XYLEM INC (XYL) Stock Fundamental Analysis

USA New York Stock Exchange NYSE:XYL • US98419M1009

142.12 USD
+2.88 (+2.07%)
At close: Feb 6, 2026
142.12 USD
0 (0%)
After Hours: 2/6/2026, 8:12:24 PM
Fundamental Rating

5

Overall XYL gets a fundamental rating of 5 out of 10. We evaluated XYL against 132 industry peers in the Machinery industry. XYL has only an average score on both its financial health and profitability. XYL is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • In the past year XYL was profitable.
  • In the past year XYL had a positive cash flow from operations.
  • XYL had positive earnings in each of the past 5 years.
  • 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 200M 400M 600M 800M 1B

1.2 Ratios

  • XYL has a Return On Assets of 5.48%. This is in the better half of the industry: XYL outperforms 62.88% of its industry peers.
  • XYL's Return On Equity of 8.46% is in line compared to the rest of the industry. XYL outperforms 57.58% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 7.29%, XYL is in line with its industry, outperforming 54.55% 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 10.37%.
  • The 3 year average ROIC (6.95%) for XYL is below the current ROIC(7.29%), indicating increased profibility in the last year.
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 has a better Profit Margin (10.66%) than 75.00% of its industry peers.
  • In the last couple of years the Profit Margin of XYL has grown nicely.
  • Looking at the Operating Margin, with a value of 13.85%, XYL is in the better half of the industry, outperforming 67.42% of the companies in the same industry.
  • 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 (38.23%) is better than 72.73% of its industry peers.
  • XYL's Gross Margin has been stable in the last couple of years.
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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), XYL is destroying value.
  • XYL has more shares outstanding than it did 1 year ago.
  • The number of shares outstanding for XYL has been increased compared to 5 years ago.
  • 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 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 4.52. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
  • XYL has a Altman-Z score of 4.52. This is in the better half of the industry: XYL outperforms 70.45% of its industry peers.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 2.24, XYL is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
  • A Debt/Equity ratio of 0.17 indicates that XYL is not too dependend on debt financing.
  • XYL's Debt to Equity ratio of 0.17 is fine compared to the rest of the industry. XYL outperforms 72.73% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF 2.24
Altman-Z 4.52
ROIC/WACC0.77
WACC9.48%
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

  • A Current Ratio of 1.96 indicates that XYL should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.96, XYL perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
  • 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.
  • XYL has a better Quick ratio (1.50) than 64.39% 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.
  • 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.
  • The Revenue has been growing slightly by 5.58% in the past year.
  • The Revenue has been growing by 10.28% on average over the past years. This is quite good.
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

  • The Earnings Per Share is expected to grow by 12.11% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 5.70% on average over the next years.
EPS Next Y19.47%
EPS Next 2Y14.6%
EPS Next 3Y13.26%
EPS Next 5Y12.11%
Revenue Next Year6.37%
Revenue Next 2Y4.86%
Revenue Next 3Y4.86%
Revenue Next 5Y5.7%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • 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

  • The Price/Earnings ratio is 29.36, which means the current valuation is very expensive for XYL.
  • XYL's Price/Earnings ratio is in line with the industry average.
  • When comparing the Price/Earnings ratio of XYL to the average of the S&P500 Index (27.92), we can say XYL is valued inline with the index average.
  • XYL is valuated quite expensively with a Price/Forward Earnings ratio of 25.28.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of XYL is on the same level as its industry peers.
  • The average S&P500 Price/Forward Earnings ratio is at 27.78. XYL is around the same levels.
Industry RankSector Rank
PE 29.36
Fwd PE 25.28
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.
  • XYL's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 39.45
EV/EBITDA 19.2
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 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 13.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.51
PEG (5Y)4.07
EPS Next 2Y14.6%
EPS Next 3Y13.26%

6

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 1.15%, XYL has a reasonable but not impressive dividend return.
  • XYL's Dividend Yield is a higher than the industry average which is at 1.00.
  • Compared to the average S&P500 Dividend Yield of 1.83, XYL is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.15%

5.2 History

  • On average, the dividend of XYL grows each year by 8.36%, 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)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 2Y14.6%
EPS Next 3Y13.26%
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 (2/6/2026, 8:12:24 PM)

After market: 142.12 0 (0%)

142.12

+2.88 (+2.07%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)10-28
Earnings (Next)02-10
Inst Owners95.82%
Inst Owner Change-1.48%
Ins Owners0.24%
Ins Owner Change-1.35%
Market Cap34.60B
Revenue(TTM)8.89B
Net Income(TTM)948.00M
Analysts79.26
Price Target168.63 (18.65%)
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)-0.97%
PT rev (3m)3.8%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)7.48%
EPS NY rev (1m)0.03%
EPS NY rev (3m)4.68%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.86%
Valuation
Industry RankSector Rank
PE 29.36
Fwd PE 25.28
P/S 3.89
P/FCF 39.45
P/OCF 27.42
P/B 3.09
P/tB 56.91
EV/EBITDA 19.2
EPS(TTM)4.84
EY3.41%
EPS(NY)5.62
Fwd EY3.96%
FCF(TTM)3.6
FCFY2.53%
OCF(TTM)5.18
OCFY3.65%
SpS36.53
BVpS46.03
TBVpS2.5
PEG (NY)1.51
PEG (5Y)4.07
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 4.52
F-Score8
WACC9.48%
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 2Y14.6%
EPS Next 3Y13.26%
EPS Next 5Y12.11%
Revenue 1Y (TTM)5.58%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%7.79%
Revenue Next Year6.37%
Revenue Next 2Y4.86%
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 29.36 and the Price/Book (PB) ratio is 3.09.


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.