XYLEM INC (XYL) Stock Fundamental Analysis
NYSE:XYL - New York Stock Exchange, Inc. - 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. 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.
XYL had a positive operating cash flow in the past year.
XYL had positive earnings in each of the past 5 years.
XYL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
XYL has a Return On Assets (5.17%) which is in line with its industry peers.
With a Return On Equity value of 7.84%, XYL perfoms like the industry average, outperforming 51.97% of the companies in the same industry.
XYL has a Return On Invested Capital (6.37%) 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 11.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.17% | ||
| ROE | 7.84% | ||
| ROIC | 6.37% |
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 Profit Margin of 9.85%. This is in the better half of the industry: XYL outperforms 69.29% of its industry peers.
XYL's Profit Margin has declined in the last couple of years.
The Operating Margin of XYL (11.99%) is better than 61.42% of its industry peers.
XYL's Operating Margin has declined in the last couple of years.
XYL has a Gross Margin of 36.93%. This is in the better half of the industry: XYL outperforms 66.14% 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 | 11.99% | ||
| 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.
The number of shares outstanding for XYL has been increased compared to 1 year ago.
The number of shares outstanding for XYL has been increased compared to 5 years ago.
Compared to 1 year ago, XYL has an improved debt to assets ratio.
2.2 Solvency
XYL has an Altman-Z score of 4.39. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
XYL has a Altman-Z score of 4.39. This is in the better half of the industry: XYL outperforms 66.93% of its industry peers.
The Debt to FCF ratio of XYL is 2.41, which is a good value as it means it would take XYL, 2.41 years of fcf income to pay off all of its debts.
XYL has a Debt to FCF ratio of 2.41. This is in the better half of the industry: XYL outperforms 75.59% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that XYL is not too dependend on debt financing.
XYL has a better Debt to Equity ratio (0.19) than 72.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 4.39 |
ROIC/WACC0.67
WACC9.51%
2.3 Liquidity
A Current Ratio of 1.96 indicates that XYL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.96, XYL is in line with its industry, outperforming 41.73% of the companies in the same industry.
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 60.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.30% over the past year.
The Earnings Per Share has been growing slightly by 4.95% on average over the past years.
Looking at the last year, XYL shows a very strong growth in Revenue. The Revenue has grown by 24.76%.
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 11.36% on average per year.
The Revenue is expected to grow by 7.31% on average over the next years.
EPS Next Y16.13%
EPS Next 2Y14.09%
EPS Next 3Y13.15%
EPS Next 5Y11.36%
Revenue Next Year16.4%
Revenue Next 2Y10.52%
Revenue Next 3Y8.79%
Revenue Next 5Y7.31%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 29.81, which means the current valuation is very expensive for XYL.
Compared to the rest of the industry, the Price/Earnings ratio of XYL indicates a slightly more expensive valuation: XYL is more expensive than 62.20% of the companies listed in the same industry.
XYL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.29.
A Price/Forward Earnings ratio of 25.45 indicates a quite expensive valuation of XYL.
The rest of the industry has a similar Price/Forward Earnings ratio as XYL.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, XYL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.81 | ||
| Fwd PE | 25.45 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as XYL.
XYL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.77 | ||
| EV/EBITDA | 19.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates XYL does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as XYL's earnings are expected to grow with 13.15% in the coming years.
PEG (NY)1.85
PEG (5Y)6.02
EPS Next 2Y14.09%
EPS Next 3Y13.15%
5. Dividend
5.1 Amount
XYL has a Yearly Dividend Yield of 1.21%.
Compared to an average industry Dividend Yield of 1.65, XYL pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.21, XYL pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
5.2 History
On average, the dividend of XYL grows each year by 10.89%, which is quite nice.
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)10.89%
Div Incr Years13
Div Non Decr Years13
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.
The dividend of XYL is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP41.33%
EPS Next 2Y14.09%
EPS Next 3Y13.15%
XYLEM INC
NYSE:XYL (1/21/2025, 8:04:00 PM)
After market: 121.92 0 (0%)121.92
+2.26 (+1.89%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.41%
Inst Owner Change-0.05%
Ins Owners0.23%
Ins Owner Change-0.67%
Market Cap29.62B
Analysts78.4
Price Target154.9 (27.05%)
Short Float %1.51%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend1.42
Dividend Growth(5Y)10.89%
DP41.33%
Div Incr Years13
Div Non Decr Years13
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.79%
Min EPS beat(2)-0.98%
Max EPS beat(2)2.57%
EPS beat(4)3
Avg EPS beat(4)2.59%
Min EPS beat(4)-0.98%
Max EPS beat(4)6.17%
EPS beat(8)7
Avg EPS beat(8)9.02%
EPS beat(12)11
Avg EPS beat(12)10.6%
EPS beat(16)15
Avg EPS beat(16)12.71%
Revenue beat(2)1
Avg Revenue beat(2)-2%
Min Revenue beat(2)-4.15%
Max Revenue beat(2)0.14%
Revenue beat(4)3
Avg Revenue beat(4)-0.27%
Min Revenue beat(4)-4.15%
Max Revenue beat(4)2.12%
Revenue beat(8)7
Avg Revenue beat(8)2.22%
Revenue beat(12)10
Avg Revenue beat(12)2.05%
Revenue beat(16)13
Avg Revenue beat(16)2.2%
PT rev (1m)0.61%
PT rev (3m)-2.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.7%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.25%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.81 | ||
| Fwd PE | 25.45 | ||
| P/S | 3.52 | ||
| P/FCF | 35.77 | ||
| P/OCF | 25.91 | ||
| P/B | 2.8 | ||
| P/tB | 43.95 | ||
| EV/EBITDA | 19.54 |
EPS(TTM)4.09
EY3.35%
EPS(NY)4.79
Fwd EY3.93%
FCF(TTM)3.41
FCFY2.8%
OCF(TTM)4.7
OCFY3.86%
SpS34.68
BVpS43.6
TBVpS2.77
PEG (NY)1.85
PEG (5Y)6.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.17% | ||
| ROE | 7.84% | ||
| ROCE | 7.22% | ||
| ROIC | 6.37% | ||
| ROICexc | 6.86% | ||
| ROICexgc | 28.9% | ||
| OM | 11.99% | ||
| PM (TTM) | 9.85% | ||
| GM | 36.93% | ||
| FCFM | 9.83% |
ROA(3y)4.47%
ROA(5y)4.3%
ROE(3y)9.81%
ROE(5y)10.31%
ROIC(3y)7.2%
ROIC(5y)7.6%
ROICexc(3y)8.48%
ROICexc(5y)9.12%
ROICexgc(3y)29.25%
ROICexgc(5y)34.99%
ROCE(3y)8.16%
ROCE(5y)8.61%
ROICexcg growth 3Y-18.04%
ROICexcg growth 5Y-11.05%
ROICexc growth 3Y-15.69%
ROICexc growth 5Y-12.98%
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%
F-Score7
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.41 | ||
| Debt/EBITDA | 1.26 | ||
| Cap/Depr | 56.55% | ||
| Cap/Sales | 3.74% | ||
| Interest Coverage | 13.47 | ||
| Cash Conversion | 72.94% | ||
| Profit Quality | 99.76% | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 4.39 |
F-Score7
WACC9.51%
ROIC/WACC0.67
Cap/Depr(3y)78.4%
Cap/Depr(5y)79.21%
Cap/Sales(3y)3.82%
Cap/Sales(5y)3.9%
Profit Quality(3y)93.17%
Profit Quality(5y)136.95%
High Growth Momentum
Growth
EPS 1Y (TTM)13.3%
EPS 3Y21.34%
EPS 5Y4.95%
EPS Q2Q%12.12%
EPS Next Y16.13%
EPS Next 2Y14.09%
EPS Next 3Y13.15%
EPS Next 5Y11.36%
Revenue 1Y (TTM)24.76%
Revenue growth 3Y14.73%
Revenue growth 5Y7.18%
Sales Q2Q%1.35%
Revenue Next Year16.4%
Revenue Next 2Y10.52%
Revenue Next 3Y8.79%
Revenue Next 5Y7.31%
EBIT growth 1Y36.12%
EBIT growth 3Y16.23%
EBIT growth 5Y3.03%
EBIT Next Year64.2%
EBIT Next 3Y25.62%
EBIT Next 5Y18.25%
FCF growth 1Y268%
FCF growth 3Y-4.06%
FCF growth 5Y10.15%
OCF growth 1Y151.76%
OCF growth 3Y0.52%
OCF growth 5Y7.39%