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Xylem XYL

Xylem scores good on business quality (6.4 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$102.71Oct 9, 2026
Business qualityGood
Next earningsOct 27, 2026, before the open
Insiders, 90 daysQuiet

Why it matters

  1. What Xylem does

    Xylem designs and sells water technology, including treatment, measurement, and transport equipment. Municipalities and industrial operators pay for these systems to manage critical water infrastructure.

  2. What it does best

    Xylem excels at water infrastructure supply with a gross margin of 39.2% that edges out peers like PH at 37.8%. This edge relies on specialized treatment tech and broad municipal integration that locks in long-term utility relationships.

  3. The main risk

    Valuation creates a clear vulnerability as the stock trades at 101.79 against an intrinsic value of 84.33. If broader industrial demand softens, this premium leaves no margin for error.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityWeak

Operating margin stands at 15.5% with an ROE of 9.2%, demonstrating stable profitability that scales gradually with higher revenue.

MoatFair

A middle-of-the-pack gross margin rank of 60th percentile reflects a moderate moat anchored by municipal switching costs, though competition from peers caps pricing power.

GrowthSteady

Revenue growth registers at 5.5% with annual sales rising to $9,126 million, showing steady momentum as municipal demand expands.

Financial healthStrong

Debt-to-equity sits low at 0.18 and interest coverage hits 61.7x, making debt costs a rounding error while free cash flow reached $958 million, getting stronger.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

No open market buys or unplanned sales by executives or directors.

Our sealed record on XYL

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is XYL a good business?

Xylem scores good on the Cluenex quality check (6.4 of 10), measured against its own industry. Profitability is weak, moat fair, growth steady and financial health strong.

Are insiders buying XYL?

In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.

When does XYL report earnings?

Oct 27, 2026, before the open.

For members

See XYL today

  • Today's verdict on XYL, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Xylem (XYL)”, https://cluenex.com/stocks/xyl/, data as of Oct 10, 2026.