Xylem: Good Prospects, But Pricey

Nov. 09, 2023 8:24 AM ETXylem Inc. (XYL) StockXYL1 Comment

Summary

  • Xylem reported strong financial results, surpassing analyst expectations in terms of adjusted EPS and sales figures.
  • The company's acquisition of Evoqua Water Technologies positioned them as the world's largest pure-play water technology company.
  • Xylem raised their full-year guidance, reflecting strong business momentum and the impact of the Evoqua acquisition.
  • If we compare XYL's EV/EBITDA ratio for next year of ~18x with other companies in the industry, we see that XYL trades at a slight premium of around 10-15%.
  • I would like to see XYL down 15-20% before considering a buy. That's why I'm rating XYL stock a "Hold" at this time.
  • I do much more than just articles at Beyond the Wall Investing: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

Капля дождя

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The Company

Xylem (NYSE:XYL) is a $23.3-billion market cap global water technology company focused on addressing significant water-related challenges worldwide. They provide products and services that enhance water utilization, management, conservation, and reuse, ultimately contributing to more resilient communities. Their clientele

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This article was written by

13.18K Followers
Daniel Sereda is chief investment analyst at a family office whose investments span continents and diverse asset classes. This requires him to navigate through a plethora of information on a daily basis. His expertise is in filtering this wealth of data to extract the most critical ideas. He runs the investing group Beyond the Wall Investing in which he provides access to the same information that institutional market participants prioritize in their analysis. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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