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For more than 30 years, Cabling Installation & Maintenance has provided useful, practical information to professionals responsible for the specification, design, installation and management of structured cabling systems serving enterprise, data center and other environments. These professionals are challenged to stay informed of constantly evolving standards, system-design and installation approaches, product and system capabilities, technologies, as well as applications that rely on high-performance structured cabling systems. Our editors synthesize these complex issues into multiple information products. This portfolio of information products provides concrete detail that improves the efficiency of day-to-day operations, and equips cabling professionals with the perspective that enables strategic planning for networks’ optimum long-term performance.

Throughout our annual magazine, weekly email newsletters and 24/7/365 website, Cabling Installation & Maintenance digs into the essential topics our audience focuses on.

  • Design, Installation and Testing: We explain the bottom-up design of cabling systems, from case histories of actual projects to solutions for specific problems or aspects of the design process. We also look at specific installations using a case-history approach to highlight challenging problems, solutions and unique features. Additionally, we examine evolving test-and-measurement technologies and techniques designed to address the standards-governed and practical-use performance requirements of cabling systems.
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Xylem (XYL): Buy, Sell, or Hold Post Q3 Earnings?

XYL Cover Image

Over the last six months, Xylem’s shares have sunk to $123.38, producing a disappointing 12.3% loss - a stark contrast to the S&P 500’s 12.1% gain. This was partly due to its softer quarterly results and may have investors wondering how to approach the situation.

Given the weaker price action, is now a good time to buy XYL? Find out in our full research report, it’s free.

Why Does XYL Stock Spark Debate?

Formed through a spinoff, Xylem (NYSE: XYL) manufactures and services engineered products across a wide variety of applications primarily in the water sector.

Two Things to Like:

1. Core Business Firing on All Cylinders

Investors interested in Water Infrastructure companies should track organic revenue in addition to reported revenue. This metric gives visibility into Xylem’s core business because it excludes one-time events such as mergers, acquisitions, and divestitures along with foreign currency fluctuations - non-fundamental factors that can manipulate the income statement.

Over the last two years, Xylem’s organic revenue averaged 11% year-on-year growth. This performance was impressive and shows it can expand quickly without relying on expensive (and risky) acquisitions. Xylem Organic Revenue Growth

2. EPS Surges Higher Over the Last Two Years

Although long-term earnings trends give us the big picture, we like to analyze EPS over a shorter period to see if we are missing a change in the business.

Xylem’s EPS grew at an astounding 21.2% compounded annual growth rate over the last two years. This performance was better than most industrials businesses.

Xylem Trailing 12-Month EPS (Non-GAAP)

One Reason to be Careful:

New Investments Fail to Bear Fruit as ROIC Declines

ROIC, or return on invested capital, is a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity).

We typically prefer to invest in companies with high returns because it means they have viable business models, but the trend in a company’s ROIC is often what surprises the market and moves the stock price. Unfortunately, Xylem’s ROIC averaged 3.8 percentage point decreases over the last few years. If its returns keep falling, it could suggest its profitable growth opportunities are drying up. We’ll keep a close eye.

Xylem Trailing 12-Month Return On Invested Capital

Final Judgment

Xylem’s positive characteristics outweigh the negatives. After the recent drawdown, the stock trades at 26.6× forward price-to-earnings (or $123.38 per share). Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More Than Xylem

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