XYLEM INC (XYL) Fundamental Analysis & Valuation

NYSE:XYL • US98419M1009

123.52 USD
+0.37 (+0.3%)
At close: Mar 9, 2026
123.25 USD
-0.27 (-0.22%)
After Hours: 3/9/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This XYL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

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. XYL scores excellent on profitability, but there are some minor concerns on its financial health. XYL is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

7

1. XYL Profitability Analysis

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.
XYL Yearly Net Income VS EBIT VS OCF VS FCFXYL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 5.43%, XYL is in the better half of the industry, outperforming 62.60% of the companies in the same industry.
  • XYL has a Return On Equity (8.34%) which is in line with its industry peers.
  • XYL has a Return On Invested Capital of 7.28%. This is comparable to the rest of the industry: XYL outperforms 56.49% of its industry peers.
  • XYL had an Average Return On Invested Capital over the past 3 years of 6.00%. This is below the industry average of 10.16%.
  • The 3 year average ROIC (6.00%) for XYL is below the current ROIC(7.28%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.43%
ROE 8.34%
ROIC 7.28%
ROA(3y)4.87%
ROA(5y)4.85%
ROE(3y)7.56%
ROE(5y)9.22%
ROIC(3y)6%
ROIC(5y)6.66%
XYL Yearly ROA, ROE, ROICXYL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • Looking at the Profit Margin, with a value of 10.59%, XYL is in the better half of the industry, outperforming 74.81% of the companies in the same industry.
  • XYL's Profit Margin has improved in the last couple of years.
  • With a decent Operating Margin value of 14.68%, XYL is doing good in the industry, outperforming 69.47% of the companies in the same industry.
  • XYL's Operating Margin has improved in the last couple of years.
  • XYL has a Gross Margin of 38.46%. This is in the better half of the industry: XYL outperforms 73.28% 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 RankSector Rank
OM 14.68%
PM (TTM) 10.59%
GM 38.46%
OM growth 3Y7.57%
OM growth 5Y7.43%
PM growth 3Y18.11%
PM growth 5Y15.25%
GM growth 3Y0.63%
GM growth 5Y0.49%
XYL Yearly Profit, Operating, Gross MarginsXYL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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5

2. XYL Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), XYL is destroying value.
  • Compared to 1 year ago, XYL has more shares outstanding
  • The number of shares outstanding for XYL has been increased compared to 5 years ago.
  • XYL has a better debt/assets ratio than last year.
XYL Yearly Shares OutstandingXYL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M
XYL Yearly Total Debt VS Total AssetsXYL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • An Altman-Z score of 4.10 indicates that XYL is not in any danger for bankruptcy at the moment.
  • XYL has a Altman-Z score of 4.10. This is in the better half of the industry: XYL outperforms 65.65% of its industry peers.
  • The Debt to FCF ratio of XYL is 2.37, which is a good value as it means it would take XYL, 2.37 years of fcf income to pay off all of its debts.
  • XYL has a Debt to FCF ratio of 2.37. This is in the better half of the industry: XYL outperforms 75.57% of its industry peers.
  • A Debt/Equity ratio of 0.13 indicates that XYL is not too dependend on debt financing.
  • XYL has a Debt to Equity ratio of 0.13. This is in the better half of the industry: XYL outperforms 74.81% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 2.37
Altman-Z 4.1
ROIC/WACC0.79
WACC9.17%
XYL Yearly LT Debt VS Equity VS FCFXYL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.3 Liquidity

  • A Current Ratio of 1.63 indicates that XYL should not have too much problems paying its short term obligations.
  • XYL's Current ratio of 1.63 is on the low side compared to the rest of the industry. XYL is outperformed by 67.94% of its industry peers.
  • A Quick Ratio of 1.28 indicates that XYL should not have too much problems paying its short term obligations.
  • XYL's Quick ratio of 1.28 is in line compared to the rest of the industry. XYL outperforms 52.67% of its industry peers.
Industry RankSector Rank
Current Ratio 1.63
Quick Ratio 1.28
XYL Yearly Current Assets VS Current LiabilitesXYL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. XYL Growth Analysis

3.1 Past

  • XYL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.69%, which is quite good.
  • Measured over the past years, XYL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.78% on average per year.
  • Looking at the last year, XYL shows a small growth in Revenue. The Revenue has grown by 5.52% in the last year.
  • Measured over the past years, XYL shows a quite strong growth in Revenue. The Revenue has been growing by 13.13% on average per year.
EPS 1Y (TTM)18.69%
EPS 3Y21.39%
EPS 5Y19.78%
EPS Q2Q%20.34%
Revenue 1Y (TTM)5.52%
Revenue growth 3Y17.84%
Revenue growth 5Y13.13%
Sales Q2Q%6.25%

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 10.80% yearly.
  • Based on estimates for the next years, XYL will show a small growth in Revenue. The Revenue will grow by 5.29% on average per year.
EPS Next Y9.42%
EPS Next 2Y9.92%
EPS Next 3Y10.24%
EPS Next 5Y10.8%
Revenue Next Year2.14%
Revenue Next 2Y3.32%
Revenue Next 3Y3.98%
Revenue Next 5Y5.29%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • 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.
XYL Yearly Revenue VS EstimatesXYL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B 10B
XYL Yearly EPS VS EstimatesXYL Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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2

4. XYL Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 24.31 indicates a rather expensive valuation of XYL.
  • The rest of the industry has a similar Price/Earnings ratio as XYL.
  • When comparing the Price/Earnings ratio of XYL to the average of the S&P500 Index (26.46), we can say XYL is valued inline with the index average.
  • The Price/Forward Earnings ratio is 22.22, which indicates a rather expensive current valuation of XYL.
  • XYL's Price/Forward Earnings is on the same level as the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.65, XYL is valued at the same level.
Industry RankSector Rank
PE 24.31
Fwd PE 22.22
XYL Price Earnings VS Forward Price EarningsXYL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • XYL's Enterprise Value to EBITDA ratio is in line with the industry average.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of XYL is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 34.44
EV/EBITDA 16.06
XYL Per share dataXYL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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.
  • The decent profitability rating of XYL may justify a higher PE ratio.
PEG (NY)2.58
PEG (5Y)1.23
EPS Next 2Y9.92%
EPS Next 3Y10.24%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. XYL Dividend Analysis

5.1 Amount

  • XYL has a Yearly Dividend Yield of 1.15%.
  • Compared to an average industry Dividend Yield of 1.13, XYL pays a bit more dividend than its industry peers.
  • Compared to the average S&P500 Dividend Yield of 1.82, XYL is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.15%

5.2 History

  • On average, the dividend of XYL grows each year by 9.04%, 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)9.04%
Div Incr Years13
Div Non Decr Years13
XYL Yearly Dividends per shareXYL Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • XYL pays out 40.86% of its income as dividend. 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.
DP40.86%
EPS Next 2Y9.92%
EPS Next 3Y10.24%
XYL Yearly Income VS Free CF VS DividendXYL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
XYL Dividend Payout.XYL Dividend Payout, showing the Payout Ratio.XYL Dividend Payout.PayoutRetained Earnings

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XYL Fundamentals: All Metrics, Ratios and Statistics

XYLEM INC

NYSE:XYL (3/9/2026, 8:04:00 PM)

After market: 123.25 -0.27 (-0.22%)

123.52

+0.37 (+0.3%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-10
Earnings (Next)04-27
Inst Owners96.78%
Inst Owner Change21.2%
Ins Owners0.24%
Ins Owner Change4.3%
Market Cap30.03B
Revenue(TTM)9.04B
Net Income(TTM)957.00M
Analysts79.29
Price Target160.09 (29.61%)
Short Float %1.85%
Short Ratio2.73
Dividend
Industry RankSector Rank
Dividend Yield 1.15%
Yearly Dividend1.61
Dividend Growth(5Y)9.04%
DP40.86%
Div Incr Years13
Div Non Decr Years13
Ex-Date02-24
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.85%
Min EPS beat(2)-0.32%
Max EPS beat(2)10.02%
EPS beat(4)3
Avg EPS beat(4)6.15%
Min EPS beat(4)-0.32%
Max EPS beat(4)10.02%
EPS beat(8)6
Avg EPS beat(8)4.52%
EPS beat(12)10
Avg EPS beat(12)7.14%
EPS beat(16)14
Avg EPS beat(16)9.63%
Revenue beat(2)1
Avg Revenue beat(2)0.51%
Min Revenue beat(2)-0.04%
Max Revenue beat(2)1.07%
Revenue beat(4)3
Avg Revenue beat(4)1.09%
Min Revenue beat(4)-0.04%
Max Revenue beat(4)2.91%
Revenue beat(8)6
Avg Revenue beat(8)0.44%
Revenue beat(12)10
Avg Revenue beat(12)1.58%
Revenue beat(16)14
Avg Revenue beat(16)1.96%
PT rev (1m)-5.07%
PT rev (3m)-6.55%
EPS NQ rev (1m)-6.49%
EPS NQ rev (3m)-7.88%
EPS NY rev (1m)-1.01%
EPS NY rev (3m)-0.89%
Revenue NQ rev (1m)-3.13%
Revenue NQ rev (3m)-3.96%
Revenue NY rev (1m)-1.37%
Revenue NY rev (3m)-1.73%
Valuation
Industry RankSector Rank
PE 24.31
Fwd PE 22.22
P/S 3.32
P/FCF 34.44
P/OCF 24.22
P/B 2.62
P/tB 34.28
EV/EBITDA 16.06
EPS(TTM)5.08
EY4.11%
EPS(NY)5.56
Fwd EY4.5%
FCF(TTM)3.59
FCFY2.9%
OCF(TTM)5.1
OCFY4.13%
SpS37.16
BVpS47.22
TBVpS3.6
PEG (NY)2.58
PEG (5Y)1.23
Graham Number73.46
Profitability
Industry RankSector Rank
ROA 5.43%
ROE 8.34%
ROCE 8.97%
ROIC 7.28%
ROICexc 8.09%
ROICexgc 39.93%
OM 14.68%
PM (TTM) 10.59%
GM 38.46%
FCFM 9.65%
ROA(3y)4.87%
ROA(5y)4.85%
ROE(3y)7.56%
ROE(5y)9.22%
ROIC(3y)6%
ROIC(5y)6.66%
ROICexc(3y)6.57%
ROICexc(5y)7.63%
ROICexgc(3y)31.79%
ROICexgc(5y)30.61%
ROCE(3y)7.39%
ROCE(5y)8.2%
ROICexgc growth 3Y10.17%
ROICexgc growth 5Y-0.89%
ROICexc growth 3Y-6.03%
ROICexc growth 5Y-0.38%
OM growth 3Y7.57%
OM growth 5Y7.43%
PM growth 3Y18.11%
PM growth 5Y15.25%
GM growth 3Y0.63%
GM growth 5Y0.49%
F-Score6
Asset Turnover0.51
Health
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 2.37
Debt/EBITDA 0.79
Cap/Depr 64%
Cap/Sales 4.07%
Interest Coverage 21.74
Cash Conversion 65.23%
Profit Quality 91.12%
Current Ratio 1.63
Quick Ratio 1.28
Altman-Z 4.1
F-Score6
WACC9.17%
ROIC/WACC0.79
Cap/Depr(3y)61.09%
Cap/Depr(5y)71.26%
Cap/Sales(3y)3.83%
Cap/Sales(5y)3.85%
Profit Quality(3y)96.22%
Profit Quality(5y)95.05%
High Growth Momentum
Growth
EPS 1Y (TTM)18.69%
EPS 3Y21.39%
EPS 5Y19.78%
EPS Q2Q%20.34%
EPS Next Y9.42%
EPS Next 2Y9.92%
EPS Next 3Y10.24%
EPS Next 5Y10.8%
Revenue 1Y (TTM)5.52%
Revenue growth 3Y17.84%
Revenue growth 5Y13.13%
Sales Q2Q%6.25%
Revenue Next Year2.14%
Revenue Next 2Y3.32%
Revenue Next 3Y3.98%
Revenue Next 5Y5.29%
EBIT growth 1Y23.81%
EBIT growth 3Y26.76%
EBIT growth 5Y21.54%
EBIT Next Year36%
EBIT Next 3Y16.87%
EBIT Next 5Y12.65%
FCF growth 1Y-6.34%
FCF growth 3Y30.99%
FCF growth 5Y6.35%
OCF growth 1Y-0.96%
OCF growth 3Y27.66%
OCF growth 5Y8.52%

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 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 7 / 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 24.31 and the Price/Book (PB) ratio is 2.62.


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 9.42% in the next year.