XYLEM INC (XYL) Stock Fundamental Analysis

NYSE:XYL • US98419M1009

131.19 USD
+2.93 (+2.28%)
Last: Feb 26, 2026, 02:30 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall XYL gets a fundamental rating of 5 out of 10. We evaluated XYL against 130 industry peers in the Machinery industry. While XYL belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. XYL is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

7

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.
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

  • XYL has a Return On Assets of 5.43%. This is in the better half of the industry: XYL outperforms 63.08% of its industry peers.
  • XYL has a Return On Equity (8.34%) which is comparable to the rest of the industry.
  • Looking at the Return On Invested Capital, with a value of 7.28%, XYL is in line with its industry, outperforming 54.62% 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 10.27%.
  • 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 better Profit Margin (10.59%) than 76.15% of its industry peers.
  • In the last couple of years the Profit Margin of XYL has grown nicely.
  • XYL has a Operating Margin of 14.68%. This is in the better half of the industry: XYL outperforms 69.23% of its industry peers.
  • XYL's Operating Margin has improved in the last couple of years.
  • XYL has a better Gross Margin (38.46%) than 73.08% of its industry peers.
  • 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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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), XYL is destroying value.
  • Compared to 1 year ago, XYL has more shares outstanding
  • Compared to 5 years ago, XYL has more shares outstanding
  • Compared to 1 year ago, XYL has an improved debt to assets ratio.
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 4.22. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
  • XYL has a Altman-Z score of 4.22. This is in the better half of the industry: XYL outperforms 69.23% 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.
  • The Debt to FCF ratio of XYL (2.23) is better than 75.38% of its industry peers.
  • 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 74.62% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 2.23
Altman-Z 4.22
ROIC/WACC0.81
WACC9.03%
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 has a Current ratio of 1.63. This is in the lower half of the industry: XYL underperforms 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's Quick ratio of 1.28 is in line compared to the rest of the industry. XYL outperforms 51.54% 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

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%.
  • XYL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.13% yearly.
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 12.39% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 5.34% on average over the next years.
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.
  • 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. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 25.82, the valuation of XYL can be described as expensive.
  • Based on the Price/Earnings ratio, XYL is valued a bit cheaper than 60.77% of the companies in the same industry.
  • XYL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.05, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 23.36, 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.
  • When comparing the Price/Forward Earnings ratio of XYL to the average of the S&P500 Index (28.03), we can say XYL is valued inline with the index average.
Industry RankSector Rank
PE 25.82
Fwd PE 23.36
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as XYL.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as XYL.
Industry RankSector Rank
P/FCF 36.63
EV/EBITDA 16.67
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)2.45
PEG (5Y)1.31
EPS Next 2Y10.51%
EPS Next 3Y11.27%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • XYL has a Yearly Dividend Yield of 1.15%.
  • Compared to an average industry Dividend Yield of 1.18, XYL pays a bit more dividend than its industry peers.
  • 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 9.04%!
  • 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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XYLEM INC

NYSE:XYL (2/26/2026, 2:30:03 PM)

131.19

+2.93 (+2.28%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-10
Earnings (Next)04-27
Inst Owners95.82%
Inst Owner Change21.17%
Ins Owners0.24%
Ins Owner Change-0.79%
Market Cap31.94B
Revenue(TTM)9.04B
Net Income(TTM)957.00M
Analysts80
Price Target168.63 (28.54%)
Short Float %1.72%
Short Ratio2.76
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)4.81%
Min EPS beat(2)-0.39%
Max EPS beat(2)10.02%
EPS beat(4)3
Avg EPS beat(4)6.13%
Min EPS beat(4)-0.39%
Max EPS beat(4)10.02%
EPS beat(8)6
Avg EPS beat(8)4.51%
EPS beat(12)10
Avg EPS beat(12)7.13%
EPS beat(16)14
Avg EPS beat(16)9.62%
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)-0.19%
PT rev (3m)-1.38%
EPS NQ rev (1m)-6.51%
EPS NQ rev (3m)-8.09%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)-3.09%
Revenue NQ rev (3m)-4.09%
Revenue NY rev (1m)-1.42%
Revenue NY rev (3m)-2.02%
Valuation
Industry RankSector Rank
PE 25.82
Fwd PE 23.36
P/S 3.54
P/FCF 36.63
P/OCF 25.76
P/B 2.78
P/tB 36.46
EV/EBITDA 16.67
EPS(TTM)5.08
EY3.87%
EPS(NY)5.62
Fwd EY4.28%
FCF(TTM)3.58
FCFY2.73%
OCF(TTM)5.09
OCFY3.88%
SpS37.11
BVpS47.15
TBVpS3.6
PEG (NY)2.45
PEG (5Y)1.31
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 4.22
F-Score6
WACC9.03%
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 Year37.96%
EBIT Next 3Y18.08%
EBIT Next 5Y15.02%
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 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 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 25.82 and the Price/Book (PB) ratio is 2.78.


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.