Fundamental analysis · SEC EDGAR · TTM through 30/06/2026

Fundamental analysis of Xylem Inc.

XYL · NYSE · Industrial

Fundamental quality

ATTRACTIVE

77

out of 100

Xylem Inc. grows profitably: it increases revenue at double digits (12.1% a year) without giving up profitability (net margin 11.2%). On fundamental quality it scores 77 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its profitability (net margin 11.2%). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Xylem is the big water company: pumps, treatment, testing and smart meters to move, clean and measure water for cities and industry. Its thesis is as simple as it is powerful: the world's water infrastructure is old, and water ever scarcer.

What will shape its future

  • Public investment in renewing aging water networks, its structural demand.
  • Smart meters and networks, where water meets digitization.
  • Municipal budgets, a solvent but slow and bureaucratic customer.

Breakdown by area

I.Growth
77

EPS growth: 22.1% · Revenue growth: 12.1%

II.Profitability
64

Net margin: 11.2% · ROE: 9.8% · ROIC: 8.7%

III.Financial health
82

Net debt/EBITDA: 0.87x · FCF: 10.5%

Source: SEC EDGAR · TTM through 30/06/2026

The score includes +3 for dividend strength: 13 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its profitability drags it down the most.

Versus its sector

Percentile against the other 69 Industrial companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 59%
ROEbeats 28%
Growthbeats 72%
Cash generationbeats 48%
Less debtbeats 72%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Xylem Inc. strengths

  • Growing earnings per share (22.1% annualized).
  • Revenue rising without interruption since 2020.
  • Revenue growing (12.1% annualized).
  • Expanding margins: net margin has risen from 5% to 11% in recent years.

Xylem Inc. risks and weaknesses

  • No clear weaknesses in the recent fundamentals, though the system doesn't assess qualitative factors (competition, regulation, management).

Xylem Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
20204,8762546411,209
20215,1954273301,091
20225,522355388936
20237,3646095661,265
20248,562890942895
20259,035957910463

Between 2020 and 2025, revenue went from $4,876M to $9,035M (+85%) and net income went from $254M to $957M (+277%). Meanwhile, its margins have widened (from 5% to 11%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended June 30, 2026, versus the half-year ended June 30, 2025 (SEC filings):

  • Revenue+2.1%
  • Net income+15.4%

What changed with the June 30, 2026 results

Compared with the previous close (March 31, 2026), this is what moved in its accounts:

  • Quality score7877
  • Net debt/EBITDA0.63×0.87×

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$1.6

per share, yearly

40.9% of earnings

Payout

at least 13 straight years raising it

Growth

That is what we can verify in the SEC filings, whose structured data only starts in 2008 and which many companies begin tagging later. The real streak may be considerably longer.

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Xylem Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is Xylem Inc. a good company to invest in?

In terms of business quality, Xylem Inc. scores 77 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Xylem Inc. a profitable company?

Yes. Xylem Inc. shows a net margin of 11.2% and an ROE of 9.8%, a sign of a profitable business.

Does Xylem Inc. have a lot of debt?

Not particularly. Its net debt is 0.87 times its EBITDA, a low level.

Is Xylem Inc. growing?

Its revenue has grown 12.1% annualized in recent years and its earnings per share 22.1%, and without interruption since 2020.

Does Xylem Inc. generate cash?

Yes. It converts about 10.5% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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