# Xylem Inc. Common Stock New (XYL) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Industrials / Machinery. Price $105.69, market value $24.7 billion.

## Valuation
- **P/E (trailing): 25.2×** (5-yr avg 41.5×, 3-yr avg 35.1×). Xylem Inc. Common Stock New trades at 25.2× trailing earnings, well below its own five-year average of 41.5×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 16.9×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 2.29**. A PEG of 2.29 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 2.7×**. Each dollar of revenue is priced at 2.7×.
- **Price / book: 2.2×**. The shares trade at 2.2× book value; book value is a meaningful part of the valuation.
- **Free-cash-flow yield: 3.9%** (5-yr avg 2.4%). Free cash flow equals 3.9% of the market value, above its five-year average of 2.4%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 4.0%**. The inverse of the P/E: 4.0% of the price is earned each year.

## Profitability
- **Gross margin: 39.2%**. Xylem Inc. Common Stock New keeps 39.2% of revenue after the direct cost of what it sells.
- **Operating margin: 14.5%**. 14.5% of revenue is left after running the business.
- **Net margin: 10.6%**. 10.6% of each dollar of sales reaches the bottom line.
- **Return on equity: 8.3%**. 8.3% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 8.7%**. Return on all capital, debt included, is 8.7%.
- **Return on assets: 5.8%**. Each dollar of assets produces 5.8% of profit.

## Growth
- **Revenue growth (1 yr): 5.5%** (3-yr 17.8%/yr, 5-yr 13.1%/yr). Revenue grew 5.5% over the last year, against 13.1% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 7.4%** (3-yr 26.0%/yr, 5-yr 22.9%/yr). Earnings per share rose 7.4%, roughly in step with revenue.
- **Free-cash-flow growth (3 yr): 32.9%/yr**. Free cash flow has compounded at 32.9% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.17**. Debt is 0.17 times equity: a conservative balance sheet.
- **Altman Z-score: 4.17**. A Z-score of 4.17 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 1.63%** ($1.66 per share, trailing). Xylem Inc. Common Stock New yields 1.63%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 41%** (42% of free cash flow). 41% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 15**. 15 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 9.0%/yr** (1-yr 11.1%). The dividend has grown 9.0% a year over five years.

## Analyst view
- **Analyst consensus: buy** (16 analysts). 16 analysts cover Xylem Inc. Common Stock New; the consensus is buy, with an average price target of $153.88 (+46% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -24.8%** (YTD -21.8%, 3-mo -3.9%). The shares are down 24.8% over twelve months including dividends.
- **From 52-week high: -31.5%** (0.4% above the low). Trading 31% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 30**. An RSI of 30 is oversold; bounces are common, but oversold can stay oversold in a real decline.
- **Beta (1 yr): 0.83** (volatility 25%). Beta of 0.83 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=XYL · Page: https://foliofundamentals.com/stocks/xyl

Not investment advice.