XYLEM INC (XYL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:XYL - US98419M1009 - Common Stock
146.13 USD
+1.32 (+0.91%)
145.99 USD
-0.14 (-0.1%)
We assign a fundamental rating of 5 out of 10 to XYL. XYL was compared to 132 industry peers in the Machinery industry. XYL has an average financial health and profitability rating. XYL is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- XYL had positive earnings in the past year.
- XYL had a positive operating cash flow in the past year.
- 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.
1.2 Ratios
- XYL has a better Return On Assets (5.48%) than 62.12% of its industry peers.
- Looking at the Return On Equity, with a value of 8.46%, XYL is in line with its industry, outperforming 57.58% of the companies in the same industry.
- XYL has a Return On Invested Capital (7.29%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for XYL is below the industry average of 10.24%.
- The 3 year average ROIC (6.95%) for XYL is below the current ROIC(7.29%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
- XYL has a better Profit Margin (10.66%) than 75.00% 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 13.85%, XYL is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- XYL's Operating Margin has been stable in the last couple of years.
- XYL has a better Gross Margin (38.23%) than 72.73% of its industry peers.
- In the last couple of years the Gross Margin of XYL has remained more or less at the same level.
| Industry Rank | Sector 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%
2. Health
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.
- The number of shares outstanding for XYL has been increased compared to 5 years ago.
- Compared to 1 year ago, XYL has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.69 indicates that XYL is not in any danger for bankruptcy at the moment.
- XYL has a Altman-Z score of 4.69. This is in the better half of the industry: XYL outperforms 69.70% 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 75.00% of its industry peers.
- A Debt/Equity ratio of 0.17 indicates that XYL is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.17, XYL is doing good in the industry, outperforming 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 4.69 |
ROIC/WACC0.77
WACC9.43%
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 43.94% of its industry peers.
- XYL has a Quick Ratio of 1.50. 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 1.50 is fine compared to the rest of the industry. XYL outperforms 64.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
- XYL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.34%, which is quite good.
- XYL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.22% yearly.
- Looking at the last year, XYL shows a small growth in Revenue. The Revenue has grown by 5.58% in the last year.
- XYL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.28% yearly.
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
- The Earnings Per Share is expected to grow by 12.11% on average over the next years. This is quite good.
- Based on estimates for the next years, XYL will show a small growth in Revenue. The Revenue will grow by 5.70% on average per year.
EPS Next Y19.43%
EPS Next 2Y14.55%
EPS Next 3Y13.3%
EPS Next 5Y12.11%
Revenue Next Year6.37%
Revenue Next 2Y4.95%
Revenue Next 3Y4.98%
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.
- 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
- XYL is valuated quite expensively with a Price/Earnings ratio of 30.19.
- XYL's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.38. XYL is around the same levels.
- The Price/Forward Earnings ratio is 26.02, which means the current valuation is very expensive for XYL.
- XYL's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. XYL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.19 | ||
| Fwd PE | 26.02 |
4.2 Price Multiples
- XYL's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. XYL is more expensive than 60.61% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as XYL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.57 | ||
| EV/EBITDA | 20.13 |
4.3 Compensation for Growth
- XYL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 13.30% in the coming years.
PEG (NY)1.55
PEG (5Y)4.18
EPS Next 2Y14.55%
EPS Next 3Y13.3%
5. Dividend
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 0.98, XYL pays a bit more dividend than its industry peers.
- XYL's Dividend Yield is slightly below the S&P500 average, which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
5.2 History
- On average, the dividend of XYL grows each year by 8.36%, which is quite nice.
- XYL has paid a dividend for at least 10 years, which is 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
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 2Y14.55%
EPS Next 3Y13.3%
146.13
+1.32 (+0.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)10-28 2025-10-28/bmo
Earnings (Next)02-10 2026-02-10/amc
Inst Owners95.82%
Inst Owner Change0.02%
Ins Owners0.24%
Ins Owner Change-1.35%
Market Cap35.58B
Revenue(TTM)8.89B
Net Income(TTM)948.00M
Analysts79.26
Price Target168.95 (15.62%)
Short Float %1.34%
Short Ratio2.48
Dividend
| Industry Rank | Sector 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)-1.38%
PT rev (3m)4.58%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)7.53%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)4.76%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.19 | ||
| Fwd PE | 26.02 | ||
| P/S | 4 | ||
| P/FCF | 40.57 | ||
| P/OCF | 28.19 | ||
| P/B | 3.17 | ||
| P/tB | 58.52 | ||
| EV/EBITDA | 20.13 |
EPS(TTM)4.84
EY3.31%
EPS(NY)5.62
Fwd EY3.84%
FCF(TTM)3.6
FCFY2.46%
OCF(TTM)5.18
OCFY3.55%
SpS36.53
BVpS46.03
TBVpS2.5
PEG (NY)1.55
PEG (5Y)4.18
Graham Number70.8
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 4.69 |
F-Score8
WACC9.43%
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 Y19.43%
EPS Next 2Y14.55%
EPS Next 3Y13.3%
EPS Next 5Y12.11%
Revenue 1Y (TTM)5.58%
Revenue growth 3Y18.12%
Revenue growth 5Y10.28%
Sales Q2Q%7.79%
Revenue Next Year6.37%
Revenue Next 2Y4.95%
Revenue Next 3Y4.98%
Revenue Next 5Y5.7%
EBIT growth 1Y21.98%
EBIT growth 3Y21.85%
EBIT growth 5Y8.97%
EBIT Next Year49.81%
EBIT Next 3Y20.53%
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 30.19 and the Price/Book (PB) ratio is 3.17.
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 19.43% in the next year.