XYL logo

XYL XYL

UnknownUnknownN/A📅 Scored March 31, 2026
Price at analysis: $121.26
Crucible Score
66.2
B-
Quality × Value Composite
KQI — Quality
71.0
B
Fundamental Quality Index
KVI — Value
60.3
C+
Valuation Attractiveness Index
Crucible Verdict — XYL

XYL presents a solid but unexceptional profile with its Crucible Score of 66.2, hampered by below-average valuation metrics despite decent operational quality. The company trades at a 9% discount to fair value, though CEO Patrick Decker's 13-year tenure and 91% earnings beat rate demonstrate consistent execution. The quality-value gap suggests potential upside if management can accelerate value creation.

— Kal, Kaladin Capital Intelligence

◆ KQI Quality Dimensions

Financial Quality
66.3
Growth Profile
75.0
Moat Durability
69.7
Management Effectiveness
68.6
Diversification & Resilience⚠
74.0
Market Position
66.0
Weakest dimension: Market Position (66.0)

◆ KVI Value Dimensions

DCF Margin of Safety
60.4
FCF Yield & Cash Returns
28.8
Relative Valuation
73.8
Growth-Adjusted Value
72.4
Historical Valuation
88.6
Macro Context
50.1

◆ DCF Valuation Scenarios

Bear Case
$89.52
Base Case
$131.78
Bull Case
$185.43
Price at Analysis
$121.26
ScenarioFair ValueRev CAGR (5yr)Terminal MarginWACC
🔴 Bear$89.524.0%12.5%10.3%
🟢 Base$131.786.0%14.0%9.8%
🟢 Bull$185.438.0%16.0%9.2%
Key Assumptions: Revenue grew from ~$5.2B to ~$9.0B over 5 years driven by the Evoqua acquisition; base case assumes 6% organic CAGR reflecting water infrastructure secular tailwinds with operating margins normalizing to 14% from the current 13.5%. WACC calculated using CAPM with 4.33% risk-free rate, 1.17 beta, and 4.65-5.5% equity risk premium across scenarios; capex intensity anchored at ~3.7% of revenue consistent with recent history. Bear case reflects macro slowdown and margin pressure to 12.5%, while bull case assumes accelerating water spending and synergy realization pushing margins to 16%.

◆ Financial Snapshot

Profitability

Gross Margin38.5%
Operating Margin13.5%
Net Margin10.6%
ROIC6.3%
ROE11.3%

Balance Sheet

Balance SheetCR: 1.62
Cash ConversionFCF/EPS: 0.95x
Capital IntensityCapex/Rev: 3.7%
Altman Z-Score4.07 (Safe)
Piotroski F-Score7/9 (Good)

Growth

Revenue CAGR14.8% CAGR
Earnings CAGR22.4% CAGR
Growth ConsistencyCV: 1.08
Segment Breadth3/3 growing (100%)
Quarterly TrendMargin↑
Earnings CredibilityConsistent Beater

◆ Analyst Consensus & Leadership

Leadership & Governance

CEOPatrick Decker · 13 years
CEO Ownership28.5%
Compensation79% performance-based
Insider ActivityNeutral
Capital AllocationROIC 6.3% vs WACC 1.2%
Earnings Beat Rate91% (20/22)

◆ Related Companies in Our Universe

Other Unknown companies scored by the Crucible:

ADBE81.8A-NICE80.7A-DECK79.9A-INTU79.9A-EXEL78.3A-MTCH78.2A-TTD78.0B+
MethodologyAll ScoresCrucible BriefsPerformance@KaladinCI

Analysis conducted March 31, 2026 based on most recent SEC filings. Updated quarterly, after new SEC filings.

Point-in-time fundamental analysis. Not investment advice. Scores reflect company quality and valuation at time of analysis and may not reflect current market conditions.

© 2026 Kaladin Capital Intelligence — Conviction Through Scrutiny