Xylem
Through the investors’ lenses
Each of these investors has said in public what they look at before buying. Click a name to see how this company measures up — a tick where it passes one of their tests, a cross where it does not.
Warren Buffett 2/4
| Measure | XYL | Checked against | |
|---|---|---|---|
| Owner earnings | $1.20bn | positive | ✓ |
| Return on equity | 8.3% | median 11.7% | ✗ |
| Debt to equity | 0.12x | median 0.79x | ✓ |
| Operating margin | 13.5% | median 15.0% | ✗ |
Passes 2 of 4. To be clear: Warren Buffett has never said anything about Xylem. These are the company’s own figures put through the tests he described. What he looks at, and why →
Terry Smith 1/4
| Measure | XYL | Checked against | |
|---|---|---|---|
| Return on capital employed | 9.5% | median 10.1% | ✗ |
| Cash conversion | 1.30x | median 1.78x | ✗ |
| Operating margin | 13.5% | median 15.0% | ✗ |
| Debt to equity | 0.12x | median 0.79x | ✓ |
Passes 1 of 4. To be clear: Terry Smith has never said anything about Xylem. These are the company’s own figures put through the tests he described. What he looks at, and why →
Charlie Munger 0/3
| Measure | XYL | Checked against | |
|---|---|---|---|
| Return on capital employed | 9.5% | median 10.1% | ✗ |
| Return on equity | 8.3% | median 11.7% | ✗ |
| Operating margin | 13.5% | median 15.0% | ✗ |
Passes 0 of 3. To be clear: Charlie Munger has never said anything about Xylem. These are the company’s own figures put through the tests he described. What he looks at, and why →
Chuck Akre 1/4
| Measure | XYL | Checked against | |
|---|---|---|---|
| Return on equity | 8.3% | median 11.7% | ✗ |
| Debt to equity | 0.12x | median 0.79x | ✓ |
| Cash conversion | 1.30x | median 1.78x | ✗ |
| Return on equity, sustained | 5 of 10 | 8 of 10 above median | ✗ |
Passes 1 of 4. To be clear: Chuck Akre has never said anything about Xylem. These are the company’s own figures put through the tests he described. What he looks at, and why →
Philip Fisher 2/4
| Measure | XYL | Checked against | |
|---|---|---|---|
| Operating margin | 13.5% | median 15.0% | ✗ |
| Net margin | 10.6% | median 10.2% | ✓ |
| Return on capital employed | 9.5% | median 10.1% | ✗ |
| Operating margin, held or improving | 13.5% | 10-yr median 11.3% | ✓ |
Passes 2 of 4. To be clear: Philip Fisher has never said anything about Xylem. These are the company’s own figures put through the tests he described. What he looks at, and why →
Walter Schloss 2/2
| Measure | XYL | Checked against | |
|---|---|---|---|
| Current ratio | 1.62x | median 1.25x | ✓ |
| Debt to equity | 0.12x | median 0.79x | ✓ |
Passes 2 of 2. To be clear: Walter Schloss has never said anything about Xylem. These are the company’s own figures put through the tests he described. What he looks at, and why →
Benjamin Graham 2/3
| Measure | XYL | Checked against | |
|---|---|---|---|
| Current ratio | 1.62x | 2.00x published | ✗ |
| Long-term debt to working capital | 0.79x | 1.00x published | ✓ |
| Positive earnings, ten years running | 10 yrs | 10 published | ✓ |
Passes 2 of 3. To be clear: Benjamin Graham has never said anything about Xylem. These are the company’s own figures put through the tests he described. What he looks at, and why →
Joel Greenblatt 0/1
| Measure | XYL | Checked against | |
|---|---|---|---|
| Return on capital employed | 9.5% | median 10.1% | ✗ |
Passes 0 of 1. To be clear: Joel Greenblatt has never said anything about Xylem. These are the company’s own figures put through the tests he described. What he looks at, and why →
Peter Lynch 2/2
| Measure | XYL | Checked against | |
|---|---|---|---|
| Debt to equity | 0.12x | median 0.79x | ✓ |
| Net margin | 10.6% | median 10.2% | ✓ |
Passes 2 of 2. To be clear: Peter Lynch has never said anything about Xylem. These are the company’s own figures put through the tests he described. What he looks at, and why →
| Basis | Payout | Why |
|---|---|---|
| GAAP earnings | 40.8% | whyThe figure most screeners publish. |
| Operating cash flow | 31.5% | whyBefore capital spending. |
| Free cash flow | 43.0% | whyAfter maintaining the business. |
Spread between highest and lowest: 11.5 percentage points. Same filings, different denominators.
Coverage rating 52 / 100 — Tight. ? Peer standing 15/50Direction 25/30Stability 12/20
Free cash flow payout, last 6 years
| Fiscal year | Payout |
|---|---|
| 2025-12-31 | 43.0% |
| 2024-12-31 | 37.2% |
| 2023-12-31 | 52.8% |
| 2022-12-31 | 55.9% |
| 2021-12-31 | 61.5% |
| 2020-12-31 | 29.3% |
30% of the 74 industrials here pay out more.
The arithmetic
- GAAP earnings — dividends declared per share $1.60 ÷ diluted EPS $3.92
- Operating cash flow — dividends paid $391m ÷ operating cash flow $1,241m
- Free cash flow — dividends paid $391m ÷ (operating cash flow $1,241m − capex $331m)
Where the figures came from
- 10-K filed 2026-02-25 · accession 0001524472-26-000012
All public at sec.gov — you should not have to take our word for it.
Computed straight from SEC XBRL. A number that looks wrong to you is more useful to us than agreement — tell us.
What the free cash flow payout ratio measures, and where every company here sits on it.
Also on: rated tight · when it files.
When this changes
Every figure above is recomputed whenever Xylem files. The monthly letter carries what filed, what moved, and one finding computed across every company here.