XYLEM INC (XYL) Stock Fundamental Analysis
USA - NYSE:XYL - US98419M1009 - Common Stock
143.39 USD
+2.67 (+1.9%)
Overall XYL gets a fundamental rating of 5 out of 10. We evaluated XYL against 128 industry peers in the Machinery industry. XYL has only an average score on both its financial health and profitability. While showing a medium growth rate, XYL is valued expensive at the moment. XYL also has an excellent dividend rating. With these ratings, XYL could be worth investigating further for dividend investing!.
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.
In the past 5 years XYL always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 5.46%, XYL perfoms like the industry average, outperforming 57.81% of the companies in the same industry.
XYL has a Return On Equity (8.47%) which is in line with its industry peers.
With a Return On Invested Capital value of 6.92%, XYL perfoms like the industry average, outperforming 53.13% of the companies in the same industry.
XYL had an Average Return On Invested Capital over the past 3 years of 6.95%. This is below the industry average of 10.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 8.47% | ||
| ROIC | 6.92% |
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
With a decent Profit Margin value of 10.74%, XYL is doing good in the industry, outperforming 75.78% of the companies in the same industry.
In the last couple of years the Profit Margin of XYL has grown nicely.
XYL has a better Operating Margin (13.28%) than 64.06% of its industry peers.
In the last couple of years the Operating Margin of XYL has remained more or less at the same level.
The Gross Margin of XYL (37.81%) is better than 69.53% 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 | 13.28% | ||
| PM (TTM) | 10.74% | ||
| GM | 37.81% |
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
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
The debt/assets ratio for XYL has been reduced compared to a year ago.
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.
The Altman-Z score of XYL (4.51) is better than 75.00% of its industry peers.
XYL has a debt to FCF ratio of 2.36. This is a good value and a sign of high solvency as XYL would need 2.36 years to pay back of all of its debts.
The Debt to FCF ratio of XYL (2.36) is better than 74.22% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that XYL is not too dependend on debt financing.
XYL has a better Debt to Equity ratio (0.17) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 4.51 |
ROIC/WACC0.71
WACC9.8%
2.3 Liquidity
A Current Ratio of 1.90 indicates that XYL should not have too much problems paying its short term obligations.
XYL's Current ratio of 1.90 is in line compared to the rest of the industry. XYL outperforms 44.53% of its industry peers.
A Quick Ratio of 1.43 indicates that XYL should not have too much problems paying its short term obligations.
The Quick ratio of XYL (1.43) is better than 64.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
XYL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.37%, which is quite good.
XYL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.22% yearly.
Looking at the last year, XYL shows a small growth in Revenue. The Revenue has grown by 3.98% in the last 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)15.37%
EPS 3Y19.95%
EPS 5Y7.22%
EPS Q2Q%15.6%
Revenue 1Y (TTM)3.98%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%6.09%
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 10.56% yearly.
Based on estimates for the next years, XYL will show a small growth in Revenue. The Revenue will grow by 5.56% on average per year.
EPS Next Y13.69%
EPS Next 2Y12.21%
EPS Next 3Y11.67%
EPS Next 5Y10.56%
Revenue Next Year5.42%
Revenue Next 2Y5.33%
Revenue Next 3Y5.3%
Revenue Next 5Y5.56%
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
With a Price/Earnings ratio of 31.31, XYL can be considered very expensive at the moment.
XYL's Price/Earnings ratio is a bit more expensive when compared to the industry. XYL is more expensive than 60.94% of the companies in the same industry.
XYL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.20.
With a Price/Forward Earnings ratio of 26.61, XYL can be considered very expensive at the moment.
XYL's Price/Forward Earnings ratio is in line with the industry average.
XYL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.31 | ||
| Fwd PE | 26.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, XYL is valued a bit more expensive than the industry average as 63.28% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, XYL is valued a bit more expensive than the industry average as 64.06% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.35 | ||
| EV/EBITDA | 20.25 |
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)2.29
PEG (5Y)4.33
EPS Next 2Y12.21%
EPS Next 3Y11.67%
5. Dividend
5.1 Amount
XYL has a Yearly Dividend Yield of 1.23%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.74, XYL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, XYL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.36%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
39.55% of the earnings are spent on dividend by XYL. This is a low number and sustainable payout ratio.
XYL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP39.55%
EPS Next 2Y12.21%
EPS Next 3Y11.67%
NYSE:XYL (9/17/2025, 2:06:07 PM)
143.39
+2.67 (+1.9%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97%
Inst Owner Change-2.67%
Ins Owners0.24%
Ins Owner Change0.19%
Market Cap34.90B
Analysts79.23
Price Target161.11 (12.36%)
Short Float %0.94%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
Yearly Dividend1.44
Dividend Growth(5Y)8.36%
DP39.55%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.45%
Min EPS beat(2)6.98%
Max EPS beat(2)7.92%
EPS beat(4)3
Avg EPS beat(4)4.43%
Min EPS beat(4)-0.98%
Max EPS beat(4)7.92%
EPS beat(8)7
Avg EPS beat(8)4.96%
EPS beat(12)11
Avg EPS beat(12)9.17%
EPS beat(16)15
Avg EPS beat(16)9.46%
Revenue beat(2)2
Avg Revenue beat(2)1.67%
Min Revenue beat(2)0.44%
Max Revenue beat(2)2.91%
Revenue beat(4)3
Avg Revenue beat(4)0.39%
Min Revenue beat(4)-4.15%
Max Revenue beat(4)2.91%
Revenue beat(8)7
Avg Revenue beat(8)0.99%
Revenue beat(12)11
Avg Revenue beat(12)2.11%
Revenue beat(16)13
Avg Revenue beat(16)1.71%
PT rev (1m)1.8%
PT rev (3m)13.45%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)4.1%
EPS NY rev (1m)4.04%
EPS NY rev (3m)4.41%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)2.14%
Revenue NY rev (1m)2.14%
Revenue NY rev (3m)2.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.31 | ||
| Fwd PE | 26.61 | ||
| P/S | 4 | ||
| P/FCF | 41.35 | ||
| P/OCF | 28.52 | ||
| P/B | 3.15 | ||
| P/tB | 72.26 | ||
| EV/EBITDA | 20.25 |
EPS(TTM)4.58
EY3.19%
EPS(NY)5.39
Fwd EY3.76%
FCF(TTM)3.47
FCFY2.42%
OCF(TTM)5.03
OCFY3.51%
SpS35.87
BVpS45.5
TBVpS1.98
PEG (NY)2.29
PEG (5Y)4.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 8.47% | ||
| ROCE | 7.78% | ||
| ROIC | 6.92% | ||
| ROICexc | 7.51% | ||
| ROICexgc | 32.93% | ||
| OM | 13.28% | ||
| PM (TTM) | 10.74% | ||
| GM | 37.81% | ||
| FCFM | 9.67% |
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%
ROICexcg growth 3Y5.31%
ROICexcg 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 | 2.36 | ||
| Debt/EBITDA | 1.11 | ||
| Cap/Depr | 66.32% | ||
| Cap/Sales | 4.35% | ||
| Interest Coverage | 18.4 | ||
| Cash Conversion | 70.67% | ||
| Profit Quality | 89.98% | ||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 4.51 |
F-Score8
WACC9.8%
ROIC/WACC0.71
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)15.37%
EPS 3Y19.95%
EPS 5Y7.22%
EPS Q2Q%15.6%
EPS Next Y13.69%
EPS Next 2Y12.21%
EPS Next 3Y11.67%
EPS Next 5Y10.56%
Revenue 1Y (TTM)3.98%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%6.09%
Revenue Next Year5.42%
Revenue Next 2Y5.33%
Revenue Next 3Y5.3%
Revenue Next 5Y5.56%
EBIT growth 1Y23.43%
EBIT growth 3Y21.85%
EBIT growth 5Y8.97%
EBIT Next Year44.03%
EBIT Next 3Y19.53%
EBIT Next 5Y15.05%
FCF growth 1Y136.42%
FCF growth 3Y41.3%
FCF growth 5Y8.72%
OCF growth 1Y113.61%
OCF growth 3Y32.52%
OCF growth 5Y8.33%