XYLEM INC (XYL) Fundamental Analysis & Valuation

NYSE:XYL • US98419M1009

Current stock price

115.37 USD
-2.79 (-2.36%)
At close:
116 USD
+0.63 (+0.55%)
After Hours:

This XYL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. XYL Profitability Analysis

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.
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

  • The Return On Assets of XYL (5.43%) is better than 61.83% of its industry peers.
  • XYL has a Return On Equity (8.34%) which is comparable to the rest of the industry.
  • The Return On Invested Capital of XYL (7.28%) is comparable to the rest of the industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for XYL is below the industry average of 10.06%.
  • 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

  • Looking at the Profit Margin, with a value of 10.59%, XYL is in the better half of the industry, outperforming 76.34% of the companies in the same industry.
  • XYL's Profit Margin has improved in the last couple of years.
  • With a decent Operating Margin value of 14.68%, XYL is doing good in the industry, outperforming 69.47% of the companies in the same industry.
  • In the last couple of years the Operating Margin of XYL has grown nicely.
  • XYL has a Gross Margin of 38.46%. This is in the better half of the industry: XYL outperforms 70.99% 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 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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5

2. XYL Health Analysis

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
  • The number of shares outstanding for XYL has been increased compared to 5 years ago.
  • XYL has a better debt/assets ratio than last year.
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

  • An Altman-Z score of 3.95 indicates that XYL is not in any danger for bankruptcy at the moment.
  • XYL has a Altman-Z score of 3.95. This is in the better half of the industry: XYL outperforms 65.65% of its industry peers.
  • The Debt to FCF ratio of XYL is 2.37, which is a good value as it means it would take XYL, 2.37 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 2.37, XYL is in the better half of the industry, outperforming 77.10% of the companies in the same industry.
  • XYL has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
  • XYL has a Debt to Equity ratio of 0.13. This is in the better half of the industry: XYL outperforms 73.28% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 2.37
Altman-Z 3.95
ROIC/WACC0.7
WACC10.34%
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's Current ratio of 1.63 is on the low side compared to the rest of the industry. XYL is outperformed by 70.23% 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 has a Quick ratio (1.28) which is comparable to the rest of the industry.
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. XYL Growth Analysis

3.1 Past

  • XYL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.23%, which is quite good.
  • The Earnings Per Share has been growing by 19.78% on average over the past years. This is quite good.
  • The Revenue has been growing slightly by 5.52% in the past year.
  • 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)17.23%
EPS 3Y21.39%
EPS 5Y19.78%
EPS Q2Q%8.74%
Revenue 1Y (TTM)5.52%
Revenue growth 3Y17.84%
Revenue growth 5Y13.13%
Sales Q2Q%2.71%

3.2 Future

  • The Earnings Per Share is expected to grow by 10.80% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 5.29% on average over the next years.
EPS Next Y9.5%
EPS Next 2Y9.98%
EPS Next 3Y10.32%
EPS Next 5Y10.8%
Revenue Next Year2.05%
Revenue Next 2Y3.27%
Revenue Next 3Y3.94%
Revenue Next 5Y5.29%

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. XYL Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 22.32 indicates a rather expensive valuation of XYL.
  • Based on the Price/Earnings ratio, XYL is valued a bit cheaper than 65.65% of the companies in the same industry.
  • XYL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.64.
  • The Price/Forward Earnings ratio is 18.78, which indicates a rather expensive current valuation of XYL.
  • XYL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. XYL is cheaper than 64.12% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.36, XYL is valued at the same level.
Industry RankSector Rank
PE 22.32
Fwd PE 18.78
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of XYL indicates a somewhat cheap valuation: XYL is cheaper than 60.31% of the companies listed in the same industry.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as XYL.
Industry RankSector Rank
P/FCF 31.86
EV/EBITDA 15.28
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.
  • The decent profitability rating of XYL may justify a higher PE ratio.
PEG (NY)2.35
PEG (5Y)1.13
EPS Next 2Y9.98%
EPS Next 3Y10.32%

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

7

5. XYL Dividend Analysis

5.1 Amount

  • XYL has a Yearly Dividend Yield of 1.46%. Purely for dividend investing, there may be better candidates out there.
  • XYL's Dividend Yield is rather good when compared to the industry average which is at 1.13. XYL pays more dividend than 80.92% of the companies in the same industry.
  • XYL's Dividend Yield is comparable with the S&P500 average which is at 1.80.
Industry RankSector Rank
Dividend Yield 1.46%

5.2 History

  • On average, the dividend of XYL grows each year by 9.04%, 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.04%
Div Incr Years14
Div Non Decr Years14
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 around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP40.86%
EPS Next 2Y9.98%
EPS Next 3Y10.32%
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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XYL Fundamentals: All Metrics, Ratios and Statistics

XYLEM INC

NYSE:XYL (5/1/2026, 8:04:00 PM)

After market: 116 +0.63 (+0.55%)

115.37

-2.79 (-2.36%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Industry Strength58.39
Industry Growth55.28
Earnings (Last)04-28
Earnings (Next)07-29
Inst Owners98.51%
Inst Owner Change-0.25%
Ins Owners0.31%
Ins Owner Change4.73%
Market Cap27.78B
Revenue(TTM)9.04B
Net Income(TTM)957.00M
Analysts79.29
Price Target154.59 (33.99%)
Short Float %2.2%
Short Ratio2.42
Dividend
Industry RankSector Rank
Dividend Yield 1.46%
Yearly Dividend1.61
Dividend Growth(5Y)9.04%
DP40.86%
Div Incr Years14
Div Non Decr Years14
Ex-Date02-24
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.85%
Min EPS beat(2)-0.32%
Max EPS beat(2)10.02%
EPS beat(4)3
Avg EPS beat(4)6.15%
Min EPS beat(4)-0.32%
Max EPS beat(4)10.02%
EPS beat(8)6
Avg EPS beat(8)4.52%
EPS beat(12)10
Avg EPS beat(12)7.14%
EPS beat(16)14
Avg EPS beat(16)9.63%
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)-1.08%
PT rev (3m)-6.26%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-6.44%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-1.04%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-3.18%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-1.47%
Valuation
Industry RankSector Rank
PE 22.32
Fwd PE 18.78
P/S 3.08
P/FCF 31.86
P/OCF 22.41
P/B 2.42
P/tB 31.72
EV/EBITDA 15.28
EPS(TTM)5.17
EY4.48%
EPS(NY)6.14
Fwd EY5.33%
FCF(TTM)3.62
FCFY3.14%
OCF(TTM)5.15
OCFY4.46%
SpS37.52
BVpS47.67
TBVpS3.64
PEG (NY)2.35
PEG (5Y)1.13
Graham Number74.465 (-35.46%)
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 0.13
Debt/FCF 2.37
Debt/EBITDA 0.79
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 3.95
F-Score6
WACC10.34%
ROIC/WACC0.7
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)17.23%
EPS 3Y21.39%
EPS 5Y19.78%
EPS Q2Q%8.74%
EPS Next Y9.5%
EPS Next 2Y9.98%
EPS Next 3Y10.32%
EPS Next 5Y10.8%
Revenue 1Y (TTM)5.52%
Revenue growth 3Y17.84%
Revenue growth 5Y13.13%
Sales Q2Q%2.71%
Revenue Next Year2.05%
Revenue Next 2Y3.27%
Revenue Next 3Y3.94%
Revenue Next 5Y5.29%
EBIT growth 1Y23.81%
EBIT growth 3Y26.76%
EBIT growth 5Y21.54%
EBIT Next Year34.67%
EBIT Next 3Y16.53%
EBIT Next 5Y12.41%
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 Fundamental Analysis 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.


How profitable is XYLEM INC (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 22.32 and the Price/Book (PB) ratio is 2.42.


Is the dividend of XYLEM INC sustainable?

The dividend rating of XYLEM INC (XYL) is 7 / 10 and the dividend payout ratio is 40.86%.