XYLEM INC (XYL)
US98419M1009 - Common Stock
Taking everything into account, XYL scores 5 out of 10 in our fundamental rating. XYL was compared to 132 industry peers in the Machinery industry. XYL has only an average score on both its financial health and profitability. XYL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
XYL had positive earnings in the past year.
XYL had a positive operating cash flow in the past year.
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 has a Return On Assets of 5.17%. This is comparable to the rest of the industry: XYL outperforms 60.00% of its industry peers.
With a Return On Equity value of 7.84%, XYL perfoms like the industry average, outperforming 53.08% of the companies in the same industry.
XYL's Return On Invested Capital of 6.37% is in line compared to the rest of the industry. XYL outperforms 50.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for XYL is below the industry average of 11.13%.
| 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 better Profit Margin (9.85%) than 71.54% of its industry peers.
XYL's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 11.99%, XYL is doing good in the industry, outperforming 62.31% of the companies in the same industry.
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 66.92% 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
XYL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, XYL has more shares outstanding
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
XYL has an Altman-Z score of 4.26. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
XYL's Altman-Z score of 4.26 is fine compared to the rest of the industry. XYL outperforms 70.00% 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.
Looking at the Debt to FCF ratio, with a value of 2.41, XYL is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
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 71.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 4.26 |
ROIC/WACC0.71
WACC8.95%
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 of 1.96. This is comparable to the rest of the industry: XYL outperforms 42.31% of its industry peers.
XYL has a Quick Ratio of 1.42. This is a normal value and indicates that XYL is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.42, XYL perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
XYL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.30%, which is quite good.
Measured over the past 5 years, XYL shows a small growth in Earnings Per Share. The EPS has been growing by 4.95% on average per year.
Looking at the last year, XYL shows a very strong growth in Revenue. The Revenue has grown by 24.76%.
The Revenue has been growing slightly by 7.18% on average over the past years.
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
XYL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.47% yearly.
The Revenue is expected to grow by 7.42% on average over the next years.
EPS Next Y16.13%
EPS Next 2Y14.09%
EPS Next 3Y13.15%
EPS Next 5Y11.47%
Revenue Next Year16.42%
Revenue Next 2Y10.57%
Revenue Next 3Y8.79%
Revenue Next 5Y7.42%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
XYL is valuated quite expensively with a Price/Earnings ratio of 28.64.
Based on the Price/Earnings ratio, XYL is valued a bit more expensive than the industry average as 62.31% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.20. XYL is around the same levels.
A Price/Forward Earnings ratio of 24.45 indicates a rather expensive valuation of XYL.
XYL's Price/Forward Earnings is on the same level as the industry average.
XYL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.64 | ||
| Fwd PE | 24.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of XYL is on the same level as its industry peers.
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.37 | ||
| EV/EBITDA | 18.8 |
4.3 Compensation for Growth
XYL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as XYL's earnings are expected to grow with 13.15% in the coming years.
PEG (NY)1.78
PEG (5Y)5.78
EPS Next 2Y14.09%
EPS Next 3Y13.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.24%, XYL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.71, XYL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, XYL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
5.2 History
The dividend of XYL is nicely growing with an annual growth rate of 10.89%!
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
XYL pays out 41.33% 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.
DP41.33%
EPS Next 2Y14.09%
EPS Next 3Y13.15%
XYLEM INC
NYSE:XYL (12/20/2024, 8:04:00 PM)
After market: 117.14 0 (0%)117.14
+0.71 (+0.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.41%
Inst Owner Change-0.48%
Ins Owners0.23%
Ins Owner Change-0.56%
Market Cap28.46B
Analysts78.4
Price Target153.96 (31.43%)
Short Float %1.41%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
Dividend Growth(5Y)10.89%
DP41.33%
Div Incr Years13
Div Non Decr Years13
Ex-Date
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)-3.29%
PT rev (3m)-3.16%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-1.7%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-0.56%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-1.25%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.64 | ||
| Fwd PE | 24.45 | ||
| P/S | 3.38 | ||
| P/FCF | 34.37 | ||
| P/OCF | 24.9 | ||
| P/B | 2.69 | ||
| P/tB | 42.22 | ||
| EV/EBITDA | 18.8 |
EPS(TTM)4.09
EY3.49%
EPS(NY)4.79
Fwd EY4.09%
FCF(TTM)3.41
FCFY2.91%
OCF(TTM)4.7
OCFY4.02%
SpS34.68
BVpS43.6
TBVpS2.77
PEG (NY)1.78
PEG (5Y)5.78
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 | 4.26 |
F-Score7
WACC8.95%
ROIC/WACC0.71
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 5Y11.47%
Revenue 1Y (TTM)24.76%
Revenue growth 3Y14.73%
Revenue growth 5Y7.18%
Sales Q2Q%1.35%
Revenue Next Year16.42%
Revenue Next 2Y10.57%
Revenue Next 3Y8.79%
Revenue Next 5Y7.42%
EBIT growth 1Y36.12%
EBIT growth 3Y16.23%
EBIT growth 5Y3.03%
EBIT Next Year63.64%
EBIT Next 3Y25.72%
EBIT Next 5Y18.36%
FCF growth 1Y268%
FCF growth 3Y-4.06%
FCF growth 5Y10.15%
OCF growth 1Y151.76%
OCF growth 3Y0.52%
OCF growth 5Y7.39%