XYLEM INC (XYL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:XYL - US98419M1009 - Common Stock
140.67 USD
-0.45 (-0.32%)
140.67 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to XYL. XYL was compared to 130 industry peers in the Machinery industry. XYL has only an average score on both its financial health and profitability. 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.
In the past year XYL had a positive cash flow from operations.
In the past 5 years XYL has always been profitable.
Each year in the past 5 years XYL had a positive operating cash flow.
1.2 Ratios
XYL's Return On Assets of 5.48% is fine compared to the rest of the industry. XYL outperforms 63.08% of its industry peers.
XYL's Return On Equity of 8.46% is in line compared to the rest of the industry. XYL outperforms 55.38% of its industry peers.
The Return On Invested Capital of XYL (7.29%) 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 10.35%.
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
XYL has a Profit Margin of 10.66%. This is in the better half of the industry: XYL outperforms 76.92% of its industry peers.
XYL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.85%, XYL is in the better half of the industry, outperforming 66.92% of the companies in the same industry.
In the last couple of years the Operating Margin of XYL has remained more or less at the same level.
The Gross Margin of XYL (38.23%) is better than 70.77% 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 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.
The number of shares outstanding for XYL has been increased compared to 1 year ago.
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.
With a decent Altman-Z score value of 4.57, XYL is doing good in the industry, outperforming 73.85% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 2.24, XYL is doing good in the industry, outperforming 75.38% of the companies in the same industry.
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 75.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 4.57 |
ROIC/WACC0.79
WACC9.24%
2.3 Liquidity
A Current Ratio of 1.96 indicates that XYL should not have too much problems paying 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 63.08% 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.
Measured over the past 5 years, XYL shows a small growth in Earnings Per Share. The EPS has been growing by 7.22% on average per year.
The Revenue has been growing slightly by 5.58% in the past year.
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 11.23% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.84% on average over the next years.
EPS Next Y18.44%
EPS Next 2Y14.27%
EPS Next 3Y13.24%
EPS Next 5Y11.23%
Revenue Next Year6.26%
Revenue Next 2Y5.18%
Revenue Next 3Y5.17%
Revenue Next 5Y5.84%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 29.06 indicates a quite expensive valuation of XYL.
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 (26.31), we can say XYL is valued inline with the index average.
XYL is valuated quite expensively with a Price/Forward Earnings ratio of 25.17.
Compared to the rest of the industry, the Price/Forward Earnings ratio of XYL is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, XYL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.06 | ||
| Fwd PE | 25.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, XYL is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
XYL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.04 | ||
| EV/EBITDA | 19.45 |
4.3 Compensation for Growth
XYL's 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 13.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.58
PEG (5Y)4.02
EPS Next 2Y14.27%
EPS Next 3Y13.24%
5. Dividend
5.1 Amount
XYL has a Yearly Dividend Yield of 1.10%. Purely for dividend investing, there may be better candidates out there.
XYL's Dividend Yield is a higher than the industry average which is at 1.97.
With a Dividend Yield of 1.10, XYL pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
On average, the dividend of XYL grows each year by 8.36%, 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)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 2Y14.27%
EPS Next 3Y13.24%
140.67
-0.45 (-0.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.11%
Inst Owner Change0.57%
Ins Owners0.24%
Ins Owner Change-1.3%
Market Cap34.25B
Revenue(TTM)8.89B
Net Income(TTM)948.00M
Analysts79.26
Price Target170.99 (21.55%)
Short Float %1.22%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend1.44
Dividend Growth(5Y)8.36%
DP40.08%
Div Incr Years13
Div Non Decr Years13
Ex-Date
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)5.84%
PT rev (3m)7.16%
EPS NQ rev (1m)6.76%
EPS NQ rev (3m)7.41%
EPS NY rev (1m)3.79%
EPS NY rev (3m)4.18%
Revenue NQ rev (1m)0.34%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0.76%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.06 | ||
| Fwd PE | 25.17 | ||
| P/S | 3.85 | ||
| P/FCF | 39.04 | ||
| P/OCF | 27.13 | ||
| P/B | 3.06 | ||
| P/tB | 56.32 | ||
| EV/EBITDA | 19.45 |
EPS(TTM)4.84
EY3.44%
EPS(NY)5.59
Fwd EY3.97%
FCF(TTM)3.6
FCFY2.56%
OCF(TTM)5.18
OCFY3.69%
SpS36.54
BVpS46.04
TBVpS2.5
PEG (NY)1.58
PEG (5Y)4.02
Graham Number70.81
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 | 4.57 |
F-Score8
WACC9.24%
ROIC/WACC0.79
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 Y18.44%
EPS Next 2Y14.27%
EPS Next 3Y13.24%
EPS Next 5Y11.23%
Revenue 1Y (TTM)5.58%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%7.79%
Revenue Next Year6.26%
Revenue Next 2Y5.18%
Revenue Next 3Y5.17%
Revenue Next 5Y5.84%
EBIT growth 1Y21.98%
EBIT growth 3Y21.85%
EBIT growth 5Y8.97%
EBIT Next Year45.14%
EBIT Next 3Y19.79%
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.
What is the valuation status of XYLEM INC (XYL) stock?
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 expected EPS growth for XYLEM INC (XYL) stock?
The Earnings per Share (EPS) of XYLEM INC (XYL) is expected to grow by 18.44% in the next year.
Can you provide the dividend sustainability for XYL stock?
The dividend rating of XYLEM INC (XYL) is 6 / 10 and the dividend payout ratio is 40.08%.