XYLEM INC (XYL) Fundamental Analysis & Valuation
NYSE:XYL • US98419M1009
123.15 USD
-3.04 (-2.41%)
At close: Mar 6, 2026
123 USD
-0.15 (-0.12%)
After Hours: 3/6/2026, 8:04:00 PM
This XYL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 5 out of 10 to XYL. XYL was compared to 130 industry peers in the Machinery industry. XYL has an excellent profitability rating, but there are some minor concerns on its financial health. XYL is quite expensive at the moment. It does show a decent growth rate.
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.
1.2 Ratios
- XYL's Return On Assets of 5.43% is fine compared to the rest of the industry. XYL outperforms 62.31% of its industry peers.
- Looking at the Return On Equity, with a value of 8.34%, XYL is in line with its industry, outperforming 55.38% of the companies in the same industry.
- The Return On Invested Capital of XYL (7.28%) is comparable to the rest of the industry.
- XYL had an Average Return On Invested Capital over the past 3 years of 6.00%. This is below the industry average of 10.22%.
- 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 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
- XYL has a Profit Margin of 10.59%. This is in the better half of the industry: XYL outperforms 75.38% of its industry peers.
- In the last couple of years the Profit Margin of XYL has grown nicely.
- XYL has a Operating Margin of 14.68%. This is in the better half of the industry: XYL outperforms 69.23% of its industry peers.
- In the last couple of years the Operating Margin of XYL has grown nicely.
- 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. XYL Health Analysis
2.1 Basic Checks
- XYL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, XYL has more shares outstanding
- Compared to 5 years ago, XYL has more shares outstanding
- XYL has a better debt/assets ratio than last year.
2.2 Solvency
- XYL has an Altman-Z score of 4.17. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
- XYL has a Altman-Z score of 4.17. This is in the better half of the industry: XYL outperforms 68.46% of its industry peers.
- The Debt to FCF ratio of XYL is 2.23, which is a good value as it means it would take XYL, 2.23 years of fcf income to pay off all of its debts.
- XYL has a Debt to FCF ratio of 2.23. This is in the better half of the industry: XYL outperforms 75.38% of its industry peers.
- A Debt/Equity ratio of 0.12 indicates that XYL is not too dependend on debt financing.
- XYL has a Debt to Equity ratio of 0.12. This is in the better half of the industry: XYL outperforms 73.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 2.23 | ||
| Altman-Z | 4.17 |
ROIC/WACC0.81
WACC9.02%
2.3 Liquidity
- A Current Ratio of 1.63 indicates that XYL should not have too much problems paying its short term obligations.
- XYL's Current ratio of 1.63 is on the low side compared to the rest of the industry. XYL is outperformed by 69.23% of its industry peers.
- 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 (1.28) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.28 |
3. XYL Growth Analysis
3.1 Past
- XYL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.69%, which is quite good.
- The Earnings Per Share has been growing by 19.78% on average over the past years. This is quite good.
- XYL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.52%.
- 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 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.
- 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.
4. XYL Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 24.24, which indicates a rather expensive current valuation of XYL.
- The rest of the industry has a similar Price/Earnings ratio as XYL.
- XYL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 21.93, XYL is valued on the expensive side.
- XYL's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.57. XYL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.24 | ||
| Fwd PE | 21.93 |
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 | 34.38 | ||
| EV/EBITDA | 16.41 |
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)2.3
PEG (5Y)1.23
EPS Next 2Y10.51%
EPS Next 3Y11.27%
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.
- XYL's Dividend Yield is a higher than the industry average which is at 1.13.
- Compared to the average S&P500 Dividend Yield of 1.82, XYL is paying slightly less dividend.
| Industry Rank | Sector 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 paid a dividend for at least 10 years, which is 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)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.
- XYL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP40.86%
EPS Next 2Y10.51%
EPS Next 3Y11.27%
XYL Fundamentals: All Metrics, Ratios and Statistics
123.15
-3.04 (-2.41%)
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 Change21.18%
Ins Owners0.24%
Ins Owner Change-0.79%
Market Cap29.98B
Revenue(TTM)9.04B
Net Income(TTM)957.00M
Analysts80
Price Target160.09 (30%)
Short Float %1.85%
Short Ratio2.73
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)4.85%
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)-5.24%
PT rev (3m)-6.38%
EPS NQ rev (1m)-6.49%
EPS NQ rev (3m)-8.07%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)-3.13%
Revenue NQ rev (3m)-4.13%
Revenue NY rev (1m)-1.42%
Revenue NY rev (3m)-2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.24 | ||
| Fwd PE | 21.93 | ||
| P/S | 3.32 | ||
| P/FCF | 34.38 | ||
| P/OCF | 24.18 | ||
| P/B | 2.61 | ||
| P/tB | 34.23 | ||
| EV/EBITDA | 16.41 |
EPS(TTM)5.08
EY4.13%
EPS(NY)5.62
Fwd EY4.56%
FCF(TTM)3.58
FCFY2.91%
OCF(TTM)5.09
OCFY4.14%
SpS37.11
BVpS47.15
TBVpS3.6
PEG (NY)2.3
PEG (5Y)1.23
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 | 4.17 |
F-Score6
WACC9.02%
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 Year36%
EBIT Next 3Y16.87%
EBIT Next 5Y14.95%
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 24.24 and the Price/Book (PB) ratio is 2.61.
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.