XYLEM INC (XYL) Fundamental Analysis & Valuation

NYSE:XYL • US98419M1009

Current stock price

121.46 USD
+1.48 (+1.23%)
At close:
121.46 USD
0 (0%)
After Hours:

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

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.
  • Each year in the past 5 years XYL had a positive operating cash flow.
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's Return On Equity of 8.34% is in line compared to the rest of the industry. XYL outperforms 54.96% of its industry peers.
  • With a Return On Invested Capital value of 7.28%, XYL perfoms like the industry average, outperforming 55.73% of the companies in the same industry.
  • XYL had an Average Return On Invested Capital over the past 3 years of 6.00%. This is below the industry average of 10.00%.
  • 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

  • XYL's Profit Margin of 10.59% is fine compared to the rest of the industry. XYL outperforms 76.34% of its industry peers.
  • XYL's Profit Margin has improved in the last couple of years.
  • The Operating Margin of XYL (14.68%) is better than 69.47% of its industry peers.
  • In the last couple of years the Operating Margin of XYL has grown nicely.
  • Looking at the Gross Margin, with a value of 38.46%, XYL is in the better half of the industry, outperforming 71.76% of the companies in the same industry.
  • XYL's Gross Margin has been stable in the last couple of years.
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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so XYL is destroying value.
  • The number of shares outstanding for XYL has been increased compared to 1 year ago.
  • XYL has more shares outstanding than it did 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

  • XYL has an Altman-Z score of 4.03. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
  • With a decent Altman-Z score value of 4.03, XYL is doing good in the industry, outperforming 64.89% of the companies in the same industry.
  • XYL has a debt to FCF ratio of 2.37. This is a good value and a sign of high solvency as XYL would need 2.37 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 2.37, XYL is in the better half of the industry, outperforming 77.10% of the companies in the same industry.
  • 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 4.03
ROIC/WACC0.71
WACC10.21%
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

  • XYL has a Current Ratio of 1.63. This is a normal value and indicates that XYL is financially healthy and should not expect problems in meeting 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 68.70% 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 51.91% 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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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.
  • XYL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.52%.
  • 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

  • The Earnings Per Share is expected to grow by 10.80% on average over the next years. This is quite good.
  • 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 Y9.5%
EPS Next 2Y9.98%
EPS Next 3Y10.32%
EPS Next 5Y10.8%
Revenue Next Year2.05%
Revenue Next 2Y3.27%
Revenue Next 3Y3.94%
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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3

4. XYL Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 23.91, the valuation of XYL can be described as rather expensive.
  • XYL's Price/Earnings ratio is a bit cheaper when compared to the industry. XYL is cheaper than 60.31% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of XYL to the average of the S&P500 Index (27.79), we can say XYL is valued inline with the index average.
  • A Price/Forward Earnings ratio of 21.83 indicates a rather expensive valuation of XYL.
  • XYL's Price/Forward Earnings ratio is in line with the industry average.
  • When comparing the Price/Forward Earnings ratio of XYL to the average of the S&P500 Index (38.88), we can say XYL is valued slightly cheaper.
Industry RankSector Rank
PE 23.91
Fwd PE 21.83
XYL Price Earnings VS Forward Price EarningsXYL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • XYL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. XYL is cheaper than 61.07% of the companies in the same industry.
  • XYL's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 33.54
EV/EBITDA 15.7
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.
  • XYL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.52
PEG (5Y)1.21
EPS Next 2Y9.98%
EPS Next 3Y10.32%

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7

5. XYL Dividend Analysis

5.1 Amount

  • XYL has a Yearly Dividend Yield of 1.46%.
  • XYL's Dividend Yield is rather good when compared to the industry average which is at 1.08. XYL pays more dividend than 81.68% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, XYL has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.46%

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 Years14
Div Non Decr Years14
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.
  • XYL's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP40.86%
EPS Next 2Y9.98%
EPS Next 3Y10.32%
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 (4/22/2026, 8:04:00 PM)

After market: 121.46 0 (0%)

121.46

+1.48 (+1.23%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-10
Earnings (Next)04-28
Inst Owners98.51%
Inst Owner Change-0.03%
Ins Owners0.31%
Ins Owner Change4.67%
Market Cap29.25B
Revenue(TTM)9.04B
Net Income(TTM)957.00M
Analysts79.29
Price Target158.37 (30.39%)
Short Float %2.04%
Short Ratio2.31
Dividend
Industry RankSector Rank
Dividend Yield 1.46%
Yearly Dividend1.61
Dividend Growth(5Y)9.04%
DP40.86%
Div Incr Years14
Div Non Decr Years14
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)-1.08%
PT rev (3m)-6.26%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-6.56%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-0.94%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-3.44%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-1.65%
Valuation
Industry RankSector Rank
PE 23.91
Fwd PE 21.83
P/S 3.24
P/FCF 33.54
P/OCF 23.59
P/B 2.55
P/tB 33.39
EV/EBITDA 15.7
EPS(TTM)5.08
EY4.18%
EPS(NY)5.56
Fwd EY4.58%
FCF(TTM)3.62
FCFY2.98%
OCF(TTM)5.15
OCFY4.24%
SpS37.52
BVpS47.67
TBVpS3.64
PEG (NY)2.52
PEG (5Y)1.21
Graham Number73.814 (-39.23%)
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 4.03
F-Score6
WACC10.21%
ROIC/WACC0.71
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 Y9.5%
EPS Next 2Y9.98%
EPS Next 3Y10.32%
EPS Next 5Y10.8%
Revenue 1Y (TTM)5.52%
Revenue growth 3Y17.84%
Revenue growth 5Y13.13%
Sales Q2Q%6.25%
Revenue Next Year2.05%
Revenue Next 2Y3.27%
Revenue Next 3Y3.94%
Revenue Next 5Y5.29%
EBIT growth 1Y23.81%
EBIT growth 3Y26.76%
EBIT growth 5Y21.54%
EBIT Next Year34.67%
EBIT Next 3Y16.53%
EBIT Next 5Y12.41%
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 Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for XYLEM INC?

ChartMill assigns a fundamental rating of 6 / 10 to XYL.


Can you provide the valuation status for XYLEM INC?

ChartMill assigns a valuation rating of 4 / 10 to XYLEM INC (XYL). This can be considered as Fairly Valued.


How profitable is XYLEM INC (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 23.91 and the Price/Book (PB) ratio is 2.55.


Is the dividend of XYLEM INC sustainable?

The dividend rating of XYLEM INC (XYL) is 7 / 10 and the dividend payout ratio is 40.86%.