XYLEM INC (XYL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:XYL - US98419M1009 - Common Stock
140.06 USD
+1.6 (+1.16%)
140.06 USD
0 (0%)
Overall XYL gets a fundamental rating of 5 out of 10. We evaluated XYL against 130 industry peers in the Machinery industry. XYL has an average financial health and profitability rating. While showing a medium growth rate, XYL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year XYL was profitable.
XYL had a positive operating cash flow in the past year.
In the past 5 years XYL has always been profitable.
Each year in the past 5 years XYL had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.48%, XYL is in the better half of the industry, outperforming 62.31% of the companies in the same industry.
XYL has a Return On Equity (8.46%) which is in line with its industry peers.
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 10.46%.
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
XYL has a better Profit Margin (10.66%) than 74.62% of its industry peers.
In the last couple of years the Profit Margin of XYL has grown nicely.
With a decent Operating Margin value of 13.85%, XYL is doing good in the industry, outperforming 66.92% of the companies in the same industry.
XYL's Operating Margin has been stable in the last couple of years.
XYL has a Gross Margin of 38.23%. This is in the better half of the industry: XYL outperforms 70.77% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so XYL is destroying value.
XYL has more shares outstanding than it did 1 year ago.
The number of shares outstanding for XYL has been increased compared to 5 years ago.
The debt/assets ratio for XYL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.54 indicates that XYL is not in any danger for bankruptcy at the moment.
XYL has a Altman-Z score of 4.54. This is in the better half of the industry: XYL outperforms 70.77% 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.
With a decent Debt to FCF ratio value of 2.24, XYL is doing good in the industry, outperforming 74.62% of the companies in the same industry.
XYL has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
XYL's Debt to Equity ratio of 0.17 is fine compared to the rest of the industry. XYL outperforms 74.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 4.54 |
ROIC/WACC0.77
WACC9.44%
2.3 Liquidity
A Current Ratio of 1.96 indicates that XYL should not have too much problems paying its short term obligations.
With a Current ratio value of 1.96, XYL perfoms like the industry average, outperforming 43.08% of the companies in the same industry.
A Quick Ratio of 1.50 indicates that XYL should not have too much problems paying its short term obligations.
XYL has a better Quick ratio (1.50) than 63.85% of its industry peers.
| 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.
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
The Earnings Per Share is expected to grow by 11.23% 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 5.84% yearly.
EPS Next Y19.45%
EPS Next 2Y14.47%
EPS Next 3Y13.44%
EPS Next 5Y11.23%
Revenue Next Year6.39%
Revenue Next 2Y5.04%
Revenue Next 3Y5.09%
Revenue Next 5Y5.84%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 28.94, which means the current valuation is very expensive for XYL.
XYL's Price/Earnings ratio is in line with the industry average.
XYL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.76.
The Price/Forward Earnings ratio is 24.97, which indicates a rather expensive current valuation of XYL.
XYL's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.96, XYL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.94 | ||
| Fwd PE | 24.97 |
4.2 Price Multiples
60.77% of the companies in the same industry are cheaper than XYL, based on the Enterprise Value to EBITDA ratio.
XYL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.88 | ||
| EV/EBITDA | 19.31 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of XYL may justify a higher PE ratio.
A more expensive valuation may be justified as XYL's earnings are expected to grow with 13.44% in the coming years.
PEG (NY)1.49
PEG (5Y)4.01
EPS Next 2Y14.47%
EPS Next 3Y13.44%
5. Dividend
5.1 Amount
XYL has a Yearly Dividend Yield of 1.10%.
Compared to an average industry Dividend Yield of 1.84, XYL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, XYL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
The dividend of XYL is nicely growing with an annual growth rate of 8.36%!
XYL has been paying a dividend for at least 10 years, so it has 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
XYL pays out 40.08% of its income as dividend. 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 2Y14.47%
EPS Next 3Y13.44%
140.06
+1.6 (+1.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.86%
Inst Owner Change0.64%
Ins Owners0.24%
Ins Owner Change-1.16%
Market Cap34.10B
Revenue(TTM)8.89B
Net Income(TTM)948.00M
Analysts79.26
Price Target171.31 (22.31%)
Short Float %1.32%
Short Ratio2.48
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)5.25%
PT rev (3m)7.01%
EPS NQ rev (1m)0.55%
EPS NQ rev (3m)8.05%
EPS NY rev (1m)0.86%
EPS NY rev (3m)5.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.94 | ||
| Fwd PE | 24.97 | ||
| P/S | 3.83 | ||
| P/FCF | 38.88 | ||
| P/OCF | 27.02 | ||
| P/B | 3.04 | ||
| P/tB | 56.09 | ||
| EV/EBITDA | 19.31 |
EPS(TTM)4.84
EY3.46%
EPS(NY)5.61
Fwd EY4%
FCF(TTM)3.6
FCFY2.57%
OCF(TTM)5.18
OCFY3.7%
SpS36.53
BVpS46.03
TBVpS2.5
PEG (NY)1.49
PEG (5Y)4.01
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
WACC9.44%
ROIC/WACC0.77
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 Y19.45%
EPS Next 2Y14.47%
EPS Next 3Y13.44%
EPS Next 5Y11.23%
Revenue 1Y (TTM)5.58%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%7.79%
Revenue Next Year6.39%
Revenue Next 2Y5.04%
Revenue Next 3Y5.09%
Revenue Next 5Y5.84%
EBIT growth 1Y21.98%
EBIT growth 3Y21.85%
EBIT growth 5Y8.97%
EBIT Next Year49.81%
EBIT Next 3Y20.55%
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 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 expected EPS growth for XYLEM INC (XYL) stock?
The Earnings per Share (EPS) of XYLEM INC (XYL) is expected to grow by 19.45% 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%.