XYLEM INC (XYL) Fundamental Analysis & Valuation

NYSE:XYL • US98419M1009

120.02 USD
-2.33 (-1.9%)
At close: Mar 12, 2026
120.02 USD
0 (0%)
After Hours: 3/12/2026, 5:21:51 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

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

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. While XYL belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. XYL is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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.
  • 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.
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 62.60% of its industry peers.
  • XYL has a Return On Equity (8.34%) which is in line with its industry peers.
  • With a Return On Invested Capital value of 7.28%, XYL perfoms like the industry average, outperforming 56.49% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for XYL is below the industry average of 10.16%.
  • 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 has a Profit Margin of 10.59%. This is in the better half of the industry: XYL outperforms 74.81% 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 has a Gross Margin of 38.46%. This is in the better half of the industry: XYL outperforms 73.28% 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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
  • 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 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

  • An Altman-Z score of 4.08 indicates that XYL is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 4.08, XYL is in the better half of the industry, outperforming 65.65% of the companies in the same industry.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 2.37, XYL is in the better half of the industry, outperforming 75.57% of the companies in the same industry.
  • XYL has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
  • Looking at the Debt to Equity ratio, with a value of 0.13, XYL is in the better half of 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 4.08
ROIC/WACC0.79
WACC9.22%
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.
  • Looking at the Current ratio, with a value of 1.63, XYL is doing worse than 67.94% of the companies in the same industry.
  • 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 52.67% of 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. XYL Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 18.69% over the past year.
  • The Earnings Per Share has been growing by 19.78% on average over the past years. This is quite good.
  • The Revenue has been growing slightly by 5.52% in the past year.
  • The Revenue has been growing by 13.13% on average over the past years. This is quite good.
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 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 Y9.42%
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

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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

  • The Price/Earnings ratio is 23.63, which indicates a rather expensive current valuation of XYL.
  • Compared to the rest of the industry, the Price/Earnings ratio of XYL is on the same level as its industry peers.
  • The average S&P500 Price/Earnings ratio is at 26.15. XYL is around the same levels.
  • With a Price/Forward Earnings ratio of 21.59, XYL is valued on the expensive side.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of XYL is on the same level as its industry peers.
  • XYL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.27, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 23.63
Fwd PE 21.59
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 is on the same level as the industry average.
Industry RankSector Rank
P/FCF 33.47
EV/EBITDA 15.96
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 an expensive valuation of the company.
  • XYL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.51
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

  • XYL has a Yearly Dividend Yield of 1.15%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 1.13, XYL pays a bit more dividend than its industry peers.
  • Compared to the average S&P500 Dividend Yield of 1.82, XYL is paying slightly less dividend.
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

  • XYL pays out 40.86% of its income as dividend. 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 (3/12/2026, 5:21:51 PM)

After market: 120.02 0 (0%)

120.02

-2.33 (-1.9%)

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 Change4.3%
Market Cap29.18B
Revenue(TTM)9.04B
Net Income(TTM)957.00M
Analysts79.29
Price Target160.09 (33.39%)
Short Float %1.85%
Short Ratio2.73
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)-6.49%
EPS NQ rev (3m)-7.88%
EPS NY rev (1m)-1.01%
EPS NY rev (3m)-0.89%
Revenue NQ rev (1m)-3.13%
Revenue NQ rev (3m)-3.96%
Revenue NY rev (1m)-1.37%
Revenue NY rev (3m)-1.73%
Valuation
Industry RankSector Rank
PE 23.63
Fwd PE 21.59
P/S 3.23
P/FCF 33.47
P/OCF 23.53
P/B 2.54
P/tB 33.31
EV/EBITDA 15.96
EPS(TTM)5.08
EY4.23%
EPS(NY)5.56
Fwd EY4.63%
FCF(TTM)3.59
FCFY2.99%
OCF(TTM)5.1
OCFY4.25%
SpS37.16
BVpS47.22
TBVpS3.6
PEG (NY)2.51
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 4.08
F-Score6
WACC9.22%
ROIC/WACC0.79
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 Year36%
EBIT Next 3Y16.87%
EBIT Next 5Y12.65%
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 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 23.63 and the Price/Book (PB) ratio is 2.54.


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.