XYLEM INC (XYL)
US98419M1009 - Common Stock
Taking everything into account, XYL scores 5 out of 10 in our fundamental rating. XYL was compared to 131 industry peers in the Machinery industry. XYL has only an average score on both its financial health and profitability. XYL 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 XYL was profitable.
In the past year XYL had a positive cash flow from operations.
XYL had positive earnings in each of the past 5 years.
In the past 5 years XYL always reported a positive cash flow from operatings.
1.2 Ratios
XYL has a Return On Assets (5.17%) which is in line with its industry peers.
XYL has a Return On Equity of 7.84%. This is comparable to the rest of the industry: XYL outperforms 51.97% of its industry peers.
XYL's Return On Invested Capital of 7.31% is in line compared to the rest of the industry. XYL outperforms 56.69% of its industry peers.
XYL had an Average Return On Invested Capital over the past 3 years of 7.20%. This is below the industry average of 11.01%.
The last Return On Invested Capital (7.31%) for XYL is above the 3 year average (7.20%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.17% | ||
| ROE | 7.84% | ||
| ROIC | 7.31% |
ROA(3y)4.47%
ROA(5y)4.3%
ROE(3y)9.81%
ROE(5y)10.31%
ROIC(3y)7.2%
ROIC(5y)7.6%
1.3 Margins
XYL has a better Profit Margin (9.85%) than 71.65% of its industry peers.
In the last couple of years the Profit Margin of XYL has declined.
XYL has a better Operating Margin (13.75%) than 70.08% of its industry peers.
In the last couple of years the Operating Margin of XYL has declined.
With a decent Gross Margin value of 36.93%, XYL is doing good in the industry, outperforming 68.50% of the companies in the same industry.
XYL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.75% | ||
| PM (TTM) | 9.85% | ||
| GM | 36.93% |
OM growth 3Y1.3%
OM growth 5Y-3.87%
PM growth 3Y16.66%
PM growth 5Y-4.74%
GM growth 3Y-0.57%
GM growth 5Y-1.06%
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
Compared to 5 years ago, XYL has more shares outstanding
Compared to 1 year ago, XYL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.51 indicates that XYL is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.51, XYL is doing good in the industry, outperforming 71.65% of the companies in the same industry.
XYL has a debt to FCF ratio of 2.41. This is a good value and a sign of high solvency as XYL would need 2.41 years to pay back of all of its debts.
The Debt to FCF ratio of XYL (2.41) is better than 78.74% of its industry peers.
XYL has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.19, XYL is in the better half of the industry, outperforming 74.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 4.51 |
ROIC/WACC0.81
WACC9.05%
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.
XYL has a Current ratio (1.96) which is in line with its industry peers.
A Quick Ratio of 1.42 indicates that XYL should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.42, XYL is in the better half of the industry, outperforming 61.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
XYL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.30%, which is quite good.
XYL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.95% yearly.
The Revenue has grown by 24.76% in the past year. This is a very strong growth!
XYL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.18% yearly.
EPS 1Y (TTM)13.3%
EPS 3Y21.34%
EPS 5Y4.95%
EPS Q2Q%12.12%
Revenue 1Y (TTM)24.76%
Revenue growth 3Y14.73%
Revenue growth 5Y7.18%
Sales Q2Q%1.35%
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 11.72% on average per year.
Based on estimates for the next years, XYL will show a quite strong growth in Revenue. The Revenue will grow by 8.11% on average per year.
EPS Next Y16.18%
EPS Next 2Y14.23%
EPS Next 3Y13.13%
EPS Next 5Y11.72%
Revenue Next Year16.47%
Revenue Next 2Y10.64%
Revenue Next 3Y8.81%
Revenue Next 5Y8.11%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 30.65 indicates a quite expensive valuation of XYL.
Based on the Price/Earnings ratio, XYL is valued a bit more expensive than the industry average as 62.99% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 28.96, XYL is valued at the same level.
XYL is valuated quite expensively with a Price/Forward Earnings ratio of 26.11.
XYL's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of XYL to the average of the S&P500 Index (23.82), we can say XYL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.65 | ||
| Fwd PE | 26.11 |
4.2 Price Multiples
XYL's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of XYL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.78 | ||
| EV/EBITDA | 18.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as XYL's earnings are expected to grow with 13.13% in the coming years.
PEG (NY)1.89
PEG (5Y)6.19
EPS Next 2Y14.23%
EPS Next 3Y13.13%
5. Dividend
5.1 Amount
XYL has a Yearly Dividend Yield of 1.18%. 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 1.54.
Compared to an average S&P500 Dividend Yield of 2.23, XYL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
5.2 History
On average, the dividend of XYL grows each year by 10.89%, which is quite nice.
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)10.89%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
41.33% of the earnings are spent on dividend by XYL. This is a bit on the high side, but may be sustainable.
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.
DP41.33%
EPS Next 2Y14.23%
EPS Next 3Y13.13%
XYLEM INC
NYSE:XYL (11/21/2024, 8:04:00 PM)
After market: 125.36 0 (0%)125.36
+2.54 (+2.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap30.45B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.65 | ||
| Fwd PE | 26.11 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.89
PEG (5Y)6.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.17% | ||
| ROE | 7.84% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.75% | ||
| PM (TTM) | 9.85% | ||
| GM | 36.93% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)13.3%
EPS 3Y21.34%
EPS 5Y
EPS Q2Q%
EPS Next Y16.18%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)24.76%
Revenue growth 3Y14.73%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y