Stock fact sheet · data as of
Xylem Inc. (XYL): fair value, margin of safety and Wheel Score
Industrials · Industrial - Machinery · United States · Blend
Is XYL undervalued?
XYL closed at 102.74 on 16 Oct 2026 against a GLS average fair value of 98.67 - 4.1% above fair value, which our screens read as "fairly priced". 5 of 9 models are above the current price. There is no discount to lean on here, so the margin of safety is not the reason to look at the stock.
There is a wide gap between DDM (24.87) and GLS Growth (213.29). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files XYL under Blend.
Nine valuation models for XYL
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 134.26 | +31% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 65.13 | -37% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 104.92 | +2% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 35.49 | -65% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 213.29 | +108% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 112.29 | +9% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 150.29 | +46% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 24.87 | -76% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 47.50 | -54% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -5.33 | -105% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 146.63 | +43% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Xylem Inc. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. On durability XYL scores 6.1/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are moderate - ROIC 7.1%, ROE 8.3%, ROA 5.4% - with debt at 0.18 times equity and a free-cash-flow yield of 4.0%.
The dividend yield is 1.64% at a payout ratio of 40%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Water Infrastructure 41%, Measurement and Control Solutions 32%, Applied Water 28% (quarter Q4 FY2025).
Institutional ownership scores 10/10, insider activity 2/10 and Congressional trading 7/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 7.1% |
|---|---|---|---|
| GLS Moat | 6.1 / 10 | ROE | 8.3% |
| Debt / equity | 0.18 | ROA | 5.4% |
| Free-cash-flow yield | 4.0% | Payout ratio | 40% |
| Institutions | 10 / 10 | Insiders · Congress | 2 · 7 / 10 |
Wheel Score 75: Good
With a Wheel Score of 75 - the Good band - Xylem Inc. clears the Sunday Scan's "70 or higher" rule. The parts: Value 11/25, Health 16/20, Moat 9/15, Premium 20/20, Stability 20/20; Value (11/25) scores lowest.
Implied volatility is 38% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 32,035 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 2.4M shares a day on a market cap of $24.0B, with a beta of 0.99; the Stability part of the Wheel Score gives that 20 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 11 / 25 | -4% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 9 / 15 | moat 6.1/10 | |
| Premium | 20 / 20 | implied volatility 38% | |
| Stability | 20 / 20 | 2.4M shares/day, $24.0B cap, beta 0.99 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Xylem Inc. reports earnings on 27 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Industrial - Machinery
The 12 companies below are the closest to Xylem Inc. by market cap within the Industrial - Machinery industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| DOV Dover Corporation | 194.09 | 124.42 | -56% | 61Fair | $26.1B |
| OTIS Otis Worldwide Corporation | 70.40 | 64.55 | -9% | 69Good | $26.8B |
| SYM Symbotic Inc. | 37.90 | 22.23 | -70% | 56Fair | $27.4B |
| IR Ingersoll Rand Inc. | 77.88 | 39.61 | -97% | 63Fair | $30.2B |
| NDSN Nordson Corporation | 328.80 | 162.22 | -103% | 55Fair | $18.3B |
| ITT ITT Inc. | 201.04 | 129.35 | -55% | 58Fair | $18.0B |
| IEX IDEX Corporation | 236.42 | 123.83 | -91% | 60Fair | $17.4B |
| GGG Graco Inc. | 81.78 | 53.01 | -54% | 61Fair | $13.2B |
| CARR Carrier Global Corporation | 54.96 | 28.43 | -93% | 60Fair | $45.3B |
| LII Lennox International Inc. | 358.50 | 480.26 | +25% | 85Prime | $12.4B |
| INIO INNIO N.V. Ordinary Shares | 16.50 | 6.18 | -167% | 40Weak | $12.4B |
| ROK Rockwell Automation, Inc. | 423.42 | 168.71 | -151% | 66Good | $47.1B |
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Start free See the Sunday ScanQuestions about XYL
Is XYL undervalued right now?
Not meaningfully: at 102.74 the stock trades within a few percent of the GLS average fair value of 98.67 (4.1% above fair value, data as of 16 Oct 2026).
What is the Wheel Score of XYL and what does it mean?
XYL scores 75 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for XYL?
98.67 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Xylem Inc. report earnings next?
The next earnings report is due on 27 Oct 2026 (before the open), 11 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does XYL have listed options, and how liquid are they?
Yes. The nightly snapshot found 342 listed contracts with 32,035 open interest across all expiries and implied volatility of 38% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.