XYLEM INC (XYL) Stock Fundamental Analysis

NYSE:XYL • US98419M1009

128.58 USD
+0.49 (+0.38%)
Last: Feb 17, 2026, 01:19 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Taking everything into account, XYL scores 5 out of 10 in our fundamental rating. XYL was compared to 131 industry peers in the Machinery industry. XYL has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, XYL is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • XYL had positive earnings in the past year.
  • XYL had a positive operating cash flow in the past year.
  • 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

  • XYL's Return On Assets of 5.43% is fine compared to the rest of the industry. XYL outperforms 63.36% of its industry peers.
  • XYL has a Return On Equity of 8.34%. This is comparable to the rest of the industry: XYL outperforms 55.73% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 7.28%, XYL is in line with its industry, outperforming 54.96% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for XYL is below the industry average of 10.17%.
  • The 3 year average ROIC (6.00%) for XYL is below the current ROIC(7.28%), indicating increased profibility in the last year.
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

  • XYL has a Profit Margin of 10.59%. This is in the better half of the industry: XYL outperforms 75.57% of its industry peers.
  • XYL's Profit Margin has improved in the last couple of years.
  • XYL has a Operating Margin of 14.68%. This is in the better half of the industry: XYL outperforms 69.47% of its industry peers.
  • XYL's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 38.46%, XYL is in the better half of the industry, outperforming 73.28% 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 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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ROAROEROICOperating and Profit MarginShow most profitable peers

5

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.
  • XYL has more shares outstanding than it did 5 years ago.
  • XYL has a better debt/assets ratio than last year.
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

  • An Altman-Z score of 4.22 indicates that XYL is not in any danger for bankruptcy at the moment.
  • XYL has a better Altman-Z score (4.22) than 69.47% of its industry peers.
  • XYL has a debt to FCF ratio of 2.23. This is a good value and a sign of high solvency as XYL would need 2.23 years to pay back of all of its debts.
  • XYL has a Debt to FCF ratio of 2.23. This is in the better half of the industry: XYL outperforms 76.34% of its industry peers.
  • A Debt/Equity ratio of 0.12 indicates that XYL is not too dependend on debt financing.
  • XYL has a better Debt to Equity ratio (0.12) than 74.81% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 2.23
Altman-Z 4.22
ROIC/WACC0.81
WACC8.96%
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

  • XYL has a Current Ratio of 1.63. This is a normal value and indicates that XYL is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Current ratio value of 1.63, XYL is not doing good in the industry: 69.47% of the companies in the same industry are doing better.
  • A Quick Ratio of 1.28 indicates that XYL should not have too much problems paying its short term obligations.
  • XYL has a Quick ratio of 1.28. This is comparable to the rest of the industry: XYL outperforms 53.44% 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. Growth

3.1 Past

  • XYL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.69%, which is quite good.
  • The Earnings Per Share has been growing by 19.78% on average over the past years. This is quite good.
  • The Revenue has been growing slightly by 5.52% in the past 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 12.39% 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 5.34% on average per year.
EPS Next Y10.54%
EPS Next 2Y10.51%
EPS Next 3Y11.27%
EPS Next 5Y12.39%
Revenue Next Year2.11%
Revenue Next 2Y3.3%
Revenue Next 3Y3.98%
Revenue Next 5Y5.34%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • 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.
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. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 25.31, which means the current valuation is very expensive for XYL.
  • 63.36% of the companies in the same industry are more expensive than XYL, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 27.19. XYL is around the same levels.
  • A Price/Forward Earnings ratio of 22.90 indicates a rather expensive valuation of XYL.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of XYL is on the same level as its industry peers.
  • XYL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.06.
Industry RankSector Rank
PE 25.31
Fwd PE 22.9
XYL Price Earnings VS Forward Price EarningsXYL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of XYL is on the same level as its industry peers.
  • 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 RankSector Rank
P/FCF 35.9
EV/EBITDA 16.65
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)2.4
PEG (5Y)1.28
EPS Next 2Y10.51%
EPS Next 3Y11.27%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 1.15%, XYL has a reasonable but not impressive dividend return.
  • XYL's Dividend Yield is a higher than the industry average which is at 1.17.
  • XYL's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.15%

5.2 History

  • On average, the dividend of XYL grows each year by 9.04%, which is quite nice.
  • 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)9.04%
Div Incr Years13
Div Non Decr Years13
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.
  • The dividend of XYL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40.86%
EPS Next 2Y10.51%
EPS Next 3Y11.27%
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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XYLEM INC

NYSE:XYL (2/17/2026, 1:19:34 PM)

128.58

+0.49 (+0.38%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-10
Earnings (Next)04-27
Inst Owners95.82%
Inst Owner Change0.54%
Ins Owners0.24%
Ins Owner Change-1.2%
Market Cap31.31B
Revenue(TTM)9.04B
Net Income(TTM)957.00M
Analysts80
Price Target168.63 (31.15%)
Short Float %1.72%
Short Ratio2.76
Dividend
Industry RankSector Rank
Dividend Yield 1.15%
Yearly Dividend1.61
Dividend Growth(5Y)9.04%
DP40.86%
Div Incr Years13
Div Non Decr Years13
Ex-Date02-24
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.81%
Min EPS beat(2)-0.39%
Max EPS beat(2)10.02%
EPS beat(4)3
Avg EPS beat(4)6.13%
Min EPS beat(4)-0.39%
Max EPS beat(4)10.02%
EPS beat(8)6
Avg EPS beat(8)4.51%
EPS beat(12)10
Avg EPS beat(12)7.13%
EPS beat(16)14
Avg EPS beat(16)9.62%
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)-1.16%
PT rev (3m)3.6%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)0.67%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.87%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.09%
Valuation
Industry RankSector Rank
PE 25.31
Fwd PE 22.9
P/S 3.46
P/FCF 35.9
P/OCF 25.25
P/B 2.73
P/tB 35.74
EV/EBITDA 16.65
EPS(TTM)5.08
EY3.95%
EPS(NY)5.62
Fwd EY4.37%
FCF(TTM)3.58
FCFY2.79%
OCF(TTM)5.09
OCFY3.96%
SpS37.11
BVpS47.15
TBVpS3.6
PEG (NY)2.4
PEG (5Y)1.28
Graham Number73.41
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 0.12
Debt/FCF 2.23
Debt/EBITDA 0.74
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 4.22
F-Score6
WACC8.96%
ROIC/WACC0.81
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 Y10.54%
EPS Next 2Y10.51%
EPS Next 3Y11.27%
EPS Next 5Y12.39%
Revenue 1Y (TTM)5.52%
Revenue growth 3Y17.84%
Revenue growth 5Y13.13%
Sales Q2Q%6.25%
Revenue Next Year2.11%
Revenue Next 2Y3.3%
Revenue Next 3Y3.98%
Revenue Next 5Y5.34%
EBIT growth 1Y23.81%
EBIT growth 3Y26.76%
EBIT growth 5Y21.54%
EBIT Next Year37.96%
EBIT Next 3Y18.08%
EBIT Next 5Y15.02%
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 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 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 25.31 and the Price/Book (PB) ratio is 2.73.


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 10.54% in the next year.