Xylem (XYL) AI Stock Analysis

• Market Cap: $34.96B
• Dividend Yield: 1.07%
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): 37.3
• Beta (1Y): 1.13
• Revenue Growth: 3.97%
• EPS Growth: 21.95%
• Country: US
• Employees: 23,000
• Sector: Industrials
• Sector Strength: 84
• Industry: Industrial - Machinery
• EPS (TTM): 1.26
• Shares Outstanding: 243,409,680
• 10 Day Avg. Volume: 1,352,103
• 30 Day Avg. Volume: 1,238,996
• PEG Ratio: 1.03
• Price to Book (P/B): 2.64
• Price to Sales (P/S): 3.29
• P/FCF Ratio: 29.87
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 3.75
• Enterprise Value/Gross Profit: 9.92
• Enterprise Value/Ebitda: 18.50
• 1Y Price Target: $155.60
• Price Target Upside: 8.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 71 Outperform
• Price Target: $160.00 ▲(11.41% Upside)

Xylem's overall score of 71 reflects strong financial performance and positive earnings call outcomes, balanced by technical overbought signals and high valuation concerns. The most significant strength is the company's robust financial health, supported by positive guidance and segment performance. However, valuation metrics and potential technical corrections pose risks.

Positive Factors

Long-term Investment

XYL is an industry-leading water technology pure play and is considered an attractive core long-term holding for industrial and sustainability-focused investors.

Market Position

Analyst's recommendation for an Overweight rating is supported by the company's relatively well-positioned balance sheet and potential to expand margins beyond expectations.

Negative Factors

Market Challenges

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

Order Growth

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

Xylem Business Overview & Revenue Model

Company Description

Xylem Inc. is a leading global water technology company headquartered in the United States. The company operates in the water sector and focuses on developing innovative solutions for water and wastewater applications. Xylem offers a wide range of products and services, including water and wastewater pumps, treatment solutions, testing equipment, and analytical instruments. Its offerings are designed to address the world's most challenging water issues, providing sustainable solutions for water transportation, treatment, and use in various industries including utilities, industrial, commercial, and residential sectors.

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 with solid profitability and efficient cash management. The balance sheet is well-structured, with low leverage and strong equity positioning. However, slight revenue declines and decreases in stockholders' equity warrant monitoring.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.73B	8.56B	7.36B	5.52B	5.20B	4.88B
Gross Profit	3.30B	3.21B	2.72B	2.08B	1.98B	1.83B
EBITDA	1.77B	1.69B	1.12B	726.00M	832.00M	613.00M
Net Income	938.00M	890.00M	609.00M	355.00M	427.00M	254.00M
Balance Sheet
Total Assets	17.19B	16.50B	16.11B	7.95B	8.28B	8.75B
Cash, Cash Equivalents and Short-Term Investments	1.17B	1.12B	1.02B	944.00M	1.35B	1.88B
Total Debt	2.00B	2.02B	2.39B	2.20B	2.75B	3.36B
Total Liabilities	5.88B	5.62B	5.94B	4.45B	5.05B	5.77B
Stockholders Equity	11.07B	10.64B	10.17B	3.49B	3.22B	2.97B
Cash Flow
Free Cash Flow	881.00M	942.00M	566.00M	388.00M	330.00M	641.00M
Operating Cash Flow	1.22B	1.26B	837.00M	596.00M	538.00M	824.00M
Investing Cash Flow	-494.00M	-482.00M	-628.00M	-191.00M	-183.00M	-169.00M
Financing Cash Flow	-440.00M	-615.00M	-157.00M	-790.00M	-855.00M	473.00M

Xylem Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 143.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 143.61 is above the 20-day moving average (MA) of 133.91, above the 50-day MA of 130.01, and above the 200-day MA of 123.92, indicating a bullish trend. The MACD of 3.40 indicates Negative momentum. The RSI at 71.86 is Negative, neither overbought nor oversold. The STOCH value of 88.68 is Negative, 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	78 Outperform	$8.80B	30.20	17.61%	0.70%	3.89%	8.17%
PNR	76 Outperform	$17.09B	28.47	17.15%	0.97%	-0.25%	-7.32%
FLS	75 Outperform	$7.09B	24.58	13.91%	1.56%	3.15%	14.18%
MWA	75 Outperform	$3.95B	26.61	17.33%	1.09%	10.19%	20.71%
GHM	72 Outperform	$515.54M	39.17	11.97%	―	14.64%	182.19%
Sector *	71 Outperform	¥258.06B	14.45	8.48%	2.82%	6.32%	12.21%
XYL	71 Outperform	$34.96B	37.33	8.76%	1.07%	3.97%	21.95%

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.