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

0.4%

NYSE:XYL

-1.0%

US Machinery

-0.02%

US Market


1 Year Return

-3.7%

NYSE:XYL

-5.4%

US Machinery

1.6%

US Market

XYL matched the Machinery industry (-4.3%) over the past year.

XYL underperformed the Market in United States of America which returned 1.9% over the past year.


Share holder returns

XYLIndustryMarket
7 Day0.4%-1.0%-0.02%
30 Day3.1%7.1%2.7%
90 Day-4.1%-1.0%1.4%
1 Year-2.4%-3.7%-3.4%-5.4%3.8%1.6%
3 Year54.7%49.0%49.2%39.5%45.2%35.8%
5 Year129.8%114.7%55.3%36.1%61.8%44.1%

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 based on future cash flows and its price relative to the stock market?

24.6x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Xylem's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Xylem's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Xylem is overvalued based on earnings compared to the US Machinery industry average.

Xylem is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Xylem is poor value based on expected growth next year.


Price Based on Value of Assets

Xylem is overvalued based on assets compared to the US Machinery industry average.


Next Steps

Future Growth

How is Xylem expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

11.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Xylem's revenue is expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).

Xylem's earnings are expected to grow by 11.1% yearly, however this is not considered high growth (20% yearly).

Xylem's revenue growth is positive but not above the United States of America market average.

Xylem's earnings growth is positive but not above the United States of America market average.

Xylem's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Xylem is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

Xylem's year on year earnings growth rate has been positive over the past 5 years.

Xylem's 1-year earnings growth exceeds its 5-year average (54.9% vs 10.4%)

Xylem's earnings growth has exceeded the US Machinery industry average in the past year (54.9% vs 18.7%).


Return on Equity

Xylem has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Xylem used its assets more efficiently than the US Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Xylem's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Xylem's financial position?


Financial Position Analysis

Xylem is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Xylem's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Xylem's level of debt (84.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (55.3% vs 84.4% today).

Debt is well covered by operating cash flow (24.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 9.7x coverage).


Balance Sheet

Low level of unsold assets.

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?

1.37%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Xylem's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Xylem's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).

Whilst dividend payments have been stable, Xylem has been paying a dividend for less than 10 years.

Dividend payments have increased, but Xylem only paid a dividend in the past 8 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.7x coverage).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Patrick Decker (54yo)

5.5yrs

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

Patrick's remuneration is about average for companies of similar size in United States of America.

Patrick's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.6yrs

Average Tenure

54.5yo

Average Age

The tenure for the Xylem management team is about average.


Board Age and Tenure

7.9yrs

Average Tenure

65.5yo

Average Age

The tenure for the Xylem board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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: 3.5yrs
    • Compensation: US$2.78m
  • Claudia Toussaint (55yo)

    Senior VP

    • Tenure: 4.9yrs
    • Compensation: US$1.58m
  • Kelly McAndrew

    Vice President of Global Public Affairs

    • Tenure: 4.9yrs
  • Patrick Decker (54yo)

    President

    • Tenure: 5.5yrs
    • Compensation: US$8.33m
  • Ken Napolitano (57yo)

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

    • Tenure: 8.7yrs
    • Compensation: US$1.84m
  • Colin Sabol (51yo)

    Senior VP and President of Measurement & Control Solutions

    • Tenure: 8.7yrs
    • Compensation: US$1.82m
  • Jason Chapman

    Interim Chief Information Officer & VP of Global Business Services

    • Tenure: 2yrs
  • Jay Iyengar

    Chief Innovation & Technology Officer and Senior VP

    • Tenure: 4.3yrs
  • Matt Latino

    Director of Investor Relations

    • Tenure: 1.9yrs
  • Geri-Michelle McShane (45yo)

    VP, Controller & Chief Accounting Officer

    • Tenure: 0.5yrs

Board Members

  • Rob Friel (63yo)

    Independent Director

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

    Chairman of the Board

    • Tenure: 7.9yrs
    • Compensation: US$375.06k
  • Surya Mohapatra (69yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$240.03k
  • Curt Crawford (71yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$243.78k
  • Steve Loranger (67yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$255.03k
  • Victoria Harker (54yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$260.03k
  • Jerome Peribere (64yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$251.28k
  • Sten Jakobsson (70yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$240.03k
  • Patrick Decker (54yo)

    President

    • Tenure: 5.5yrs
    • Compensation: US$8.33m
  • Jeanne Beliveau-Dunn (59yo)

    Director

    • Tenure: 2.1yrs
    • 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$14.112b
  • 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 Analysis2019/09/19 00:24
End of Day Share Price2019/09/18 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.