XYLEM INC (XYL) Stock Fundamental Analysis
NYSE:XYL - New York Stock Exchange, Inc. - US98419M1009 - Common Stock - Currency: USD
XYL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. Both the profitability and the financial health of XYL get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, XYL is valued expensive at the moment. Finally XYL also has an excellent dividend rating. These ratings would make XYL suitable for dividend investing!
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.
XYL had positive earnings in each of the past 5 years.
In the past 5 years XYL always reported a positive cash flow from operatings.
1.2 Ratios
XYL has a Return On Assets (5.39%) which is comparable to the rest of the industry.
With a Return On Equity value of 8.36%, XYL perfoms like the industry average, outperforming 55.20% of the companies in the same industry.
With a Return On Invested Capital value of 6.70%, XYL perfoms like the industry average, outperforming 52.00% of the companies in the same industry.
XYL had an Average Return On Invested Capital over the past 3 years of 6.94%. This is below the industry average of 11.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.39% | ||
| ROE | 8.36% | ||
| ROIC | 6.7% |
ROA(3y)4.55%
ROA(5y)4.34%
ROE(3y)8.17%
ROE(5y)9.27%
ROIC(3y)6.94%
ROIC(5y)7%
1.3 Margins
XYL's Profit Margin of 10.39% is fine compared to the rest of the industry. XYL outperforms 72.00% of its industry peers.
XYL's Profit Margin has improved in the last couple of years.
XYL has a Operating Margin of 12.51%. This is in the better half of the industry: XYL outperforms 62.40% of its industry peers.
XYL's Operating Margin has been stable in the last couple of years.
XYL has a Gross Margin of 37.51%. This is in the better half of the industry: XYL outperforms 66.40% 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 | 12.51% | ||
| PM (TTM) | 10.39% | ||
| GM | 37.51% |
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.
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.
Compared to 1 year ago, XYL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.36 indicates that XYL is not in any danger for bankruptcy at the moment.
The Altman-Z score of XYL (4.36) is better than 70.40% of its industry peers.
The Debt to FCF ratio of XYL is 2.17, which is a good value as it means it would take XYL, 2.17 years of fcf income to pay off all of its debts.
XYL has a Debt to FCF ratio of 2.17. This is in the better half of the industry: XYL outperforms 78.40% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that XYL is not too dependend on debt financing.
XYL's Debt to Equity ratio of 0.19 is fine compared to the rest of the industry. XYL outperforms 70.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.17 | ||
| Altman-Z | 4.36 |
ROIC/WACC0.64
WACC10.52%
2.3 Liquidity
XYL has a Current Ratio of 1.76. This is a normal value and indicates that XYL is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of XYL (1.76) is worse than 67.20% of its industry peers.
XYL has a Quick Ratio of 1.33. 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 Quick ratio of 1.33 is in line compared to the rest of the industry. XYL outperforms 52.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.30% 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.
Looking at the last year, XYL shows a quite strong growth in Revenue. The Revenue has grown by 16.27% in the last year.
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)16.3%
EPS 3Y19.95%
EPS 5Y7.22%
EPS Q2Q%19.19%
Revenue 1Y (TTM)16.27%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%6.52%
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 10.07% on average per year.
Based on estimates for the next years, XYL will show a small growth in Revenue. The Revenue will grow by 5.09% on average per year.
EPS Next Y9.76%
EPS Next 2Y10.37%
EPS Next 3Y11.4%
EPS Next 5Y10.07%
Revenue Next Year4.33%
Revenue Next 2Y4.83%
Revenue Next 3Y5%
Revenue Next 5Y5.09%
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 29.75 indicates a quite expensive valuation of XYL.
Based on the Price/Earnings ratio, XYL is valued a bit more expensive than the industry average as 64.00% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of XYL to the average of the S&P500 Index (29.63), we can say XYL is valued inline with the index average.
A Price/Forward Earnings ratio of 27.11 indicates a quite expensive valuation of XYL.
Based on the Price/Forward Earnings ratio, XYL is valued a bit more expensive than 60.80% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. XYL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.75 | ||
| Fwd PE | 27.11 |
4.2 Price Multiples
60.00% of the companies in the same industry are cheaper than XYL, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as XYL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.24 | ||
| EV/EBITDA | 19.84 |
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)3.05
PEG (5Y)4.12
EPS Next 2Y10.37%
EPS Next 3Y11.4%
5. Dividend
5.1 Amount
XYL has a Yearly Dividend Yield of 1.22%.
Compared to an average industry Dividend Yield of 1.67, XYL pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.22, XYL pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
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
XYL pays out 39.33% of its income as dividend. This is a sustainable payout ratio.
XYL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP39.33%
EPS Next 2Y10.37%
EPS Next 3Y11.4%
127.34
-2.39 (-1.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.41%
Inst Owner Change3.58%
Ins Owners0.23%
Ins Owner Change-0.67%
Market Cap30.94B
Analysts79.17
Price Target148.13 (16.33%)
Short Float %1.28%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
Yearly Dividend1.44
Dividend Growth(5Y)8.36%
DP39.33%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.41%
Min EPS beat(2)-0.98%
Max EPS beat(2)3.8%
EPS beat(4)3
Avg EPS beat(4)2.89%
Min EPS beat(4)-0.98%
Max EPS beat(4)6.17%
EPS beat(8)7
Avg EPS beat(8)7.63%
EPS beat(12)11
Avg EPS beat(12)10.79%
EPS beat(16)15
Avg EPS beat(16)11.8%
Revenue beat(2)1
Avg Revenue beat(2)-0.89%
Min Revenue beat(2)-4.15%
Max Revenue beat(2)2.36%
Revenue beat(4)3
Avg Revenue beat(4)-0.21%
Min Revenue beat(4)-4.15%
Max Revenue beat(4)2.36%
Revenue beat(8)7
Avg Revenue beat(8)1.82%
Revenue beat(12)11
Avg Revenue beat(12)2.25%
Revenue beat(16)13
Avg Revenue beat(16)2.02%
PT rev (1m)-4.37%
PT rev (3m)-6.95%
EPS NQ rev (1m)-6.35%
EPS NQ rev (3m)-5.78%
EPS NY rev (1m)-1.93%
EPS NY rev (3m)-2.17%
Revenue NQ rev (1m)-3.61%
Revenue NQ rev (3m)-4.77%
Revenue NY rev (1m)-0.67%
Revenue NY rev (3m)-0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.75 | ||
| Fwd PE | 27.11 | ||
| P/S | 3.61 | ||
| P/FCF | 33.24 | ||
| P/OCF | 24.72 | ||
| P/B | 2.91 | ||
| P/tB | 109.34 | ||
| EV/EBITDA | 19.84 |
EPS(TTM)4.28
EY3.36%
EPS(NY)4.7
Fwd EY3.69%
FCF(TTM)3.83
FCFY3.01%
OCF(TTM)5.15
OCFY4.05%
SpS35.23
BVpS43.79
TBVpS1.16
PEG (NY)3.05
PEG (5Y)4.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.39% | ||
| ROE | 8.36% | ||
| ROCE | 7.56% | ||
| ROIC | 6.7% | ||
| ROICexc | 7.28% | ||
| ROICexgc | 35.01% | ||
| OM | 12.51% | ||
| PM (TTM) | 10.39% | ||
| GM | 37.51% | ||
| FCFM | 10.87% |
ROA(3y)4.55%
ROA(5y)4.34%
ROE(3y)8.17%
ROE(5y)9.27%
ROIC(3y)6.94%
ROIC(5y)7%
ROICexc(3y)7.79%
ROICexc(5y)8.38%
ROICexgc(3y)30.97%
ROICexgc(5y)33.82%
ROCE(3y)7.81%
ROCE(5y)7.88%
ROICexcg growth 3Y4.76%
ROICexcg growth 5Y-3.61%
ROICexc growth 3Y-8.51%
ROICexc growth 5Y-8.41%
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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.17 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 57.12% | ||
| Cap/Sales | 3.75% | ||
| Interest Coverage | 15.99 | ||
| Cash Conversion | 76.67% | ||
| Profit Quality | 104.61% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 4.36 |
F-Score8
WACC10.52%
ROIC/WACC0.64
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)16.3%
EPS 3Y19.95%
EPS 5Y7.22%
EPS Q2Q%19.19%
EPS Next Y9.76%
EPS Next 2Y10.37%
EPS Next 3Y11.4%
EPS Next 5Y10.07%
Revenue 1Y (TTM)16.27%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%6.52%
Revenue Next Year4.33%
Revenue Next 2Y4.83%
Revenue Next 3Y5%
Revenue Next 5Y5.09%
EBIT growth 1Y39.27%
EBIT growth 3Y21.85%
EBIT growth 5Y8.97%
EBIT Next Year41.96%
EBIT Next 3Y19.4%
EBIT Next 5Y16.19%
FCF growth 1Y64.49%
FCF growth 3Y41.3%
FCF growth 5Y8.72%
OCF growth 1Y49.58%
OCF growth 3Y32.52%
OCF growth 5Y8.33%