XYLEM INC (XYL) Stock Fundamental Analysis
USA - NYSE:XYL - US98419M1009 - Common Stock
150.34 USD
-0.34 (-0.23%)
150.34 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 an average financial health and profitability rating. 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.
XYL had a positive operating cash flow in the past year.
Each year in the past 5 years XYL has been profitable.
XYL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.48%, XYL is in line with its industry, outperforming 59.23% of the companies in the same industry.
XYL has a Return On Equity of 8.46%. This is comparable to the rest of the industry: XYL outperforms 51.54% of its industry peers.
With a Return On Invested Capital value of 7.29%, XYL perfoms like the industry average, outperforming 53.08% of the companies in the same 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 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's Profit Margin of 10.66% is fine compared to the rest of the industry. XYL outperforms 74.62% of its industry peers.
In the last couple of years the Profit Margin of XYL has grown nicely.
XYL has a better Operating Margin (13.85%) than 66.92% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), XYL is destroying value.
XYL has more shares outstanding than it did 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 4.79. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
XYL's Altman-Z score of 4.79 is fine compared to the rest of the industry. XYL outperforms 74.62% 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.
XYL's Debt to FCF ratio of 2.24 is fine compared to the rest of the industry. XYL outperforms 73.08% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that XYL is not too dependend on debt financing.
XYL has a Debt to Equity ratio of 0.17. This is in the better half of the industry: XYL outperforms 74.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 4.79 |
ROIC/WACC0.77
WACC9.49%
2.3 Liquidity
A Current Ratio of 1.96 indicates that XYL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.96, XYL is in line with its industry, outperforming 45.38% 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.
With a decent Quick ratio value of 1.50, XYL is doing good in the industry, outperforming 62.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
XYL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.34%, which is quite good.
The Earnings Per Share has been growing slightly by 7.22% on average over the past years.
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 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
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 31.06 indicates a quite expensive valuation of XYL.
60.77% of the companies in the same industry are cheaper than XYL, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.67. XYL is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 26.90, XYL can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, XYL is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 31.86. XYL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.06 | ||
| Fwd PE | 26.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, XYL is valued a bit more expensive than the industry average as 63.85% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, XYL is valued a bit more expensive than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.73 | ||
| EV/EBITDA | 20.69 |
4.3 Compensation for Growth
XYL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
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)1.68
PEG (5Y)4.3
EPS Next 2Y14.27%
EPS Next 3Y13.24%
5. Dividend
5.1 Amount
XYL has a Yearly Dividend Yield of 1.10%.
XYL's Dividend Yield is a higher than the industry average which is at 1.83.
Compared to an average S&P500 Dividend Yield of 2.40, XYL's dividend is way lower than the S&P500 average.
| 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 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
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%
150.34
-0.34 (-0.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.11%
Inst Owner Change0.58%
Ins Owners0.24%
Ins Owner Change-0.23%
Market Cap36.59B
Revenue(TTM)8.89B
Net Income(TTM)948.00M
Analysts79.26
Price Target162.77 (8.27%)
Short Float %1.1%
Short Ratio2.34
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)1.03%
PT rev (3m)12.65%
EPS NQ rev (1m)0.43%
EPS NQ rev (3m)1.13%
EPS NY rev (1m)0.1%
EPS NY rev (3m)4.44%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)1.84%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)2.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.06 | ||
| Fwd PE | 26.9 | ||
| P/S | 4.11 | ||
| P/FCF | 41.73 | ||
| P/OCF | 29 | ||
| P/B | 3.27 | ||
| P/tB | 60.19 | ||
| EV/EBITDA | 20.69 |
EPS(TTM)4.84
EY3.22%
EPS(NY)5.59
Fwd EY3.72%
FCF(TTM)3.6
FCFY2.4%
OCF(TTM)5.18
OCFY3.45%
SpS36.54
BVpS46.04
TBVpS2.5
PEG (NY)1.68
PEG (5Y)4.3
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 | 4.79 |
F-Score8
WACC9.49%
ROIC/WACC0.77
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 1 / 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%.