XYLEM INC (XYL) Fundamental Analysis & Valuation

NYSE:XYL • US98419M1009

Current stock price

128.85 USD
+0.13 (+0.1%)
At close:
128.85 USD
0 (0%)
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

  • 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.
  • 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

  • Looking at the Return On Assets, with a value of 5.43%, XYL is in the better half of the industry, outperforming 62.60% of the companies in the same industry.
  • XYL has a Return On Equity (8.34%) which is comparable to the rest of the industry.
  • With a Return On Invested Capital value of 7.28%, XYL perfoms like the industry average, outperforming 55.73% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for XYL is below the industry average of 10.00%.
  • 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.
  • Looking at the Operating Margin, with a value of 14.68%, XYL is in the better half of 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.
  • The Gross Margin of XYL (38.46%) is better than 71.76% 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.
  • 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.
  • The debt/assets ratio for XYL has been reduced compared to a year ago.
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 4.20. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of XYL (4.20) is better than 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's Debt to Equity ratio of 0.13 is fine compared to the rest of the industry. XYL outperforms 74.81% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 2.37
Altman-Z 4.2
ROIC/WACC0.7
WACC10.33%
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

  • A Current Ratio of 1.63 indicates that XYL should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.63, XYL is doing worse than 68.70% of the companies in the same industry.
  • 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 51.91% 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. XYL Growth Analysis

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.
  • Looking at the last year, XYL shows a small growth in Revenue. The Revenue has grown by 5.52% in the last year.
  • Measured over the past years, XYL shows a quite strong growth in Revenue. The Revenue has been growing by 13.13% on average per year.
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 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 Year2.18%
Revenue Next 2Y3.33%
Revenue Next 3Y4.01%
Revenue Next 5Y5.29%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

  • Based on the Price/Earnings ratio of 25.36, the valuation of XYL can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of XYL is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Earnings ratio of 27.18, XYL is valued at the same level.
  • With a Price/Forward Earnings ratio of 23.16, XYL is valued on the expensive side.
  • XYL's Price/Forward Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 37.96. XYL is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 25.36
Fwd PE 23.16
XYL Price Earnings VS Forward Price EarningsXYL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • XYL's Enterprise Value to EBITDA ratio is in line with the industry average.
  • XYL's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 35.59
EV/EBITDA 16.62
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 XYL does not grow enough to justify the current Price/Earnings ratio.
  • XYL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.67
PEG (5Y)1.28
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

  • With a Yearly Dividend Yield of 1.46%, XYL has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 1.08, XYL pays a better dividend. On top of this XYL pays more dividend than 82.44% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, XYL has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.46%

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 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.
  • XYL's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept 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 (4/13/2026, 5:05:00 PM)

After market: 128.85 0 (0%)

128.85

+0.13 (+0.1%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-10
Earnings (Next)04-28
Inst Owners98.51%
Inst Owner Change0.07%
Ins Owners0.31%
Ins Owner Change4.67%
Market Cap31.03B
Revenue(TTM)9.04B
Net Income(TTM)957.00M
Analysts79.29
Price Target159.14 (23.51%)
Short Float %1.67%
Short Ratio2.03
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)-0.6%
PT rev (3m)-6.73%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-6.46%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-0.94%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-3.18%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-1.58%
Valuation
Industry RankSector Rank
PE 25.36
Fwd PE 23.16
P/S 3.43
P/FCF 35.59
P/OCF 25.02
P/B 2.7
P/tB 35.42
EV/EBITDA 16.62
EPS(TTM)5.08
EY3.94%
EPS(NY)5.56
Fwd EY4.32%
FCF(TTM)3.62
FCFY2.81%
OCF(TTM)5.15
OCFY4%
SpS37.52
BVpS47.67
TBVpS3.64
PEG (NY)2.67
PEG (5Y)1.28
Graham Number73.81
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 4.2
F-Score6
WACC10.33%
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)18.69%
EPS 3Y21.39%
EPS 5Y19.78%
EPS Q2Q%20.34%
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%6.25%
Revenue Next Year2.18%
Revenue Next 2Y3.33%
Revenue Next 3Y4.01%
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 25.36 and the Price/Book (PB) ratio is 2.7.


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%.