Xylem Inc.

Xylem Inc.

XYLยทNYSE

$109.69

-0.54%
IndustrialsIndustrial - Machinery

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. It operates through three segments: Water Infrastructure, Applied Water, and Measurement & Control Solutions. The Water Infrastructure segment offers various products, including water, storm water, and wastewater pumps; controls and systems; filtration, disinfection, and biological treatment equipment; and mobile dewatering equipment under the Flygt, Godwin, Wedeco, Sanitaire, Leopold, Wedeco, and Xylem Vue brand 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, Xylem Vue and Flojet brand names for residential and commercial building services, and industrial water applications. The Measurement & Control Solutions segment provides smart meters, networked communication devices, and measurement and control technologies, as well as critical infrastructure technologies. It also offers software and services, including cloud-based analytics, remote monitoring and data management, leak detection, condition assessment, asset management, and pressure monitoring solutions, as well as testing equipment and managed services. This segment sells its products under the Pure, Sensus, Smith Blair, WTW, Xylem Vue, 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. was formerly known as ITT WCO, Inc. and changed its name to Xylem Inc. in May 2011. The company. was incorporated in 2011 and is headquartered in Rye Brook, New York.

At a Glance

Live Snapshot
Market Cap$26.07B
EPS3.9300
P/E Ratio27.91
Earnings Date07/30/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is elevated (P/E 27.9).

Valuation inputs: P/E 27.9, earnings yield +3.6%, momentum -0.5%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE +8.3%, ROIC +6.4%).

Profitability stack: net margin +10.6%, ROE +8.3%, ROIC +6.4%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +33.4%, momentum -0.5%, net margin +10.6%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Xylem Inc. Market vs Earnings Trajectory

XYL ยท NYSE

Loading price and EPS data...

Xylem Inc.

Xylem Inc. Fair Value Envelope

XYL ยท NYSE

Our analysis suggests that XYL has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $109.69, this represents a potential HIDDEN relative to our calculated worth for Xylem Inc..

Intrinsic Value
Current Price: $109.69
3Y+99.0%
5Y+179.0%
10Y+171.0%
3Y+64.0%
5Y+85.0%
10Y+140.0%
3Y+170.0%
5Y+277.0%
10Y+268.0%
3Y+108.0%
5Y+51.0%
10Y+150.0%
3Y+135.0%
5Y+42.0%
10Y+144.0%
3Y+122.0%
5Y+102.0%
10Y+172.0%
Xylem Inc.

Xylem Inc. Profit Bridge

XYL ยท NYSE
Revenue9.04B
Cost of Goods Sold (5.56B)
Gross Profit3.48B
Operating Expenses (2.25B)
Operating Income1.22B
Interest Expense (29.00M)
Other Income/Expense-42.00M
Pretax Income1.18B
Income Tax (231.00M)
Net Income957.00M
Net Income
957.00M

Profitability Analysis

Gross Margin

38.5%

Strong gross margins indicate healthy pricing and efficient production or service delivery.

Operating Margin

13.5%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

10.6%

Strong net margins indicate efficient operations and favorable tax/interest management.

Effective Tax Rate

19.6%

Moderate tax rate typical for most corporations. Represents standard tax burden on profits.

Profitability Insight

Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.

38.46%
Gross Profit Margin
3%
3Y+2.0%
5Y+2.0%
10Y-1.0%
13.54%
Operating Profit Margin
15%
3Y+20.0%
5Y+80.0%
10Y+26.0%
10.59%
Net Profit Margin
2%
3Y+65.0%
5Y+103.0%
10Y+54.0%
8.34%
Return on Equity
3Y-18.0%
5Y-3.0%
10Y-30.0%
5.43%
Return on Assets
1%
3Y+22.0%
5Y+87.0%
10Y+35.0%
6.42%
Return on Invested Capital
11%
3Y-18.0%
5Y+46.0%
10Y+14.0%
XYL

Xylem Inc. Cash Conversion Engine

XYL ยท NYSE
Net Income950.00M
Depreciation & Amortization575.00M
Stock-Based Compensation53.00M
Change in Working Capital-333.00M
Others31.00M
Capital Expenditures-331.00M
Free Cash Flow910.00M

Cash Flow Quality Analysis

FCF Conversion Rate

95.8%

Strong cash conversion. Most reported earnings translate into actual cash flow, suggesting solid fundamentals.

CapEx Intensity

26.7%

Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.

FCF Growth Trend

-3.4%

Flat FCF growth. Stable but not expandingโ€”monitor for signs of business maturity or temporary headwinds.

Working Capital Impact

-$333.00M

Moderate working capital outflow. Typical for growing businesses, but ensure it's supporting revenue growth, not inefficiency.

Cash Flow Quality Insight

Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.

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Xylem Inc. Funding & Solvency Profile

XYL ยท NYSE
Cash & Cash Equivalents808.00M
Net Receivables1.80B
Inventory991.00M
Other Current Assets192.00M
Total Current Assets4 B
Property, Plant & Equipment1.15B
Goodwill & Intangible Assets10.51B
Long-Term Investments0.00
Other Non-Current Assets1.48B
Total Non-Current Assets3 B
Total Assets
16.95B

Financial Health Analysis

Current Ratio

1.46x

Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.

Debt-to-Equity Ratio

0.51x

Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.

Working Capital

1 B

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

24% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

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Xylem Inc. Street Expectations Map

XYL ยท NYSE

Wall Street analysts project that XYL stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 151.57, with estimates ranging from a low of 133.00 to a high of 161.00.

Lowest Target
133.00
21.25%
Consensus Target
151.57
38.18%
Highest Target
161.00
46.78%

The consensus 1-year price target stands at 151.57, with estimates ranging from a low of 133.00 to a high of 161.00.

Analyst Consensus Analysis

Upside Potential

+38.2%

Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.

Analyst Agreement

18.5% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

Very High

Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.

Market Sentiment Insight

Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.

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Xylem Inc. Insider Positioning

XYL ยท NYSE

During the last 12 months, insiders have purchased $141K and sold $3.43M worth of XYL shares, resulting in $3.29M of net selling activity.

3 Months

Bought

1.2K

141.10K

Sold

4.3K

501.44K

Net Activity

-360K

-$360K

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

0

0.00

Sold

12.1K

1.84M

Net Activity

-1.8M

-$1.84M

9-12 Months

Bought

0

0.00

Sold

7.7K

1.09M

Net Activity

-1.1M

-$1.09M

Top Buyers

1
PJA

Peribere Jerome A

Director

1.2K sharesโ€ข1 transactions

$141K

Top Sellers

1
TCS

Toussaint Claudia S

Officer: Evp, Cpso

10.4K sharesโ€ข1 transactions

$1.59M

2
GL

Glatch Lisa

Director

4.9K sharesโ€ข1 transactions

$689K

3
MG

Mcshane Geri-Michelle

Officer: Svp, Cao

5.3K sharesโ€ข2 transactions

$641K

4
HVD

Harker Victoria D

Director

3.5K sharesโ€ข2 transactions

$510K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $3.29M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.04:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Recent Trend (3 Months)

$360K

Heavy recent selling activity. Recent insider sales notably exceed purchasesโ€”may warrant investigation into company developments.

Insider Participation

High Selling

4 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.

Insider Activity Insight

Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.

0.37%
Dividend Yield
24%
3Y+15.0%
5Y+36.0%
10Y+4.0%
ย 

xyl Dividend History

XYL
10Y CAGR +11%
Latest $0.43
Annual $2.06
5 year growth trend
Last Period: +0%