XYL
IndustrialsXylem Inc. · Industrial - Machinery · $26B
What is Xylem Inc.?
Xylem Inc. is a global water technology company focused on solving the world's most critical water challenges. Operating across three business segments, Xylem designs, manufactures, and services engineered solutions for water and wastewater applications worldwide.
Xylem generates revenue through three segments: Water Infrastructure, Applied Water, and Measurement & Control Solutions. The Water Infrastructure segment handles pumping, treatment, and filtration for utilities. Applied Water serves residential, commercial, and industrial customers with pumps, valves, and heat exchangers. Measurement & Control Solutions delivers smart metering, networked communications, cloud-based analytics, leak detection, and asset management software — a growing area that adds recurring, technology-driven revenue to the traditional equipment business.
Xylem was established in 2011 and is headquartered in Washington, US.
- Water and wastewater pumps for utilities and municipalities
- Filtration, disinfection, and biological treatment equipment
- Smart meters and networked communication devices
- Cloud-based analytics, leak detection, and remote monitoring software
- Residential and commercial building water systems
Is XYL a Good Stock to Buy?
UQS Score rates XYL as Good overall, reflecting a balanced profile across its five analytical pillars.
Xylem's strongest signals come from its Risk and Valuation pillars, both rated Good — suggesting the stock carries a relatively manageable risk profile and is not excessively priced relative to its fundamentals. The company's exposure to essential water infrastructure spending provides a degree of revenue stability that supports the Risk assessment.
The Quality, Moat, and Growth pillars each register as Neutral, indicating that Xylem has not yet demonstrated a decisive competitive edge or above-average growth trajectory compared to sector peers.
See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →
Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does XYL pay dividends?
Yes — Xylem Inc. pays a dividend.
Xylem pays a regular dividend, consistent with its position as an established industrial company serving utility and municipal customers. The predictable, infrastructure-driven nature of its end markets supports ongoing cash returns to shareholders. Investors seeking income alongside exposure to the water sector may find Xylem's dividend cadence relevant to their screening criteria.
When does XYL report earnings?
Xylem reports earnings on a quarterly cadence, typical for US-listed large-cap industrials.
Xylem's results tend to reflect broader trends in municipal infrastructure spending, utility capital budgets, and industrial water demand. The Measurement & Control Solutions segment adds a software and services dimension that can influence margin and revenue mix over time.
For the most recent quarter's results and guidance, visit Xylem's investor relations page directly.
XYL Price History
+7.5% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Xylem Inc.?
Based on Xylem Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
XYL Long-term Outlook
With Growth and Quality both rated Neutral, Xylem's near-term trajectory appears steady rather than accelerating. The company's exposure to long-cycle infrastructure investment — including water utility modernization and smart metering rollouts — provides a structural tailwind, though the pace of conversion to higher-margin software revenue will be a key factor to watch. The Good Risk rating suggests the business is not facing acute financial or operational stress, which supports a measured outlook.
Growth drivers
- Global water infrastructure modernization and utility capital spending
- Expansion of smart metering and cloud-based water analytics services
- Regulatory pressure driving wastewater treatment upgrades worldwide
Key risks
- Municipal budget constraints that delay infrastructure project timelines
- Competitive pressure in the industrial pump and flow control market
- Integration complexity from prior acquisitions affecting margin consistency
XYL vs Peers
Xylem operates in the broader industrial equipment and flow control space, where it competes with diversified industrials that overlap across pumps, fluid management, and engineered systems.
Dover is a highly diversified industrial conglomerate with exposure across pumps, refrigeration, and clean energy — broader than Xylem's water-focused mandate.
Otis focuses on elevator and escalator systems, overlapping with Xylem primarily in the building services infrastructure segment rather than water treatment.
Ingersoll Rand competes in fluid management and industrial flow control, with a broader product portfolio that extends well beyond water into compressed air and power tools.
Frequently Asked Questions
What does Xylem do?
Xylem designs, manufactures, and services engineered products for water and wastewater applications globally. Its three segments cover water infrastructure for utilities, pumps and valves for buildings and industry, and smart metering with data analytics software. The company serves municipal, residential, commercial, and industrial customers across more than 150 countries.
Does XYL pay dividends?
Yes, Xylem pays a regular dividend. The company's stable exposure to essential water infrastructure supports its ability to return cash to shareholders on a consistent basis. For the current dividend rate and payment schedule, check Xylem's investor relations page or your brokerage platform.
When does XYL report earnings?
Xylem reports earnings quarterly, in line with standard US-listed large-cap practice. Exact dates shift each cycle. For the upcoming earnings date and access to past results, visit Xylem's investor relations page.
Is XYL a good stock to buy?
UQS Score rates XYL as Good overall. The Risk and Valuation pillars are both rated Good, while Quality, Moat, and Growth are each Neutral. This profile suggests a reasonably priced industrial with stable fundamentals but no standout competitive advantage or growth acceleration at this time. The full pillar breakdown is available to UQS Pro members.
Is XYL overvalued?
The UQS Valuation pillar for XYL is rated Good, which indicates the stock does not appear excessively priced relative to its fundamentals within the industrials sector. That said, valuation is one of five pillars — viewing it alongside Quality, Growth, Moat, and Risk gives a more complete picture. Pro members can access the full metric detail.
How does XYL compare to its competitors?
Xylem's water-focused business model differentiates it from broader industrials like Dover and Ingersoll Rand, which span multiple end markets. Xylem's dedicated exposure to water infrastructure and its growing software and analytics layer give it a more specialized profile, though that concentration also means its growth is tied closely to utility and municipal spending cycles.
What is XYL's market cap bracket?
Xylem is classified as a large-cap company. This places it among the more established, widely followed names in the industrials sector, typically associated with greater liquidity and institutional coverage compared to mid- or small-cap peers.
Who founded Xylem?
Xylem was formed in 2011 as a spin-off from ITT Corporation, separating the water technology businesses into a standalone public company. Detailed founding and leadership history is publicly available through Xylem's corporate website and SEC filings.
Is XYL a long-term quality indicator?
From a long-term quality perspective, Xylem benefits from exposure to a structurally essential market — water infrastructure — that faces growing global demand. However, its Neutral ratings across Quality, Moat, and Growth pillars suggest the company has not yet demonstrated the durable competitive advantages or consistent above-average returns that typically define the highest-quality long-term holdings. UQS Pro members can review the full pillar trend data.
What is the main competitive advantage of Xylem?
Xylem's primary advantage lies in its specialization across the full water cycle — from pumping and treatment to smart metering and data analytics. Its established brand portfolio and long-standing utility relationships create switching costs, though the UQS Moat pillar rates this as Neutral, indicating the advantage is present but not yet exceptional relative to sector peers.
What sector does XYL belong to?
Xylem is classified in the Industrials sector. Within that broad category, it operates specifically in water technology and infrastructure — a niche that intersects with utilities, environmental services, and increasingly, industrial software and IoT-connected devices.
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Pro Analysis
XYL — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 22, 2026 | 56.0 | 52.7 | 42.0 | 53.8 | 74.9 | 69.1 | -0.1 |
| May 18, 2026 | 56.1 | 52.7 | 42.0 | 53.8 | 74.9 | 69.3 | +0.5 |
| May 7, 2026 | 55.6 | 50.8 | 42.0 | 54.0 | 78.6 | 65.7 | -0.1 |
| May 3, 2026 | 55.7 | 50.8 | 42.0 | 54.0 | 78.6 | 66.4 | +0.2 |
| May 2, 2026 | 55.5 | 50.8 | 42.0 | 54.0 | 78.6 | 64.6 | +0.1 |
| May 1, 2026 | 55.4 | 50.8 | 42.0 | 53.9 | 78.6 | 64.6 | 0.0 |
| Apr 26, 2026 | 55.4 | 50.8 | 42.0 | 53.6 | 78.6 | 64.5 | +0.1 |
| Apr 23, 2026 | 55.3 | 50.8 | 42.0 | 53.6 | 78.6 | 63.7 | 0.0 |
| Apr 19, 2026 | 55.3 | 50.8 | 42.0 | 53.8 | 78.6 | 63.8 | +0.1 |
| Apr 18, 2026 | 55.2 | 50.8 | 42.0 | 53.8 | 78.6 | 62.7 | -0.3 |
XYL — Pillar Breakdown
Quality
— 52.7/100 (25%)Xylem Inc. has average quality metrics, with room for improvement in margins or capital efficiency.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 53.8/100 (20%)Xylem Inc. shows steady but unspectacular growth, typical for mature companies.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 74.9/100 (15%)Xylem Inc. maintains a reasonable risk profile with manageable debt levels.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 68.3/100 (15%)Xylem Inc. trades at a reasonable valuation with decent earnings yield and FCF multiples.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 42/100 (25%)Xylem Inc. possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for XYL.
Score Composition
Financial Data
More Stock Analysis
How is the XYL UQS Score Calculated?
The UQS (Unified Quality Score) for Xylem Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Xylem Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Xylem Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.