XYLEM INC (XYL) Stock Fundamental Analysis
NYSE:XYL • US98419M1009
128.26 USD
+0.13 (+0.1%)
At close: Feb 25, 2026
128.26 USD
0 (0%)
After Hours: 2/25/2026, 4:10:03 PM
Overall XYL gets a fundamental rating of 5 out of 10. We evaluated XYL against 130 industry peers in the Machinery industry. While XYL has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, XYL is valued expensive at the moment.
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.
- 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
- XYL has a Return On Assets of 5.43%. This is in the better half of the industry: XYL outperforms 63.08% of its industry peers.
- The Return On Equity of XYL (8.34%) is comparable to the rest of the industry.
- XYL's Return On Invested Capital of 7.28% is in line compared to the rest of the industry. XYL outperforms 54.62% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for XYL is below the industry average of 10.27%.
- The 3 year average ROIC (6.00%) for XYL is below the current ROIC(7.28%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
- The Profit Margin of XYL (10.59%) is better than 76.15% of its industry peers.
- XYL's Profit Margin has improved in the last couple of years.
- The Operating Margin of XYL (14.68%) is better than 69.23% of its industry peers.
- XYL's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 38.46%, XYL is in the better half of the industry, outperforming 73.08% of the companies in the same industry.
- XYL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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
- The number of shares outstanding for XYL has been increased compared to 5 years ago.
- The debt/assets ratio for XYL has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.22 indicates that XYL is not in any danger for bankruptcy at the moment.
- XYL's Altman-Z score of 4.22 is fine compared to the rest of the industry. XYL outperforms 70.00% of its industry peers.
- XYL has a debt to FCF ratio of 2.23. This is a good value and a sign of high solvency as XYL would need 2.23 years to pay back of all of its debts.
- XYL's Debt to FCF ratio of 2.23 is fine compared to the rest of the industry. XYL outperforms 75.38% of its industry peers.
- XYL has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of XYL (0.12) is better than 74.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 2.23 | ||
| Altman-Z | 4.22 |
ROIC/WACC0.81
WACC9.01%
2.3 Liquidity
- A Current Ratio of 1.63 indicates that XYL should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.63, XYL is not doing good in the industry: 69.23% 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 of 1.28. This is comparable to the rest of the industry: XYL outperforms 51.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 18.69% over the past year.
- 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)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
- Based on estimates for the next years, XYL will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.39% on average per year.
- The Revenue is expected to grow by 5.34% on average over the next years.
EPS Next Y10.54%
EPS Next 2Y10.51%
EPS Next 3Y11.27%
EPS Next 5Y12.39%
Revenue Next Year2.11%
Revenue Next 2Y3.3%
Revenue Next 3Y3.98%
Revenue Next 5Y5.34%
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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 25.25, the valuation of XYL can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of XYL indicates a somewhat cheap valuation: XYL is cheaper than 61.54% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.98, XYL is valued at the same level.
- With a Price/Forward Earnings ratio of 22.84, XYL is valued on the expensive side.
- XYL's Price/Forward Earnings is on the same level as the industry average.
- XYL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 28.01, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.25 | ||
| Fwd PE | 22.84 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of XYL is on the same level as its industry peers.
- XYL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.81 | ||
| EV/EBITDA | 16.65 |
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)2.4
PEG (5Y)1.28
EPS Next 2Y10.51%
EPS Next 3Y11.27%
5. Dividend
5.1 Amount
- XYL has a Yearly Dividend Yield of 1.15%.
- Compared to an average industry Dividend Yield of 1.18, XYL pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.81, 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 9.04%!
- 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
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, but earnings are growing more, so the dividend growth is sustainable.
DP40.86%
EPS Next 2Y10.51%
EPS Next 3Y11.27%
128.26
+0.13 (+0.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-10 2026-02-10/bmo
Earnings (Next)04-27 2026-04-27/bmo
Inst Owners95.82%
Inst Owner Change21.17%
Ins Owners0.24%
Ins Owner Change-0.79%
Market Cap31.23B
Revenue(TTM)9.04B
Net Income(TTM)957.00M
Analysts80
Price Target168.63 (31.48%)
Short Float %1.72%
Short Ratio2.76
Dividend
| Industry Rank | Sector 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 2026-02-24 (0.43)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.81%
Min EPS beat(2)-0.39%
Max EPS beat(2)10.02%
EPS beat(4)3
Avg EPS beat(4)6.13%
Min EPS beat(4)-0.39%
Max EPS beat(4)10.02%
EPS beat(8)6
Avg EPS beat(8)4.51%
EPS beat(12)10
Avg EPS beat(12)7.13%
EPS beat(16)14
Avg EPS beat(16)9.62%
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)-0.19%
PT rev (3m)-1.38%
EPS NQ rev (1m)-6.51%
EPS NQ rev (3m)-8.09%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)-3.09%
Revenue NQ rev (3m)-4.09%
Revenue NY rev (1m)-1.42%
Revenue NY rev (3m)-2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.25 | ||
| Fwd PE | 22.84 | ||
| P/S | 3.46 | ||
| P/FCF | 35.81 | ||
| P/OCF | 25.18 | ||
| P/B | 2.72 | ||
| P/tB | 35.65 | ||
| EV/EBITDA | 16.65 |
EPS(TTM)5.08
EY3.96%
EPS(NY)5.62
Fwd EY4.38%
FCF(TTM)3.58
FCFY2.79%
OCF(TTM)5.09
OCFY3.97%
SpS37.11
BVpS47.15
TBVpS3.6
PEG (NY)2.4
PEG (5Y)1.28
Graham Number73.41
Profitability
| Industry Rank | Sector 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 2.23 | ||
| Debt/EBITDA | 0.74 | ||
| 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 | 4.22 |
F-Score6
WACC9.01%
ROIC/WACC0.81
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 Y10.54%
EPS Next 2Y10.51%
EPS Next 3Y11.27%
EPS Next 5Y12.39%
Revenue 1Y (TTM)5.52%
Revenue growth 3Y17.84%
Revenue growth 5Y13.13%
Sales Q2Q%6.25%
Revenue Next Year2.11%
Revenue Next 2Y3.3%
Revenue Next 3Y3.98%
Revenue Next 5Y5.34%
EBIT growth 1Y23.81%
EBIT growth 3Y26.76%
EBIT growth 5Y21.54%
EBIT Next Year37.96%
EBIT Next 3Y18.08%
EBIT Next 5Y15.02%
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 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 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 25.25 and the Price/Book (PB) ratio is 2.72.
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 10.54% in the next year.