XYLEM INC (XYL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:XYL - US98419M1009 - Common Stock
139.69 USD
-1.2 (-0.85%)
139.69 USD
0 (0%)
XYL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. XYL has an average financial health and profitability rating. 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.
In the past year XYL had a positive cash flow from operations.
Each year in the past 5 years XYL has been profitable.
In the past 5 years XYL always reported a positive cash flow from operatings.
1.2 Ratios
XYL's Return On Assets of 5.48% is fine compared to the rest of the industry. XYL outperforms 62.12% of its industry peers.
XYL has a Return On Equity (8.46%) which is comparable to the rest of the industry.
XYL has a Return On Invested Capital (7.29%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital 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
Looking at the Profit Margin, with a value of 10.66%, XYL is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Profit Margin of XYL has grown nicely.
The Operating Margin of XYL (13.85%) is better than 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.
XYL has a Gross Margin of 38.23%. This is in the better half of the industry: XYL outperforms 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so XYL is destroying value.
Compared to 1 year ago, XYL has more shares outstanding
XYL has more shares outstanding than it did 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 4.53 indicates that XYL is not in any danger for bankruptcy at the moment.
XYL has a better Altman-Z score (4.53) than 68.94% of its industry peers.
The Debt to FCF ratio of XYL is 2.24, which is a good value as it means it would take XYL, 2.24 years of fcf income to pay off all of its debts.
XYL has a better Debt to FCF ratio (2.24) than 75.00% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that XYL is not too dependend on debt financing.
The Debt to Equity ratio of XYL (0.17) is better than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 4.53 |
ROIC/WACC0.76
WACC9.56%
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 43.94% 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.
Looking at the Quick ratio, with a value of 1.50, XYL is in the better half of the industry, outperforming 64.39% of the companies in the same industry.
| 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.
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
XYL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.11% yearly.
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
With a Price/Earnings ratio of 28.86, XYL can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as XYL.
XYL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.19.
A Price/Forward Earnings ratio of 24.87 indicates a rather 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 (23.92), we can say XYL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.86 | ||
| Fwd PE | 24.87 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as XYL.
The rest of the industry has a similar Price/Free Cash Flow ratio as XYL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.78 | ||
| EV/EBITDA | 19.26 |
4.3 Compensation for Growth
XYL's 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.
XYL's earnings are expected to grow with 13.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.49
PEG (5Y)4
EPS Next 2Y14.55%
EPS Next 3Y13.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.15%, XYL has a reasonable but not impressive dividend return.
XYL's Dividend Yield is a higher than the industry average which is at 0.80.
With a Dividend Yield of 1.15, XYL pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
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
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%
139.69
-1.2 (-0.85%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.82%
Inst Owner Change0.02%
Ins Owners0.24%
Ins Owner Change-1.35%
Market Cap34.01B
Revenue(TTM)8.89B
Net Income(TTM)948.00M
Analysts79.26
Price Target170.61 (22.13%)
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 | 28.86 | ||
| Fwd PE | 24.87 | ||
| P/S | 3.82 | ||
| P/FCF | 38.78 | ||
| P/OCF | 26.95 | ||
| P/B | 3.03 | ||
| P/tB | 55.94 | ||
| EV/EBITDA | 19.26 |
EPS(TTM)4.84
EY3.46%
EPS(NY)5.62
Fwd EY4.02%
FCF(TTM)3.6
FCFY2.58%
OCF(TTM)5.18
OCFY3.71%
SpS36.53
BVpS46.03
TBVpS2.5
PEG (NY)1.49
PEG (5Y)4
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 | 4.53 |
F-Score8
WACC9.56%
ROIC/WACC0.76
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 28.86 and the Price/Book (PB) ratio is 3.03.
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.