Xylem Inc.
Rank #354Capital ReturnXYL · NYSE · Industrials
Xylem Inc. (XYL) — Rank #354 by gross profitability (GP/assets 0.20) · ROE 9.2% · Piotroski F-Score 6 / 9.
As-of 2026-09-15 · CIK 0001524472 · all metrics point-in-time as of the filing date.
About
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.
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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.
- Industry
- Specialty Industrial Machinery
- Sector
- Industrials
- State
- IN
- Filer Category
- Large accelerated filer
- Fiscal Year End
- December 31
- Website
- xylem.com
Price History
Company Snapshot
P/E and reverse DCF are the primary valuation lenses at this stage.
Market Cap
$25.06B
P/E (annual)
27.4
P/S (annual)
2.8
P/B
2.4
P/OCF (annual)
20.2
Shareholder Yield
1.4%
Employees
22,000
Industry
Specialty Industrial Machinery
Exchange
NYSE
Signal Flags
Quality Profile
Profitability
1/1 passSafety
1/1 passCash Flow
2/3 passGrowth
2/2 passTerry Smith quality gate
Passes 1/5 Terry Smith thresholds1 of 5 threshold not computable from filed data.
What Growth Is Priced In
Implied revenue growth (10Y)
12.7%
The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).
Dilution drag: 0.2% — per-share value needs a total required return of 12.8% once share-count change is priced in.
vs. own 6-year median revenue growth: 6.4%
priced above its own historyCost-of-equity sensitivity (implied growth at different discount rates)
r = 8%
8.1%
r = 10% (base)
12.7%
r = 12%
16.6%
Net debt / market cap: 6.3%
Valuation History
Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.
P / E
Price / diluted EPS
P / S
Price / revenue per share
P / B
Price / book value per share
P / GP
Price / gross profit per share
P / FCF
Price / free cash flow per share
FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.
Profitability
Gross profitability (GP / assets)
0.20
Primary signal (Novy-Marx).
20th pctl of 36 SIC 35 peers
Return on equity
9.2%
Gross margin
38.5%
40th pctl of 36 SIC 35 peers
Revenue growth (YoY)
5.5%
Gross margin improving
Margin trend vs prior year.
Operating Leverage
| 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|
| Revenue vs COGS | ||||
| Revenue vs OpEx | ||||
| Op. Income vs Revenue |
Growth
Revenue CAGR (3Y)
17.8%
Revenue CAGR (5Y)
13.1%
Earnings CAGR (3Y)
39.2%
FCF CAGR (3Y)
32.9%
Anti-fragile safety
Balance-sheet safety
Composite anti-fragile check.
Debt / equity
0.64
80th pctl of 36 SIC 35 peers (best = lowest)
Current ratio
1.61×
23rd pctl of 36 SIC 35 peers
Quick ratio
1.16×
Net cash
-$1.65B
Cash & equivalents minus total debt.
Cash-flow health
Free cash flow
$910.00M
Operating cash flow minus capex.
Positive free cash flow
FCF / net income
-0.05
Cash-backing of earnings.
FCF/NI divergence
Unfavorable divergence (yellow flag).
Accruals healthy
Cash-backed earnings.
SBC / revenue
0.6%
Stock-based comp intensity.
Dividend safety
Composite score
3.8 / 5
Piotroski F-Score
F-Score
6 / 9
Fundamental-strength score (0-9).