Xylem Inc.
$94.18
+0.15 (+0.16%) · delayed · Nov 13, 2026
Five-year price
52w $87.40 to $146.55
- Market cap
- $21.6B
- Enterprise value
- $22.1B
- P/E
- 24.0×
- 27.3× on 3y avg EPS
- EV / EBIT
- 18.0×
- FCF yield
- 4.2%
- ROIC
- 8.2%
- Debt / equity
- 0.17
- Piotroski F
- 7/9
Value scorecard · FY2025
Does it pass the value tests?
Quality
50
- ○ROIC > 12% (5y avg)5y avg ROIC 8.7%
- ○ROE > 15% (5y avg)5y avg ROE 9.2%
- ●Stable operating marginsMargin volatility 1.5% (σ, 5y)
- ●Earnings convert to cashFCF / net income 96% (5y avg)
- ●Growing revenueRevenue CAGR 5y 13.1%
- ○Shrinking share countDiluted shares 34.7% over 5y
Value
20
- ○P/E below 15P/E 24.0
- ○EV/EBIT below 12EV/EBIT 18.0
- ○FCF yield above 6%FCF yield 4.2%
- ○Price below Graham NumberGraham Number $66.45
- ●P/B below 3P/B 1.9
Safety
100
- ●Debt / equity below 0.5D/E 0.17
- ●Debt payable in < 4 yrs of earningsNet debt $0.5B
- ●Interest coverage > 8xCoverage 42.2x
- ●Current ratio > 1.5Current ratio 1.63
- ●Piotroski F-score ≥ 6F-score 7/9
Graham Defensive
57
- ●Adequate size (revenue > $2B)Revenue $9.0B
- ○Strong condition (current ratio ≥ 2)Current ratio 1.63
- ●Earnings stability (no loss, 10y)10 years of data
- ●Uninterrupted dividendsDividends paid every year on record
- ●Earnings growth ≥ 33% (10y, 3y avgs)EPS growth 64%
- ○Moderate P/E (≤ 15 on 3y avg EPS)P/E (3y avg) 27.3
- ○P/E × P/B ≤ 22.5Product 51.3
Valuation lab
What do you have to believe?
At $94.18, the market is pricing in about 8.2% annual free-cash-flow growth for the next decade (9% discount rate, 2.5% terminal growth).
Starting cash flow
Net debt $463M · 229M shares · 5y revenue CAGR 13.1%
Intrinsic value
$136.34
Price
$94.18
Margin of safety
31%
What the price implies
The market is paying for 8.2% annual cash-flow growth for 10 years at a 9.0% discount rate.
Terminal value share
65% of the value sits beyond year 10.
Financial statements
A decade of the record.
USD millions · fiscal years · source: SEC 10-K XBRL
| Line item | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 3,771 | 4,707 | 5,207 | 5,249 | 4,876 | 5,195 | 5,522 | 7,364 | 8,562 | 9,035 |
| Gross profit | 1,462 | 1,847 | 2,026 | 2,046 | 1,830 | 1,975 | 2,084 | 2,717 | 3,212 | 3,475 |
| Operating income | 408 | 552 | 654 | 486 | 367 | 585 | 622 | 652 | 1,009 | 1,223 |
| Operating margin | 10.8% | 11.7% | 12.6% | 9.3% | 7.5% | 11.3% | 11.3% | 8.9% | 11.8% | 13.5% |
| Pre-tax income | 340 | 466 | 585 | 416 | 285 | 511 | 440 | 635 | 1,087 | 1,181 |
| Income tax | 80 | 136 | 36 | 15 | 31 | 84 | 85 | 26 | 197 | 231 |
| Net income | 260 | 331 | 549 | 401 | 254 | 427 | 355 | 609 | 890 | 957 |
| EPS (diluted) | 1.45 | 1.83 | 3.03 | 2.21 | 1.40 | 2.35 | 1.96 | 2.79 | 3.65 | 3.92 |
| Diluted shares | 180 | 181 | 181 | 181 | 181 | 182 | 181 | 218 | 244 | 244 |
Who owns it