XYLEM INC (XYL) Stock Fundamental Analysis
USA - NYSE:XYL - US98419M1009 - Common Stock
138.99 USD
+0.01 (+0.01%)
We assign a fundamental rating of 5 out of 10 to XYL. XYL was compared to 130 industry peers in the Machinery industry. XYL has only an average score on both its financial health and profitability. XYL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year XYL was profitable.
XYL had a positive operating cash flow in the past year.
XYL had positive earnings in each of the past 5 years.
Each year in the past 5 years XYL had a positive operating cash flow.
1.2 Ratios
XYL's Return On Assets of 5.48% is fine compared to the rest of the industry. XYL outperforms 60.77% of its industry peers.
With a Return On Equity value of 8.46%, XYL perfoms like the industry average, outperforming 53.08% of the companies in the same industry.
XYL has a Return On Invested Capital (7.29%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for XYL is below the industry average of 10.24%.
The last Return On Invested Capital (7.29%) for XYL is above the 3 year average (6.95%), which is a sign of increasing profitability.
| 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
XYL's Profit Margin of 10.66% is fine compared to the rest of the industry. XYL outperforms 76.15% of its industry peers.
In the last couple of years the Profit Margin of XYL has grown nicely.
XYL has a better Operating Margin (13.85%) than 67.69% of its industry peers.
XYL's Operating Margin has been stable in the last couple of years.
The Gross Margin of XYL (38.23%) is better than 70.77% of its industry peers.
XYL's Gross Margin has been stable in the last couple of years.
| 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
XYL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for XYL has been increased compared to 1 year ago.
Compared to 5 years ago, XYL has more shares outstanding
The debt/assets ratio for XYL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.51 indicates that XYL is not in any danger for bankruptcy at the moment.
XYL's Altman-Z score of 4.51 is fine compared to the rest of the industry. XYL outperforms 74.62% of its industry peers.
XYL has a debt to FCF ratio of 2.24. This is a good value and a sign of high solvency as XYL would need 2.24 years to pay back of all of its debts.
XYL has a better Debt to FCF ratio (2.24) than 74.62% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that XYL is not too dependend on debt financing.
XYL has a Debt to Equity ratio of 0.17. This is in the better half of the industry: XYL outperforms 75.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 4.51 |
ROIC/WACC0.78
WACC9.39%
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 comparable to the rest of the 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.
Looking at the Quick ratio, with a value of 1.50, XYL is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
XYL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.34%, which is quite good.
Measured over the past 5 years, XYL shows a small growth in Earnings Per Share. The EPS has been growing by 7.22% on average per year.
The Revenue has been growing slightly by 5.58% in the past year.
The Revenue has been growing by 10.28% on average over the past years. This is quite good.
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
XYL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.23% yearly.
Based on estimates for the next years, XYL will show a small growth in Revenue. The Revenue will grow by 5.84% on average per year.
EPS Next Y18.44%
EPS Next 2Y14.27%
EPS Next 3Y13.24%
EPS Next 5Y11.23%
Revenue Next Year6.26%
Revenue Next 2Y5.18%
Revenue Next 3Y5.17%
Revenue Next 5Y5.84%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 28.72, which means the current valuation is very expensive for XYL.
Compared to the rest of the industry, the Price/Earnings ratio of XYL is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 25.47. XYL is around the same levels.
Based on the Price/Forward Earnings ratio of 24.87, the valuation of XYL can be described as rather expensive.
60.00% of the companies in the same industry are cheaper than XYL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of XYL to the average of the S&P500 Index (35.42), we can say XYL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.72 | ||
| Fwd PE | 24.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of XYL indicates a slightly more expensive valuation: XYL is more expensive than 63.85% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, XYL is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.58 | ||
| EV/EBITDA | 19.16 |
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 13.24% in the coming years.
PEG (NY)1.56
PEG (5Y)3.98
EPS Next 2Y14.27%
EPS Next 3Y13.24%
5. Dividend
5.1 Amount
XYL has a Yearly Dividend Yield of 1.10%. 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 1.87.
Compared to an average S&P500 Dividend Yield of 2.44, XYL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
On average, the dividend of XYL grows each year by 8.36%, which is quite nice.
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)8.36%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
XYL pays out 40.08% of its income as dividend. This is a bit on the high side, but may be sustainable.
XYL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP40.08%
EPS Next 2Y14.27%
EPS Next 3Y13.24%
NYSE:XYL (11/20/2025, 1:39:02 PM)
138.99
+0.01 (+0.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.11%
Inst Owner Change0.52%
Ins Owners0.24%
Ins Owner Change-2.13%
Market Cap33.83B
Revenue(TTM)8.89B
Net Income(TTM)948.00M
Analysts79.26
Price Target162.77 (17.11%)
Short Float %1.22%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend1.44
Dividend Growth(5Y)8.36%
DP40.08%
Div Incr Years13
Div Non Decr Years13
Ex-Date
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)0.75%
PT rev (3m)2.85%
EPS NQ rev (1m)7.03%
EPS NQ rev (3m)7.41%
EPS NY rev (1m)3.89%
EPS NY rev (3m)8.39%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)0.8%
Revenue NY rev (3m)2.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.72 | ||
| Fwd PE | 24.87 | ||
| P/S | 3.8 | ||
| P/FCF | 38.58 | ||
| P/OCF | 26.81 | ||
| P/B | 3.02 | ||
| P/tB | 55.64 | ||
| EV/EBITDA | 19.16 |
EPS(TTM)4.84
EY3.48%
EPS(NY)5.59
Fwd EY4.02%
FCF(TTM)3.6
FCFY2.59%
OCF(TTM)5.18
OCFY3.73%
SpS36.54
BVpS46.04
TBVpS2.5
PEG (NY)1.56
PEG (5Y)3.98
Graham Number70.81
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 | 4.51 |
F-Score8
WACC9.39%
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 Y18.44%
EPS Next 2Y14.27%
EPS Next 3Y13.24%
EPS Next 5Y11.23%
Revenue 1Y (TTM)5.58%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%7.79%
Revenue Next Year6.26%
Revenue Next 2Y5.18%
Revenue Next 3Y5.17%
Revenue Next 5Y5.84%
EBIT growth 1Y21.98%
EBIT growth 3Y21.85%
EBIT growth 5Y8.97%
EBIT Next Year45.14%
EBIT Next 3Y19.79%
EBIT Next 5Y15.48%
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.
What is the valuation status of XYLEM INC (XYL) stock?
ChartMill assigns a valuation rating of 2 / 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 expected EPS growth for XYLEM INC (XYL) stock?
The Earnings per Share (EPS) of XYLEM INC (XYL) is expected to grow by 18.44% in the next year.
Can you provide the dividend sustainability for XYL stock?
The dividend rating of XYLEM INC (XYL) is 6 / 10 and the dividend payout ratio is 40.08%.