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 13.52%, 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.
-1.38%
0.02
24.32%
S&P 500
18.81%
0.70
20.15%
Quality key factors
Factor
Value
Sales Growth (5y)
13.14%
EBIT Growth (5y)
43.81%
EBIT to Interest (avg)
9.14
Debt to EBITDA (avg)
1.27
Net Debt to Equity (avg)
0.10
Sales to Capital Employed (avg)
0.64
Tax Ratio
18.41%
Dividend Payout Ratio
40.82%
Pledged Shares
0
Institutional Holding
94.40%
ROCE (avg)
11.32%
ROE (avg)
11.08%
Valuation Key Factors 
Factor
Value
P/E Ratio
32
Industry P/E
Price to Book Value
2.72
EV to EBIT
9.96
EV to EBITDA
8.44
EV to Capital Employed
2.66
EV to Sales
3.51
PEG Ratio
4.66
Dividend Yield
125.51%
ROCE (Latest)
26.68%
ROE (Latest)
8.53%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Movement
9What is working for the Company
DEBT-EQUITY RATIO
(HY)
Lowest at 4.03 %
DIVIDEND PER SHARE(HY)
Highest at USD 5.27
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
NET SALES(Q)
Highest at USD 2,397 MM
OPERATING PROFIT(Q)
Highest at USD 496 MM
EPS(Q)
Highest at USD 1.37
-2What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 102.7% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 0 times
Here's what is working for Xylem, Inc.
Debt-Equity Ratio
Lowest at 4.03 % 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 5.27 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 2,397 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 496 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
EPS
Highest at USD 1.37
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Here's what is not working for Xylem, Inc.
Inventory Turnover Ratio
Lowest at 0 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 102.7% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales






