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%)
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 only an average score on both its financial health and profitability. 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.
- 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
- With a decent Return On Assets value of 5.48%, XYL is doing good in the industry, outperforming 62.12% of the companies in the same industry.
- 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.
- The Return On Invested Capital of XYL (7.29%) is comparable to the rest of the industry.
- XYL had an Average Return On Invested Capital over the past 3 years of 6.95%. This is below the industry average of 10.24%.
- 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 has a Profit Margin of 10.66%. This is in the better half of the industry: XYL outperforms 75.00% of its industry peers.
- 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
- 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
- XYL has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, XYL has an improved debt to assets ratio.
2.2 Solvency
- XYL has an Altman-Z score of 4.61. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 4.61, XYL is doing good in the industry, outperforming 68.94% 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 75.00% 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'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 | 4.61 |
ROIC/WACC0.75
WACC9.66%
2.3 Liquidity
- XYL has a Current Ratio of 1.96. This is a normal value and indicates that XYL is financially healthy and should not expect problems in meeting its short term obligations.
- XYL's Current ratio of 1.96 is in line compared to the rest of the industry. XYL outperforms 43.94% of its industry peers.
- XYL has a Quick Ratio of 1.50. This is a normal value and indicates that XYL is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.50, XYL is in the better half of 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
- 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.
- 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 Y19.43%
EPS Next 2Y14.55%
EPS Next 3Y13.3%
EPS Next 5Y12.11%
Revenue Next Year6.37%
Revenue Next 2Y4.95%
Revenue Next 3Y4.98%
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
- The Price/Earnings ratio is 29.18, which means the current valuation is very expensive for XYL.
- XYL's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, XYL is valued at the same level.
- With a Price/Forward Earnings ratio of 25.15, XYL can be considered very expensive at the moment.
- 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 | 25.15 |
4.2 Price Multiples
- XYL's Enterprise Value to EBITDA is on the same level as the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as XYL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.21 | ||
| EV/EBITDA | 19.69 |
4.3 Compensation for Growth
- XYL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- XYL has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as XYL's earnings are expected to grow with 13.30% in the coming years.
PEG (NY)1.5
PEG (5Y)4.04
EPS Next 2Y14.55%
EPS Next 3Y13.3%
5. Dividend
5.1 Amount
- XYL has a Yearly Dividend Yield of 1.15%. Purely for dividend investing, there may be better candidates out there.
- 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
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
- 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 2Y14.55%
EPS Next 3Y13.3%
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 19.43% in the next year.