Xylem Inc.
Xylem Inc. Fundamental Analysis
Xylem Inc. (XY6.DE) shows moderate financial fundamentals with a PE ratio of 30.43, profit margin of 10.59%, and ROE of 8.59%. The company generates $9.0B in annual revenue with strong year-over-year growth of 16.27%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze XY6.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakXY6.DE struggles to generate sufficient returns from assets.
Valuation Score
WeakXY6.DE trades at a premium to fair value.
Growth Score
ExcellentXY6.DE delivers strong and consistent growth momentum.
Financial Health Score
ExcellentXY6.DE maintains a strong and stable balance sheet.
Profitability Score
WeakXY6.DE struggles to sustain strong margins.
Key Financial Metrics
Is XY6.DE Expensive or Cheap?
P/E Ratio
XY6.DE trades at 30.43 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, XY6.DE's PEG of 34.62 indicates potential overvaluation.
Price to Book
The market values Xylem Inc. at 2.54 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 15.99 times EBITDA. This signals the market has high growth expectations.
How Well Does XY6.DE Make Money?
Net Profit Margin
For every $100 in sales, Xylem Inc. keeps $10.59 as profit after all expenses.
Operating Margin
Core operations generate 13.82 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.59 in profit for every $100 of shareholder equity.
ROA
Xylem Inc. generates $5.43 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Xylem Inc. produces operating cash flow of $1.24B, showing steady but balanced cash generation.
Free Cash Flow
Xylem Inc. produces free cash flow of $869.23M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.57 in free cash annually.
FCF Yield
XY6.DE converts 3.01% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
34.62
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.54
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.21
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.62
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How XY6.DE Stacks Against Its Sector Peers
| Metric | XY6.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.43 | 25.84 | Worse (Expensive) |
| ROE | 8.59% | 1279.00% | Weak |
| Net Margin | 10.59% | -43714.00% (disorted) | Strong |
| Debt/Equity | 0.17 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 1.62 | 10.62 | Neutral |
| ROA | 5.43% | -1537441.00% (disorted) | Weak |
XY6.DE outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Xylem Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
21.02%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
64.66%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
11.68%
Industry Style: Cyclical, Value, Infrastructure
High Growth