XYLEM INC (XYL) Stock Fundamental Analysis

USA New York Stock Exchange NYSE:XYL • US98419M1009

140.19 USD
-1.93 (-1.36%)
At close: Feb 9, 2026
140.19 USD
0 (0%)
After Hours: 2/9/2026, 4:15:00 PM
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to XYL. XYL was compared to 131 industry peers in the Machinery industry. XYL has only an average score on both its financial health and profitability. While showing a medium growth rate, XYL is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

6

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.
  • 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 200M 400M 600M 800M 1B

1.2 Ratios

  • XYL has a Return On Assets of 5.48%. This is in the better half of the industry: XYL outperforms 62.60% of its industry peers.
  • With a Return On Equity value of 8.46%, XYL perfoms like the industry average, outperforming 57.25% of the companies in the same industry.
  • XYL's Return On Invested Capital of 7.29% is in line compared to the rest of the industry. XYL outperforms 54.96% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for XYL is below the industry average of 10.26%.
  • The 3 year average ROIC (6.95%) for XYL is below the current ROIC(7.29%), indicating increased profibility in the last year.
Industry RankSector 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%
XYL Yearly ROA, ROE, ROICXYL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

  • XYL's Profit Margin of 10.66% is fine compared to the rest of the industry. XYL outperforms 74.81% of its industry peers.
  • XYL's Profit Margin has improved in the last couple of years.
  • XYL has a Operating Margin of 13.85%. This is in the better half of the industry: XYL outperforms 67.18% of its industry peers.
  • In the last couple of years the Operating Margin of XYL has remained more or less at the same level.
  • XYL has a better Gross Margin (38.23%) than 72.52% of its industry peers.
  • XYL's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
XYL Yearly Profit, Operating, Gross MarginsXYL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

6

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
  • XYL has a better debt/assets ratio than last year.
XYL Yearly Shares OutstandingXYL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 5B 10B 15B

2.2 Solvency

  • An Altman-Z score of 4.59 indicates that XYL is not in any danger for bankruptcy at the moment.
  • XYL's Altman-Z score of 4.59 is fine compared to the rest of the industry. XYL outperforms 71.76% 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 has a Debt to FCF ratio of 2.24. This is in the better half of the industry: XYL outperforms 76.34% of its industry peers.
  • A Debt/Equity ratio of 0.17 indicates that XYL is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.17, XYL is in the better half of the industry, outperforming 73.28% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF 2.24
Altman-Z 4.59
ROIC/WACC0.77
WACC9.47%
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 2B 4B 6B 8B 10B

2.3 Liquidity

  • A Current Ratio of 1.96 indicates that XYL should not have too much problems paying its short term obligations.
  • XYL has a Current ratio of 1.96. This is comparable to the rest of the industry: XYL outperforms 45.80% of its industry peers.
  • A Quick Ratio of 1.50 indicates that XYL should not have too much problems paying its short term obligations.
  • XYL has a Quick ratio of 1.50. This is in the better half of the industry: XYL outperforms 64.89% of its industry peers.
Industry RankSector Rank
Current Ratio 1.96
Quick Ratio 1.5
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 1B 2B 3B 4B

5

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 18.34% over the past year.
  • The Earnings Per Share has been growing slightly by 7.22% on average over the past years.
  • Looking at the last year, XYL shows a small growth in Revenue. The Revenue has grown by 5.58% in the last year.
  • The Revenue has been growing by 10.28% on average over the past years. This is quite good.
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

  • XYL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.11% yearly.
  • The Revenue is expected to grow by 5.70% on average over the next years.
EPS Next Y19.47%
EPS Next 2Y14.54%
EPS Next 3Y13.17%
EPS Next 5Y12.11%
Revenue Next Year6.36%
Revenue Next 2Y4.85%
Revenue Next 3Y4.86%
Revenue Next 5Y5.7%

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.
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

3

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 28.96 indicates a quite expensive valuation of XYL.
  • XYL's Price/Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Earnings ratio is at 27.93. XYL is around the same levels.
  • Based on the Price/Forward Earnings ratio of 24.97, the valuation of XYL can be described as rather expensive.
  • XYL's Price/Forward Earnings is on the same level as the industry average.
  • XYL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.77.
Industry RankSector Rank
PE 28.96
Fwd PE 24.97
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

  • 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 RankSector Rank
P/FCF 38.92
EV/EBITDA 19.59
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 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.
  • A more expensive valuation may be justified as XYL's earnings are expected to grow with 13.17% in the coming years.
PEG (NY)1.49
PEG (5Y)4.01
EPS Next 2Y14.54%
EPS Next 3Y13.17%

6

5. Dividend

5.1 Amount

  • XYL has a Yearly Dividend Yield of 1.15%.
  • Compared to an average industry Dividend Yield of 1.15, 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 RankSector Rank
Dividend Yield 1.15%

5.2 History

  • The dividend of XYL is nicely growing with an annual growth rate of 8.36%!
  • 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
XYL Yearly Dividends per shareXYL Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

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.
  • XYL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP40.08%
EPS Next 2Y14.54%
EPS Next 3Y13.17%
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 200M 400M 600M 800M
XYL Dividend Payout.XYL Dividend Payout, showing the Payout Ratio.XYL Dividend Payout.PayoutRetained Earnings

XYLEM INC

NYSE:XYL (2/9/2026, 4:15:00 PM)

After market: 140.19 0 (0%)

140.19

-1.93 (-1.36%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)10-28
Earnings (Next)02-10
Inst Owners95.82%
Inst Owner Change-1.13%
Ins Owners0.24%
Ins Owner Change-1.2%
Market Cap34.13B
Revenue(TTM)8.89B
Net Income(TTM)948.00M
Analysts79.26
Price Target168.63 (20.29%)
Short Float %1.17%
Short Ratio2.11
Dividend
Industry RankSector Rank
Dividend Yield 1.15%
Yearly Dividend1.44
Dividend Growth(5Y)8.36%
DP40.08%
Div Incr Years13
Div Non Decr Years13
Ex-DateN/A
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)-1.16%
PT rev (3m)3.6%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)0.67%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.87%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.09%
Valuation
Industry RankSector Rank
PE 28.96
Fwd PE 24.97
P/S 3.84
P/FCF 38.92
P/OCF 27.05
P/B 3.05
P/tB 56.14
EV/EBITDA 19.59
EPS(TTM)4.84
EY3.45%
EPS(NY)5.62
Fwd EY4.01%
FCF(TTM)3.6
FCFY2.57%
OCF(TTM)5.18
OCFY3.7%
SpS36.53
BVpS46.03
TBVpS2.5
PEG (NY)1.49
PEG (5Y)4.01
Graham Number70.8
Profitability
Industry RankSector 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 RankSector 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 4.59
F-Score8
WACC9.47%
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 Y19.47%
EPS Next 2Y14.54%
EPS Next 3Y13.17%
EPS Next 5Y12.11%
Revenue 1Y (TTM)5.58%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%7.79%
Revenue Next Year6.36%
Revenue Next 2Y4.85%
Revenue Next 3Y4.86%
Revenue Next 5Y5.7%
EBIT growth 1Y21.98%
EBIT growth 3Y21.85%
EBIT growth 5Y8.97%
EBIT Next Year49.52%
EBIT Next 3Y20.36%
EBIT Next 5Y15.88%
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.


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 6 / 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 28.96 and the Price/Book (PB) ratio is 3.05.


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 19.47% in the next year.