One-glance verdict
Within fair range
$96.06 our estimate vs market $106.89
Wall Street consensus: $153.88 (60.2% higher than our fair-value estimate)
11% above our estimate
Fundamentals snapshot
Xylem Inc.
XYL · NYQ · Industrials · Specialty Industrial Machinery
Current price
$106.89
52-week range
$105.29 - $154.27
Market cap
$24.96B
Balance sheet
Healthy
45.72x Strong cushion
Net debt $1.78B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 1.0% last year.
- Reward Free cash flow was positive in 10/10 years.
- Reward Dividend yield is 1.6% with 16-year payout history.
- Risk Insider ownership is only 0.3% (peer median: 0.6%).
What this company does
Xylem Inc.
Xylem is a water technology company that makes and services the equipment needed to move, treat, and test water for cities, industries, and buildings. It earns money by selling a wide range of products like pumps, filters, and smart meters, as well as providing repair and rental services. This matters because managing water is a fundamental and constant need for communities and businesses around the world.
How the company got here
Xylem was formed in 2011 when it was spun off from the large industrial company ITT Corporation, which wanted to create a separate, publicly traded company focused purely on water-related technologies. The name 'Xylem' comes from the Greek word for the tissue that transports water in plants, reflecting the company's business. A major turning point was the 2016 acquisition of Sensus, which added smart metering and data analytics (the collection and study of data to find patterns) to its portfolio. In 2023, Xylem completed a very large merger with Evoqua Water Technologies, a deal that significantly expanded its capabilities in water treatment and services, making it one of the world's largest pure-play water technology companies.
What it actually does
Xylem is a water technology company that makes a wide range of products and provides services to move, treat, test, and conserve water. Think of it as a company that provides the essential equipment and intelligence for the entire water cycle, from pulling water from a lake to treating it for drinking, moving it to homes and businesses, and then cleaning the wastewater before it returns to the environment. Its customers are typically public utilities (your local water department), large industrial companies, and commercial buildings. You wouldn't buy their products at a hardware store, but their pumps, meters, and treatment systems are critical for ensuring communities have safe water and for helping industries use water efficiently.
Water Infrastructure
This is one of the company's largest segments, making up about a third of the business. It focuses on the heavy-duty equipment needed to move and treat massive amounts of water for cities and towns. This includes powerful pumps to transport wastewater to treatment plants, filtration and disinfection systems to clean the water, and large dewatering pumps used at construction sites or during floods. The main customers are municipal water and wastewater utilities who buy these essential, long-lasting products to keep their systems running.
Applied Water
This segment provides pumps and related equipment for a variety of uses in buildings and industrial settings, representing about a fifth of the company's revenue. Think of the pumps and valves needed for the heating and cooling systems in a large office building, or the booster systems that ensure strong water pressure in a high-rise. It also serves industrial customers who need specialized pumps for their manufacturing processes, like in food and beverage production or car washes. Customers include commercial building operators, contractors, and industrial facilities.
Measurement & Control Solutions
This is Xylem's 'smart water' business, accounting for just under a quarter of its revenue. This division makes products like smart meters, sensors, and software that help utilities track water usage, detect leaks, and monitor the health of their pipe networks. Instead of just selling hardware, this segment provides data and analytics (the process of examining data to draw conclusions) to help utilities manage their water resources more efficiently and with less waste. The primary customers are public utilities looking to modernize their infrastructure and reduce water loss.
Water Solutions and Services
This segment, which grew significantly after the Evoqua merger, is focused on providing treatment solutions and ongoing services, making up about 30% of revenue. This part of the business goes beyond selling a single piece of equipment and offers complete systems and services for treating complex water and wastewater challenges. This can include things like outsourced water management for industrial clients, emergency water removal services, and advanced treatment for removing specific contaminants. Customers are often industrial companies or utilities that need specialized expertise and ongoing support for their water treatment operations.
What management is betting on now
Management is focused on simplifying the business to make it more efficient and easier for customers to work with. A key priority is integrating the massive Evoqua acquisition to combine the strengths of both companies, especially in offering more services and digital solutions to customers. The company is also betting on growth from solving major water challenges like scarcity and contamination, positioning itself as a leader in providing the technology for water reuse and advanced treatment. Finally, Xylem continues to actively look for more companies to acquire, aiming to add new technologies and expand its presence in high-growth industrial markets.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$237.00M
FY2024 Q4
$475.00M
FY2025 Q1
$-38.00M
FY2025 Q2
$207.00M
FY2025 Q3
$281.00M
FY2025 Q4
$460.00M
FY2026 Q1
$18.00M
FY2026 Q2
$201.00M
Revenue
$2.34B
Net income
$263.00M
Diluted EPS
1.11
Operating cash flow
$290.00M
Free cash flow
$201.00M
Fetching…
Sources
Revenue
$2.12B
Net income
$193.00M
Diluted EPS
0.79
Operating cash flow
$108.00M
Free cash flow
$18.00M
Fetching…
Sources
Revenue
$2.40B
Net income
$335.00M
Diluted EPS
1.37
Operating cash flow
$543.00M
Free cash flow
$460.00M
Fetching…
Sources
Revenue
$2.27B
Net income
$227.00M
Diluted EPS
0.93
Operating cash flow
$360.00M
Free cash flow
$281.00M
Fetching…
Sources
Revenue
$2.30B
Net income
$226.00M
Diluted EPS
0.93
Operating cash flow
$305.00M
Free cash flow
$207.00M
Fetching…
Sources
Revenue
$2.07B
Net income
$169.00M
Diluted EPS
0.69
Operating cash flow
$33.00M
Free cash flow
$-38.00M
Fetching…
Sources
Revenue
$2.26B
Net income
$326.00M
Diluted EPS
1.33
Operating cash flow
$575.00M
Free cash flow
$475.00M
Fetching…
Sources
Revenue
$2.10B
Net income
$217.00M
Diluted EPS
0.89
Operating cash flow
$311.00M
Free cash flow
$237.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $96.06 vs current price $106.89
Wall Street consensus is the average analyst price target: $153.88 (60.2% higher than our fair-value estimate).
Our most-likely fair value is $96.06 a share — about 10.1% away from today's price of $106.89, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net debt $1.8B. Interest coverage 45.7x.
Net debt
$1.78B
Interest coverage
45.72x
Xylem Inc.'s profit covers its interest bill about 45.7 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
XYL
BASELINE
Xylem Inc.
Total debt $3.06B Interest coverage 45.72x This is the baseline the peer rows are being compared against.
Total debt $1.76B Interest coverage 13.41x -71% vs XYL Carries about 3.4x less debt cushion than XYL.
Total debt $1.89B Interest coverage 11.18x -76% vs XYL Carries about 4.1x less debt cushion than XYL.
Total debt $2.32B Interest coverage 6.68x -85% vs XYL Carries about 6.8x less debt cushion than XYL.
Total debt $677.20M Interest coverage 53.93x +18% vs XYL Carries about 1.2x more debt cushion than XYL.
Total debt $23.48M Interest coverage 35.80x -22% vs XYL Carries about 1.3x less debt cushion than XYL.
What you should know
The case for and against XYL
3 Rewards
1 Risk
Rewards
-
Revenue grew 1.0% last year.
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 1.6% with 16-year payout history.
Risks
-
Insider ownership is only 0.3% (peer median: 0.6%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
25.69x
Forward P/E
17.11x
P/B
2.27x
P/S
2.73x
EV/EBITDA
13.60x
PEG ratio
1.31x
Profitability
How much profit each dollar creates
Gross margin
39.2%
Operating margin
17.0%
Net margin
11.2%
ROE
9.2%
ROA
5.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.29x
Current ratio
1.61x
Quick ratio
1.16x
Total debt
$3.06B
Total cash
$1.28B
Growth
How the business has been compounding
Revenue TTM
$9.13B
Revenue 5Y CAGR
14.8%
EPS TTM
4.16
EPS 5Y CAGR
26.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.30B
Free CF TTM
$910.00M
FCF margin
10.0%
Dividend
Shareholder payout
Yield
1.6%
Payout ratio
39.5%
Last ex-div date
2026-08-27