XYLEM INC (XYL) Stock Fundamental Analysis
USA - NYSE:XYL - US98419M1009 - Common Stock
147.69 USD
+1.7 (+1.16%)
147.69 USD
0 (0%)
XYL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. Both the profitability and the financial health of XYL get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, XYL is valued expensive at the moment. XYL also has an excellent dividend rating. This makes XYL very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year XYL was profitable.
XYL had a positive operating cash flow in the past year.
XYL had positive earnings in each of the past 5 years.
XYL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
XYL's Return On Assets of 5.46% is in line compared to the rest of the industry. XYL outperforms 59.23% of its industry peers.
XYL has a Return On Equity (8.47%) which is comparable to the rest of the industry.
XYL has a Return On Invested Capital (6.92%) 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 10.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 8.47% | ||
| ROIC | 6.92% |
ROA(3y)4.55%
ROA(5y)4.34%
ROE(3y)8.17%
ROE(5y)9.27%
ROIC(3y)6.95%
ROIC(5y)7%
1.3 Margins
XYL has a Profit Margin of 10.74%. This is in the better half of the industry: XYL outperforms 76.15% of its industry peers.
In the last couple of years the Profit Margin of XYL has grown nicely.
XYL has a better Operating Margin (13.28%) than 66.15% of its industry peers.
XYL's Operating Margin has been stable in the last couple of years.
XYL has a Gross Margin of 37.81%. This is in the better half of the industry: XYL outperforms 69.23% of its industry peers.
XYL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.28% | ||
| PM (TTM) | 10.74% | ||
| GM | 37.81% |
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so XYL is destroying value.
The number of shares outstanding for XYL has been increased compared to 1 year ago.
XYL has more shares outstanding than it did 5 years ago.
XYL has a better debt/assets ratio than last year.
2.2 Solvency
XYL has an Altman-Z score of 4.63. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of XYL (4.63) is better than 75.38% of its industry peers.
The Debt to FCF ratio of XYL is 2.36, which is a good value as it means it would take XYL, 2.36 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.36, XYL is in the better half of the industry, outperforming 74.62% of the companies in the same industry.
XYL has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
XYL has a better Debt to Equity ratio (0.17) than 74.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 4.63 |
ROIC/WACC0.75
WACC9.27%
2.3 Liquidity
A Current Ratio of 1.90 indicates that XYL should not have too much problems paying its short term obligations.
The Current ratio of XYL (1.90) is comparable to the rest of the industry.
XYL has a Quick Ratio of 1.43. This is a normal value and indicates that XYL is financially healthy and should not expect problems in meeting its short term obligations.
XYL's Quick ratio of 1.43 is fine compared to the rest of the industry. XYL outperforms 63.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.37% over the past year.
The Earnings Per Share has been growing slightly by 7.22% on average over the past years.
XYL shows a small growth in Revenue. In the last year, the Revenue has grown by 3.98%.
Measured over the past years, XYL shows a quite strong growth in Revenue. The Revenue has been growing by 10.28% on average per year.
EPS 1Y (TTM)15.37%
EPS 3Y19.95%
EPS 5Y7.22%
EPS Q2Q%15.6%
Revenue 1Y (TTM)3.98%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%6.09%
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 10.56% on average per year.
Based on estimates for the next years, XYL will show a small growth in Revenue. The Revenue will grow by 5.56% on average per year.
EPS Next Y14%
EPS Next 2Y12.78%
EPS Next 3Y12.06%
EPS Next 5Y10.56%
Revenue Next Year5.42%
Revenue Next 2Y5.33%
Revenue Next 3Y5.3%
Revenue Next 5Y5.56%
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.
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 32.25, the valuation of XYL can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of XYL indicates a slightly more expensive valuation: XYL is more expensive than 60.77% of the companies listed in the same industry.
XYL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.67, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 27.13, XYL can be considered very expensive at the moment.
62.31% of the companies in the same industry are cheaper than XYL, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.33. XYL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.25 | ||
| Fwd PE | 27.13 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of XYL indicates a slightly more expensive valuation: XYL is more expensive than 64.62% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of XYL indicates a slightly more expensive valuation: XYL is more expensive than 62.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.59 | ||
| EV/EBITDA | 20.99 |
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.
A more expensive valuation may be justified as XYL's earnings are expected to grow with 12.06% in the coming years.
PEG (NY)2.3
PEG (5Y)4.46
EPS Next 2Y12.78%
EPS Next 3Y12.06%
5. Dividend
5.1 Amount
XYL has a Yearly Dividend Yield of 1.07%.
Compared to an average industry Dividend Yield of 1.80, XYL pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.07, XYL pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
5.2 History
On average, the dividend of XYL grows each year by 8.36%, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.36%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
XYL pays out 39.55% of its income as dividend. This is a sustainable payout ratio.
XYL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP39.55%
EPS Next 2Y12.78%
EPS Next 3Y12.06%
147.69
+1.7 (+1.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.11%
Inst Owner Change0.87%
Ins Owners0.24%
Ins Owner Change-0.16%
Market Cap35.95B
Revenue(TTM)8.73B
Net Income(TTM)938.00M
Analysts79.26
Price Target161.56 (9.39%)
Short Float %1.2%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
Yearly Dividend1.44
Dividend Growth(5Y)8.36%
DP39.55%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.45%
Min EPS beat(2)6.98%
Max EPS beat(2)7.92%
EPS beat(4)3
Avg EPS beat(4)4.43%
Min EPS beat(4)-0.98%
Max EPS beat(4)7.92%
EPS beat(8)7
Avg EPS beat(8)4.96%
EPS beat(12)11
Avg EPS beat(12)9.17%
EPS beat(16)15
Avg EPS beat(16)9.46%
Revenue beat(2)2
Avg Revenue beat(2)1.67%
Min Revenue beat(2)0.44%
Max Revenue beat(2)2.91%
Revenue beat(4)3
Avg Revenue beat(4)0.39%
Min Revenue beat(4)-4.15%
Max Revenue beat(4)2.91%
Revenue beat(8)7
Avg Revenue beat(8)0.99%
Revenue beat(12)11
Avg Revenue beat(12)2.11%
Revenue beat(16)13
Avg Revenue beat(16)1.71%
PT rev (1m)0.28%
PT rev (3m)11.81%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)3.9%
EPS NY rev (1m)0.28%
EPS NY rev (3m)4.33%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)2.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.25 | ||
| Fwd PE | 27.13 | ||
| P/S | 4.12 | ||
| P/FCF | 42.59 | ||
| P/OCF | 29.37 | ||
| P/B | 3.25 | ||
| P/tB | 74.43 | ||
| EV/EBITDA | 20.99 |
EPS(TTM)4.58
EY3.1%
EPS(NY)5.44
Fwd EY3.69%
FCF(TTM)3.47
FCFY2.35%
OCF(TTM)5.03
OCFY3.4%
SpS35.87
BVpS45.5
TBVpS1.98
PEG (NY)2.3
PEG (5Y)4.46
Graham Number68.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 8.47% | ||
| ROCE | 7.78% | ||
| ROIC | 6.92% | ||
| ROICexc | 7.51% | ||
| ROICexgc | 32.93% | ||
| OM | 13.28% | ||
| PM (TTM) | 10.74% | ||
| GM | 37.81% | ||
| FCFM | 9.67% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.36 | ||
| Debt/EBITDA | 1.11 | ||
| Cap/Depr | 66.32% | ||
| Cap/Sales | 4.35% | ||
| Interest Coverage | 18.4 | ||
| Cash Conversion | 70.67% | ||
| Profit Quality | 89.98% | ||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 4.63 |
F-Score8
WACC9.27%
ROIC/WACC0.75
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)15.37%
EPS 3Y19.95%
EPS 5Y7.22%
EPS Q2Q%15.6%
EPS Next Y14%
EPS Next 2Y12.78%
EPS Next 3Y12.06%
EPS Next 5Y10.56%
Revenue 1Y (TTM)3.98%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%6.09%
Revenue Next Year5.42%
Revenue Next 2Y5.33%
Revenue Next 3Y5.3%
Revenue Next 5Y5.56%
EBIT growth 1Y23.43%
EBIT growth 3Y21.85%
EBIT growth 5Y8.97%
EBIT Next Year45.14%
EBIT Next 3Y19.79%
EBIT Next 5Y15.05%
FCF growth 1Y136.42%
FCF growth 3Y41.3%
FCF growth 5Y8.72%
OCF growth 1Y113.61%
OCF growth 3Y32.52%
OCF growth 5Y8.33%