Xylem Inc
Exchange: NYSESector: IndustrialsIndustry: Specialty Industrial Machinery
Xylem (XYL) is a Fortune 500 global water solutions company that empowers customers and communities to build a more water-secure world. Our 23,000 diverse employees delivered revenue of $8.6 billion in 2024, optimizing water and resource management with innovation and expertise. Join us at www.xylem.com and Let’s Solve Water.
Current Price
$113.73
-1.65%GoodMoat Value
$70.39
38.1% overvaluedProfile
Valuation (TTM)
Market Cap$27.65B
P/E28.19
EV$29.66B
P/B2.41
Shares Out243.14M
P/Sales3.04
Revenue$9.09B
EV/EBITDA15.88
Xylem Inc (XYL) Stock Analysis
GoodMoat Analysis
Xylem Inc appears to be a high-quality industrial business with a moderate competitive moat, but it is currently priced at a significant premium to its estimated fair value. The GoodMoat target of $70.39 suggests the stock is overvalued by over 70%. For a value investor, this creates an unfavourable risk/reward profile despite the company's fundamental strengths.
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Xylem Inc operates in the specialty industrial machinery sector, providing water technology solutions for utility, industrial, and residential applications. Applying the GoodMoat framework, the company likely possesses a moderate competitive moat (estimated score of 5-7/14) derived from factors like niche dominance in water technology, potential switching costs for mission-critical infrastructure, and strategic partnerships with large utilities. Its quality indicators are strong, with a healthy debt-to-equity ratio of 0.17, GAAP profitability, and a respectable 10.6% profit margin, which would likely allow it to pass the Moat & Quality Gate in Step 1 of the Decision Framework. However, the valuation assessment presents a major hurdle. The current price of $121.75 is over 70% above the GoodMoat target of $70.39, indicating a deeply unfavourable or negative margin of safety. This extreme overvaluation is a High Confidence Red Flag per the framework. While the business itself is solid, the stock fails the Valuation & Risk Gate decisively. A value investor's process would require a significant margin of safety, which is not present here. Therefore, while Xylem is a quality company, it is not currently priced for a favourable investment outcome based on value principles. Analysis based on data as of 2024-05-15.
Market Cap$27.65B
Current Price$113.73
P/E Ratio28.19
Forward P/E—
PEG Ratio1.94
EPS$3.92
Book Value$47.22
P/B Ratio2.41
XYL Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 7.1% FCF growth (CAGR)
Cash vs Debt
Net Debt: 463M
Revenue
5.2B
FY19
4.9B
FY20
5.2B
FY21
5.5B
FY22
7.4B
FY23
8.6B
FY24
9.0B
FY25
Net Income
401M
FY19
254M
FY20
427M
FY21
355M
FY22
609M
FY23
890M
FY24
957M
FY25
XYL 52-Week Range
$113.73
$152.01
50-Day MA: $121.87200-Day MA: $135.73
Did you know?
Trading 38% above its estimated fair value of $70.39.
Xylem Inc (XYL) Financial Summary
Xylem Inc (XYL) is a Industrials company in the Specialty Industrial Machinery industry, listed on NYSE. The stock currently trades at $113.73 with a market capitalization of $27.65B.
Key valuation metrics include a P/E ratio of 28.19, price-to-book ratio of 2.41, and EPS of $3.92. The company reports a profit margin of 10.8% and return on equity of 8.5%.
XYL Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $27.65B |
| P/E Ratio | 28.19 |
| EPS | $3.92 |
| P/B Ratio | 2.41 |
| P/S Ratio | 3.04 |
| EV/EBITDA | 15.88 |
| Dividend Yield | 1.41% |
| Profit Margin | 10.8% |
| Return on Equity | 8.5% |
| Debt/Equity | 0.17 |
XYL Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $5.25B | $401.00M |
| FY20 | $4.88B | $254.00M |
| FY21 | $5.20B | $427.00M |
| FY22 | $5.52B | $355.00M |
| FY23 | $7.36B | $609.00M |
| FY24 | $8.56B | $890.00M |
| FY25 | $9.04B | $957.00M |
Xylem Inc (XYL) Valuation
Based on GoodMoat's DCF model, Xylem Inc has a fair value estimate of $70.39. At the current price of $113.73, the stock appears 61.6% overvalued relative to our intrinsic value estimate.
XYL Quality Indicators
Xylem Inc maintains a profit margin of 10.8% and an operating margin of 13.5%. Return on equity stands at 8.5%. The current ratio is 1.63. Debt-to-equity ratio is 0.17.
About Xylem Inc
Xylem (XYL) is a Fortune 500 global water solutions company that empowers customers and communities to build a more water-secure world. Our 23,000 diverse employees delivered revenue of $8.6 billion in 2024, optimizing water and resource management with innovation and expertise. Join us at www.xylem.com and Let’s Solve Water.
XYL Free Cash Flow
Xylem Inc generated $927.00M in trailing twelve-month free cash flow, representing an FCF yield of 3.35%. This moderate FCF yield indicates reasonable cash generation.
XYL Shares Outstanding
Xylem Inc has 0.24 billion shares outstanding at a share price of $113.73, giving it a market capitalization of $27.65B.
XYL Recent Insider Trades
Recent insider transactions at Xylem Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| McShane Geri-Michelle (SVP, CAO) | SELL | 4,269 | $501436.74 |
| Peribere Jerome A | BUY | 1,210 | $141098.10 |