Xylem (XYL) AI Stock Analysis

• Market Cap: $30.94B
• Dividend Yield: 1.14%
• Average Volume (3M): 1.46M
• Price to Earnings (P/E): 34.8
• Beta (1Y): 1.24
• Revenue Growth: 16.23%
• EPS Growth: 34.42%
• Country: US
• Employees: 23,000
• Sector: Industrials
• Sector Strength: 66
• Industry: Industrial Goods
• EPS (TTM): 3.65
• Shares Outstanding: 243,046,220
• 10 Day Avg. Volume: 1,592,398
• 30 Day Avg. Volume: 1,459,581
• PEG Ratio: 1.01
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.74
• Price to Cash Flow (P/CF): 25.40
• P/FCF Ratio: 32.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $149.14
• Price Target Upside: 15.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

Xylem demonstrates robust financial performance with significant revenue growth and strategic initiatives promising positive future outcomes. However, valuation concerns and certain operational challenges, including pressures in emerging markets and restructuring impacts, temper the overall outlook. The technical analysis remains neutral, and earnings call insights are positive, reflecting a solid company trajectory but with areas to monitor closely.

Positive Factors

Management Strategy

Management's 80/20 efforts are expected to be successful.

Order Performance

Strong order close with sights on 80/20 manifestation and resumption of growth in water meters.

Negative Factors

Market Challenges

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

Xylem Business Overview & Revenue Model

Company Description

Xylem, Inc. engages in the design, manufacture and application of highly engineered technologies for the water industry. It provides water and wastewater applications with a broad portfolio of products and services addressing the full cycle of water, from collection, distribution and use to the return of water to the environment. It operates through following business segments: Water Infrastructure, Applied Water and Measurement & Control Solutions. The Water Infrastructure segment focuses on the transportation, treatment and testing of water, offering a range of products including water & wastewater pumps, treatment & testing equipment, and controls & systems. This segment brands include Flygt, Wedeco, Godwin Pumps, WTW, Sanitaire, YSI and Leopold. The Applied Water segment encompasses the uses of water and focuses on the residential, commercial, industrial and agricultural markets. Its products include pumps, valves, heat exchangers, controls and dispensing equipment. The Measurement & Control Solutions segment focuses on developing advanced technology solutions that enable intelligent use and conservation of critical water and energy resources as well as analytical instrumentation used in the testing of water. The company was founded on May 4, 2011 and is headquartered in Rye Brook, NY.

How the Company Makes Money

Xylem generates revenue through the sale of its water and wastewater products and services. The company's key revenue streams include the sale of pumps, valves, and controls for water infrastructure applications, as well as the provision of treatment and testing solutions for water and wastewater applications. Additionally, Xylem offers advanced metering and network technologies that enable water utilities to optimize resource management and efficiency. The company also benefits from strategic partnerships and collaborations with municipal and industrial customers, which help drive demand for its comprehensive solutions. Xylem's revenue is further supported by ongoing investments in research and development, allowing it to continuously innovate and offer state-of-the-art technologies to its global customer base.

Xylem Financial Statement Overview

Summary

Xylem has shown strong revenue growth and stable profitability, with a robust equity position and solid cash flow generation. However, incomplete 2024 data limits a full assessment.

Income Statement

Xylem has demonstrated strong revenue growth over recent years, with the revenue increasing from $5.5 billion in 2022 to $7.36 billion in 2023, indicating a robust growth rate. The company maintains healthy margins, with a gross profit margin of 36.9% in 2023 and a solid net profit margin of 8.3%. The EBIT and EBITDA margins also reflect stable profitability. However, the lack of revenue data for 2024 limits a complete assessment of the latest performance.

Balance Sheet

Xylem's balance sheet shows a strong equity position with a debt-to-equity ratio of 0.23 in 2023, suggesting low financial leverage. The company's return on equity (ROE) is impressive at 6.0%, indicating efficient use of equity. However, the absence of total assets and equity data for 2024 restricts a full evaluation of the latest financial condition.

Cash Flow

The cash flow statements reveal a positive trend in free cash flow growth in 2023, with free cash flow increasing from $388 million in 2022 to $566 million. The operating cash flow to net income ratio is favorable, indicating strong cash generation relative to earnings. However, the cash flow data for 2024 is incomplete, preventing a comprehensive analysis for the most recent period.

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
	EBIT
1.07B	652.00M	622.00M	585.00M	495.00M
	EBITDA
0.00	1.15B	755.00M	853.00M	736.00M
	Net Income Common Stockholders
890.00M	609.00M	355.00M	427.00M	254.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	1.02B	944.00M	1.35B	1.88B
	Total Assets
0.00	16.11B	7.95B	8.28B	8.75B
	Total Debt
0.00	2.39B	1.95B	2.44B	3.08B
	Net Debt
0.00	1.37B	1.00B	1.09B	1.21B
	Total Liabilities
0.00	5.94B	4.45B	5.05B	5.77B
	Stockholders Equity
0.00	10.17B	3.49B	3.22B	2.97B
Cash Flow		Free Cash Flow
0.00	566.00M	388.00M	330.00M	641.00M
	Operating Cash Flow
0.00	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: 129.67
• 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 129.67 is above the 20-day moving average (MA) of 129.59, above the 50-day MA of 122.98, and above the 200-day MA of 129.61, indicating a bullish trend. The MACD of 1.42 indicates Positive momentum. The RSI at 56.85 is Neutral, neither overbought nor oversold. The STOCH value of 41.63 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
VMI	80 Outperform	$6.68B	19.38	24.05%	0.72%	-2.38%	141.60%
XYL	74 Outperform	$30.94B	34.84	8.55%	1.14%	16.23%	34.42%
FELE	73 Outperform	$4.51B	25.55	14.53%	1.03%	-2.12%	-6.07%
PNR	73 Outperform	$14.78B	23.96	18.45%	1.02%	-0.53%	0.13%
WMS	72 Outperform	$8.33B	17.95	34.07%	0.59%	3.67%	-5.03%
AOS	63 Neutral	$9.42B	18.08	28.33%	2.01%	-0.90%	-1.69%
Sector *	62 Neutral	$8.11B	13.34	1.17%	3.02%	4.16%	-15.14%

Xylem Corporate Events

Xylem Appoints New Leader for Applied Water Segment

Xylem Inc., a leading global water solutions company, has appointed Meredith Emmerich as Senior Vice President and President of its Applied Water segment, effective October 21, 2024. Emmerich, with over 20 years of experience in smart building solutions, succeeds Franz Cerwinka, who will remain as a senior advisor until March 2025. Emmerich’s leadership aims to enhance sustainable growth and customer-centric solutions in industrial and commercial water management.