NYSE:XYL

Stock Analysis Report

Executive Summary

Xylem Inc. engages in the design, manufacture, and servicing of engineered products and solutions for the water and wastewater applications.

Snowflake

Fundamentals

Proven track record 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


Market Performance


7 Day Return

4.0%

XYL

3.3%

US Machinery

0.07%

US Market


1 Year Return

23.3%

XYL

15.1%

US Machinery

8.9%

US Market

Return vs Industry: XYL exceeded the US Machinery industry which returned 15.1% over the past year.

Return vs Market: XYL exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

XYLIndustryMarket
7 Day4.0%3.3%0.07%
30 Day4.8%3.5%-0.3%
90 Day-0.5%-0.5%-1.6%
1 Year24.9%23.3%17.5%15.1%11.3%8.9%
3 Year74.4%67.9%55.1%45.1%46.3%36.8%
5 Year142.7%127.6%56.6%37.5%62.1%44.3%

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

Valuation

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

25.5x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: XYL ($81.27) is trading above our estimate of fair value ($69.99)

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


Price To Earnings Ratio

PE vs Industry: XYL is poor value based on its PE Ratio (25.5x) compared to the Machinery industry average (20.6x).

PE vs Market: XYL is poor value based on its PE Ratio (25.5x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: XYL is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: XYL is overvalued based on its PB Ratio (5.1x) compared to the US Machinery industry average (2.3x).


Next Steps

Future Growth

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

10.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: XYL's forecast earnings growth (10.9% per year) is above the savings rate (2.7%).

Earnings vs Market: XYL's earnings (10.9% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: XYL's earnings are forecast to grow, but not significantly.

Revenue vs Market: XYL's revenue (4.3% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: XYL's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: XYL's Return on Equity is forecast to be high in 3 years time (25.5%)


Next Steps

Past Performance

How has Xylem performed over the past 5 years?

10.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: XYL's earnings have grown by 10.4% per year over the past 5 years.

Accelerating Growth: XYL's earnings growth over the past year (54.9%) exceeds its 5-year average (10.4% per year).

Earnings vs Industry: XYL earnings growth over the past year (54.9%) exceeded the Machinery industry 16.7%.


Return on Equity

High ROE: XYL's Return on Equity (19.7%) is considered low.


Return on Assets

ROA vs Industry: XYL has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: XYL's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Xylem's financial position?


Financial Position Analysis

Short Term Liabilities: XYL's short term assets ($2.3B) exceeds its short term liabilities ($1.5B)

Long Term Liabilities: XYL's short term assets (2.3B) do not cover its long term liabilities (3.2B)


Debt to Equity History and Analysis

Debt Level: XYL's debt to equity ratio (84.4%) is considered high

Reducing Debt: XYL's debt to equity ratio has increased from 55.3% to 84.4% over the past 5 years.

Debt Coverage: XYL's debt is well covered by operating cash flow (24.1%).

Interest Coverage: XYL's interest payments on its debt are well covered by EBIT (9.7x coverage).


Balance Sheet

Inventory Level: XYL has a low level of unsold assets or inventory.

Debt Coverage by Assets: XYL's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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

1.18%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Xylem before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.2%marketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Years1.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: XYL's dividend (1.18%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: XYL's dividend (1.18%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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

Growing Dividend: XYL's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.2%), XYL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: XYL's dividends in 3 years are forecast to be well covered by earnings (27.1% payout ratio).


Next Steps

Management

What is the CEO of Xylem's salary, the management and board of directors tenure and is there insider trading?

4.7yrs

Average management tenure


CEO

Patrick Decker (54yo)

5.6yrs

Tenure

US$8,327,670

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 ($USD8.33M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

4.7yrs

Average Tenure

54.5yo

Average Age

Experienced Management: XYL's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

8.0yrs

Average Tenure

65.5yo

Average Age

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


Insider Trading

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


Recent Insider Transactions

SellUS$593,98108 May 19
Curtis Crawford
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,500
Max PriceUS$79.20
SellUS$769,91718 Mar 19
Steven Loranger
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$76.99
SellUS$574,50118 Mar 19
Curtis Crawford
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,500
Max PriceUS$76.60
SellUS$196,70226 Feb 19
Tomas Brannemo
EntityIndividual
Shares2,621
Max PriceUS$75.05
SellUS$41,61122 Feb 19
Tomas Brannemo
EntityIndividual
Shares559
Max PriceUS$74.44

Ownership Breakdown


Management Team

  • E. Rajkowski (60yo)

    Senior VP & CFO

    • Tenure: 3.6yrs
    • Compensation: US$2.78m
  • Claudia Toussaint (55yo)

    Senior VP

    • Tenure: 5yrs
    • Compensation: US$1.58m
  • Kelly McAndrew

    Vice President of Global Public Affairs

    • Tenure: 5yrs
  • Patrick Decker (54yo)

    President

    • Tenure: 5.6yrs
    • Compensation: US$8.33m
  • Ken Napolitano (57yo)

    Senior VP and President of Applied Water Systems & Americas Commercial Team

    • Tenure: 8.8yrs
    • Compensation: US$1.84m
  • Colin Sabol (51yo)

    Senior VP and President of Measurement & Control Solutions

    • Tenure: 8.8yrs
    • Compensation: US$1.82m
  • Jason Chapman

    Interim Chief Information Officer & VP of Global Business Services

    • Tenure: 2.1yrs
  • Jay Iyengar

    Chief Innovation & Technology Officer and Senior VP

    • Tenure: 4.3yrs
  • Matt Latino

    Director of Investor Relations

    • Tenure: 2yrs
  • Geri-Michelle McShane (45yo)

    VP, Controller & Chief Accounting Officer

    • Tenure: 0.6yrs

Board Members

  • Rob Friel (63yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$255.03k
  • Markos Tambakeras (68yo)

    Independent Chairman of the Board

    • Tenure: 8yrs
    • Compensation: US$375.06k
  • Surya Mohapatra (69yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: US$240.03k
  • Curt Crawford (71yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: US$243.78k
  • Steve Loranger (67yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: US$255.03k
  • Victoria Harker (54yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: US$260.03k
  • Jerome Peribere (64yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$251.28k
  • Sten Jakobsson (70yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: US$240.03k
  • Patrick Decker (54yo)

    President

    • Tenure: 5.6yrs
    • Compensation: US$8.33m
  • Jeanne Beliveau-Dunn (59yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$240.03k

Company Information

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


Key Information

  • Name: Xylem Inc.
  • Ticker: XYL
  • Exchange: NYSE
  • Founded:
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$14.631b
  • Shares outstanding: 180.03m
  • 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
0M29LSE (London Stock Exchange)YesCommon StockGBUSDOct 2011
XYL *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 2011

Biography

Xylem Inc. engages in the design, manufacture, and servicing of engineered products and solutions for the water and wastewater applications. It operates in three segments: Water Infrastructure, Applied Wat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:21
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.