Xylem (XYL) AI Stock Analysis

• Market Cap: $31.56B
• Dividend Yield: 1.23%
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): 34.9
• Beta (1Y): 1.18
• Revenue Growth: 8.14%
• EPS Growth: 32.64%
• Country: US
• Employees: 23,000
• Sector: Industrials
• Sector Strength: 89
• Industry: Industrial - Machinery
• EPS (TTM): 1.03
• Shares Outstanding: 243,351,010
• 10 Day Avg. Volume: 899,571
• 30 Day Avg. Volume: 1,179,730
• PEG Ratio: 18.28
• Price to Book (P/B): 2.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 35.66
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 0.96
• Enterprise Value/Gross Profit: 10.11
• Enterprise Value/Ebitda: 5.04
• 1Y Price Target: $141.56
• Price Target Upside: 8.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 72 Outperform
• Price Target: ―

Xylem's overall stock score of 72 reflects its strong financial performance, particularly in terms of profitability and cash flow management. The technical indicators suggest a neutral to slightly negative momentum, while the valuation indicates a high price relative to earnings. The positive guidance from the recent earnings call boosts confidence, despite challenges in specific markets and tariff-related uncertainties.

Positive Factors

Investment Potential

XYL is considered an attractive core long-term holding for industrial and sustainability-focused investors.

Market Valuation

XYL is currently trading at a discount to historical averages, making current levels an attractive entry point.

Operational Efficiency

Optimization initiatives, including 80/20, are expected to drive structural margin improvements over time.

Negative Factors

Geopolitical Influence

China still weak and not expected to flip to neutral in the near term.

Market Outlook

The M&CS guide is viewed as ambitious after an expected slow start.

Order Growth

Order growth is expected to be minimal and lag behind revenue.

Xylem Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Xylem Inc. makes money through the sale of its diverse range of water-related products and solutions. The company's key revenue streams include the sale of water and wastewater pumps, treatment equipment, and analytical instruments. Xylem also generates income through service contracts, maintenance agreements, and consulting services related to its product offerings. A significant portion of its revenue comes from long-term relationships with municipal, industrial, and commercial customers who require efficient water management solutions. Additionally, strategic partnerships and collaborations with other companies and institutions help enhance Xylem's product offerings and market reach, contributing to its overall earnings.

Xylem Financial Statement Overview

Summary

Xylem exhibits strong financial health across all statements. The income statement reflects solid profitability, though revenue declines are worth monitoring. The balance sheet is well-structured, with low leverage and strong equity positioning, while cash flow statements highlight efficient cash management. Overall, the company is positioned for stability with potential growth, but should be cautious of emerging revenue trends.

Income Statement

Xylem has demonstrated solid revenue growth, with a notable increase from 2022 to 2023. The TTM gross profit margin is robust at 37.67%, and the net profit margin is impressive at 13.88%. However, the TTM revenue has decreased compared to the previous year, which could be a concern if the trend continues. The company maintains strong EBIT and EBITDA margins, reflecting operational efficiency.

Balance Sheet

The balance sheet is strong with a healthy debt-to-equity ratio of 0.19 and a solid equity ratio of 65.31%, indicating a stable capital structure and low financial risk. Return on Equity (ROE) is commendable at 8.38%, illustrating effective use of shareholders' capital. However, the slight decrease in stockholders' equity over the recent period should be monitored.

Cash Flow

Xylem's cash flow is robust, with consistent free cash flow generation and a strong operating cash flow to net income ratio of 1.33. The free cash flow to net income ratio is also favorable at 0.98, indicating efficient conversion of earnings into cash. The TTM free cash flow has slightly decreased, but overall cash flow management remains strong.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.56B	7.36B	5.52B	5.20B	4.88B
Gross Profit	3.21B	2.72B	2.08B	1.98B	1.83B
EBITDA	1.63B	1.15B	755.00M	853.00M	736.00M
Net Income	890.00M	609.00M	355.00M	427.00M	254.00M
Balance Sheet
Total Assets	16.50B	16.11B	7.95B	8.28B	8.75B
Cash, Cash Equivalents and Short-Term Investments	1.12B	1.02B	944.00M	1.35B	1.88B
Total Debt	2.02B	2.39B	1.95B	2.44B	3.08B
Total Liabilities	5.62B	5.94B	4.45B	5.05B	5.77B
Stockholders Equity	10.64B	10.17B	3.49B	3.22B	2.97B
Cash Flow
Free Cash Flow	942.00M	566.00M	388.00M	330.00M	641.00M
Operating Cash Flow	1.26B	837.00M	596.00M	538.00M	824.00M
Investing Cash Flow	-482.00M	-628.00M	-191.00M	-183.00M	-169.00M
Financing Cash Flow	-615.00M	-157.00M	-790.00M	-855.00M	473.00M

Xylem Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 130.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XYL, the sentiment is Positive. The current price of 130.42 is above the 20-day moving average (MA) of 129.24, above the 50-day MA of 127.05, and above the 200-day MA of 123.81, indicating a bullish trend. The MACD of 1.35 indicates Positive momentum. The RSI at 56.78 is Neutral, neither overbought nor oversold. The STOCH value of 34.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XYL.

Xylem Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WTS	79 Outperform	$8.43B	28.93	17.61%	0.84%	3.89%	8.17%
PNR	78 Outperform	$17.24B	27.02	18.59%	0.95%	-0.42%	3.23%
MWA	74 Outperform	$3.95B	27.53	17.68%	1.06%	10.96%	43.44%
FLS	74 Outperform	$6.89B	24.69	14.00%	1.59%	4.23%	20.40%
GHM	74 Outperform	$555.52M	46.33	10.86%	―	13.13%	164.29%
XYL	72 Outperform	$31.56B	34.88	8.62%	1.23%	8.14%	32.64%
Sector *	65 Neutral	$10.81B	15.25	5.26%	1.93%	3.11%	-26.99%

Xylem Corporate Events

Xylem Concludes Annual Shareholders Meeting with Key Decisions

On May 13, 2025, Xylem Inc. held its Annual Meeting of Shareholders, where 88.68% of the company’s outstanding common stock was represented. Key outcomes included the election of nine directors, ratification of Deloitte & Touche LLP as the independent auditor for 2025, approval of executive compensation, and the rejection of a shareholder proposal for special shareholder meeting improvements.

The most recent analyst rating on (XYL) stock is a Buy with a $148.00 price target. To see the full list of analyst forecasts on Xylem stock, see the XYL Stock Forecast page.