Xylem (XYL) AI Stock Analysis

• Market Cap: $34.45B
• Dividend Yield: 1.1%
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): 36.8
• Beta (1Y): 1.08
• Revenue Growth: 3.97%
• EPS Growth: 21.95%
• Country: US
• Employees: 23,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.26
• Shares Outstanding: 243,409,680
• 10 Day Avg. Volume: 1,246,386
• 30 Day Avg. Volume: 1,154,555
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 3.75
• Enterprise Value/Gross Profit: 9.92
• Enterprise Value/Ebitda: 18.50
• 1Y Price Target: $159.67
• Price Target Upside: 13.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 78 Outperform
• Price Target: $161.00 ▲(14.41% Upside)

Xylem's overall stock score is driven by its strong financial performance and positive earnings call, which highlight robust revenue growth and improved profitability. Technical analysis supports a bullish outlook, although the high valuation presents a risk. The decline in free cash flow and external economic challenges are areas to monitor.

Positive Factors

Revenue Growth

Consistent revenue growth across segments indicates strong market demand and effective product offerings, supporting long-term business expansion.

EBITDA Margin Improvement

Improved EBITDA margins reflect operational efficiency and cost management, enhancing profitability and competitive positioning.

Strategic Acquisitions

Targeted acquisitions bolster product offerings and market reach, fostering innovation and long-term growth potential.

Negative Factors

Decline in Free Cash Flow

Declining free cash flow could limit financial flexibility and investment capacity, potentially impacting future growth and stability.

Economic Challenges in China

Economic difficulties in China may hinder revenue growth and market expansion efforts in a key region, affecting overall performance.

Impact of Tariffs

Tariff-related margin pressures could affect profitability and cost structures, creating uncertainty and potential financial strain.

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 generates revenue through a diverse range of products and services within the water technology sector. Its primary revenue streams include the sale of equipment such as pumps and treatment systems, which account for a significant portion of its income. Additionally, Xylem offers services related to the installation, maintenance, and optimization of water systems, contributing further to its revenue. The company also benefits from partnerships with municipalities, industrial clients, and other organizations that require reliable water management solutions. Government investments in water infrastructure and sustainability initiatives further enhance Xylem's earnings potential, as they align with the company's mission to address global water issues.

Xylem Financial Statement Overview

Summary

Xylem exhibits strong financial health with consistent revenue growth and solid profitability margins. The balance sheet is stable with low leverage, enhancing its risk profile. However, the decline in free cash flow is a concern that needs to be addressed to ensure continued financial flexibility.

Income Statement

Xylem has demonstrated strong revenue growth with a TTM increase of 1.54% and consistent annual growth over the past years. The company maintains healthy profitability margins, with a TTM gross profit margin of 37.48% and a net profit margin of 14.59%. EBIT and EBITDA margins are also robust, indicating efficient operations. The upward trajectory in revenue and profitability suggests a positive outlook.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.18 in the TTM period, indicating low leverage. The return on equity is reasonable at 8.70%, showing effective use of equity to generate profits. The equity ratio stands at a healthy level, suggesting financial stability. However, the decrease in total debt over time enhances the company's risk profile.

Cash Flow

Xylem's cash flow performance shows mixed results. The TTM free cash flow growth rate is negative at -0.9%, indicating a decline in free cash flow. However, the operating cash flow to net income ratio is 0.53, and the free cash flow to net income ratio is 0.72, suggesting adequate cash generation relative to net income. The company needs to address the decline in free cash flow to maintain financial flexibility.

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	16.49B	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	2.12B	2.13B	2.39B	1.95B	2.51B	3.15B
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: 140.72
• 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 140.72 is below the 20-day moving average (MA) of 141.23, above the 50-day MA of 137.92, and above the 200-day MA of 125.87, indicating a bullish trend. The MACD of 0.54 indicates Positive momentum. The RSI at 54.75 is Neutral, neither overbought nor oversold. The STOCH value of 75.12 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	9.40B	30.31	16.46%	0.67%	2.96%	12.62%
XYL	78 Outperform	$34.45B	36.79	8.76%	1.10%	3.97%	21.95%
PNR	76 Outperform	18.14B	30.22	16.59%	0.89%	-0.25%	-7.32%
FLS	74 Outperform	7.39B	25.62	13.12%	1.49%	3.15%	14.18%
MWA	72 Outperform	3.96B	26.76	16.05%	1.06%	10.19%	20.71%
GHM	70 Outperform	564.82M	41.07	11.23%	―	14.64%	182.19%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.