 1.81.
Compared to an average S&P500 Dividend Yield of 2.37, XYL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
5.2 History
The dividend of XYL is nicely growing with an annual growth rate of 8.34%!
XYL has paid a dividend for at least 10 years, which is a reliable track record.
XYL has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.34%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
39.74% of the earnings are spent on dividend by XYL. This is a low number and sustainable payout ratio.
XYL'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%
130.95
-0.65 (-0.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.23%
Inst Owner Change0.07%
Ins Owners0.24%
Ins Owner Change1.48%
Market Cap31.87B
Analysts79.23
Price Target142.01 (8.45%)
Short Float %0.97%
Short Ratio1.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend1.44
Dividend Growth(5Y)8.34%
DP39.74%
Div Incr Years13
Div Non Decr Years13
Ex-Date
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)0.57%
PT rev (3m)-4.83%
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 | 29.69 | ||
| Fwd PE | 25.22 | ||
| P/S | 3.71 | ||
| P/FCF | 35.85 | ||
| P/OCF | 26.4 | ||
| P/B | 2.95 | ||
| P/tB | 75.33 | ||
| EV/EBITDA | 19.67 |
EPS(TTM)4.41
EY3.37%
EPS(NY)5.19
Fwd EY3.96%
FCF(TTM)3.65
FCFY2.79%
OCF(TTM)4.96
OCFY3.79%
SpS35.33
BVpS44.45
TBVpS1.74
PEG (NY)3.23
PEG (5Y)4.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.47% | ||
| ROE | 8.38% | ||
| ROCE | 7.67% | ||
| ROIC | 6.82% | ||
| ROICexc | 7.36% | ||
| ROICexgc | 33.37% | ||
| 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)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 Turnover0.52
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 | 4.5 |
F-Score8
WACC9.77%
ROIC/WACC0.7
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%