XYL

Xylem Inc.
IndustrialsSpecialty Industrial MachineryNASDAQ
$117.56
-$2.33 (-1.98%)today
Conviction
5/ 10
Fair Value$158.41
Upside+34.75%
Signal17.38
Market Cap$28.3B
52W Range$100.47–$154.27
Next EarningsMay 5

Conviction History

Conviction Changes

Mar 18, 2026, 7:03 PM65conviction-rescore

DCF P(above current)=5.1% and FV=$88 vs old target $145 — model is near-unanimous that this is overvalued at current price. No clear catalyst or upside edge. Downgrade from 6 to 5: lean avoid.

Price History

FAIR VALUE ANALYSISMonte Carlo · 3,000 runs · 99% valid
Fair Value$87.57
Current Price$121.07
Upside / Down-27.7%
P(Undervalued)5.1%
P(20%+ Up)0.0%
P(15%+ Down)79.3%

Fair Value Distribution — percentile bands

5.1% of simulations place fair value above current price

WHAT IS PRICED IN

Revenue-Based Reverse DCF

18.9%/yr

±5.9% · revenue growth to justify current price

FCF-Based Reverse DCF

24.8%/yr

±3.2% · FCF growth to justify current price

THE GAP

Market pricing margin compression or rising capex

KEY VALUE DRIVERS

Spearman correlation — what moves this valuation most

Bull Case
Queued for analysis

Eagle will generate this view by the next trading session (~6h).

Bear Case
Queued for analysis

Eagle will generate this view by the next trading session (~6h).

Research Feed

sec_10kMar 3
Conviction: unchanged
XYL FY2025 10-K: Water Growth Intact But Backlog Decline Signals 2026 Caution

Strong B revenue (+5.5% YoY) with structural water tailwinds (aging infra, sustainability). Key concern: backlog down 9% to .6B suggests demand softening or project timing shifts. Ongoing Evoqua integ...