XYLEM INC (XYL) Fundamental Analysis & Valuation

NYSE:XYL • US98419M1009

Current stock price

119.49 USD
-2.26 (-1.86%)
At close:
119.49 USD
0 (0%)
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

  • XYL had positive earnings in the past year.
  • In the past year XYL had a positive cash flow from operations.
  • In the past 5 years XYL has always been profitable.
  • XYL had a positive operating cash flow in each of the past 5 years.
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

  • XYL has a better Return On Assets (5.43%) than 61.07% of its industry peers.
  • Looking at the Return On Equity, with a value of 8.34%, XYL is in line with its industry, outperforming 53.44% of the companies in the same industry.
  • XYL has a Return On Invested Capital (7.28%) which is in line with its industry peers.
  • The Average Return On Invested Capital over the past 3 years for XYL is below the industry average of 10.17%.
  • The last Return On Invested Capital (7.28%) for XYL is above the 3 year average (6.00%), which is a sign of increasing profitability.
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's Profit Margin of 10.59% is fine compared to the rest of the industry. XYL outperforms 74.05% of its industry peers.
  • In the last couple of years the Profit Margin of XYL has grown nicely.
  • With a decent Operating Margin value of 14.68%, XYL is doing good in the industry, outperforming 69.47% of the companies in the same industry.
  • XYL's Operating Margin has improved in the last couple of years.
  • With a decent Gross Margin value of 38.46%, XYL is doing good in the industry, outperforming 71.76% of the companies in the same industry.
  • 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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so XYL is destroying value.
  • XYL has more shares outstanding than it did 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.
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 4.06. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of XYL (4.06) is better than 64.89% 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.
  • With a decent Debt to Equity ratio value of 0.13, XYL is doing good in the industry, outperforming 74.81% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 2.37
Altman-Z 4.06
ROIC/WACC0.73
WACC9.93%
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

  • XYL has a Current Ratio of 1.63. 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 1.63, XYL is not doing good in the industry: 67.18% of the companies in the same industry are doing better.
  • XYL has a Quick Ratio of 1.28. 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 Quick ratio (1.28) which is in line with its industry peers.
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

  • The Earnings Per Share has grown by an nice 18.69% over the past year.
  • XYL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.78% yearly.
  • The Revenue has been growing slightly by 5.52% in the past year.
  • XYL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.13% yearly.
EPS 1Y (TTM)18.69%
EPS 3Y21.39%
EPS 5Y19.78%
EPS Q2Q%20.34%
Revenue 1Y (TTM)5.52%
Revenue growth 3Y17.84%
Revenue growth 5Y13.13%
Sales Q2Q%6.25%

3.2 Future

  • XYL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.80% yearly.
  • XYL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.29% yearly.
EPS Next Y9.42%
EPS Next 2Y9.92%
EPS Next 3Y10.24%
EPS Next 5Y10.8%
Revenue Next Year2.14%
Revenue Next 2Y3.32%
Revenue Next 3Y3.98%
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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2

4. XYL Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 23.52 indicates a rather expensive valuation of XYL.
  • XYL's Price/Earnings ratio is in line with the industry average.
  • XYL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.61, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 21.50 indicates a rather expensive valuation of XYL.
  • XYL's Price/Forward Earnings is on the same level as the industry average.
  • When comparing the Price/Forward Earnings ratio of XYL to the average of the S&P500 Index (22.79), we can say XYL is valued inline with the index average.
Industry RankSector Rank
PE 23.52
Fwd PE 21.5
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

  • XYL's Enterprise Value to EBITDA ratio is in line with the industry average.
  • XYL's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 33.32
EV/EBITDA 15.88
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.
  • XYL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.5
PEG (5Y)1.19
EPS Next 2Y9.92%
EPS Next 3Y10.24%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. XYL Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.15%, XYL has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 1.22, XYL pays a bit more dividend than its industry peers.
  • XYL's Dividend Yield is slightly below the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.15%

5.2 History

  • On average, the dividend of XYL grows each year by 9.04%, 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)9.04%
Div Incr Years13
Div Non Decr Years13
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.
  • The dividend of XYL is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP40.86%
EPS Next 2Y9.92%
EPS Next 3Y10.24%
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 (3/26/2026, 5:28:37 PM)

After market: 119.49 0 (0%)

119.49

-2.26 (-1.86%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-10
Earnings (Next)04-27
Inst Owners96.78%
Inst Owner Change21.2%
Ins Owners0.24%
Ins Owner Change4.67%
Market Cap29.05B
Revenue(TTM)9.04B
Net Income(TTM)957.00M
Analysts79.29
Price Target160.09 (33.98%)
Short Float %2%
Short Ratio2.68
Dividend
Industry RankSector Rank
Dividend Yield 1.15%
Yearly Dividend1.61
Dividend Growth(5Y)9.04%
DP40.86%
Div Incr Years13
Div Non Decr Years13
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)-5.07%
PT rev (3m)-6.55%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-6.54%
EPS NY rev (1m)-1.01%
EPS NY rev (3m)-0.89%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-3.22%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-1.73%
Valuation
Industry RankSector Rank
PE 23.52
Fwd PE 21.5
P/S 3.22
P/FCF 33.32
P/OCF 23.43
P/B 2.53
P/tB 33.17
EV/EBITDA 15.88
EPS(TTM)5.08
EY4.25%
EPS(NY)5.56
Fwd EY4.65%
FCF(TTM)3.59
FCFY3%
OCF(TTM)5.1
OCFY4.27%
SpS37.16
BVpS47.22
TBVpS3.6
PEG (NY)2.5
PEG (5Y)1.19
Graham Number73.46
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 4.06
F-Score6
WACC9.93%
ROIC/WACC0.73
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)18.69%
EPS 3Y21.39%
EPS 5Y19.78%
EPS Q2Q%20.34%
EPS Next Y9.42%
EPS Next 2Y9.92%
EPS Next 3Y10.24%
EPS Next 5Y10.8%
Revenue 1Y (TTM)5.52%
Revenue growth 3Y17.84%
Revenue growth 5Y13.13%
Sales Q2Q%6.25%
Revenue Next Year2.14%
Revenue Next 2Y3.32%
Revenue Next 3Y3.98%
Revenue Next 5Y5.29%
EBIT growth 1Y23.81%
EBIT growth 3Y26.76%
EBIT growth 5Y21.54%
EBIT Next Year34.55%
EBIT Next 3Y16.45%
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 2 / 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 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 23.52 and the Price/Book (PB) ratio is 2.53.


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 9.42% in the next year.