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Xylem (XYL) Stock Analysis

This is a peer-relative look at Xylem (XYL): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Capital Goods peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Xylem (XYL)
Profile ItemXYL
NameXylem Inc.
Country/RegionUnited States
GICS SectorIndustrials
GICS Industry GroupCapital Goods
GICS IndustryMachinery
GICS Sub-IndustryIndustrial Machinery & Supplies & Components
Market Capitalization22.44 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateOctober 13, 2011
Security TypeCommon Stock

Price Performance

Cumulative Growth

XYL
GSPC
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Xylem (XYL) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Xylem (XYL) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Xylem (XYL) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Xylem (XYL) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: XYLIndustry group median
Total Return (1Y)-33.10%6.84%
Total Return (3Y, Annualized)2.29%17.66%
Total Return (5Y, Annualized)-4.47%9.09%

Risk Profile

Drawdown History

XYL
GSPC
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Xylem (XYL) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Xylem (XYL) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Xylem (XYL) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: XYLIndustry group median
Volatility (1Y, Annualized)30.74%44.38%
Beta (5Y)0.961.19
Max Drawdown (5Y)-44.89%-49.95%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. XYL is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Xylem (XYL) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: XYLIndustry group median
Sharpe Ratio (1Y)-1.220.06
Sortino Ratio (1Y)-1.480.09

Profitability

ROE (TTM)

Xylem (XYL) posts ROE of 9.76%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

XYL

Capital Goods industry group

9.76%

Group distribution
Max
40.55%
Q3
19.29%
Median
12.12%
XYL
9.76%
Q1
4.08%
Min
-17.12%
Largest peers
GEV
93.04%
CAT
56.14%
GE
50.17%
DE
18.24%
RTX
12.85%
XYL
9.76%
BA
--
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Where Xylem (XYL) stands on ROE within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Xylem (XYL) keeps 11.94% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

XYL

Capital Goods industry group

11.94%

Group distribution
Max
27.47%
Q3
12.10%
XYL
11.94%
Median
6.30%
Q1
1.40%
Min
-12.89%
Largest peers
GEV
23.54%
GE
17.31%
CAT
15.21%
XYL
11.94%
DE
10.17%
RTX
8.75%
BA
8.07%
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Where Xylem (XYL) stands on net margin within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Xylem (XYL) turns 15.95% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

XYL

Capital Goods industry group

15.95%

Group distribution
Max
36.60%
Q3
18.33%
XYL
15.95%
Median
11.12%
Q1
5.14%
Min
-12.63%
Largest peers
CAT
20.19%
GE
18.49%
XYL
15.95%
RTX
15.54%
DE
13.37%
GEV
12.77%
BA
0.30%
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Where Xylem (XYL) stands on operating margin within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Xylem (XYL) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: XYLIndustry group median
ROE (TTM)9.76%12.12%
ROA (TTM)5.07%5.29%
Net Margin (TTM)11.94%6.30%
Operating Margin (TTM)15.95%11.12%
Gross Margin (TTM)39.32%29.63%

Growth

Revenue Growth

Xylem (XYL) grew revenue 5.52%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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Xylem (XYL): Revenue Growth across different time periods, set against Capital Goods industry-group medians.

EPS Growth

Xylem (XYL) grew earnings per share 7.40%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

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Xylem (XYL): EPS Growth across different time periods, set against Capital Goods industry-group medians.

Growth Metrics

Xylem (XYL) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: XYLIndustry group median
Revenue Growth (YoY)5.52%8.11%
Revenue Growth (3Y CAGR)17.84%6.45%
EPS Growth (YoY)7.40%5.45%
EPS Growth (3Y CAGR)25.99%7.15%

Financial Strength

Current Ratio (MRQ)

Xylem (XYL) has current ratio of 1.39, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

XYL

Capital Goods industry group

1.39

Group distribution
Max
5.22
Q3
2.95
Median
2.08
Q1
1.43
XYL
1.39
Min
0.36
Largest peers
DE
2.13
CAT
1.42
XYL
1.39
BA
1.13
RTX
1.05
GE
0.98
GEV
0.83
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Where Xylem (XYL) stands on current ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Xylem (XYL) has debt-to-equity ratio of 0.29, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

XYL

Capital Goods industry group

0.29

Group distribution
Max
2.33
Q3
1.12
Median
0.60
XYL
0.29
Q1
0.29
Min
0.00
Largest peers
BA
7.39
DE
2.30
CAT
2.10
GE
1.16
RTX
0.55
GEV
0.30
XYL
0.29
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Where Xylem (XYL) stands on debt-to-equity ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Xylem (XYL) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: XYLIndustry group median
Current Ratio (MRQ)1.392.08
Debt / Equity (MRQ)0.290.60
Net Debt / EBITDA1.181.78

Dividends

Dividend Yield (TTM)

Xylem (XYL) has dividend yield of 1.69%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.

XYL

Capital Goods industry group

1.69%

Group distribution
Max
2.66%
XYL
1.69%
Q3
1.14%
Median
0.24%
Q1
0.00%
Min
0.00%
Largest peers
XYL
1.69%
RTX
1.47%
CAT
1.13%
DE
0.98%
GE
0.56%
GEV
0.26%
BA
0.00%
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Where Xylem (XYL) stands on dividend yield within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Xylem (XYL) has payout ratio of 37.47%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

XYL

Capital Goods industry group

37.47%

Group distribution
Max
67.39%
XYL
37.47%
Q3
28.02%
Median
6.86%
Q1
0.00%
Min
0.00%
Largest peers
RTX
45.85%
XYL
37.47%
DE
36.02%
CAT
24.18%
GE
20.23%
GEV
4.59%
BA
0.00%
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Where Xylem (XYL) stands on payout ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Xylem (XYL) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: XYLIndustry group median
Dividend Yield (TTM)1.69%0.24%
Dividend Payout Ratio (TTM)37.47%6.86%

Valuation

P/E Ratio (TTM)

Xylem (XYL) trades at P/E ratio of 21.69, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

XYL

Capital Goods industry group

21.69

Group distribution
Max
59.38
Q3
35.92
Median
25.41
XYL
21.69
Q1
19.47
Min
3.03
Largest peers
DE
37.33
GE
36.94
RTX
30.82
CAT
21.92
XYL
21.69
GEV
20.32
BA
17.89
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Where Xylem (XYL) stands on P/E ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Xylem (XYL) trades at 2.48 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

XYL

Capital Goods industry group

2.48

Group distribution
Max
7.54
Q3
3.76
XYL
2.48
Median
2.15
Q1
1.03
Min
0.03
Largest peers
GE
6.38
GEV
4.65
DE
3.78
CAT
3.29
RTX
2.66
XYL
2.48
BA
1.45
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Where Xylem (XYL) stands on P/S ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Xylem (XYL) trades at 2.19 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

XYL

Capital Goods industry group

2.19

Group distribution
Max
9.66
Q3
5.00
Median
3.12
XYL
2.19
Q1
1.81
Min
-1.08
Largest peers
BA
20.99
GE
19.06
GEV
18.00
CAT
11.90
DE
6.47
RTX
3.69
XYL
2.19
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Where Xylem (XYL) stands on P/B ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Xylem (XYL) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: XYLIndustry group median
P/E Ratio (TTM)21.6925.41
P/S Ratio (TTM)2.482.15
P/B Ratio (MRQ)2.193.12
Free Cash Flow Yield (TTM)5.39%3.03%