Xylem Inc. [NYSE:XYL]: Analyst Rating and Earnings
Stock market traders oftentimes pay a lot of attention to what top analysts say regarding a potential investment. Regarding Xylem Inc. [XYL], the latest average analyst recommendation we can see is from the quarter closing in December. On average, stock market experts give XYL an Outperform rating. The average 12-month price forecast for this stock is $77.42, with the high estimate being $90.00, the low estimate being $57.00 and the median estimate amounting to $80.00. This is compared to its latest closing price of $65.95.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Xylem Inc. [XYL] is sitting at 2.06. This is compared to 1 month ago, when its average rating was 2.18.
For the quarter ending in Sep-18 Xylem Inc. [XYL] generated $1.29 billion in sales. That’s 0.86% lower than the average estimate of $1.3 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Pay attention for this company’s financial results, of which the next release is scheduled to happen on Thu 7 Feb (In 30 Days).
Fundamental Analysis of Xylem Inc. [XYL]
Now let’s turn to look at profitability: with a current Operating Margin for Xylem Inc. [XYL] sitting at +13.40 and its Gross Margin at +39.27, this company’s Net Margin is now 7.70%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 13.56, and its Return on Invested Capital has reached 9.70%. its Return on Equity is 14.11, and its Return on Assets is 4.96. These metrics all suggest that Xylem Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Xylem Inc. [XYL] has generated a Total Debt to Total Equity ratio of 87.89. Similarly, its Total Debt to Total Capital is 46.78, while its Total Debt to Total Assets stands at 32.07. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 87.89, and its Long-Term Debt to Total Capital is 46.78. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 15.65 and its Total Debt to EBITDA Value is 2.55. The Enterprise Value to Sales for this firm is now 2.65, and its Total Debt to Enterprise Value stands at 0.16. Xylem Inc. [XYL] has a Price to Book Ratio of 4.90, a Price to Cash Flow Ratio of 17.98 and P/E Ratio of 30.27. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, Xylem Inc. [XYL] earns $290,185 for each employee under its payroll. Income works out to $20,432 per employee. Similarly, this company’s Receivables Turnover is 5.23 and its Total Asset Turnover is 0.71. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.41 and its Current Ratio is 1.88. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: Xylem Inc. [XYL] has 179.70M shares outstanding, amounting to a total market cap of $11.85B. Its stock price has been found in the range of 60.65 to 82.44. At its current price, it has moved by -19.51% from its 52-week high, and it has moved 9.41% from its 52-week low.
This stock’s Beta value is currently 1.25, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 50.32. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Xylem Inc. [XYL] a Reliable Buy?
Xylem Inc. [XYL] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.