Invest to secure future: Xylem Inc. (NYSE: XYL)

Latest Stock Price Update: Xylem Inc. (NYSE: XYL)

On Monday, Xylem Inc.  the stock changed -2.36% to recent value of $86.43. There are 180.36M shares outstanding and 178.44M shares are floated in market XYL over recent time; they noted that 1249356 shares changed at hands contradiction to its average trading volume of 1151.91K. The stock disclosed a move of 5.54% away from 50 day moving average and 9.17% away from 200 day moving average. Moving closer, we can see that shares have been trading 1.28% away off 20-day moving average.

Xylem Inc. (XYL) recently stated full-year 2019 revenue of $5.25B, up one percent on a stated basis and four percent on an organic basis. Full-year stated net income was $401M, or $2.21 per share, with a stated operating margin of 9.3 percent. Adjusted net income, which excludes the impact of restructuring, realignment and special charges, was $547M, or $3.02 per share. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) was 19.5 percent, flat year-over-year. Xylem delivered full-year 2019 adjusted operating margin of 13.9 percent, up 20 basis points versus the previous year. The Company generated $613M in free cash flow, representing a 124 percent conversion.

In the fourth quarter 2019, Xylem generated net income of $118M, or $0.65 per share, and adjusted net income of $161M, or $0.89 per share, which excludes the impact of restructuring, realignment and special charges. Fourth quarter revenue was $1.37B reflecting ongoing softness in Industrial and Commercial end markets. Adjusted EBITDA declined 10 basis points to 20.5 percent. Stated operating margin in the quarter was 14.2 percent and adjusted operating margin declined 10 basis points year-over-year to 15.0 percent.

“Our teams continued to capitalize on Xylem’s portfolio of industry-leading technologies throughout 2019, again delivering mid-single-digit growth in the Utilities market globally, including double-digit growth in China and India,” stated Patrick Decker, president and CEO of Xylem. “However, soft Industrial and Commercial markets in the second half slowed our overall revenue growth and margin progress for the year. In response to those challenges, we effectively contained costs, importantly improved working capital, and exceeded our free cash flow conversion commitments.”

“We’ve entered 2020 with strong operational discipline, solid foundations underpinning continued growth, and an energized global team leading the industry on sustainability,” Decker continued. “We’re confident we can manage through soft conditions persisting through the first half, and we foresee a moderate second-half recovery in our short-cycle businesses in parallel with ramp-ups in several large Utilities projects in our backlog. We expect a return to mid-single-digit growth in the second half of the year.”

Analyst Review:

Analyst mean recommendation for this stock stands at 2.6. A stock rating will usually tell the investor how well a stock’s market value relates to what analysts believe is a fair value for the stock, based on an objective evaluation of the company. Analyst recommendations as reported on FINVIZ are rated on a 1 to 5 scale. 1 is equivalent to a Strong Buy rating, 3 a hold rating, and 5 a Strong Sell rating. The consensus recommendation is the average rating on a stock by the analyst community.

Is XYL Stock being Risky?

You invest to earn a return on your money, but returns are not the only consideration. Risk and return are connected. Generally, the higher the risk of an investment, the higher the potential return.  Here beta – measures how the stock is doing compared to a given benchmark, such as the S&P TSX Composite Index.  Currently XYL has beta value of 1.14. A beta of 1.0 tells you that a stock has been going up and down with the overall stock market. A stock with a beta between 0.0 and 1.0 has smaller ups and downs. A beta greater than 1.0 has wider price swings. Stocks with a negative beta are moving opposite to the index. When you invest in a stock, you could lose all of your money – in some cases, more than you invested. Before you buy a stock, understand the risks and decide if they are risks you are comfortable taking.

XYL ’s shares are at 11.57% for the quarter and driving a 15.55% return over the course of the past year and is now at 9.70% since this point in 2019. The average volatility for the week and month was at -1.94% and 4.94% respectively.

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