XYLEM INC (XYL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:XYL - US98419M1009 - Common Stock
141.76 USD
+2.94 (+2.12%)
143 USD
+1.24 (+0.87%)
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
- In the past year XYL was profitable.
- XYL had a positive operating cash flow in the past year.
- Each year in the past 5 years XYL has 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.
- XYL has a Return On Invested Capital (7.29%) which is in line with its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for XYL 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.
- XYL's Operating Margin has been stable in the last couple of years.
- XYL has a Gross Margin of 38.23%. This is in the better half of the industry: XYL outperforms 72.73% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), XYL is destroying value.
- Compared to 1 year ago, XYL has more shares outstanding
- Compared to 5 years ago, XYL has more shares outstanding
- Compared to 1 year ago, XYL has an improved debt to assets ratio.
2.2 Solvency
- XYL has an Altman-Z score of 4.58. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
- XYL's Altman-Z score of 4.58 is fine compared to the rest of the industry. XYL outperforms 68.94% 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.
- The Debt to FCF ratio of XYL (2.24) is better than 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.
- The Debt to Equity ratio of XYL (0.17) is better than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 4.58 |
ROIC/WACC0.75
WACC9.67%
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.
- With a Current ratio value of 1.96, XYL perfoms like the industry average, outperforming 43.94% of the companies in the same 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 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%.
- 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.
- XYL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.70% yearly.
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
- 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 29.29 indicates a quite expensive valuation of XYL.
- XYL's Price/Earnings ratio is in line with the industry average.
- XYL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.32.
- With a Price/Forward Earnings ratio of 25.24, XYL can be considered very expensive at the moment.
- XYL's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.30, XYL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.29 | ||
| Fwd PE | 25.24 |
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 | 39.35 | ||
| EV/EBITDA | 19.54 |
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)1.51
PEG (5Y)4.06
EPS Next 2Y14.55%
EPS Next 3Y13.3%
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 0.98.
- Compared to the average S&P500 Dividend Yield of 1.86, 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 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.
- The dividend of XYL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40.08%
EPS Next 2Y14.55%
EPS Next 3Y13.3%
141.76
+2.94 (+2.12%)
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-0.12%
Ins Owners0.24%
Ins Owner Change-1.35%
Market Cap34.51B
Revenue(TTM)8.89B
Net Income(TTM)948.00M
Analysts79.26
Price Target168.95 (19.18%)
Short Float %1.36%
Short Ratio2.57
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)-1.38%
PT rev (3m)4.58%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)7.53%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)4.76%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.29 | ||
| Fwd PE | 25.24 | ||
| P/S | 3.88 | ||
| P/FCF | 39.35 | ||
| P/OCF | 27.35 | ||
| P/B | 3.08 | ||
| P/tB | 56.77 | ||
| EV/EBITDA | 19.54 |
EPS(TTM)4.84
EY3.41%
EPS(NY)5.62
Fwd EY3.96%
FCF(TTM)3.6
FCFY2.54%
OCF(TTM)5.18
OCFY3.66%
SpS36.53
BVpS46.03
TBVpS2.5
PEG (NY)1.51
PEG (5Y)4.06
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 | 4.58 |
F-Score8
WACC9.67%
ROIC/WACC0.75
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 Y19.43%
EPS Next 2Y14.55%
EPS Next 3Y13.3%
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 2Y4.95%
Revenue Next 3Y4.98%
Revenue Next 5Y5.7%
EBIT growth 1Y21.98%
EBIT growth 3Y21.85%
EBIT growth 5Y8.97%
EBIT Next Year49.81%
EBIT Next 3Y20.53%
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 29.29 and the Price/Book (PB) ratio is 3.08.
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.