XYLEM INC (XYL) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:XYL • US98419M1009
140.332 USD
+2.46 (+1.79%)
Last: Feb 2, 2026, 12:36 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 quite expensive at the moment. It does show a decent growth rate.
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.
- 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.
1.2 Ratios
- XYL's Return On Assets of 5.48% is fine compared to the rest of the industry. XYL outperforms 62.88% of its industry peers.
- XYL has a Return On Equity of 8.46%. This is comparable to the rest of the industry: XYL outperforms 57.58% of its industry peers.
- 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 10.18%.
- 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
- Looking at the Profit Margin, with a value of 10.66%, XYL is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of XYL has grown nicely.
- XYL has a Operating Margin of 13.85%. This is in the better half of the industry: XYL outperforms 67.42% of its industry peers.
- XYL's Operating Margin has been stable in the last couple of years.
- 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.
- 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.
- Compared to 1 year ago, XYL has an improved debt to assets ratio.
2.2 Solvency
- XYL has an Altman-Z score of 4.49. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.49, XYL is in the better half of the industry, outperforming 69.70% of the companies in the same industry.
- 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 has a Debt to FCF ratio of 2.24. This is in the better half of the industry: XYL outperforms 75.00% of its industry peers.
- XYL has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
- With a decent Debt to Equity ratio value of 0.17, XYL is doing good in the industry, outperforming 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 4.49 |
ROIC/WACC0.76
WACC9.55%
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 has a Current ratio of 1.96. This is comparable to the rest of the industry: XYL outperforms 43.94% of 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.
- XYL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.22% yearly.
- XYL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.58%.
- XYL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.28% yearly.
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.
- 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
- Based on the Price/Earnings ratio of 28.99, the valuation of XYL can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as XYL.
- The average S&P500 Price/Earnings ratio is at 28.32. XYL is around the same levels.
- Based on the Price/Forward Earnings ratio of 24.96, the valuation of XYL can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of XYL is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. XYL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.99 | ||
| Fwd PE | 24.96 |
4.2 Price Multiples
- XYL's Enterprise Value to EBITDA ratio is in line with the industry average.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.96 | ||
| EV/EBITDA | 19.01 |
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.
- A more expensive valuation may be justified as XYL's earnings are expected to grow with 13.26% in the coming years.
PEG (NY)1.49
PEG (5Y)4.01
EPS Next 2Y14.6%
EPS Next 3Y13.26%
5. Dividend
5.1 Amount
- XYL has a Yearly Dividend Yield of 1.15%.
- Compared to an average industry Dividend Yield of 1.01, XYL pays a bit more dividend than its industry peers.
- XYL's Dividend Yield is slightly below the S&P500 average, which is at 1.83.
| 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.
- 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 28.99 and the Price/Book (PB) ratio is 3.05.
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.