XYLEM INC (XYL) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:XYL • US98419M1009
139.74 USD
+1.17 (+0.84%)
At close: Feb 4, 2026
139.74 USD
0 (0%)
After Hours: 2/4/2026, 8:04:00 PM
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. 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
- With a decent Return On Assets value of 5.48%, XYL is doing good in the industry, outperforming 62.88% of the companies in the same industry.
- XYL has a Return On Equity (8.46%) which is comparable to the rest of the 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 10.37%.
- The 3 year average ROIC (6.95%) for XYL is below the current ROIC(7.29%), indicating increased profibility in the last year.
| Industry 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
- XYL's Profit Margin of 10.66% is fine compared to the rest of the industry. XYL outperforms 75.00% of its industry peers.
- XYL's Profit Margin has improved in the last couple of years.
- XYL has a better Operating Margin (13.85%) than 67.42% of its industry peers.
- XYL's Operating Margin has been stable in the last couple of years.
- XYL has a better Gross Margin (38.23%) than 72.73% of its industry peers.
- XYL's Gross Margin has been stable in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
- The debt/assets ratio for XYL has been reduced compared to a year ago.
2.2 Solvency
- XYL has an Altman-Z score of 4.51. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
- XYL has a Altman-Z score of 4.51. This is in the better half of the industry: XYL outperforms 70.45% of its industry peers.
- XYL has a debt to FCF ratio of 2.24. This is a good value and a sign of high solvency as XYL would need 2.24 years to pay back of all of its debts.
- XYL's Debt to FCF ratio of 2.24 is fine compared to the rest of the industry. XYL outperforms 75.00% of its industry peers.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 4.51 |
ROIC/WACC0.76
WACC9.57%
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.
- With a decent Quick ratio value of 1.50, XYL is doing good in the industry, outperforming 64.39% of the companies in the same industry.
| 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.
- The Earnings Per Share has been growing slightly by 7.22% on average over the past years.
- 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
- Based on estimates for the next years, XYL will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.11% on average per year.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 28.87, 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.
- When comparing the Price/Earnings ratio of XYL to the average of the S&P500 Index (28.25), we can say XYL is valued inline with the index average.
- With a Price/Forward Earnings ratio of 24.86, XYL is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of XYL is on the same level as its industry peers.
- XYL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 27.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.87 | ||
| Fwd PE | 24.86 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.79 | ||
| EV/EBITDA | 19.11 |
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)1.48
PEG (5Y)4
EPS Next 2Y14.6%
EPS Next 3Y13.26%
5. Dividend
5.1 Amount
- XYL has a Yearly Dividend Yield of 1.15%.
- XYL's Dividend Yield is a higher than the industry average which is at 1.01.
- Compared to the average S&P500 Dividend Yield of 1.82, XYL is paying slightly less dividend.
| 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
- XYL pays out 40.08% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of XYL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40.08%
EPS Next 2Y14.6%
EPS Next 3Y13.26%
139.74
+1.17 (+0.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)10-28 2025-10-28/bmo
Earnings (Next)02-10 2026-02-10/amc
Inst Owners95.82%
Inst Owner Change-1.48%
Ins Owners0.24%
Ins Owner Change-1.35%
Market Cap34.02B
Revenue(TTM)8.89B
Net Income(TTM)948.00M
Analysts79.26
Price Target168.95 (20.9%)
Short Float %1.17%
Short Ratio2.11
Dividend
| Industry Rank | Sector 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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.87 | ||
| Fwd PE | 24.86 | ||
| P/S | 3.83 | ||
| P/FCF | 38.79 | ||
| P/OCF | 26.96 | ||
| P/B | 3.04 | ||
| P/tB | 55.96 | ||
| EV/EBITDA | 19.11 |
EPS(TTM)4.84
EY3.46%
EPS(NY)5.62
Fwd EY4.02%
FCF(TTM)3.6
FCFY2.58%
OCF(TTM)5.18
OCFY3.71%
SpS36.53
BVpS46.03
TBVpS2.5
PEG (NY)1.48
PEG (5Y)4
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 | 4.51 |
F-Score8
WACC9.57%
ROIC/WACC0.76
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 28.87 and the Price/Book (PB) ratio is 3.04.
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.