XYLEM INC (XYL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:XYL - US98419M1009 - Common Stock
139.38 USD
-0.73 (-0.52%)
XYL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. Both the profitability and the financial health of XYL get a neutral evaluation. Nothing too spectacular is happening here. 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.
- In the past year XYL had a positive cash flow from operations.
- 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 decent Return On Assets value of 5.48%, XYL is doing good in the industry, outperforming 62.12% of the companies in the same industry.
- With a Return On Equity value of 8.46%, XYL perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
- XYL has a Return On Invested Capital of 7.29%. This is comparable to the rest of the industry: XYL outperforms 54.55% of its industry peers.
- XYL had an Average Return On Invested Capital over the past 3 years of 6.95%. This is below the industry average of 10.25%.
- The 3 year average ROIC (6.95%) for XYL is below the current ROIC(7.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.48% | ||
| ROE | 8.46% | ||
| ROIC | 7.29% |
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 10.66%, XYL is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of XYL has grown nicely.
- XYL has a better Operating Margin (13.85%) than 66.67% of its industry peers.
- In the last couple of years the Operating Margin of XYL has remained more or less at the same level.
- XYL has a better Gross Margin (38.23%) than 72.73% of its industry peers.
- 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 | 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), 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.
- XYL has a better debt/assets ratio than last year.
2.2 Solvency
- XYL has an Altman-Z score of 4.54. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
- XYL's Altman-Z score of 4.54 is fine compared to the rest of the industry. XYL outperforms 68.94% of its industry peers.
- The Debt to FCF ratio of XYL is 2.24, which is a good value as it means it would take XYL, 2.24 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 2.24, XYL is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.17 indicates that XYL is not too dependend on debt financing.
- The Debt to Equity ratio of XYL (0.17) is better than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 4.54 |
ROIC/WACC0.78
WACC9.37%
2.3 Liquidity
- XYL has a Current Ratio of 1.96. This is a normal value and indicates that XYL is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.96, XYL is in line with its industry, outperforming 43.94% of the companies in the same industry.
- XYL has a Quick Ratio of 1.50. 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 1.50. This is in the better half of the industry: XYL outperforms 64.39% 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.
- Looking at the last year, XYL shows a small growth in Revenue. The Revenue has grown by 5.58% 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)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
- Based on estimates for the next years, XYL will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.11% on average per year.
- Based on estimates for the next years, XYL will show a small growth in Revenue. The Revenue will grow by 5.70% on average per year.
EPS Next Y19.43%
EPS Next 2Y14.55%
EPS Next 3Y13.3%
EPS Next 5Y12.11%
Revenue Next Year6.39%
Revenue Next 2Y4.97%
Revenue Next 3Y5.02%
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
- With a Price/Earnings ratio of 28.80, XYL can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of XYL is on the same level as its industry peers.
- XYL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 24.82, the valuation of XYL can be described as rather expensive.
- XYL's Price/Forward Earnings ratio is in line with the industry average.
- XYL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.8 | ||
| Fwd PE | 24.82 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as XYL.
- XYL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.69 | ||
| EV/EBITDA | 19.32 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- XYL has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as XYL's earnings are expected to grow with 13.30% in the coming years.
PEG (NY)1.48
PEG (5Y)3.99
EPS Next 2Y14.55%
EPS Next 3Y13.3%
5. Dividend
5.1 Amount
- XYL has a Yearly Dividend Yield of 1.15%. Purely for dividend investing, there may be better candidates out there.
- XYL's Dividend Yield is a higher than the industry average which is at 0.80.
- With a Dividend Yield of 1.15, XYL pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
5.2 History
- The dividend of XYL is nicely growing with an annual growth rate of 8.36%!
- XYL has paid a dividend for at least 10 years, which is a reliable track record.
- XYL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.36%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
- 40.08% of the earnings are spent on dividend by XYL. This is a bit on the high side, but may be sustainable.
- The dividend of XYL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40.08%
EPS Next 2Y14.55%
EPS Next 3Y13.3%
NYSE:XYL (1/14/2026, 3:46:08 PM)
139.38
-0.73 (-0.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)10-28 2025-10-28/bmo
Earnings (Next)02-02 2026-02-02/amc
Inst Owners95.82%
Inst Owner Change0.02%
Ins Owners0.24%
Ins Owner Change-1.35%
Market Cap33.93B
Revenue(TTM)8.89B
Net Income(TTM)948.00M
Analysts79.26
Price Target170.61 (22.41%)
Short Float %1.34%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
Yearly Dividend1.44
Dividend Growth(5Y)8.36%
DP40.08%
Div Incr Years13
Div Non Decr Years13
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.97%
Min EPS beat(2)7.92%
Max EPS beat(2)10.02%
EPS beat(4)4
Avg EPS beat(4)7.18%
Min EPS beat(4)3.8%
Max EPS beat(4)10.02%
EPS beat(8)7
Avg EPS beat(8)4.88%
EPS beat(12)11
Avg EPS beat(12)8.4%
EPS beat(16)15
Avg EPS beat(16)9.74%
Revenue beat(2)2
Avg Revenue beat(2)1.99%
Min Revenue beat(2)1.07%
Max Revenue beat(2)2.91%
Revenue beat(4)4
Avg Revenue beat(4)1.69%
Min Revenue beat(4)0.44%
Max Revenue beat(4)2.91%
Revenue beat(8)7
Avg Revenue beat(8)0.71%
Revenue beat(12)11
Avg Revenue beat(12)2.04%
Revenue beat(16)14
Avg Revenue beat(16)1.96%
PT rev (1m)-0.41%
PT rev (3m)5.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.8%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)4.76%
Revenue NQ rev (1m)0.46%
Revenue NQ rev (3m)0.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.8 | ||
| Fwd PE | 24.82 | ||
| P/S | 3.82 | ||
| P/FCF | 38.69 | ||
| P/OCF | 26.89 | ||
| P/B | 3.03 | ||
| P/tB | 55.81 | ||
| EV/EBITDA | 19.32 |
EPS(TTM)4.84
EY3.47%
EPS(NY)5.62
Fwd EY4.03%
FCF(TTM)3.6
FCFY2.58%
OCF(TTM)5.18
OCFY3.72%
SpS36.53
BVpS46.03
TBVpS2.5
PEG (NY)1.48
PEG (5Y)3.99
Graham Number70.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.48% | ||
| ROE | 8.46% | ||
| ROCE | 8.2% | ||
| ROIC | 7.29% | ||
| ROICexc | 7.92% | ||
| ROICexgc | 33.84% | ||
| OM | 13.85% | ||
| PM (TTM) | 10.66% | ||
| GM | 38.23% | ||
| FCFM | 9.86% |
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%
ROICexgc growth 3Y5.31%
ROICexgc 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 Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.24 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 67.07% | ||
| Cap/Sales | 4.33% | ||
| Interest Coverage | 20.2 | ||
| Cash Conversion | 69.88% | ||
| Profit Quality | 92.51% | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 4.54 |
F-Score8
WACC9.37%
ROIC/WACC0.78
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)18.34%
EPS 3Y19.95%
EPS 5Y7.22%
EPS Q2Q%23.42%
EPS Next Y19.43%
EPS Next 2Y14.55%
EPS Next 3Y13.3%
EPS Next 5Y12.11%
Revenue 1Y (TTM)5.58%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%7.79%
Revenue Next Year6.39%
Revenue Next 2Y4.97%
Revenue Next 3Y5.02%
Revenue Next 5Y5.7%
EBIT growth 1Y21.98%
EBIT growth 3Y21.85%
EBIT growth 5Y8.97%
EBIT Next Year49.81%
EBIT Next 3Y20.53%
EBIT Next 5Y15.88%
FCF growth 1Y72.98%
FCF growth 3Y41.3%
FCF growth 5Y8.72%
OCF growth 1Y69.62%
OCF growth 3Y32.52%
OCF growth 5Y8.33%
XYLEM INC / XYL FAQ
Can you provide the ChartMill fundamental rating for XYLEM INC?
ChartMill assigns a fundamental rating of 5 / 10 to XYL.
Can you provide the valuation status for XYLEM INC?
ChartMill assigns a valuation rating of 3 / 10 to XYLEM INC (XYL). This can be considered as Overvalued.
What is the profitability of XYL stock?
XYLEM INC (XYL) has a profitability rating of 6 / 10.
What is the valuation of XYLEM INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for XYLEM INC (XYL) is 28.8 and the Price/Book (PB) ratio is 3.03.
What is the expected EPS growth for XYLEM INC (XYL) stock?
The Earnings per Share (EPS) of XYLEM INC (XYL) is expected to grow by 19.43% in the next year.