XYLEM INC (XYL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:XYL - US98419M1009 - Common Stock
144.1 USD
+4.01 (+2.86%)
We assign a fundamental rating of 5 out of 10 to XYL. XYL was compared to 132 industry peers in the Machinery industry. XYL has only an average score on both its financial health and profitability. 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.
- In the past year XYL had a positive cash flow from operations.
- Each year in the past 5 years XYL has been profitable.
- XYL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of XYL (5.48%) is better than 62.12% of its industry peers.
- XYL has a Return On Equity of 8.46%. This is comparable to the rest of the industry: XYL outperforms 57.58% of its industry peers.
- XYL's Return On Invested Capital of 7.29% is in line compared to the rest of the industry. XYL outperforms 54.55% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for XYL is below the industry average of 10.25%.
- 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
- The Profit Margin of XYL (10.66%) is better than 75.00% of its industry peers.
- In the last couple of years the Profit Margin of XYL has grown nicely.
- XYL has a Operating Margin of 13.85%. This is in the better half of the industry: XYL outperforms 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.
- The Gross Margin of XYL (38.23%) is better 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.
- 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
- Compared to 1 year ago, XYL has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.54 indicates that XYL is not in any danger for 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.
- 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.
- Looking at the Debt to FCF ratio, with a value of 2.24, XYL is in the better half of the industry, outperforming 75.00% 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.
- Looking at the Debt to Equity ratio, with a value of 0.17, XYL is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 4.54 |
ROIC/WACC0.78
WACC9.36%
2.3 Liquidity
- A Current Ratio of 1.96 indicates that XYL should not have too much problems paying 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.
- The Quick ratio of XYL (1.50) is better than 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.
- 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.
- 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 12.11% 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 5.70% yearly.
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
- 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
- XYL is valuated quite expensively with a Price/Earnings ratio of 29.77.
- Compared to the rest of the industry, the Price/Earnings ratio of XYL is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 27.33, XYL is valued at the same level.
- A Price/Forward Earnings ratio of 25.66 indicates a quite expensive valuation of XYL.
- The rest of the industry has a similar Price/Forward Earnings ratio as XYL.
- When comparing the Price/Forward Earnings ratio of XYL to the average of the S&P500 Index (24.12), we can say XYL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.77 | ||
| Fwd PE | 25.66 |
4.2 Price Multiples
- XYL's Enterprise Value to EBITDA is on the same level as the industry average.
- XYL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40 | ||
| 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.
- XYL's earnings are expected to grow with 13.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.53
PEG (5Y)4.12
EPS Next 2Y14.55%
EPS Next 3Y13.3%
5. Dividend
5.1 Amount
- XYL has a Yearly Dividend Yield of 1.15%.
- XYL's Dividend Yield is a higher than the industry average which is at 0.80.
- Compared to the average S&P500 Dividend Yield of 1.91, XYL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
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
- 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 (1/15/2026, 3:15:06 PM)
144.1
+4.01 (+2.86%)
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 Cap35.08B
Revenue(TTM)8.89B
Net Income(TTM)948.00M
Analysts79.26
Price Target170.61 (18.4%)
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 | 29.77 | ||
| Fwd PE | 25.66 | ||
| P/S | 3.94 | ||
| P/FCF | 40 | ||
| P/OCF | 27.8 | ||
| P/B | 3.13 | ||
| P/tB | 57.7 | ||
| EV/EBITDA | 19.31 |
EPS(TTM)4.84
EY3.36%
EPS(NY)5.62
Fwd EY3.9%
FCF(TTM)3.6
FCFY2.5%
OCF(TTM)5.18
OCFY3.6%
SpS36.53
BVpS46.03
TBVpS2.5
PEG (NY)1.53
PEG (5Y)4.12
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
WACC9.36%
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 29.77 and the Price/Book (PB) ratio is 3.13.
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.