XYLEM INC (XYL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:XYL - US98419M1009 - Common Stock
138.73 USD
+0.11 (+0.08%)
138.73 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 valied quite expensively at the moment, while 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.
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.
1.2 Ratios
With a decent Return On Assets value of 5.48%, XYL is doing good in the industry, outperforming 62.12% of the companies in the same industry.
With a Return On Equity value of 8.46%, XYL perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.29%, XYL is in line with its industry, outperforming 55.30% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for XYL is below the industry average of 10.27%.
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
XYL has a better Profit Margin (10.66%) than 75.00% of its industry peers.
XYL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.85%, XYL is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
XYL's Operating Margin has been stable in the last couple of years.
The Gross Margin of XYL (38.23%) is better than 71.21% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), XYL is destroying value.
The number of shares outstanding for XYL has been increased compared to 1 year ago.
Compared to 5 years ago, XYL has more shares outstanding
XYL has a better debt/assets ratio than last year.
2.2 Solvency
XYL has an Altman-Z score of 4.51. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.51, XYL is doing good in the industry, outperforming 70.45% of the companies in the same industry.
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's Debt to FCF ratio of 2.24 is fine compared to the rest of the industry. XYL outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that XYL is not too dependend on debt financing.
XYL has a Debt to Equity ratio of 0.17. This is in the better half of the industry: XYL outperforms 74.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 4.51 |
ROIC/WACC0.78
WACC9.33%
2.3 Liquidity
A Current Ratio of 1.96 indicates that XYL should not have too much problems paying its short term obligations.
XYL's Current ratio of 1.96 is in line compared to the rest of the industry. XYL outperforms 43.94% of its industry peers.
XYL has a Quick Ratio of 1.50. 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 decent Quick ratio value of 1.50, XYL is doing good in 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.
XYL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.58%.
Measured over the past years, XYL shows a quite strong growth in Revenue. The Revenue has been growing by 10.28% on average per year.
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
Based on estimates for the next years, XYL will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.23% on average per year.
Based on estimates for the next years, XYL will show a small growth in Revenue. The Revenue will grow by 5.84% on average per year.
EPS Next Y19.45%
EPS Next 2Y14.47%
EPS Next 3Y13.44%
EPS Next 5Y11.23%
Revenue Next Year6.39%
Revenue Next 2Y5.04%
Revenue Next 3Y5.09%
Revenue Next 5Y5.84%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.66 indicates a quite expensive valuation of XYL.
XYL's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.59. XYL is around the same levels.
Based on the Price/Forward Earnings ratio of 24.74, the valuation of XYL can be described as rather expensive.
XYL's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.03. XYL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.66 | ||
| Fwd PE | 24.74 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of XYL indicates a slightly more expensive valuation: XYL is more expensive than 60.61% of the companies listed in the same industry.
XYL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.51 | ||
| EV/EBITDA | 19.13 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of XYL may justify a higher PE ratio.
XYL's earnings are expected to grow with 13.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.47
PEG (5Y)3.97
EPS Next 2Y14.47%
EPS Next 3Y13.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.10%, XYL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.04, XYL pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.10, XYL pays less dividend than the S&P500 average, which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
On average, the dividend of XYL grows each year by 8.36%, 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)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 2Y14.47%
EPS Next 3Y13.44%
138.73
+0.11 (+0.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.86%
Inst Owner Change0.64%
Ins Owners0.24%
Ins Owner Change-1.31%
Market Cap33.78B
Revenue(TTM)8.89B
Net Income(TTM)948.00M
Analysts79.26
Price TargetN/A
Short Float %1.42%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend1.44
Dividend Growth(5Y)8.36%
DP40.08%
Div Incr Years13
Div Non Decr Years13
Ex-Date
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)5.25%
PT rev (3m)6.33%
EPS NQ rev (1m)0.55%
EPS NQ rev (3m)8.05%
EPS NY rev (1m)0.86%
EPS NY rev (3m)5.07%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.66 | ||
| Fwd PE | 24.74 | ||
| P/S | 3.8 | ||
| P/FCF | 38.51 | ||
| P/OCF | 26.76 | ||
| P/B | 3.01 | ||
| P/tB | 55.55 | ||
| EV/EBITDA | 19.13 |
EPS(TTM)4.84
EY3.49%
EPS(NY)5.61
Fwd EY4.04%
FCF(TTM)3.6
FCFY2.6%
OCF(TTM)5.18
OCFY3.74%
SpS36.53
BVpS46.03
TBVpS2.5
PEG (NY)1.47
PEG (5Y)3.97
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 | 4.51 |
F-Score8
WACC9.33%
ROIC/WACC0.78
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 Y19.45%
EPS Next 2Y14.47%
EPS Next 3Y13.44%
EPS Next 5Y11.23%
Revenue 1Y (TTM)5.58%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%7.79%
Revenue Next Year6.39%
Revenue Next 2Y5.04%
Revenue Next 3Y5.09%
Revenue Next 5Y5.84%
EBIT growth 1Y21.98%
EBIT growth 3Y21.85%
EBIT growth 5Y8.97%
EBIT Next Year49.81%
EBIT Next 3Y20.55%
EBIT Next 5Y15.48%
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.
What is the valuation status of XYLEM INC (XYL) stock?
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 expected EPS growth for XYLEM INC (XYL) stock?
The Earnings per Share (EPS) of XYLEM INC (XYL) is expected to grow by 19.45% in the next year.
Can you provide the dividend sustainability for XYL stock?
The dividend rating of XYLEM INC (XYL) is 6 / 10 and the dividend payout ratio is 40.08%.