XYLNEUTRAL

Return on Equity (ROE)

8.7%

Updated 200h ago

Sector Performance

32th percentile

XYL

8.7%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) of 8.7% means XYL generates $0.087 of net profit for every $1 of shareholders’ equity — a measure of how efficiently the company uses investor capital to produce earnings.

This sits well below the sector median of 13.8%, placing XYL in the 32nd percentile among its peers, indicating weaker profitability efficiency relative to most competitors. Trend data is not available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and the direction over the last eight quarters is also N/A, so there is no historical basis to assess improvement or deterioration. The combination of a below-median ROE with no trend information means the risk lies in the current low efficiency, but without a downward trajectory it does not signal escalating trouble — nor does it indicate an upward opportunity. This metric supports the overall NEUTRAL verdict because the subpar level suggests below-average performance, yet the absence of trend data prevents a bearish or bullish conclusion.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about XYL?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are XYL's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.