Xylem Inc. (XYL)
Industrials · Industrial Machinery & Supplies & Components · US stock · S&P 500 component
$109.26
▲ +2.91 (2.74%)
Fair valueFair
$113 +3.7% to fair value
$57fair band $96–$137$170
Day's range
$103.45 – $109.51
52-week range
$98.58 – $154.27
About Xylem Inc.
Xylem provides technology for water, including pumps, treatment systems, meters, and software used to move, measure, treat and monitor water. Its customers are utilities, industrial companies and commercial and residential users. The company earns money from selling equipment, from replacement parts and services, and from digital solutions that help utilities reduce leaks and manage networks. Municipal budgets and industrial activity influence demand.
Over the latest twelve months the company reported revenue of $9.1 billion, and annual revenue rose by 17.8% on average across three years. Profitability at the operating level stands at 14.5%, and return on invested capital came to 9%. The company carries net debt of 1.2 times its EBITDA. A dividend is paid, with a yield of 1.5%. It carries an X-Ray Score of 55 out of 100.
Price chart
52-wk range $98.58 – $154.27Volume 2,632,951Daily, split-adjusted
Vitals
Market cap$25.8B
52-week range$98.58 – $154.27
Volume (last day)2,632,951
P/E (TTM)26.0
EBIT / EV yield4.8%
Free-cash-flow yield3.7%
Dividend yield1.5%
Revenue (TTM)$9.1B
Net income (TTM)$1.0B
Operating margin14.5%
Return on capital8.7%
Debt incl. leases$2.9B
Cash & securities$1.3B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$113middle half of models $100 – $126
Fair
+3.7% to fair value
Average of the 15 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $109
Undervalued < $96Fair $96 – $137Overvalued > $137
P/E multiple
$119
P/B multiple
$126
P/S multiple
$126
EV/EBITDA multiple
$108
EV/EBIT multiple
$137
EV/revenue multiple
$123
10-year DCF, EBITDA exit
$119
5-year DCF, EBITDA exit
$124
10-year DCF, revenue exit
$119
5-year DCF, revenue exit
$125
10-year DCF, growth exit
$77
5-year DCF, growth exit
$76
Dividend discount, stable
$91
Dividend discount, multi-stage
$146
Earnings power value
$82
Growth the price implies
15.6%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Weak business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Industrials peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Fair
58/100
Priced about in line with its sector.
See the numbers →
EBIT / EV yield4.8%
Free-cash-flow yield3.7%
Fair value vs price1.0×
Growth
Strong
80/100
Growing faster than most of its sector.
See the numbers →
Revenue growth (3y)17.8%
EPS growth (3y)26.0%
Growth consistency100%
Profitability
Weak
32/100
Earns lower returns on its capital than most peers.
See the numbers →
Return on invested capital8.7%
Operating margin14.5%
Gross profitability20.6%
Financial health
Fair
56/100
Balance sheet is in typical shape for its sector.
See the numbers →
Piotroski F-Score5 / 9
Net debt / EBITDA1.2×
Interest coverNo interest cost
Dividends
Fair
60/100
Dividend is typical for its sector.
See the numbers →
Dividend yield1.5%
Dividends vs free cash flow42%
Dividend growth21.7%
Quarterly results: last 6 quarters
+1.8%
Mar '25
+6.1%
Jun '25
+7.8%
Sep '25
+6.3%
Dec '25
+2.7%
Mar '26
+1.5%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $2.3B, diluted EPS $1.11.
Compare with peers
SNA Snap-on Inc66 PNR PENTAIR plc62 GWW W.W. Grainger, Inc.55 OTIS Otis Worldwide Corp55Other Industrial Machinery & Supplies & Components companies by X-Ray Score.
SWOT analysis: Xylem Inc.
Strengthsinside the company
- Revenue has grown 17.8% a year over three years (median 2.1% for industry peers).
- Earnings per share have compounded at 26.0% a year over three years.
- Operating profit covers interest 57x, so debt costs are a small drag.
Weaknessesinside the company
- No clear weakness in the figures we track.
Opportunitiesvaluation and setting
- Dividends use only 42% of free cash flow, which leaves room to raise them.
Threatsvaluation and setting
- Revenue growth slowed to 5.5% last year from 17.8% a year over three years.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare XYL with peers and sector
Medians of 13 Industrial Machinery & Supplies & Components peers and of 80 Industrials stocks in our universe.
Largest peers (X-Ray Score): PH 50, ITW 46, GWW 55, IR 47, OTIS 55, DOV 49.
| Metric | XYL | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 55 | 49 | 50 |
| Valuation | 57 | 52 | 44 |
| Growth | 80 | 37 | 50 |
| Profitability | 32 | 51 | 51 |
| Financial health | 56 | 47 | 49 |
| Dividends | 60 | 53 | 53 |
Sector leaders: highest X-Ray Score in Industrials
XYL ranks #25 of 81 in Industrials and #3 of 14 in Industrial Machinery & Supplies & Components by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for XYL
Each factor is rated by where XYL stands among the 81 Industrials stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 7 Good · 10 Average · 6 Bad of 23
Growth: 2 · 1 · 0
Profitability: 0 · 3 · 2
Financial strength: 2 · 1 · 1
Valuation: 1 · 4 · 0
Cash flow: 1 · 1 · 2
Efficiency: 1 · 0 · 1
| Factor | XYL | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +17.8% | Good beats 93% | +5.6% | – | – |
| Revenue growth, last year | +5.5% | Average beats 54% | +4.5% | +6.5% | ≈ In line |
| EPS growth, 3 years a year | +26.0% | Good beats 84% | +5.7% | – | – |
| Profitability | |||||
| Gross margin | 39.2% | Average beats 56% | 38.0% | 37.7% | ≈ In line |
| Operating margin | 14.5% | Average beats 40% | 17.5% | 11.3% | ▲ Better |
| Net margin | 11.2% | Average beats 45% | 12.8% | 8.3% | ▲ Better |
| Return on invested capital | 8.7% | Bad beats 15% | 14.9% | – | – |
| Return on equity | 9.8% | Bad beats 14% | 23.7% | 8.4% | ≈ In line |
| Financial strength | |||||
| Net debt / EBITDA | 1.2x | Average beats 63% | 1.8x | 1.1x | ≈ In line |
| Interest cover | 57.4x | Good beats 97% | 21.4x | 13.3x | ▲ Better |
| Current ratio | 1.61 | Good beats 72% | 1.25 | 1.76 | ≈ In line |
| Piotroski F-score | 5 / 9 | Bad beats 16% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 25.4x | Average beats 61% | 28.9x | 41.0x | ▲ Better |
| Price / book | 2.5x | Good beats 88% | 6.2x | 2.9x | ▲ Better |
| Price / sales | 2.8x | Average beats 59% | 3.5x | 3.6x | ▲ Better |
| EV / EBITDA | 20.8x | Average beats 34% | 18.5x | 24.1x | ▲ Better |
| Free cash flow yield | 3.7% | Average beats 45% | 3.8% | 2.3% | ▲ Better |
| Cash flow | |||||
| Free cash flow margin | 10.5% | Bad beats 30% | 13.8% | 7.7% | ▲ Better |
| Cash from operations / net income | 1.28 | Average beats 39% | 1.39 | 1.37 | ≈ In line |
| Free cash flow growth, 3 years a year | +32.9% | Good beats 87% | +14.5% | – | – |
| Accruals (lower is better) | −1.6% | Bad beats 24% | −3.2% | – | – |
| Efficiency | |||||
| Inventory turnover | 5.5x | Good beats 72% | 4.0x | 4.6x | ▲ Better |
| Days sales outstanding | 75 days | Bad beats 22% | 57 days | 71 days | ≈ In line |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 6 Good · ● 6 Average · ● 4 BadCash quality
Earnings backed by cashBad
Free-cash-flow yieldAverage
Risk models
Altman Z''Average
Piotroski F-ScoreBad
Growth
EPS growth (3y)Good
Free-cash-flow growth (3y)Good
Revenue growth (3y)Good
Growth consistencyGood
Balance sheet
Current ratioGood
Net debt / EBITDAAverage
Interest coverGood
Valuation
Fair value vs priceAverage
EBIT / EV yieldAverage
Profitability
Return on invested capitalBad
Operating marginAverage
Gross profitabilityBad
Each check is graded against the company's sector, not a fixed number. Checklist score 57/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $5.2B | $5.5B | $7.4B | $8.6B | $9.0B |
| Operating income | $585M | $622M | $652M | $1.0B | $1.2B |
| Net income | $427M | $355M | $609M | $890M | $957M |
| Operating cash flow | $538M | $596M | $837M | $1.3B | $1.2B |
| Operating margin | 11.3% | 11.3% | 8.9% | 11.8% | 13.5% |
| Free cash flow | $330M | $388M | $566M | $942M | $910M |
| Diluted EPS | $2.35 | $1.96 | $2.79 | $3.65 | $3.92 |
Fiscal years, from SEC filings.
Technical summary
Daily
Neutral
7 bullish · 1 neutral · 8 bearish
Weekly
Strongly bearish
2 bullish · 1 neutral · 9 bearish
Monthly
Strongly bearish
0 bullish · 1 neutral · 7 bearish
Moving averages (daily)
| SMA 10 | 104.2 | Bullish |
| EMA 10 | 105.0 | Bullish |
| SMA 20 | 103.1 | Bullish |
| EMA 20 | 104.6 | Bullish |
| SMA 50 | 107.3 | Bullish |
| EMA 50 | 107.2 | Bullish |
| SMA 100 | 111.9 | Bearish |
| EMA 100 | 111.0 | Bearish |
| SMA 200 | 117.9 | Bearish |
| EMA 200 | 116.4 | Bearish |
Oscillators (daily)
| RSI (14) | 64.96 | Neutral |
| MACD (12, 26) | -0.26 | Bearish |
| Momentum (12) | 4.49 | Bullish |
| Stochastic %K (14) | 97.20 | Bearish |
| Williams %R (14) | -2.80 | Bearish |
| CCI (20) | 227.0 | Bearish |
Pivot points (classic, last session)
S3 99.24 | S2 101.3 | S1 105.3 | Pivot 107.4 | R1 111.4 | R2 113.5 | R3 117.4 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
1.69 USD
Yield on today's price
1.55%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 0.4300 | |
| 0.4300 | |
| 0.4300 | |
| 0.4000 | |
| 0.4000 | |
| 0.4000 | |
| 0.4000 | |
| 0.3600 | |
| 0.3600 | |
| 0.3600 | |
| 0.3600 | |
| 0.3300 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold XYL
| ETF | Share of the fund |
|---|---|
| PHO Invesco Water Resources | 4.04% |
| RSPN Invesco S&P 500 Equal Weight Industria... | 1.29% |
| VOT Vanguard Mid-Cap Growth | 0.62% |
| XLI Industrial Select Sector SPDR | 0.49% |
| FIDU Fidelity MSCI Industrials Index | 0.41% |
| VIS Vanguard Industrials | 0.38% |
| IYJ iShares U.S. Industrials | 0.33% |
| IWS iShares Russell Mid-Cap Value | 0.27% |
The eight funds with the largest weight in XYL among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
XYL SEC filings
8-KSEC EDGAR
Other events
424B5SEC EDGAR
424B5
424B5SEC EDGAR
424B5
8-KSEC EDGAR
Entered a material agreement
8-KSEC EDGAR
Director or officer change; Regulation FD disclosure
8-KSEC EDGAR
Director or officer change
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.