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Market Cap

US$19.6b

Last Updated

2021/04/19 23:01 UTC

Data Sources

Company Financials +

Executive Summary

Xylem Inc., together with its subsidiaries, 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. More Details


Snowflake Analysis

Reasonable 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: XYL is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: XYL's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-0.2%

XYL

1.1%

US Machinery

1.3%

US Market


1 Year Return

56.2%

XYL

88.6%

US Machinery

53.8%

US Market

Return vs Industry: XYL underperformed the US Machinery industry which returned 88.6% over the past year.

Return vs Market: XYL exceeded the US Market which returned 53.9% over the past year.


Shareholder returns

XYLIndustryMarket
7 Day-0.2%1.1%1.3%
30 Day4.0%2.3%5.1%
90 Day3.8%13.3%8.9%
1 Year58.3%56.2%93.2%88.6%56.6%53.8%
3 Year43.1%37.8%61.7%50.2%64.4%53.6%
5 Year173.1%156.4%158.7%132.4%120.4%95.7%

Long-Term 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?

76.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: XYL ($108.61) is trading above our estimate of fair value ($82.83)

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 (77x) compared to the US Machinery industry average (35.8x).

PE vs Market: XYL is poor value based on its PE Ratio (77x) compared to the US market (22.5x).


Price to Earnings Growth Ratio

PEG Ratio: XYL is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: XYL is overvalued based on its PB Ratio (6.6x) compared to the US Machinery industry average (3.3x).


Future Growth

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

21.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: XYL's forecast earnings growth (21.8% per year) is above the savings rate (2%).

Earnings vs Market: XYL's earnings (21.8% per year) are forecast to grow faster than the US market (18% per year).

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

Revenue vs Market: XYL's revenue (5.6% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: XYL's revenue (5.6% 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 (20.2%)


Past Performance

How has Xylem performed over the past 5 years?

3.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: XYL has a large one-off loss of $139.0M impacting its December 31 2020 financial results.

Growing Profit Margin: XYL's current net profit margins (5.2%) are lower than last year (7.6%).


Past Earnings Growth Analysis

Earnings Trend: XYL's earnings have grown by 3.1% per year over the past 5 years.

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

Earnings vs Industry: XYL had negative earnings growth (-36.6%) over the past year, making it difficult to compare to the Machinery industry average (-13.3%).


Return on Equity

High ROE: XYL's Return on Equity (8.5%) is considered low.


Financial Health

How is Xylem's financial position?


Financial Position Analysis

Short Term Liabilities: XYL's short term assets ($3.5B) exceed its short term liabilities ($2.0B).

Long Term Liabilities: XYL's short term assets ($3.5B) do not cover its long term liabilities ($3.8B).


Debt to Equity History and Analysis

Debt Level: XYL's debt to equity ratio (103.6%) is considered high.

Reducing Debt: XYL's debt to equity ratio has increased from 61.7% to 103.6% over the past 5 years.

Debt Coverage: XYL's debt is well covered by operating cash flow (26.7%).

Interest Coverage: XYL's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet


Dividend

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

1.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: XYL's dividend (1.03%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: XYL's dividend (1.03%) is low compared to the top 25% of dividend payers in the US market (3.46%).


Stability and Growth of Payments

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 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.7%), XYL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: XYL's dividends in 3 years are forecast to be well covered by earnings (37.5% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Patrick Decker (55 yo)

7.08yrs

Tenure

US$8,830,351

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Patrick's total compensation ($USD8.83M) is about average for companies of similar size in the US market ($USD11.15M).

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


Leadership Team

Experienced Management: XYL's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: XYL's board of directors are considered experienced (7.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: XYL insiders have only sold shares 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: XYL
  • Exchange: NYSE
  • Founded: NaN
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$19.550b
  • Shares outstanding: 180.00m
  • Website: https://www.xylem.com

Number of Employees


Location

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

Listings


Biography

Xylem Inc., together with its subsidiaries, engages in the design, manufacture, and servicing of engineered products and solutions for the water and wastewater applications in the United States, Europe, th...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/19 23:01
End of Day Share Price2021/04/19 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.