The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 44 | 28.9x | 20.8x | Around median | |
Growth | 57 | 5.7% | 6.1% | Around median | |
Quality | 55 | 8.7% | 6.6% | Around median | |
Safety | 87 | — | 0.7x | Top tier | |
Capital Return | 58 | 1.36% | 2.02% | Around median | |
Momentum | 23 | -13.7% | 4.1% | Bottom tier | |
Sentiment | 89 | 15 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Xylem is a global leader in water technology, designing and manufacturing vital solutions for water and wastewater applications across a broad range of utility, industrial, and commercial building customers. The company generates its revenue through several key segments, including Measurement & Control Solutions, Water Infrastructure, Applied Water, and Water Solutions & Services. The company's strategy focuses on addressing aging infrastructure, enhancing sustainability, and delivering smart metering technologies that help communities build a more water-secure world.
In the first quarter of fiscal year 2026, the company reported revenues of $2.1 billion, remaining largely flat year-over-year due to strategic business simplification initiatives and a notable decline in the Chinese market. Despite flat revenues, the company achieved a gross profit of $803.0 million and a net income of $193.0 million, translating to earnings per share of $0.79. Driven by operational discipline, the EBITDA margin expanded to 20.6 percent, an increase of 20 basis points, fueled by productivity gains and pricing that offset the impacts of inflation.
Segment results showed notable divergence, with orders in Measurement & Control Solutions jumping 15 percent due to strong demand for smart meters, while data center orders within the Applied Water segment during the first quarter exceeded the total recorded for the entirety of 2025. Furthermore, the Water Solutions & Services segment achieved a historic milestone in April by signing the largest contract in its history, valued at $850 million, to provide outsourced water services over 20 years, underscoring the success of the company's strategy to build long-term service revenue streams.
The stock is currently trading within a range of $105.29 to $154.27, placing it near the analyst consensus average price target of $150.89. The stock carries a consensus Hold rating, although some recent upgrades, such as Jefferies raising the stock to Buy, reflect optimism regarding the trajectory of operating margin expansion. With a high price target of $161, valuation remains tied to the company's ability to execute its plans and navigate international market challenges.
Figures in the text are as of 2026-07-21; the live price is shown at the top of the page.
This historic contract represents a 20-year agreement with a specialty chemicals customer to provide cooling water and boiler feed water. The contract's value is distributed such that long-term services account for approximately 75 percent of the total, while initial capital construction represents 25 percent. The company expects to realize about 10 percent of the contract's value during 2026, with capital construction slated for completion the following year and water flows commencing in 2028.
The Applied Water segment is experiencing a massive surge in demand from the data center market, which requires advanced cooling solutions. During the first quarter of 2026 alone, data center orders exceeded the total recorded for the entirety of 2025. This exceptional growth, coupled with strength in the US commercial building market, is helping the company offset current weakness in industrial and residential markets.
The company recorded a 30 percent year-over-year decline in its revenues within China during the first quarter of 2026. Management attributes this downturn to a combination of broader market weakness, aggressive pricing actions by local competitors, and the company's strategic decisions to exit less profitable businesses. This decline is expected to create a 2 percent headwind for total company sales during the first half of the year.
Automated analysis for informational purposes only — not investment advice.
The company is currently working to divest its international metering business to optimize the Measurement & Control Solutions portfolio and focus on more profitable markets. Due to the timing of regulatory approvals, management now expects to complete this transaction by the end of the second quarter of 2026. Once this process is finalized, segment margins are projected to rise significantly, exceeding 25 percent by year-end.
The company is successfully maintaining a positive price-cost ratio by utilizing incremental pricing as a primary tool to offset material inflation and rising freight costs. Additionally, the supply chain team is actively seeking alternative sourcing and competitive bidding to mitigate dynamic market disruptions. Thanks to these proactive measures, the company was able to expand its EBITDA margin by 20 basis points to reach 20.6 percent in the first quarter.