XYLEM INC (XYL) Stock Fundamental Analysis

NYSE:XYL • US98419M1009

128.67 USD
-0.54 (-0.42%)
At close: Feb 20, 2026
128.76 USD
+0.09 (+0.07%)
After Hours: 2/20/2026, 8:11:26 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

XYL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 131 industry peers in the Machinery industry. XYL has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, XYL is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • In the past year XYL was profitable.
  • 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 2025 200M 400M 600M 800M 1B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 5.43%, XYL is in the better half of the industry, outperforming 63.36% of the companies in the same industry.
  • With a Return On Equity value of 8.34%, XYL perfoms like the industry average, outperforming 55.73% of the companies in the same industry.
  • XYL has a Return On Invested Capital (7.28%) 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 10.17%.
  • The 3 year average ROIC (6.00%) for XYL is below the current ROIC(7.28%), indicating increased profibility in the last year.
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

  • With a decent Profit Margin value of 10.59%, XYL is doing good in the industry, outperforming 75.57% of the companies in the same industry.
  • XYL's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 14.68%, XYL is in the better half of the industry, outperforming 69.47% of the companies in the same industry.
  • In the last couple of years the Operating Margin of XYL has grown nicely.
  • XYL has a better Gross Margin (38.46%) than 73.28% 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 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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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. Health

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.
  • The number of shares outstanding for XYL has been increased compared to 1 year ago.
  • Compared to 5 years ago, XYL has more shares outstanding
  • The debt/assets ratio for XYL has been reduced compared to a year ago.
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 4.24 indicates that XYL is not in any danger for bankruptcy at the moment.
  • XYL has a Altman-Z score of 4.24. This is in the better half of the industry: XYL outperforms 70.23% of its industry peers.
  • XYL has a debt to FCF ratio of 2.23. This is a good value and a sign of high solvency as XYL would need 2.23 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 2.23, XYL is in the better half of the industry, outperforming 76.34% of the companies in the same industry.
  • XYL has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
  • The Debt to Equity ratio of XYL (0.12) is better than 74.81% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 2.23
Altman-Z 4.24
ROIC/WACC0.81
WACC8.99%
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

  • A Current Ratio of 1.63 indicates that XYL should not have too much problems paying its short term obligations.
  • XYL has a Current ratio of 1.63. This is in the lower half of the industry: XYL underperforms 69.47% 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 of 1.28. This is comparable to the rest of the industry: XYL outperforms 53.44% 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. Growth

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.
  • Measured over the past years, XYL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.78% on average per year.
  • The Revenue has been growing slightly by 5.52% in the past year.
  • XYL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.13% yearly.
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

  • XYL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.39% yearly.
  • Based on estimates for the next years, XYL will show a small growth in Revenue. The Revenue will grow by 5.34% on average per year.
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.
  • 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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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 25.33 indicates a quite expensive valuation of XYL.
  • Compared to the rest of the industry, the Price/Earnings ratio of XYL indicates a somewhat cheap valuation: XYL is cheaper than 61.07% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.99. XYL is around the same levels.
  • A Price/Forward Earnings ratio of 22.91 indicates a rather expensive valuation of XYL.
  • XYL's Price/Forward Earnings is on the same level as the industry average.
  • XYL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 25.33
Fwd PE 22.91
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 35.93
EV/EBITDA 16.79
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.
  • The decent profitability rating of XYL may justify a higher PE ratio.
PEG (NY)2.4
PEG (5Y)1.28
EPS Next 2Y10.51%
EPS Next 3Y11.27%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 1.15%, XYL has a reasonable but not impressive dividend return.
  • XYL's Dividend Yield is a higher than the industry average which is at 1.17.
  • 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

  • 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 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
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.
  • 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 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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XYLEM INC

NYSE:XYL (2/20/2026, 8:11:26 PM)

After market: 128.76 +0.09 (+0.07%)

128.67

-0.54 (-0.42%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-10
Earnings (Next)04-27
Inst Owners95.82%
Inst Owner Change0.54%
Ins Owners0.24%
Ins Owner Change-1.2%
Market Cap31.33B
Revenue(TTM)9.04B
Net Income(TTM)957.00M
Analysts80
Price Target168.63 (31.06%)
Short Float %1.72%
Short Ratio2.76
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)4.81%
Min EPS beat(2)-0.39%
Max EPS beat(2)10.02%
EPS beat(4)3
Avg EPS beat(4)6.13%
Min EPS beat(4)-0.39%
Max EPS beat(4)10.02%
EPS beat(8)6
Avg EPS beat(8)4.51%
EPS beat(12)10
Avg EPS beat(12)7.13%
EPS beat(16)14
Avg EPS beat(16)9.62%
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)-1.16%
PT rev (3m)3.6%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)0.67%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.87%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.09%
Valuation
Industry RankSector Rank
PE 25.33
Fwd PE 22.91
P/S 3.47
P/FCF 35.93
P/OCF 25.26
P/B 2.73
P/tB 35.76
EV/EBITDA 16.79
EPS(TTM)5.08
EY3.95%
EPS(NY)5.62
Fwd EY4.36%
FCF(TTM)3.58
FCFY2.78%
OCF(TTM)5.09
OCFY3.96%
SpS37.11
BVpS47.15
TBVpS3.6
PEG (NY)2.4
PEG (5Y)1.28
Graham Number73.41
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 0.12
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 4.24
F-Score6
WACC8.99%
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 Year37.96%
EBIT Next 3Y18.08%
EBIT Next 5Y15.02%
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 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 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 25.33 and the Price/Book (PB) ratio is 2.73.


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.