Xylem (CHIX:XY6D) Interest Coverage: 68.75 (As of Mar. 2026) — 638% Above Median


CHIX:XY6D Xylem Inc CHIX:XY6D
69 GF Score
Price €92.47
GF Value €113.98
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Xylem Interest Coverage?

Xylem CHIX:XY6D 69 Interest Coverage is 68.75 as of Mar. 2026, which is 638% above its 10-year median of 9.32. GuruFocus rates CHIX:XY6D with a GF Score™ of 69/100 and a GF Value™ of €113.98 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,330 Industrial Products companies, Xylem ranks better than 73.61% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Xylem's Operating Income for the three months ended in Mar. 2026 was €238 Mil. Xylem's Interest Expense for the three months ended in Mar. 2026 was €-3 Mil. Xylem's interest coverage for the quarter that ended in Mar. 2026 was 68.75. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Xylem's Interest Coverage or its related term are showing as below:

CHIX:XY6d' s Interest Coverage Range Over the Past 10 Years
Min: 6.26   Med: 9.32   Max: 53.96
Current: 53.96


CHIX:XY6d's Interest Coverage is ranked better than
73.61% of 2330 companies
in the Industrial Products industry
Industry Median: 14.835 vs CHIX:XY6d: 53.96

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Xylem  (CHIX:XY6d) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Xylem Interest Coverage Related Terms


Xylem Interest Coverage Historical Data

* Premium members only.

The historical data trend for Xylem's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Xylem Interest Coverage Chart

Xylem Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.79 13.02 14.86 24.34 45.72

Xylem Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 31.50 36.78 59.50 64.33 68.75

CHIX:XY6D vs OTIS, IR, DOV: Interest Coverage Comparison

For the Specialty Industrial Machinery subindustry, Xylem's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Xylem Interest Coverage vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Xylem's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Xylem's Interest Coverage falls into.


CHIX:XY6D
69GF Score
Xylem Inc CHIX:XY6D
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Xylem Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Xylem's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Xylem's Interest Expense was €-25 Mil. Its Operating Income was €1,132 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,202 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*1132.404/-24.766
=45.72

Xylem's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Xylem's Interest Expense was €-3 Mil. Its Operating Income was €238 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,217 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*237.875/-3.46
=68.75

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 68.75 mean?
Xylem (CHIX:XY6D) has a Interest Coverage of 68.75 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Xylem and its competitors. This is 638% above median its historical median of 9.32. Over the past decade, Xylem's Interest Coverage has ranged from 6.26 to 53.96. According to the industry distribution chart, Xylem ranks #615 out of 2330 companies in the Industrial Products industry, placing it in the top 26.4%.
Is Xylem's Interest Coverage too high?
Xylem's current Interest Coverage of 68.75 is 638% above median its 10-year median of 9.32. Over the past 10 years, this metric has ranged from a low of 6.26 to a high of 53.96. The Industrial Products industry median Interest Coverage is 14.84. Xylem's value of 68.75 is 363.4% above this industry median. Based on the distribution chart, Xylem ranks #615 out of 2330 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Xylem has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Xylem's Interest Coverage compare to OTIS and IR?
According to the Industrial Products industry distribution chart, Xylem ranks #615 out of 2330 companies for Interest Coverage. This puts Xylem in the upper half of its industry. The industry median Interest Coverage is 14.84. Xylem's value of 68.75 is 363.4% above this benchmark. Historically, Xylem's own Interest Coverage has ranged from 6.26 to 53.96 over the past decade. While the company's 10-year median is 9.32 vs. the industry median of 14.84, Xylem has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.84, based on 2,330 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Xylem's current Interest Coverage of 68.75 is 363.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Xylem and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xylem's current Interest Coverage is 68.75, which is 638% above median its own 10-year median of 9.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xylem stock overvalued right now?
Based on GuruFocus' analysis, Xylem (CHIX:XY6D) is currently considered Modestly Undervalued. The stock's GF Value™ is €113.98, compared to a current price of €92.47 — trading 18.9% below its estimated fair value. The current Interest Coverage is 68.75, which is 638% above median its 10-year median of 9.32 and 363.4% above the Industrial Products industry median of 14.84. Xylem's overall GF Score™ is 69/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Xylem (CHIX:XY6D), the current Interest Coverage is 68.75 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Xylem (CHIX:XY6D) Overvalued in 2026?

Based on GuruFocus' analysis, Xylem stock appears to be undervalued. The current stock price of €92.47 is trading 18.9% below its estimated GF Value™ of €113.98. GuruFocus considers Xylem to be Modestly Undervalued.

Key valuation signals for CHIX:XY6D:

  • Interest Coverage: 68.75 (638% above median its 10-year median of 9.32)
  • GF Value™: €113.98 vs. price of €92.47 (18.9% below fair value)
  • GF Score™: 69/100 with 2 warning signs
  • Industry Position: 363.4% above the Industrial Products median (#615 of 2330)

No single metric tells the full story. See the CHIX:XY6D stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Xylem Business Description

Address 301 Water Street SE, Washington, DC, USA, 20003
Xylem is a global leader in water technology and offers a wide range of solutions, including the transport, treatment, testing, and efficient use of water for customers in the utility, industrial, commercial, and residential sectors. Xylem was spun off from ITT in 2011. Based in Rye Brook, New York, Xylem has a presence in over 150 countries and employs 16,200. The company generated $9 billion in revenue in 2025.
69GF Score

Get the complete analysis for CHIX:XY6D

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€92.47
Price
€113.98
GF Value