Xylem Inc logo

Xylem Inc(XYL)

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EXPLORE ADVISORIES AND THEIR HISTORY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$102.71
10/09/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Stock price based on last close iconStock price based on last close
Simulated performance—not actual client returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for methodology, assumptions, and limitations.

Advisory Performance History (Simulated)Advisory Performance History info

Simulated performance—not actual client returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for methodology, assumptions, and limitations.

Upturn Advisory & Investor View for XYL

10/09/2026: XYL (1-star) is currently NOT-A-BUY. Pass it for now.

Xylem Inc is a leading global water technology company that provides critical infrastructure, testing, and digital solutions for the entire water cycle. The company has a strong, defensible market position supported by its essential-use portfolio, high-quality brands like Flygt, and a growing recurring revenue base from software and services. Its core investment story centers on the secular demand for smart water management and infrastructure resilience. While Xylem benefits from steady demand, investors should watch for potential execution risks related to large acquisitions and the sensitivity of public sector spending. Xylem may suit investors seeking a high-quality industrial firm with stable growth prospects and a reliable dividend history.

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 styleFitWhy
Growth investorStrong fitXylem benefits from secular demand in water infrastructure and smart technology adoption.
Momentum investorStrong fit while signal remains positiveThe stock often trends positively during periods of heavy industrial infrastructure funding.
Value investorMixed fitThe stock often trades at a premium valuation due to its high-quality, essential nature.
Dividend investorStrong fitReliable cash flows support consistent dividend payments and growth.
Low-risk investorStrong fitThe essential nature of the water utility market provides significant downside protection.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMediumGeneral market sentiment and industrial cycles can cause short-term price swings.
Valuation riskMediumHigh P/E multiples often reflect growth expectations that must be consistently met.
Competition risk (Industrial Conglomerates)MediumLarger conglomerates can compete on pricing or cross-selling packages.
Business qualityStrongThe business provides essential infrastructure, leading to high barriers to entry.
Dividend incomeLow / noneDividends are secure, though the current yield is modest compared to high-yield sectors.
Execution riskMediumSuccessfully integrating large acquisitions like Evoqua is critical for long-term margin improvement.

Price Behavior

Downtrend
PRICE PATH

Downtrend

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

Moderately Choppy
PRICE STABILITY

Moderately Choppy

The stock has experienced noticeable price swings while retaining some directional structure.

Analysis of Past Performance

Type Stock
Historic Profit 19.27%
Avg. Invested days 53
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 2.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 10/09/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
XYL receives a 4-star rating, supported by solid company fundamentals, and strong analyst coverage. The rating is constrained by weak price momentum.

Company Fundamentals

★★★★★
XYL has solid overall fundamentals (4 stars), with solid financial health, moderate growth momentum, and solid ownership. In FY2025 versus FY2024, moderate earnings growth (+7.5%) and solid cash generation (FCF margin 10.1%) are partially offset by moderate revenue growth (+5.5%), very low insider ownership of 0.34%.

Financial Health Rating

★★★★★
XYL's financial health is supported by solid cash strength, including free-cash-flow generation (10.1% of revenue). Profitability is moderate (3 stars), which helps explain the 4-star overall score.

Growth Momentum Score

★★★★★
Earnings growth is XYL's strongest growth driver at +7.5% FY2025 versus FY2024 (moderate, 3 stars). By comparison, while free-cash-flow growth (-3.4%, slightly negative) holds the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 97.6% and approximately 99.7% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership is only 0.34%, which materially reduces the ownership score.

Top 5 Institutional Investors

BlackRock Inc 10.72%
Vanguard Capital Management, LLC 6.65%
Vanguard Portfolio Management, LLC 5.40%
State Street Corp 4.90%
Geode Capital Management, LLC 2.72%

Unit Economics (Per $1K Revenue)

★★★★★
XYL generates approximately $385 of gross profit, $135 of operating income, and $101 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Moderate margins and moderate cash conversion support a 3-star rating, while capital efficiency is soft.

Economic Dimensions

★★★★★
Effective Tax Rate: 19.56%

Quantitative Style Profile

★★★★★
XYL has a large-cap, liquid profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedLarge / Mega Cap StabilityShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 23.81B USD
Price to earnings Ratio 24.28
1Y Target Price 151.31
Price to earnings Ratio 24.28
1Y Target Price 151.31
Volume (30-day avg) 2.6M shares
Beta 0.99
52 Weeks Range 98.58 - 152.14
Updated Date 10/09/2026
52 Weeks Range 98.58 - 152.14
Updated Date 10/09/2026
Dividends yield (FY) 1.63%
Basic EPS (TTM) 4.2

How Company Makes Money

Business areaWhat it includesRetail investor read
Water InfrastructureLarge-scale pumps, treatment systems, and related services for public utilities.Steady business driven by long-term government and utility infrastructure projects.
Applied WaterPumps and valves for residential, commercial, and industrial plumbing.Provides recurring revenue through building maintenance and industrial efficiency needs.
Measurement & ControlSmart meters, sensing, and analytical software platforms.The fastest-growing segment, focused on digitalizing global water management systems.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE 24.28
Forward PE 17.39
Enterprise Value 27.15B
Price to Sales(TTM) 2.61
Enterprise Value 27.15B
Price to Sales(TTM) 2.61
Enterprise Value to Revenue 2.97
Enterprise Value to EBITDA 14.59
Shares Outstanding 233.49M
Shares Floating 232.88M
Shares Outstanding 233.49M
Shares Floating 232.88M
Percent Insiders 0.34
Percent Institutions 97.63

Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon 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)

Information icon 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)

Information icon 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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