XYLEM INC (XYL) Fundamental Analysis & Valuation

NYSE:XYL • US98419M1009

126.19 USD
-3.21 (-2.48%)
At close: Mar 5, 2026
126.19 USD
0 (0%)
After Hours: 3/5/2026, 7:27:14 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 130 industry peers in the Machinery industry. While XYL has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, XYL is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

7

1. XYL Profitability Analysis

1.1 Basic Checks

  • XYL had positive earnings in the past year.
  • XYL had a positive operating cash flow in the past year.
  • 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

  • The Return On Assets of XYL (5.43%) is better than 62.31% of its industry peers.
  • XYL has a Return On Equity (8.34%) which is in line with its industry peers.
  • XYL has a Return On Invested Capital (7.28%) 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 10.22%.
  • The last Return On Invested Capital (7.28%) for XYL is above the 3 year average (6.00%), which is a sign of increasing profitability.
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

  • XYL has a Profit Margin of 10.59%. This is in the better half of the industry: XYL outperforms 75.38% of its industry peers.
  • In the last couple of years the Profit Margin of XYL has grown nicely.
  • With a decent Operating Margin value of 14.68%, XYL is doing good in the industry, outperforming 69.23% of the companies in the same industry.
  • In the last couple of years the Operating Margin of XYL has grown nicely.
  • XYL's Gross Margin of 38.46% is fine compared to the rest of the industry. XYL outperforms 73.08% 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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ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • XYL has more shares outstanding than it did 1 year ago.
  • 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.
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

  • XYL has an Altman-Z score of 4.25. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
  • XYL's Altman-Z score of 4.25 is fine compared to the rest of the industry. XYL outperforms 68.46% of its industry peers.
  • XYL has a debt to FCF ratio of 2.23. This is a good value and a sign of high solvency as XYL would need 2.23 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 2.23, XYL is in the better half of the industry, outperforming 75.38% of the companies in the same industry.
  • XYL has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
  • XYL has a Debt to Equity ratio of 0.12. This is in the better half of the industry: XYL outperforms 73.85% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 2.23
Altman-Z 4.25
ROIC/WACC0.81
WACC9%
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.
  • The Current ratio of XYL (1.63) is worse than 69.23% 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 has a Quick ratio (1.28) which is comparable to the rest of the industry.
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

  • The Earnings Per Share has grown by an nice 18.69% over the past year.
  • 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.
  • The Revenue has been growing by 13.13% on average over the past years. This is quite good.
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 12.39% yearly.
  • Based on estimates for the next years, XYL will show a small growth in Revenue. The Revenue will grow by 5.34% on average per year.
EPS Next Y10.54%
EPS Next 2Y10.51%
EPS Next 3Y11.27%
EPS Next 5Y12.39%
Revenue Next Year2.11%
Revenue Next 2Y3.3%
Revenue Next 3Y3.98%
Revenue Next 5Y5.34%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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 24.84 indicates a rather expensive valuation of XYL.
  • Compared to the rest of the industry, the Price/Earnings ratio of XYL is on the same level as its industry peers.
  • XYL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.74, which is the current average of the S&P500 Index.
  • XYL is valuated rather expensively with a Price/Forward Earnings ratio of 22.47.
  • The rest of the industry has a similar Price/Forward Earnings ratio as XYL.
  • XYL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.82, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 24.84
Fwd PE 22.47
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.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as XYL.
Industry RankSector Rank
P/FCF 35.23
EV/EBITDA 16.82
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 an expensive valuation of the company.
  • XYL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.36
PEG (5Y)1.26
EPS Next 2Y10.51%
EPS Next 3Y11.27%

More info and screens

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%.
  • XYL's Dividend Yield is a higher than the industry average which is at 1.13.
  • 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 paid a dividend for at least 10 years, which is 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

  • 40.86% 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.
DP40.86%
EPS Next 2Y10.51%
EPS Next 3Y11.27%
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 (3/5/2026, 7:27:14 PM)

After market: 126.19 0 (0%)

126.19

-3.21 (-2.48%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-10
Earnings (Next)04-27
Inst Owners95.82%
Inst Owner Change21.18%
Ins Owners0.24%
Ins Owner Change-0.79%
Market Cap30.72B
Revenue(TTM)9.04B
Net Income(TTM)957.00M
Analysts80
Price Target160.09 (26.86%)
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)-5.24%
PT rev (3m)-6.38%
EPS NQ rev (1m)-6.49%
EPS NQ rev (3m)-8.07%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)-3.13%
Revenue NQ rev (3m)-4.13%
Revenue NY rev (1m)-1.42%
Revenue NY rev (3m)-2.02%
Valuation
Industry RankSector Rank
PE 24.84
Fwd PE 22.47
P/S 3.4
P/FCF 35.23
P/OCF 24.78
P/B 2.68
P/tB 35.07
EV/EBITDA 16.82
EPS(TTM)5.08
EY4.03%
EPS(NY)5.62
Fwd EY4.45%
FCF(TTM)3.58
FCFY2.84%
OCF(TTM)5.09
OCFY4.04%
SpS37.11
BVpS47.15
TBVpS3.6
PEG (NY)2.36
PEG (5Y)1.26
Graham Number73.41
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 0.12
Debt/FCF 2.23
Debt/EBITDA 0.74
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 4.25
F-Score6
WACC9%
ROIC/WACC0.81
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 Y10.54%
EPS Next 2Y10.51%
EPS Next 3Y11.27%
EPS Next 5Y12.39%
Revenue 1Y (TTM)5.52%
Revenue growth 3Y17.84%
Revenue growth 5Y13.13%
Sales Q2Q%6.25%
Revenue Next Year2.11%
Revenue Next 2Y3.3%
Revenue Next 3Y3.98%
Revenue Next 5Y5.34%
EBIT growth 1Y23.81%
EBIT growth 3Y26.76%
EBIT growth 5Y21.54%
EBIT Next Year36%
EBIT Next 3Y16.87%
EBIT Next 5Y14.95%
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 24.84 and the Price/Book (PB) ratio is 2.68.


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 10.54% in the next year.