Good morning,
We are buying Xylem (ticker XYL) with a 2% position using cash on hand (IVV). Please see presentation attached (not client approved). We will send out the one pager once it is ready.
Xylem’s investment thesis is:
Xylem has strong sustainable secular growth drivers in a fragmented industry:
Access to clean water is a necessity
Population growth & urbanization
Aging infrastructure
More defensive sales base thanks to:
50% of sales to utility sector
sticky client base due to high switching costs
high level of replacement parts demand
Long-term contracts with ½ of the revenue base recurring
Margin expansion overtime from productivity efforts
M&A strategy has increased their scope in the water cycle
Valuation is attractive today
Thanks,
Julie
Julie S. Praline
Director, Equity Analyst
Direct: 617.226.0025
Fax: 617.523.8118
Crestwood Advisors
One Liberty Square
Suite 500
Boston, MA 02109
XYL-presentation.pptx