XYLEM INC (XYL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:XYL - US98419M1009 - Common Stock
141.23 USD
-1.68 (-1.18%)
141.23 USD
0 (0%)
Overall XYL gets a fundamental rating of 5 out of 10. We evaluated XYL against 132 industry peers in the Machinery industry. XYL has an average financial health and profitability rating. XYL is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- XYL had positive earnings in the past year.
- In the past year XYL had a positive cash flow from operations.
- 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.
1.2 Ratios
- XYL's Return On Assets of 5.48% is fine compared to the rest of the industry. XYL outperforms 62.12% of its industry peers.
- With a Return On Equity value of 8.46%, XYL perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
- XYL has a Return On Invested Capital (7.29%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for XYL is below the industry average of 10.24%.
- The last Return On Invested Capital (7.29%) for XYL is above the 3 year average (6.95%), which is a sign of increasing profitability.
| 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
- With a decent Profit Margin value of 10.66%, XYL is doing good in 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's Operating Margin of 13.85% is fine compared to the rest of the industry. XYL outperforms 66.67% of its industry peers.
- In the last couple of years the Operating Margin of XYL has remained more or less at the same level.
- With a decent Gross Margin value of 38.23%, XYL is doing good in the industry, outperforming 72.73% 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.
- Compared to 1 year ago, XYL has more shares outstanding
- Compared to 5 years ago, XYL has more shares outstanding
- The debt/assets ratio for XYL has been reduced compared to a year ago.
2.2 Solvency
- XYL has an Altman-Z score of 4.57. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
- XYL has a Altman-Z score of 4.57. This is in the better half of the industry: XYL outperforms 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.
- XYL has a Debt to Equity ratio of 0.17. This is in the better half of the industry: XYL outperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 4.57 |
ROIC/WACC0.76
WACC9.64%
2.3 Liquidity
- A Current Ratio of 1.96 indicates that XYL should not have too much problems paying its short term obligations.
- XYL has a Current ratio (1.96) which is in line with its industry peers.
- A Quick Ratio of 1.50 indicates that XYL should not have too much problems paying its short term obligations.
- The Quick ratio of XYL (1.50) is better than 64.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 18.34% over the past year.
- The Earnings Per Share has been growing slightly by 7.22% on average over the past years.
- XYL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.58%.
- Measured over the past years, XYL shows a quite strong growth in Revenue. The Revenue has been growing by 10.28% on average per year.
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.
- Based on estimates for the next years, XYL will show a small growth in Revenue. The Revenue will grow by 5.70% on average per year.
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.
- 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
- XYL is valuated quite expensively with a Price/Earnings ratio of 29.18.
- XYL's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.21. XYL is around the same levels.
- Based on the Price/Forward Earnings ratio of 25.12, the valuation of XYL can be described as expensive.
- 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 24.26, XYL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.18 | ||
| Fwd PE | 25.12 |
4.2 Price Multiples
- XYL's Enterprise Value to EBITDA is on the same level as the industry average.
- XYL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.21 | ||
| EV/EBITDA | 19.47 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of XYL 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)1.5
PEG (5Y)4.04
EPS Next 2Y14.6%
EPS Next 3Y13.26%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.15%, XYL has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.98, XYL pays a bit more dividend than its industry peers.
- XYL's Dividend Yield is slightly below the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
5.2 History
- The dividend of XYL is nicely growing with an annual growth rate of 8.36%!
- 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)8.36%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
- 40.08% 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 more than its dividend. This makes the dividend growth sustainable.
DP40.08%
EPS Next 2Y14.6%
EPS Next 3Y13.26%
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 29.18 and the Price/Book (PB) ratio is 3.07.
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.