Is Xylem Inc. (XYL) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 6.9% / 30% | 4.9% / 30% | 5.9% / 30% | 0.3% / 5% | ✓ HALAL |
| DJIM | 6.9% / 33% | 4.9% / 33% | 5.9% / 33% | 0.3% / 5% | ✓ HALAL |
| MSCI | 11.7% / 33% | 8.4% / 33% | 10.0% / 33% | 0.3% / 5% | ✓ HALAL |
| S&P | 6.9% / 33% | 4.9% / 33% | 5.9% / 33% | 0.3% / 5% | ✓ HALAL |
| FTSE | 11.7% / 33% | 8.4% / 33% | 10.0% / 50% | 0.3% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 38.5% | |
| Operating Margin | 16.0% | |
| Net Margin | 10.6% | |
| Return on Equity (ROE) | 8.4% | |
| Return on Assets (ROA) | 4.8% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $1.2B |
| Free Cash Flow | $910M |
| Total Debt | $2.1B |
| Debt-to-Equity | 21.1 |
| Current Ratio | 1.6 |
| Total Assets | $17.6B |
Price & Trading
| Last Close | $119.49 |
| 50-Day MA | $130.13 |
| 200-Day MA | $137.47 |
| Avg Volume | 1.7M |
| Beta | 1.2 |
|
52-Week Range
$100.47
| |
About Xylem Inc. (XYL)
Xylem Inc., together with its subsidiaries, engages in the design, manufacture, and servicing of engineered products and solutions for utility, industrial, and residential and commercial building services settings worldwide. It operates through Water Infrastructure; Applied Water; Measurement and Control Solutions; and Water Solutions and Services segments. The company offers water, wastewater, and storm water pumps and controls and systems; filtration, disinfection, and biological treatment equipment under the Flygt, Ionpure, Leopold, Neptune Benson, Sanitare, Wallace & Tiernan, and Wedeco brands; and pumps, valves, heat exchangers, controls, and dispensing equipment used for water and focuses on the residential, commercial and industrial markets under the Rule, Bell & Gossett, Flojet, Goulds Water Technology, Jabsco, and Lowara brands. It also provides smart meters, network communication devices, data analytics, test instruments, controls, sensor devices, software and managed services, critical infrastructure services, cloud-based analytics, and remote monitoring and data management under the Ebro, Sensus, Sentec, Smith Blair, WTW, YSI, and Xylem Vue brands. In addition, the company offers preventative maintenance services, rapid response mobile services, digitally enabled/outsourced solutions, process and wastewater treatment systems, environmental remediation, odor and corrosion control, filtration, reverse osmosis, continuous deionization, and mobile dewatering equipment and rental services; and municipal services comprising odor and corrosion control services, as well as condition assessment and asset management, and pressure monitoring solutions under the Grindex, Mar Cor, and Godwin brands. Xylem Inc. was formerly known as ITT WCO, Inc. and changed its name to Xylem Inc. in July 2011. The company was incorporated in 2011 and is headquartered in Washington, District Of Columbia.
Purification Calculator
As a halal stock with 0.30% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Xylem Inc. (XYL) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Xylem Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Xylem Inc.'s debt ratio?
Xylem Inc.'s debt ratio is 6.9% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 11.7%.
Does Xylem Inc. require dividend purification?
Yes, Xylem Inc. has an impermissible income ratio of 0.30%, which means 0.30% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are Xylem Inc.'s key financial metrics?
Xylem Inc. has a market capitalization of $28.6B, trailing P/E ratio of 30.1, and revenue of $9.0B. The company maintains a gross margin of 38.5% and a net margin of 10.6%. Return on equity stands at 8.4%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.