XYLEM INC (XYL) Stock Fundamental Analysis

USA New York Stock Exchange NYSE:XYL • US98419M1009

128.92 USD
-11.27 (-8.04%)
At close: Feb 10, 2026
128.92 USD
0 (0%)
After Hours: 2/10/2026, 7:00:00 PM
Fundamental Rating

5

XYL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 131 industry peers in the Machinery industry. XYL has an average financial health and profitability rating. While showing a medium growth rate, XYL is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • XYL had positive earnings in the past year.
  • In the past year XYL had a positive cash flow from operations.
  • Each year in the past 5 years XYL has been profitable.
  • In the past 5 years XYL always reported a positive cash flow from operatings.
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 200M 400M 600M 800M 1B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 5.48%, XYL is in the better half of the industry, outperforming 62.60% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 8.46%, XYL is in line with its industry, outperforming 57.25% of the companies in the same industry.
  • XYL has a Return On Invested Capital of 7.29%. This is comparable to the rest of the industry: XYL outperforms 55.73% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for XYL is below the industry average of 10.25%.
  • 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 RankSector 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%
XYL Yearly ROA, ROE, ROICXYL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

  • XYL's Profit Margin of 10.66% is fine compared to the rest of the industry. XYL outperforms 74.81% of its industry peers.
  • In the last couple of years the Profit Margin of XYL has grown nicely.
  • XYL's Operating Margin of 13.85% is fine compared to the rest of the industry. XYL outperforms 67.18% of its industry peers.
  • XYL's Operating Margin has been stable in the last couple of years.
  • Looking at the Gross Margin, with a value of 38.23%, XYL is in the better half of the industry, outperforming 72.52% of the companies in the same industry.
  • In the last couple of years the Gross Margin of XYL has remained more or less at the same level.
Industry RankSector 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%
XYL Yearly Profit, Operating, Gross MarginsXYL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

6

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so XYL is destroying value.
  • Compared to 1 year ago, XYL has more shares outstanding
  • 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 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 5B 10B 15B

2.2 Solvency

  • XYL has an Altman-Z score of 4.54. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 4.54, XYL is in the better half of the industry, outperforming 71.76% of the companies in the same industry.
  • XYL has a debt to FCF ratio of 2.24. This is a good value and a sign of high solvency as XYL would need 2.24 years to pay back of all of its debts.
  • XYL has a Debt to FCF ratio of 2.24. This is in the better half of the industry: XYL outperforms 76.34% of its industry peers.
  • XYL has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
  • XYL has a Debt to Equity ratio of 0.17. This is in the better half of the industry: XYL outperforms 72.52% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF 2.24
Altman-Z 4.54
ROIC/WACC0.77
WACC9.46%
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 2B 4B 6B 8B 10B

2.3 Liquidity

  • XYL has a Current Ratio of 1.96. This is a normal value and indicates that XYL is financially healthy and should not expect problems in meeting its short term obligations.
  • XYL has a Current ratio of 1.96. This is comparable to the rest of the industry: XYL outperforms 45.04% of its industry peers.
  • A Quick Ratio of 1.50 indicates that XYL should not have too much problems paying its short term obligations.
  • The Quick ratio of XYL (1.50) is better than 64.12% of its industry peers.
Industry RankSector Rank
Current Ratio 1.96
Quick Ratio 1.5
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 1B 2B 3B 4B

5

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 18.34% over the past year.
  • The Earnings Per Share has been growing slightly by 7.22% on average over the past years.
  • The Revenue has been growing slightly by 5.58% in the past year.
  • XYL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.28% yearly.
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

  • XYL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.11% yearly.
  • The Revenue is expected to grow by 5.70% on average over the next years.
EPS Next Y19.47%
EPS Next 2Y14.54%
EPS Next 3Y13.17%
EPS Next 5Y12.11%
Revenue Next Year6.36%
Revenue Next 2Y4.85%
Revenue Next 3Y4.86%
Revenue Next 5Y5.7%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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

3

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 26.64, XYL can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Earnings ratio of XYL is on the same level as its industry peers.
  • The average S&P500 Price/Earnings ratio is at 28.03. XYL is around the same levels.
  • The Price/Forward Earnings ratio is 22.96, which indicates a rather expensive current valuation of XYL.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of XYL is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.97, XYL is valued at the same level.
Industry RankSector Rank
PE 26.64
Fwd PE 22.96
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 is on the same level as the industry average.
  • XYL's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 35.79
EV/EBITDA 19.33
XYL Per share dataXYL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • XYL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • XYL has a very decent profitability rating, which may justify a higher PE ratio.
  • XYL's earnings are expected to grow with 13.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.37
PEG (5Y)3.69
EPS Next 2Y14.54%
EPS Next 3Y13.17%

6

5. Dividend

5.1 Amount

  • XYL has a Yearly Dividend Yield of 1.15%. Purely for dividend investing, there may be better candidates out there.
  • XYL's Dividend Yield is a higher than the industry average which is at 1.15.
  • XYL's Dividend Yield is slightly below the S&P500 average, which is at 1.80.
Industry RankSector Rank
Dividend Yield 1.15%

5.2 History

  • The dividend of XYL is nicely growing with an annual growth rate of 8.36%!
  • 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)8.36%
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 0.5 1 1.5

5.3 Sustainability

  • XYL pays out 40.08% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • XYL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP40.08%
EPS Next 2Y14.54%
EPS Next 3Y13.17%
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 200M 400M 600M 800M
XYL Dividend Payout.XYL Dividend Payout, showing the Payout Ratio.XYL Dividend Payout.PayoutRetained Earnings

XYLEM INC

NYSE:XYL (2/10/2026, 7:00:00 PM)

After market: 128.92 0 (0%)

128.92

-11.27 (-8.04%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)10-28
Earnings (Next)02-10
Inst Owners95.82%
Inst Owner Change-1.13%
Ins Owners0.24%
Ins Owner Change-1.2%
Market Cap31.39B
Revenue(TTM)8.89B
Net Income(TTM)948.00M
Analysts79.26
Price Target168.63 (30.8%)
Short Float %1.17%
Short Ratio2.11
Dividend
Industry RankSector Rank
Dividend Yield 1.15%
Yearly Dividend1.44
Dividend Growth(5Y)8.36%
DP40.08%
Div Incr Years13
Div Non Decr Years13
Ex-DateN/A
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)-1.16%
PT rev (3m)3.6%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)0.67%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.87%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.09%
Valuation
Industry RankSector Rank
PE 26.64
Fwd PE 22.96
P/S 3.53
P/FCF 35.79
P/OCF 24.87
P/B 2.8
P/tB 51.63
EV/EBITDA 19.33
EPS(TTM)4.84
EY3.75%
EPS(NY)5.62
Fwd EY4.36%
FCF(TTM)3.6
FCFY2.79%
OCF(TTM)5.18
OCFY4.02%
SpS36.53
BVpS46.03
TBVpS2.5
PEG (NY)1.37
PEG (5Y)3.69
Graham Number70.8
Profitability
Industry RankSector 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 RankSector 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 4.54
F-Score8
WACC9.46%
ROIC/WACC0.77
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 Y19.47%
EPS Next 2Y14.54%
EPS Next 3Y13.17%
EPS Next 5Y12.11%
Revenue 1Y (TTM)5.58%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%7.79%
Revenue Next Year6.36%
Revenue Next 2Y4.85%
Revenue Next 3Y4.86%
Revenue Next 5Y5.7%
EBIT growth 1Y21.98%
EBIT growth 3Y21.85%
EBIT growth 5Y8.97%
EBIT Next Year49.52%
EBIT Next 3Y20.36%
EBIT Next 5Y15.88%
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.


Can you provide the valuation status for XYLEM INC?

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 valuation of XYLEM INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for XYLEM INC (XYL) is 26.64 and the Price/Book (PB) ratio is 2.8.


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 19.47% in the next year.