XYLEM INC (XYL) Stock Fundamental Analysis
USA - NYSE:XYL - US98419M1009 - Common Stock
140.16 USD
-0.83 (-0.59%)
140.16 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to XYL. XYL was compared to 130 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
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.
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.
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 in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for XYL is below the industry average of 10.24%.
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 76.15% of the companies in the same industry.
In the last couple of years the Profit Margin of XYL has grown nicely.
XYL's Operating Margin of 13.85% is fine compared to the rest of the industry. XYL outperforms 67.69% of its industry peers.
In the last couple of years the Operating Margin of XYL has remained more or less at the same level.
With a decent Gross Margin value of 38.23%, XYL is doing good in the industry, outperforming 70.77% of the companies in the same industry.
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
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
XYL has an Altman-Z score of 4.56. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
XYL's Altman-Z score of 4.56 is fine compared to the rest of the industry. XYL outperforms 76.15% 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 Debt to FCF ratio of 2.24. This is in the better half of the industry: XYL outperforms 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 better Debt to Equity ratio (0.17) than 75.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 4.56 |
ROIC/WACC0.78
WACC9.39%
2.3 Liquidity
A Current Ratio of 1.96 indicates that XYL should not have too much problems paying its short term obligations.
XYL's Current ratio of 1.96 is in line compared to the rest of the industry. XYL outperforms 43.08% of its industry peers.
A Quick Ratio of 1.50 indicates that XYL should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.50, XYL is doing good in 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.
XYL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.22% yearly.
Looking at the last year, XYL shows a small growth in Revenue. The Revenue has grown by 5.58% in the last year.
XYL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.28% yearly.
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 11.23% on average per year.
XYL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.84% yearly.
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
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 28.96.
Compared to the rest of the industry, the Price/Earnings ratio of XYL indicates a slightly more expensive valuation: XYL is more expensive than 60.77% of the companies listed in the same industry.
XYL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.51, which is the current average of the S&P500 Index.
XYL is valuated quite expensively with a Price/Forward Earnings ratio of 25.08.
Based on the Price/Forward Earnings ratio, XYL is valued a bit more expensive than 62.31% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, XYL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.96 | ||
| Fwd PE | 25.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, XYL is valued a bit more expensive than the industry average as 63.85% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, XYL is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.9 | ||
| EV/EBITDA | 19.43 |
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 13.24% in the coming years.
PEG (NY)1.57
PEG (5Y)4.01
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
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 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.
The dividend of XYL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40.08%
EPS Next 2Y14.27%
EPS Next 3Y13.24%
140.16
-0.83 (-0.59%)
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 Cap34.12B
Revenue(TTM)8.89B
Net Income(TTM)948.00M
Analysts79.26
Price Target162.77 (16.13%)
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 | 28.96 | ||
| Fwd PE | 25.08 | ||
| P/S | 3.84 | ||
| P/FCF | 38.9 | ||
| P/OCF | 27.03 | ||
| P/B | 3.04 | ||
| P/tB | 56.11 | ||
| EV/EBITDA | 19.43 |
EPS(TTM)4.84
EY3.45%
EPS(NY)5.59
Fwd EY3.99%
FCF(TTM)3.6
FCFY2.57%
OCF(TTM)5.18
OCFY3.7%
SpS36.54
BVpS46.04
TBVpS2.5
PEG (NY)1.57
PEG (5Y)4.01
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 | 4.56 |
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%.