Why is Xylem, Inc. ?
1
Company has a low Debt to Equity ratio (avg) at times
2
Low Debt Company with Strong Long Term Fundamental Strength
3
The company has declared Positive results for the last 7 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 1,224 MM
- DEBT-EQUITY RATIO (HY) Lowest at 8.61 %
- DIVIDEND PER SHARE(HY) Highest at USD 4.97
4
With ROCE of 9.26%, it has a expensive valuation with a 2.84 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 10.34%, its profits have risen by 32.9% ; the PEG ratio of the company is 1.1
How much should you hold?
- Overall Portfolio exposure to Xylem, Inc. should be less than 10%
- Overall Portfolio exposure to Industrial Manufacturing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Xylem, Inc. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Xylem, Inc.
10.45%
0.05
24.77%
S&P 500
13.22%
0.64
20.20%
Quality key factors
Factor
Value
Sales Growth (5y)
11.99%
EBIT Growth (5y)
14.44%
EBIT to Interest (avg)
9.14
Debt to EBITDA (avg)
1.27
Net Debt to Equity (avg)
0.10
Sales to Capital Employed (avg)
0.66
Tax Ratio
18.41%
Dividend Payout Ratio
39.40%
Pledged Shares
0
Institutional Holding
99.57%
ROCE (avg)
11.32%
ROE (avg)
11.08%
Valuation Key Factors 
Factor
Value
P/E Ratio
35
Industry P/E
Price to Book Value
3.03
EV to EBIT
30.73
EV to EBITDA
20.21
EV to Capital Employed
2.84
EV to Sales
3.94
PEG Ratio
1.10
Dividend Yield
111.76%
ROCE (Latest)
9.26%
ROE (Latest)
8.64%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Bullish
OBV
No Trend
No Trend
Technical Movement
13What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 1,224 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 8.61 %
DIVIDEND PER SHARE(HY)
Highest at USD 4.97
INTEREST COVERAGE RATIO(Q)
Highest at 2,650
RAW MATERIAL COST(Y)
Fallen by -2.91% (YoY
NET SALES(Q)
Highest at USD 2,303 MM
OPERATING PROFIT(Q)
Highest at USD 477 MM
OPERATING PROFIT MARGIN(Q)
Highest at 20.71 %
-1What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 43.16%
Here's what is working for Xylem, Inc.
Operating Cash Flow
Highest at USD 1,224 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Interest Coverage Ratio
Highest at 2,650
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Debt-Equity Ratio
Lowest at 8.61 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Dividend per share
Highest at USD 4.97 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Net Sales
Highest at USD 2,303 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 477 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 20.71 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Raw Material Cost
Fallen by -2.91% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Xylem, Inc.
Dividend Payout Ratio
Lowest at 43.16%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)






