Xylem (XYL) Stock Analysis
NYQ · Industrials · Specialty Industrial Machinery
$102.19
-0.37 (-0.36%)
XYL Interactive Price Chart & Trading Signals
XYL Stock Snapshot — Valuation, Risk & Technical Signals
XYL Key Fundamentals, Analyst Targets & Company Profile
Key Financial Ratios
Market Cap
$23.86B
P/E Ratio
24.33
Forward P/E
16.36
PEG Ratio
1.25
P/B Ratio
2.17
EPS
$4.20
Dividend Yield
1.68%
52W Range
$101.65 – $154.27
Beta
1.00
Volume
0.1M
ROE
9.2%
Profit Margin
11.2%
Revenue Growth
1.5%
Gross Margin
39.2%
EV/EBITDA
13.14
Analyst Target
$153.88
The trailing price-to-earnings ratio stands at 24.3x. Forward P/E of 16.4x implies earnings expansion expected. Price-to-book is 2.17x. EV/EBITDA sits at 13.14x. Market capitalization is $23.86B. Revenue is growing at 1.5% on a trailing basis. Earnings are expanding at 19.5%. Profit margins are 11.2%. Return on equity is 9.2%. Beta of 1.00 indicates market-average volatility.
Analyst Consensus
Recommendation
Buy
Low Target
$129.00
Mean Target
$153.88
High Target
$180.00
Based on 16 analysts
About Xylem
Xylem Inc., together with its subsidiaries, engages in the design, manufacture, and servicing of engineered products and solutions for utility, industrial, and residential and commercial building services settings worldwide. It operates through Water Infrastructure; Applied Water; Measurement and Control Solutions; and Water Solutions and Services segments. The company offers water, wastewater, and storm water pumps and controls and systems; filtration, disinfection, and biological treatment equipment under the Flygt, Ionpure, Leopold, Neptune Benson, Sanitare, Wallace & Tiernan, and Wedeco brands; and pumps, valves, heat exchangers, controls, and dispensing equipment used for water and focuses on the residential, commercial and industrial markets under the Rule, Bell & Gossett, Flojet, Goulds Water Technology, Jabsco, and Lowara brands. It also provides smart meters, network communication devices, data analytics, test instruments, controls, sensor devices, software and managed services, critical infrastructure services, cloud-based analytics, and remote monitoring and data management under the Ebro, Sensus, Sentec, Smith Blair, WTW, YSI, and Xylem Vue brands. In addition, the company offers preventative maintenance services, rapid response mobile services, digitally enabled/outsourced solutions, process and wastewater treatment systems, environmental remediation, odor and corrosion control, filtration, reverse osmosis, continuous deionization, and mobile dewatering equipment and rental services; and municipal services comprising odor and corrosion control services, as well as condition assessment and asset management, and pressure monitoring solutions under the Grindex, Mar Cor, and Godwin brands. Xylem Inc. was formerly known as ITT WCO, Inc. and changed its name to Xylem Inc. in July 2011. The company was incorporated in 2011 and is headquartered in Washington, District Of Columbia.
XYL Deep Dive Analysis
Bottom Line
Verdict
OvervaluedBest for
General investorWatch out for
Premium valuationNon-zero inputs
4/5Counts non-zero values for price, P/E, beta, macro risk, and revenue growth; zero may mean unavailable or be a genuine zero.
Xylem Inc. (XYL) trades above our multi-model fair value estimate of $67.33 by approximately 34.1%. Trailing P/E: 24.3x. Profitability signals include profit margin of 11.2% and return on equity of 9.2%. Recent growth metrics show revenue growth of 1.5% and earnings growth of 19.5%. Risk profile: beta of 1.00. Consensus: buy.
Valuation, Growth & Risk
Valuation
Overvalued
P/E 24.3x
Price is above what fundamentals suggest.
Growth
Stable
Rev 1.5%
Revenue is moving sideways.
Valuation Snapshot
Xylem Inc. (XYL) trades above our multi-model fair value estimate of $67.33 by approximately 34.1%. The trailing price-to-earnings ratio stands at 24.3x. Forward P/E of 16.4x suggests earnings compression ahead. Price-to-sales is 2.6x. Price-to-book is 2.2x. EV/EBITDA sits at 13.1x. Market capitalization is $23.86B.
Why it matters: Paying a premium works only if the company keeps growing faster than expected.
Growth & Profitability
Revenue is growing at 1.5% on a trailing basis. Earnings are expanding at 19.5%. Profit margins are 11.2%. Return on equity is 9.2%. Return on assets is 5.1%.
Why it matters: Stable revenue is fine, but watch for margin pressure that could limit profit growth.
Risk Profile
Beta of 1.00 indicates market-average volatility. Net debt position is $1.78B.
Why it matters: Lower risk means steadier returns, but often with less upside in bull markets.
Analyst Context
Analyst consensus target of $153.88 implies 50.6% upside. Target range spans $129.00 to $180.00. 16 analysts cover the stock. Consensus recommendation: buy.
Why it matters: Analyst targets reflect what professionals expect over 12 months. A wide gap between price and target can mean the market disagrees with the consensus.
Data Methodology & Sources
Market Data (Facts)
- Price, volume, and market cap: Yahoo Finance (may be delayed)
- P/E, EPS, revenue, and debt: Yahoo Finance fundamentals
- Analyst estimates: Yahoo Finance (coverage and update times vary)
- Insider transactions: Yahoo Finance (reporting may be delayed)
QuantSoar Model (Derived)
- Fair value: available outputs from seven models; outliers are filtered using MAD (k=3.5), then combined with fixed model weights.
- Margin of Safety = (Fair Value − Displayed Price) / Displayed Price × 100
- Composite Score: 40% Value + 30% Momentum + 30% Risk
- Verdict Gauge: Base 50 + Valuation (up to ±25) + Whale sentiment (up to ±10) + Insider buying (+5) + Macro risk (up to ±10) + Technical signal (up to ±10). Analyst consensus is separate.
Model outputs are estimates based on available data and are not investment advice. Cross-check with primary sources before making investment decisions.
XYL Overvalued
Xylem Inc. (XYL) trades above our multi-model fair value estimate of $67.33 by approximately 34.1%.
Frequently Asked Questions
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About the Author
Phasakorn Traklang (Peach) — Founder
Phasakorn Traklang (Peach) is the founder of QuantSoar, bringing expertise in SEO, web development, and technical analytics to build an AI-powered investment platform accessible to retail investors worldwide.
Connect on LinkedInInvestment Disclaimer: Tax treatment can depend on tax residence, account type, and tax year. This information is general and is not personal tax or investment advice. SEC
Data: Yahoo Finance / SEC EDGAR / Alpha Vantage / Finnhub. AI outputs verified against source data.