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Upturn AI Summary - About
Xylem Inc(XYL)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Advisory Performance History (Simulated)
Upturn Advisory & Investor View for XYL
10/23/2026: XYL (1-star) is currently NOT-A-BUY. Pass it for now.
Xylem is a global leader in water technology, offering products and solutions that manage the entire water cycle. Its primary strengths lie in its balanced portfolio of hardware, such as pumps, and smart digital analytics that help utilities reduce water loss. The investment story centers on the secular trend of aging water infrastructure and the global need for climate-resilient water systems. However, investors must monitor execution risks associated with large acquisitions, cyclical construction exposure, and potential government infrastructure budget shifts. The stock typically suits investors seeking exposure to sustainable infrastructure and long-term utility-focused growth, with moderate dividend income as a defensive component.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Strong fit | Xylem benefits from long-term secular trends in water scarcity and digital infrastructure modernization. |
| Momentum investor | Mixed fit | Momentum is highly dependent on general market conditions and specific project win cycles. |
| Value investor | Mixed fit | The stock often trades at a premium due to its role as a stable industrial utility play. |
| Dividend investor | Strong fit | Xylem offers a reliable dividend supported by consistent cash flows from essential water infrastructure services. |
| Low-risk investor | Strong fit | The essential nature of water infrastructure provides a defensive cushion against broader market volatility. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium | The stock is subject to broader industrial market fluctuations and macro-economic cycles. |
| Valuation risk | Medium | High multiples often reflect expectations for long-term water infrastructure spending. |
| Competition risk (Meter and Pump Industry) | Medium | The market remains fragmented with specialized competitors in both hardware and software. |
| Business quality | Strong | Water management is an essential industry with high barriers to entry. |
| Dividend income | Medium | Dividends are secure but are not high-yield relative to some income-focused sectors. |
| Execution risk | Medium | Successful integration of large acquisitions is critical for long-term margin expansion. |
Price Behavior

Downtrend
The stock has experienced a sustained decline in price over recent periods.

Smooth
The stock has moved along a generally orderly path with only modest fluctuations.
Analysis of Past Performance
Type Stock | Historic Profit 19.27% | Avg. Invested days 53 | Today’s Advisory PASS |
Upturn Advisory Rating ![]() | Upturn Advisory Performance | Stock Returns Performance |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals 
Financial Health Rating 
Growth Momentum Score 
Ownership 
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue) 
Economic Dimensions
Quantitative Style Profile 
Style Classification
Quality Focused
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 25.39B USD | Price to earnings Ratio 25.89 | 1Y Target Price 142.62 |
Price to earnings Ratio 25.89 | 1Y Target Price 142.62 | ||
Volume (30-day avg) 2.4M shares | Beta 0.99 | 52 Weeks Range 98.58 - 152.14 | Updated Date 10/24/2026 |
52 Weeks Range 98.58 - 152.14 | Updated Date 10/24/2026 | ||
Dividends yield (FY) 1.52% | Basic EPS (TTM) 4.2 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Water Infrastructure | Large-scale pumps, mixers, and filtration systems for municipal water transport. | This is the backbone of the company, providing stable revenue from public utilities. |
| Applied Water | Pumps for buildings, irrigation, and commercial facility management. | This segment is tied to commercial construction and general building activity. |
| Measurement & Control | Smart meters, sensor networks, and analytics software. | This high-growth area helps utilities save money and reduce water loss through technology. |
| Geography | Global operations with significant exposure to North America and Europe. | Revenue is well-diversified, though dependent on developed markets' infrastructure budgets. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2026-10-27 | When Before Market | Estimate 1.47 | Actual - |
Profitability
Profit Margin 11.15% | Operating Margin (TTM) 17% |
Management Effectiveness
Return on Assets (TTM) 5.11% | Return on Equity (TTM) 9.18% |
Valuation
Trailing PE 25.89 | Forward PE 17.21 | Enterprise Value 26.88B | Price to Sales(TTM) 2.78 |
Enterprise Value 26.88B | Price to Sales(TTM) 2.78 | ||
Enterprise Value to Revenue 2.94 | Enterprise Value to EBITDA 14.44 | Shares Outstanding 233.49M | Shares Floating 232.88M |
Shares Outstanding 233.49M | Shares Floating 232.88M | ||
Percent Insiders 0.34 | Percent Institutions 97.68 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

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