DB:XY6

Stock Analysis Report

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Executive Summary

Xylem Inc. engages in the design, manufacture, and servicing of engineered products and solutions for the water and wastewater applications in the United States, Europe, the Asia Pacific, and internationally.


Snowflake Analysis

High growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Xylem's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: XY6 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.7%

XY6

-0.2%

DE Machinery

1.5%

DE Market


1 Year Return

-21.4%

XY6

-16.8%

DE Machinery

-1.8%

DE Market

Return vs Industry: XY6 underperformed the German Machinery industry which returned -16.8% over the past year.

Return vs Market: XY6 underperformed the German Market which returned -1.8% over the past year.


Shareholder returns

XY6IndustryMarket
7 Day2.7%-0.2%1.5%
30 Day-3.3%2.6%4.3%
90 Day5.2%22.7%25.1%
1 Year-20.4%-21.4%-15.9%-16.8%0.2%-1.8%
3 Year22.4%17.9%-32.5%-36.5%1.3%-6.9%
5 Year88.0%75.9%-9.1%-18.4%15.0%-0.2%

Price Volatility Vs. Market

How volatile is Xylem's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Xylem undervalued compared to its fair value and its price relative to the market?

31.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: XY6 (€57.54) is trading above our estimate of fair value (€49.76)

Significantly Below Fair Value: XY6 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: XY6 is poor value based on its PE Ratio (31.8x) compared to the Machinery industry average (15.4x).

PE vs Market: XY6 is poor value based on its PE Ratio (31.8x) compared to the German market (20.1x).


Price to Earnings Growth Ratio

PEG Ratio: XY6 is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: XY6 is overvalued based on its PB Ratio (4.1x) compared to the DE Machinery industry average (1.3x).


Next Steps

Future Growth

How is Xylem forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

24.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: XY6's forecast earnings growth (24.5% per year) is above the savings rate (0.2%).

Earnings vs Market: XY6's earnings (24.5% per year) are forecast to grow faster than the German market (22.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: XY6's revenue (6.9% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: XY6's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: XY6's Return on Equity is forecast to be high in 3 years time (22.3%)


Next Steps

Past Performance

How has Xylem performed over the past 5 years?

9.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: XY6 has a large one-off loss of $207.0M impacting its March 31 2005 financial results.

Growing Profit Margin: XY6's current net profit margins (7%) are lower than last year (10.5%).


Past Earnings Growth Analysis

Earnings Trend: XY6's earnings have grown by 9.6% per year over the past 5 years.

Accelerating Growth: XY6's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: XY6 had negative earnings growth (-34.5%) over the past year, making it difficult to compare to the Machinery industry average (-22.8%).


Return on Equity

High ROE: XY6's Return on Equity (12.8%) is considered low.


Next Steps

Financial Health

How is Xylem's financial position?


Financial Position Analysis

Short Term Liabilities: XY6's short term assets ($2.5B) exceed its short term liabilities ($1.6B).

Long Term Liabilities: XY6's short term assets ($2.5B) do not cover its long term liabilities ($3.2B).


Debt to Equity History and Analysis

Debt Level: XY6's debt to equity ratio (81.7%) is considered high.

Reducing Debt: XY6's debt to equity ratio has increased from 64.1% to 81.7% over the past 5 years.

Debt Coverage: XY6's debt is well covered by operating cash flow (32.7%).

Interest Coverage: XY6's interest payments on its debt are well covered by EBIT (10.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Xylem current dividend yield, its reliability and sustainability?

1.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: XY6's dividend (1.63%) is higher than the bottom 25% of dividend payers in the German market (1.28%).

High Dividend: XY6's dividend (1.63%) is low compared to the top 25% of dividend payers in the German market (3.83%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, XY6 has been paying a dividend for less than 10 years.

Growing Dividend: XY6's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49%), XY6's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: XY6's dividends in 3 years are forecast to be well covered by earnings (35.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Patrick Decker (55yo)

6.33yrs

Tenure

US$8,317,204

Compensation

Mr. Patrick K. Decker has been the Chief Executive Officer and President of Xylem Inc. since March 17, 2014. Mr. Decker served as the Chief Executive Officer and President of Harsco Corporation from Septem ...


CEO Compensation Analysis

Compensation vs Market: Patrick's total compensation ($USD8.32M) is above average for companies of similar size in the German market ($USD5.19M).

Compensation vs Earnings: Patrick's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Patrick Decker
President6.33yrsUS$8.32m0.11% $11.5m
E. Rajkowski
Senior VP & CFO4.33yrsUS$2.82m0.023% $2.4m
Claudia Toussaint
Senior VP5.75yrsUS$1.60m0.024% $2.5m
Colin Sabol
Senior VP and President of Measurement & Control Solutions9.5yrsUS$1.89m0.014% $1.5m
Geri-Michelle McShane
VP, Controller & Chief Accounting Officer1.33yrsno data0.00065% $66.1k
David Flinton
SVP and Chief Innovation1.5yrsno data0.011% $1.1m
Jason Chapman
Interim Chief Information Officer & VP of Global Business Services2.83yrsno datano data
Matthew Latino
Director of Investor Relations2.75yrsno datano data
Kelly McAndrew
Vice President of Global Public Affairs5.75yrsno datano data
Joseph Vesey
Chief Marketing Officer & Senior VPno datano datano data

4.3yrs

Average Tenure

53.5yo

Average Age

Experienced Management: XY6's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Patrick Decker
President6.33yrsUS$8.32m0.11% $11.5m
Robert Friel
Independent Chairman0.17yrUS$254.98k0.0062% $625.8k
Markos Tambakeras
Independent Director8.75yrsUS$374.99k0.059% $6.0m
Surya Mohapatra
Independent Director8.75yrsUS$239.98k0.020% $2.0m
Steven Loranger
Independent Director8.75yrsUS$254.98k0.050% $5.1m
Victoria Harker
Independent Director8.75yrsUS$259.98k0.014% $1.4m
Jerome Peribere
Independent Director7.17yrsUS$254.98k0.011% $1.1m
Sten Jakobsson
Independent Director8.75yrsUS$239.98k0.011% $1.1m
Jorge Gomez
Independent Director1.33yrsUS$231.65k0.0010% $103.8k
Jeanne Beliveau-Dunn
Independent Director2.92yrsUS$239.98k0.0011% $113.0k

8.0yrs

Average Tenure

64.5yo

Average Age

Experienced Board: XY6's board of directors are considered experienced (8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Xylem Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Xylem Inc.
  • Ticker: XY6
  • Exchange: DB
  • Founded:
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$11.452b
  • Listing Market Cap: US$10.176b
  • Shares outstanding: 179.92m
  • Website: https://www.xylem.com

Number of Employees


Location

  • Xylem Inc.
  • 1 International Drive
  • Rye Brook
  • New York
  • 10573
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
XYLNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2011
XY6DB (Deutsche Boerse AG)YesCommon StockDEEUROct 2011
XY6XTRA (XETRA Trading Platform)YesCommon StockDEEUROct 2011
0M29LSE (London Stock Exchange)YesCommon StockGBUSDOct 2011
XYL *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 2011
X1YL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Biography

Xylem Inc. engages in the design, manufacture, and servicing of engineered products and solutions for the water and wastewater applications in the United States, Europe, the Asia Pacific, and internationally. It operates in three segments: Water Infrastructure, Applied Water, and Measurement & Control Solutions. The Water Infrastructure segment offers various products, including water and wastewater pumps; controls and systems; filtration, disinfection, and biological treatment equipment; and mobile dewatering equipment under the Flygt, Godwin, Wedeco, Sanitaire, and Leopold names for the transportation and treatment of water. The Applied Water segment provides pumps, valves, heat exchangers, controls, and dispensing equipment systems under the Goulds Water Technology, Bell & Gossett, A-C Fire Pump, Standard Xchange, Lowara, Jabsco, and Flojet brand names for residential and commercial building services, and industrial water applications. The Measurement & Control Solutions segment provides smart metering, networked communications, and measurement and control technologies, as well as critical infrastructure technologies that allow customers to use their distribution networks for the delivery, monitoring, and control of critical resources, such as water, electricity, and natural gas. It also offers software and services, including cloud-based analytics, remote monitoring, data management, leak detection, and pressure monitoring solutions and testing equipment, as well as sells smart lighting solutions. This segment sells its products under the EmNet, Pure, Sensus, Smith Blair, Visenti, WTW, and YSI brand names. The company markets and sells its products through a network of direct sales force, resellers, distributors, and value-added solution providers. Xylem Inc. is headquartered in Rye Brook, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/01 22:16
End of Day Share Price2020/07/01 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.