XYLEM INC (XYL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:XYL - US98419M1009 - Common Stock
137.11 USD
+0.93 (+0.68%)
137.11 USD
0 (0%)
Taking everything into account, XYL scores 5 out of 10 in our fundamental rating. XYL was compared to 132 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.
1. Profitability
1.1 Basic Checks
In the past year XYL was profitable.
XYL had a positive operating cash flow in the past year.
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.
1.2 Ratios
The Return On Assets of XYL (5.48%) is better than 62.12% of its industry peers.
The Return On Equity of XYL (8.46%) is comparable to the rest of the industry.
The Return On Invested Capital of XYL (7.29%) 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 10.27%.
The 3 year average ROIC (6.95%) for XYL is below the current ROIC(7.29%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
Looking at the Profit Margin, with a value of 10.66%, XYL is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
XYL's Profit Margin has improved in the last couple of years.
XYL has a Operating Margin of 13.85%. This is in the better half of the industry: XYL outperforms 68.18% 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 71.97% 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 Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), XYL is destroying value.
The number of shares outstanding for XYL has been increased compared to 1 year ago.
XYL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, XYL has an improved debt to assets ratio.
2.2 Solvency
XYL has an Altman-Z score of 4.45. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
XYL has a better Altman-Z score (4.45) than 68.94% 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.
XYL has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of XYL (0.17) is better than 74.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 4.45 |
ROIC/WACC0.78
WACC9.38%
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.
The Current ratio of XYL (1.96) is comparable to the rest of the industry.
A Quick Ratio of 1.50 indicates that XYL should not have too much problems paying its short term obligations.
XYL's Quick ratio of 1.50 is fine compared to the rest of the industry. XYL outperforms 64.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
XYL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.34%, 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.
XYL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.58%.
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
Based on estimates for the next years, XYL will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.23% on average per year.
The Revenue is expected to grow by 5.84% on average over the next years.
EPS Next Y19.43%
EPS Next 2Y14.55%
EPS Next 3Y13.3%
EPS Next 5Y11.23%
Revenue Next Year6.39%
Revenue Next 2Y4.97%
Revenue Next 3Y5.02%
Revenue Next 5Y5.84%
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.
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
Based on the Price/Earnings ratio of 28.33, the valuation of XYL can be described as expensive.
XYL's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.60. XYL is around the same levels.
The Price/Forward Earnings ratio is 24.42, which indicates a rather expensive current valuation of XYL.
The rest of the industry has a similar Price/Forward Earnings ratio as XYL.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, XYL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.33 | ||
| Fwd PE | 24.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of XYL indicates a slightly more expensive valuation: XYL is more expensive than 62.12% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of XYL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.06 | ||
| EV/EBITDA | 18.79 |
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 13.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.46
PEG (5Y)3.92
EPS Next 2Y14.55%
EPS Next 3Y13.3%
5. Dividend
5.1 Amount
XYL has a Yearly Dividend Yield of 1.17%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.98, XYL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, XYL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
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 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
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 2Y14.55%
EPS Next 3Y13.3%
137.11
+0.93 (+0.68%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.82%
Inst Owner Change0.64%
Ins Owners0.24%
Ins Owner Change-1.31%
Market Cap33.38B
Revenue(TTM)8.89B
Net Income(TTM)948.00M
Analysts79.26
Price Target170.61 (24.43%)
Short Float %1.34%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
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)-0.22%
PT rev (3m)5.9%
EPS NQ rev (1m)0.55%
EPS NQ rev (3m)8.05%
EPS NY rev (1m)0.84%
EPS NY rev (3m)4.76%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.33 | ||
| Fwd PE | 24.42 | ||
| P/S | 3.75 | ||
| P/FCF | 38.06 | ||
| P/OCF | 26.45 | ||
| P/B | 2.98 | ||
| P/tB | 54.9 | ||
| EV/EBITDA | 18.79 |
EPS(TTM)4.84
EY3.53%
EPS(NY)5.62
Fwd EY4.1%
FCF(TTM)3.6
FCFY2.63%
OCF(TTM)5.18
OCFY3.78%
SpS36.53
BVpS46.03
TBVpS2.5
PEG (NY)1.46
PEG (5Y)3.92
Graham Number70.8
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 4.45 |
F-Score8
WACC9.38%
ROIC/WACC0.78
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 Y19.43%
EPS Next 2Y14.55%
EPS Next 3Y13.3%
EPS Next 5Y11.23%
Revenue 1Y (TTM)5.58%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%7.79%
Revenue Next Year6.39%
Revenue Next 2Y4.97%
Revenue Next 3Y5.02%
Revenue Next 5Y5.84%
EBIT growth 1Y21.98%
EBIT growth 3Y21.85%
EBIT growth 5Y8.97%
EBIT Next Year49.81%
EBIT Next 3Y20.53%
EBIT Next 5Y15.48%
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 28.33 and the Price/Book (PB) ratio is 2.98.
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 19.43% in the next year.