Xylem (XYL) AI Stock Analysis

• Market Cap: $34.33B
• Dividend Yield: 1.11%
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): 36.3
• Beta (1Y): 1.04
• Revenue Growth: 5.56%
• EPS Growth: 13.76%
• Country: US
• Employees: 23,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.37
• Shares Outstanding: 243,469,070
• 10 Day Avg. Volume: 1,248,340
• 30 Day Avg. Volume: 1,203,871
• PEG Ratio: 1.03
• Price to Book (P/B): 2.64
• Price to Sales (P/S): 3.29
• P/FCF Ratio: 29.88
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 4.18
• Enterprise Value/Gross Profit: 10.92
• Enterprise Value/Ebitda: 20.71
• 1Y Price Target: $169.00
• Price Target Upside: 21.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 5.06
• Revenue Forecast (FY): $9.01B

• Rating: 79 Outperform
• Price Target: $172.00 ▲(23.76% Upside)

Xylem's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. Technical analysis supports a bullish outlook, though caution is advised due to overbought signals. Valuation concerns slightly temper the overall score, but the company's strategic initiatives and raised guidance provide confidence in future growth.

Positive Factors

Revenue Growth

Xylem's raised revenue guidance indicates strong market demand and effective business strategies, supporting long-term growth prospects.

Margin Expansion

Improving margins reflect operational efficiency and cost management, enhancing profitability and financial stability over time.

Partnership with Amazon

The partnership with Amazon enhances Xylem's technological capabilities and market reach, supporting sustainable growth and innovation.

Negative Factors

Order Decline

Declining orders, particularly in China, may signal weakening demand, potentially impacting future revenue and growth momentum.

Challenges in China

Economic challenges in China could hinder Xylem's growth in a key market, affecting overall performance and strategic objectives.

Tariff Impact

Tariffs could increase costs and pressure margins, impacting profitability and competitive positioning in affected markets.

Xylem Business Overview & Revenue Model

Company Description

Xylem Inc. (NYSE: XYL) is a global leader in water technology, dedicated to addressing the world's water challenges. The company operates primarily in the water sector, providing innovative solutions for water and wastewater treatment, as well as water transportation and management. Xylem's core products include pumps, treatment systems, and monitoring technologies designed to optimize water usage and enhance the efficiency of water systems. With a commitment to sustainability, Xylem serves various industries, including municipal, industrial, residential, and agricultural markets.

How the Company Makes Money

Xylem generates revenue through multiple streams, primarily from the sale of its water technology products and services. Key revenue streams include the sale of pumps, treatment equipment, and related services, as well as recurring revenue from maintenance contracts and spare parts. The company benefits from significant partnerships with municipalities and industries that require efficient water management solutions. Additionally, Xylem engages in research and development to innovate and enhance its product offerings, which helps maintain its competitive edge and drives growth in emerging markets and sectors focused on sustainability.

Xylem Financial Statement Overview

Summary

Xylem exhibits strong financial performance with consistent revenue and profit growth, efficient operations, and a solid balance sheet with low leverage. Cash flow generation is robust, supporting ongoing operations and potential investments. While the return on equity could be improved, the company's financial health is stable and well-positioned for future growth.

Income Statement

Xylem's income statement shows strong performance with consistent revenue growth, evidenced by a 1.89% increase in TTM (Trailing-Twelve-Months) revenue. The company maintains healthy profitability with a gross profit margin of 37.82% and a net profit margin of 10.75%. EBIT and EBITDA margins are also robust at 13.70% and 20.27%, respectively, indicating efficient operations and cost management.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.18, suggesting prudent financial leverage. Return on equity is moderate at 8.58%, indicating effective use of equity to generate profits. The equity ratio stands at 64.77%, highlighting a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Xylem's cash flow statement is strong, with a 4.99% growth in free cash flow, demonstrating effective cash generation. The operating cash flow to net income ratio of 1.34 indicates robust cash conversion from earnings. The free cash flow to net income ratio of 0.72 further underscores the company's ability to generate cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.89B	8.56B	7.36B	5.52B	5.20B	4.88B
Gross Profit	3.40B	3.21B	2.72B	2.08B	1.98B	1.83B
EBITDA	1.79B	1.69B	1.12B	726.00M	832.00M	613.00M
Net Income	948.00M	890.00M	609.00M	355.00M	427.00M	254.00M
Balance Sheet
Total Assets	17.30B	16.49B	16.11B	7.95B	8.28B	8.75B
Cash, Cash Equivalents and Short-Term Investments	1.19B	1.12B	1.02B	944.00M	1.35B	1.88B
Total Debt	2.09B	2.13B	2.39B	1.95B	2.51B	3.15B
Total Liabilities	5.85B	5.62B	5.94B	4.45B	5.05B	5.77B
Stockholders Equity	11.21B	10.64B	10.17B	3.49B	3.22B	2.97B
Cash Flow
Free Cash Flow	925.00M	942.00M	566.00M	388.00M	330.00M	641.00M
Operating Cash Flow	1.27B	1.26B	837.00M	596.00M	538.00M	824.00M
Investing Cash Flow	-618.00M	-482.00M	-628.00M	-191.00M	-183.00M	-169.00M
Financing Cash Flow	-477.00M	-615.00M	-157.00M	-790.00M	-855.00M	473.00M

Xylem Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 138.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XYL, the sentiment is Negative. The current price of 138.98 is below the 20-day moving average (MA) of 148.16, below the 50-day MA of 146.24, and above the 200-day MA of 132.11, indicating a neutral trend. The MACD of -1.36 indicates Positive momentum. The RSI at 27.99 is Positive, neither overbought nor oversold. The STOCH value of 8.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XYL.

Xylem Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FLS	79 Outperform	$8.34B	19.09	20.97%	1.25%	3.19%	69.89%
XYL	79 Outperform	$34.33B	36.27	8.70%	1.11%	5.56%	13.76%
PNR	75 Outperform	$16.66B	25.84	17.97%	0.98%	0.83%	-1.32%
WTS	73 Outperform	$8.85B	27.38	17.81%	0.70%	4.18%	16.05%
MWA	71 Outperform	$3.62B	19.02	21.40%	1.17%	8.75%	64.82%
GHM	68 Neutral	$613.13M	45.26	11.39%	―	16.04%	75.37%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Xylem Corporate Events

Xylem Inc. Reports Strong Q3 2025 Performance

Xylem Inc., a Fortune 500 company, specializes in providing innovative water solutions globally, focusing on optimizing water and resource management across various sectors. In its third-quarter 2025 earnings report, Xylem Inc. announced a revenue of $2.3 billion, marking an 8% increase from the previous year, with earnings per share rising by 4% to $0.93 and adjusted earnings per share up by 23% to $1.37. The company attributed this growth to strong demand and effective execution across all segments, particularly in Measurement and Control Solutions and Water Solutions and Services, which saw double-digit gains. Xylem’s net income for the quarter was $227 million, with an adjusted EBITDA margin of 23.2%, reflecting a 200 basis point increase from the previous year. This margin expansion was driven by productivity savings and strong price realization, despite challenges from inflation and investments. Looking ahead, Xylem has raised its full-year 2025 revenue and adjusted earnings per share guidance, forecasting a revenue of approximately $9.0 billion and an adjusted EBITDA margin of 22.0 to 22.3%. The company remains confident in its ability to deliver sustainable growth and value creation, supported by resilient market demand and strategic initiatives.

Xylem Inc’s Earnings Call Highlights Strong Growth and Optimism

Xylem Inc’s recent earnings call conveyed a strong performance with notable revenue and margin growth across most segments, particularly in Measurement and Control Solutions and Water Infrastructure. Despite challenges such as order declines and market softness in China, the overall sentiment was optimistic, reflecting confidence in future growth prospects.

Xylem Inc. Reports Strong Q2 2025 Results

Xylem Inc., a Fortune 500 company, is a global leader in water solutions, focusing on optimizing water and resource management through innovation and expertise. In its latest earnings report, Xylem Inc. announced a strong second quarter for 2025, with revenue reaching $2.3 billion, marking a 6% increase both on a reported and organic basis. The company also reported a 16% rise in earnings per share, reflecting robust demand and effective execution across its segments.

Xylem Inc’s Earnings Call: Strong Growth Amid Challenges

Xylem Inc’s recent earnings call presented a balanced sentiment, highlighting both strong performance across key segments and certain challenges. The company reported impressive growth and raised its full-year guidance, yet acknowledged economic issues in China, order delays, and tariff impacts that could pose challenges ahead.