XYLEM INC (XYL) Fundamental Analysis & Valuation

NYSE:XYL • US98419M1009

Current stock price

118.16 USD
+2.76 (+2.39%)
At close:
118.412 USD
+0.25 (+0.21%)
After Hours:

This XYL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. XYL Profitability Analysis

1.1 Basic Checks

  • In the past year XYL was profitable.
  • XYL had a positive operating cash flow in the past year.
  • In the past 5 years XYL has always been profitable.
  • In the past 5 years XYL always reported a positive cash flow from operatings.
XYL Yearly Net Income VS EBIT VS OCF VS FCFXYL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

1.2 Ratios

  • With a decent Return On Assets value of 5.43%, XYL is doing good in the industry, outperforming 61.83% of the companies in the same industry.
  • XYL has a Return On Equity of 8.34%. This is comparable to the rest of the industry: XYL outperforms 54.20% of its industry peers.
  • XYL's Return On Invested Capital of 7.28% is in line compared to the rest of the industry. XYL outperforms 55.73% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for XYL is below the industry average of 10.06%.
  • The 3 year average ROIC (6.00%) for XYL is below the current ROIC(7.28%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.43%
ROE 8.34%
ROIC 7.28%
ROA(3y)4.87%
ROA(5y)4.85%
ROE(3y)7.56%
ROE(5y)9.22%
ROIC(3y)6%
ROIC(5y)6.66%
XYL Yearly ROA, ROE, ROICXYL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • XYL has a better Profit Margin (10.59%) than 76.34% of its industry peers.
  • In the last couple of years the Profit Margin of XYL has grown nicely.
  • XYL has a better Operating Margin (14.68%) than 69.47% of its industry peers.
  • XYL's Operating Margin has improved in the last couple of years.
  • XYL's Gross Margin of 38.46% is fine compared to the rest of the industry. XYL outperforms 70.99% of its industry peers.
  • XYL's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 14.68%
PM (TTM) 10.59%
GM 38.46%
OM growth 3Y7.57%
OM growth 5Y7.43%
PM growth 3Y18.11%
PM growth 5Y15.25%
GM growth 3Y0.63%
GM growth 5Y0.49%
XYL Yearly Profit, Operating, Gross MarginsXYL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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5

2. XYL Health Analysis

2.1 Basic Checks

  • XYL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • XYL has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, XYL has more shares outstanding
  • Compared to 1 year ago, XYL has an improved debt to assets ratio.
XYL Yearly Shares OutstandingXYL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M
XYL Yearly Total Debt VS Total AssetsXYL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • XYL has an Altman-Z score of 3.89. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
  • XYL's Altman-Z score of 3.89 is fine compared to the rest of the industry. XYL outperforms 65.65% of its industry peers.
  • XYL has a debt to FCF ratio of 2.37. This is a good value and a sign of high solvency as XYL would need 2.37 years to pay back of all of its debts.
  • XYL has a Debt to FCF ratio of 2.37. This is in the better half of the industry: XYL outperforms 77.10% of its industry peers.
  • A Debt/Equity ratio of 0.13 indicates that XYL is not too dependend on debt financing.
  • XYL's Debt to Equity ratio of 0.13 is fine compared to the rest of the industry. XYL outperforms 73.28% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 2.37
Altman-Z 3.89
ROIC/WACC0.7
WACC10.36%
XYL Yearly LT Debt VS Equity VS FCFXYL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.3 Liquidity

  • A Current Ratio of 1.63 indicates that XYL should not have too much problems paying its short term obligations.
  • XYL has a worse Current ratio (1.63) than 70.23% of its industry peers.
  • A Quick Ratio of 1.28 indicates that XYL should not have too much problems paying its short term obligations.
  • With a Quick ratio value of 1.28, XYL perfoms like the industry average, outperforming 50.38% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.63
Quick Ratio 1.28
XYL Yearly Current Assets VS Current LiabilitesXYL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

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5

3. XYL Growth Analysis

3.1 Past

  • XYL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.23%, which is quite good.
  • Measured over the past years, XYL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.78% on average per year.
  • The Revenue has been growing slightly by 5.52% in the past year.
  • Measured over the past years, XYL shows a quite strong growth in Revenue. The Revenue has been growing by 13.13% on average per year.
EPS 1Y (TTM)17.23%
EPS 3Y21.39%
EPS 5Y19.78%
EPS Q2Q%8.74%
Revenue 1Y (TTM)5.52%
Revenue growth 3Y17.84%
Revenue growth 5Y13.13%
Sales Q2Q%2.71%

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 10.80% on average per year.
  • Based on estimates for the next years, XYL will show a small growth in Revenue. The Revenue will grow by 5.29% on average per year.
EPS Next Y9.5%
EPS Next 2Y9.98%
EPS Next 3Y10.32%
EPS Next 5Y10.8%
Revenue Next Year2.05%
Revenue Next 2Y3.27%
Revenue Next 3Y3.94%
Revenue Next 5Y5.29%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
XYL Yearly Revenue VS EstimatesXYL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B 10B
XYL Yearly EPS VS EstimatesXYL Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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3

4. XYL Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 22.85, the valuation of XYL can be described as rather expensive.
  • 64.12% of the companies in the same industry are more expensive than XYL, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of XYL to the average of the S&P500 Index (26.77), we can say XYL is valued inline with the index average.
  • Based on the Price/Forward Earnings ratio of 19.23, the valuation of XYL can be described as rather expensive.
  • Based on the Price/Forward Earnings ratio, XYL is valued a bit cheaper than 66.41% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of XYL to the average of the S&P500 Index (21.75), we can say XYL is valued inline with the index average.
Industry RankSector Rank
PE 22.85
Fwd PE 19.23
XYL Price Earnings VS Forward Price EarningsXYL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, XYL is valued a bit cheaper than 61.83% of the companies in the same industry.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as XYL.
Industry RankSector Rank
P/FCF 32.63
EV/EBITDA 14.93
XYL Per share dataXYL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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.
  • The decent profitability rating of XYL may justify a higher PE ratio.
PEG (NY)2.41
PEG (5Y)1.16
EPS Next 2Y9.98%
EPS Next 3Y10.32%

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7

5. XYL Dividend Analysis

5.1 Amount

  • XYL has a Yearly Dividend Yield of 1.46%.
  • XYL's Dividend Yield is rather good when compared to the industry average which is at 1.13. XYL pays more dividend than 80.92% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, XYL has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.46%

5.2 History

  • The dividend of XYL is nicely growing with an annual growth rate of 9.04%!
  • 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)9.04%
Div Incr Years14
Div Non Decr Years14
XYL Yearly Dividends per shareXYL Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • 40.86% 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 around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP40.86%
EPS Next 2Y9.98%
EPS Next 3Y10.32%
XYL Yearly Income VS Free CF VS DividendXYL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
XYL Dividend Payout.XYL Dividend Payout, showing the Payout Ratio.XYL Dividend Payout.PayoutRetained Earnings

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XYL Fundamentals: All Metrics, Ratios and Statistics

XYLEM INC

NYSE:XYL (4/30/2026, 8:24:25 PM)

After market: 118.412 +0.25 (+0.21%)

118.16

+2.76 (+2.39%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Industry Strength61.49
Industry Growth56.52
Earnings (Last)04-28
Earnings (Next)07-29
Inst Owners98.51%
Inst Owner Change-0.25%
Ins Owners0.31%
Ins Owner Change4.73%
Market Cap28.46B
Revenue(TTM)9.04B
Net Income(TTM)957.00M
Analysts79.29
Price Target154.59 (30.83%)
Short Float %2.2%
Short Ratio2.42
Dividend
Industry RankSector Rank
Dividend Yield 1.46%
Yearly Dividend1.61
Dividend Growth(5Y)9.04%
DP40.86%
Div Incr Years14
Div Non Decr Years14
Ex-Date02-24
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.85%
Min EPS beat(2)-0.32%
Max EPS beat(2)10.02%
EPS beat(4)3
Avg EPS beat(4)6.15%
Min EPS beat(4)-0.32%
Max EPS beat(4)10.02%
EPS beat(8)6
Avg EPS beat(8)4.52%
EPS beat(12)10
Avg EPS beat(12)7.14%
EPS beat(16)14
Avg EPS beat(16)9.63%
Revenue beat(2)1
Avg Revenue beat(2)0.51%
Min Revenue beat(2)-0.04%
Max Revenue beat(2)1.07%
Revenue beat(4)3
Avg Revenue beat(4)1.09%
Min Revenue beat(4)-0.04%
Max Revenue beat(4)2.91%
Revenue beat(8)6
Avg Revenue beat(8)0.44%
Revenue beat(12)10
Avg Revenue beat(12)1.58%
Revenue beat(16)14
Avg Revenue beat(16)1.96%
PT rev (1m)-1.08%
PT rev (3m)-6.26%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-6.44%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-1.04%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-3.18%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-1.47%
Valuation
Industry RankSector Rank
PE 22.85
Fwd PE 19.23
P/S 3.15
P/FCF 32.63
P/OCF 22.95
P/B 2.48
P/tB 32.48
EV/EBITDA 14.93
EPS(TTM)5.17
EY4.38%
EPS(NY)6.14
Fwd EY5.2%
FCF(TTM)3.62
FCFY3.06%
OCF(TTM)5.15
OCFY4.36%
SpS37.52
BVpS47.67
TBVpS3.64
PEG (NY)2.41
PEG (5Y)1.16
Graham Number74.465 (-36.98%)
Profitability
Industry RankSector Rank
ROA 5.43%
ROE 8.34%
ROCE 8.97%
ROIC 7.28%
ROICexc 8.09%
ROICexgc 39.93%
OM 14.68%
PM (TTM) 10.59%
GM 38.46%
FCFM 9.65%
ROA(3y)4.87%
ROA(5y)4.85%
ROE(3y)7.56%
ROE(5y)9.22%
ROIC(3y)6%
ROIC(5y)6.66%
ROICexc(3y)6.57%
ROICexc(5y)7.63%
ROICexgc(3y)31.79%
ROICexgc(5y)30.61%
ROCE(3y)7.39%
ROCE(5y)8.2%
ROICexgc growth 3Y10.17%
ROICexgc growth 5Y-0.89%
ROICexc growth 3Y-6.03%
ROICexc growth 5Y-0.38%
OM growth 3Y7.57%
OM growth 5Y7.43%
PM growth 3Y18.11%
PM growth 5Y15.25%
GM growth 3Y0.63%
GM growth 5Y0.49%
F-Score6
Asset Turnover0.51
Health
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 2.37
Debt/EBITDA 0.79
Cap/Depr 64%
Cap/Sales 4.07%
Interest Coverage 21.74
Cash Conversion 65.23%
Profit Quality 91.12%
Current Ratio 1.63
Quick Ratio 1.28
Altman-Z 3.89
F-Score6
WACC10.36%
ROIC/WACC0.7
Cap/Depr(3y)61.09%
Cap/Depr(5y)71.26%
Cap/Sales(3y)3.83%
Cap/Sales(5y)3.85%
Profit Quality(3y)96.22%
Profit Quality(5y)95.05%
High Growth Momentum
Growth
EPS 1Y (TTM)17.23%
EPS 3Y21.39%
EPS 5Y19.78%
EPS Q2Q%8.74%
EPS Next Y9.5%
EPS Next 2Y9.98%
EPS Next 3Y10.32%
EPS Next 5Y10.8%
Revenue 1Y (TTM)5.52%
Revenue growth 3Y17.84%
Revenue growth 5Y13.13%
Sales Q2Q%2.71%
Revenue Next Year2.05%
Revenue Next 2Y3.27%
Revenue Next 3Y3.94%
Revenue Next 5Y5.29%
EBIT growth 1Y23.81%
EBIT growth 3Y26.76%
EBIT growth 5Y21.54%
EBIT Next Year34.67%
EBIT Next 3Y16.53%
EBIT Next 5Y12.41%
FCF growth 1Y-6.34%
FCF growth 3Y30.99%
FCF growth 5Y6.35%
OCF growth 1Y-0.96%
OCF growth 3Y27.66%
OCF growth 5Y8.52%

XYLEM INC / XYL Fundamental Analysis 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.


How profitable is XYLEM INC (XYL) stock?

XYLEM INC (XYL) has a profitability rating of 7 / 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 22.85 and the Price/Book (PB) ratio is 2.48.


Is the dividend of XYLEM INC sustainable?

The dividend rating of XYLEM INC (XYL) is 7 / 10 and the dividend payout ratio is 40.86%.