Market Cap
US$12.6b
Last Updated
2020/06/04 13:57 UTC
Data Sources
Company Financials +
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.
Rewards
Risk Analysis
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.8%
XYL
2.6%
US Machinery
2.4%
US Market
1 Year Return
-11.5%
XYL
-0.4%
US Machinery
9.2%
US Market
Return vs Industry: XYL underperformed the US Machinery industry which returned -0.4% over the past year.
Return vs Market: XYL underperformed the US Market which returned 9.2% over the past year.
Shareholder returns
| XYL | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.8% | 2.6% | 2.4% |
| 30 Day | 7.7% | 14.9% | 10.2% |
| 90 Day | -13.7% | 1.3% | 3.4% |
| 1 Year | -10.3%-11.5% | 1.5%-0.4% | 11.6%9.2% |
| 3 Year | 35.7%30.8% | 14.2%6.9% | 33.7%24.9% |
| 5 Year | 102.9%89.9% | 44.6%27.3% | 59.7%41.8% |
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
2 months ago | Simply Wall St
Three Things You Should Check Before Buying Xylem Inc. (NYSE:XYL) For Its Dividend2 months ago | Simply Wall St
Does Xylem Inc.'s (NYSE:XYL) CEO Pay Reflect Performance?3 months ago | Simply Wall St
Read This Before Buying Xylem Inc. (NYSE:XYL) SharesValuation
Is Xylem undervalued compared to its fair value and its price relative to the market?
35.06x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: XYL ($70.08) is trading above our estimate of fair value ($49.14)
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 (35.1x) compared to the Machinery industry average (20.7x).
PE vs Market: XYL is poor value based on its PE Ratio (35.1x) compared to the US market (16.1x).
Price to Earnings Growth Ratio
PEG Ratio: XYL is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: XYL is overvalued based on its PB Ratio (4.5x) compared to the US Machinery industry average (2.1x).
Next Steps
Future Growth
How is Xylem forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
23.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: XYL's forecast earnings growth (23.1% per year) is above the savings rate (2.2%).
Earnings vs Market: XYL's earnings (23.1% per year) are forecast to grow faster than the US market (22.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: XYL's revenue (6.8% per year) is forecast to grow slower than the US market (8.8% per year).
High Growth Revenue: XYL's revenue (6.8% 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 (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: XYL has a large one-off loss of $207.0M impacting its March 31 2020 financial results.
Growing Profit Margin: XYL's current net profit margins (7%) are lower than last year (10.5%).
Past Earnings Growth Analysis
Earnings Trend: XYL's earnings have grown by 9.6% 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 (-34.5%) over the past year, making it difficult to compare to the Machinery industry average (-5.7%).
Return on Equity
High ROE: XYL'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: XYL's short term assets ($2.5B) exceed its short term liabilities ($1.6B).
Long Term Liabilities: XYL's short term assets ($2.5B) do not cover its long term liabilities ($3.2B).
Debt to Equity History and Analysis
Debt Level: XYL's debt to equity ratio (81.7%) is considered high.
Reducing Debt: XYL's debt to equity ratio has increased from 64.1% to 81.7% over the past 5 years.
Debt Coverage: XYL's debt is well covered by operating cash flow (32.7%).
Interest Coverage: XYL's interest payments on its debt are well covered by EBIT (10.5x coverage).
Balance Sheet
Next Steps
Dividend
What is Xylem's current dividend yield, its reliability and sustainability?
1.48%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: XYL's dividend (1.48%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.65%).
High Dividend: XYL's dividend (1.48%) is low compared to the top 25% of dividend payers in the US market (4.39%).
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 reasonably low payout ratio (49%), 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 (35.6% 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 (54yo)
6.25yrs
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 about average for companies of similar size in the US market ($USD11.58M).
Compensation vs Earnings: Patrick's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 6.25yrs | US$8.32m | 0.11% $14.3m | |
| Senior VP & CFO | 4.25yrs | US$2.82m | 0.023% $2.9m | |
| Senior VP | 5.67yrs | US$1.60m | 0.024% $3.0m | |
| Senior VP and President of Measurement & Control Solutions | 9.42yrs | US$1.89m | 0.014% $1.8m | |
| VP, Controller & Chief Accounting Officer | 1.25yrs | no data | 0.00065% $82.0k | |
| SVP and Chief Innovation | 1.42yrs | no data | 0.011% $1.4m | |
| Interim Chief Information Officer & VP of Global Business Services | 2.75yrs | no data | no data | |
| Director of Investor Relations | 2.67yrs | no data | no data | |
| Vice President of Global Public Affairs | 5.67yrs | no data | no data | |
| Chief Marketing Officer & Senior VP | no data | no data | no data |
4.3yrs
Average Tenure
52.5yo
Average Age
Experienced Management: XYL's management team is considered experienced (4.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 6.25yrs | US$8.32m | 0.11% $14.3m | |
| Independent Chairman | 0.083yr | US$254.98k | 0.0062% $775.4k | |
| Independent Director | 8.67yrs | US$374.99k | 0.059% $7.5m | |
| Independent Director | 8.67yrs | US$239.98k | 0.020% $2.5m | |
| Independent Director | 8.67yrs | US$254.98k | 0.050% $6.4m | |
| Independent Director | 8.67yrs | US$259.98k | 0.014% $1.7m | |
| Independent Director | 7.08yrs | US$254.98k | 0.011% $1.4m | |
| Independent Director | 8.67yrs | US$239.98k | 0.011% $1.3m | |
| Independent Director | 1.25yrs | US$231.65k | 0.0010% $128.6k | |
| Independent Director | 2.83yrs | US$239.98k | 0.0011% $140.0k |
7.9yrs
Average Tenure
63.5yo
Average Age
Experienced Board: XYL's board of directors are considered experienced (7.9 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: XYL
- Exchange: NYSE
- Founded:
- Industry: Industrial Machinery
- Sector: Capital Goods
- Market Cap: US$12.608b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| XYL | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Oct 2011 |
| XY6 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Oct 2011 |
| XY6 | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Oct 2011 |
| 0M29 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Oct 2011 |
| XYL * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Oct 2011 |
| X1YL34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 2 REPR 1 COM | BR | BRL | Jan 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/04 13:57 |
| End of Day Share Price | 2020/06/03 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.