KEYSIGHT TECHNOLOGIES IN (KEYS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KEYS - US49338L1035 - Common Stock
210.49 USD
+1.42 (+0.68%)
210.49 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to KEYS. KEYS was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. KEYS gets an excellent profitability rating and is at the same time showing great financial health properties. KEYS has a correct valuation and a medium growth rate. With these ratings, KEYS could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year KEYS was profitable.
In the past year KEYS had a positive cash flow from operations.
Each year in the past 5 years KEYS has been profitable.
Each year in the past 5 years KEYS had a positive operating cash flow.
1.2 Ratios
KEYS has a Return On Assets of 7.49%. This is amongst the best in the industry. KEYS outperforms 86.40% of its industry peers.
KEYS's Return On Equity of 14.40% is amongst the best of the industry. KEYS outperforms 80.80% of its industry peers.
With a decent Return On Invested Capital value of 7.02%, KEYS is doing good in the industry, outperforming 71.20% of the companies in the same industry.
KEYS had an Average Return On Invested Capital over the past 3 years of 10.18%. This is in line with the industry average of 9.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.49% | ||
| ROE | 14.4% | ||
| ROIC | 7.02% |
ROA(3y)8.76%
ROA(5y)10.33%
ROE(3y)16.38%
ROE(5y)19.95%
ROIC(3y)10.18%
ROIC(5y)11.65%
1.3 Margins
KEYS has a Profit Margin of 15.74%. This is amongst the best in the industry. KEYS outperforms 92.80% of its industry peers.
In the last couple of years the Profit Margin of KEYS has remained more or less at the same level.
The Operating Margin of KEYS (16.30%) is better than 91.20% of its industry peers.
KEYS's Operating Margin has been stable in the last couple of years.
KEYS's Gross Margin of 62.08% is amongst the best of the industry. KEYS outperforms 94.40% of its industry peers.
KEYS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.3% | ||
| PM (TTM) | 15.74% | ||
| GM | 62.08% |
OM growth 3Y-12.84%
OM growth 5Y-1.26%
PM growth 3Y-8.78%
PM growth 5Y1.16%
GM growth 3Y-0.83%
GM growth 5Y0.68%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KEYS is still creating some value.
The number of shares outstanding for KEYS has been reduced compared to 1 year ago.
KEYS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for KEYS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.87 indicates that KEYS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.87, KEYS is in the better half of the industry, outperforming 79.20% of the companies in the same industry.
KEYS has a debt to FCF ratio of 1.98. This is a very positive value and a sign of high solvency as it would only need 1.98 years to pay back of all of its debts.
KEYS has a Debt to FCF ratio of 1.98. This is in the better half of the industry: KEYS outperforms 76.80% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that KEYS is not too dependend on debt financing.
KEYS has a Debt to Equity ratio of 0.43. This is in the lower half of the industry: KEYS underperforms 65.60% of its industry peers.
Although KEYS does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 5.87 |
ROIC/WACC0.8
WACC8.78%
2.3 Liquidity
KEYS has a Current Ratio of 2.35. This indicates that KEYS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.35, KEYS is in line with its industry, outperforming 50.40% of the companies in the same industry.
A Quick Ratio of 1.78 indicates that KEYS should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.78, KEYS perfoms like the industry average, outperforming 54.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.22% over the past year.
Measured over the past years, KEYS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.07% on average per year.
The Revenue has been growing slightly by 7.95% in the past year.
KEYS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.95% yearly.
EPS 1Y (TTM)14.22%
EPS 3Y-2.14%
EPS 5Y8.07%
EPS Q2Q%15.76%
Revenue 1Y (TTM)7.95%
Revenue growth 3Y-0.28%
Revenue growth 5Y4.95%
Sales Q2Q%10.26%
3.2 Future
KEYS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.90% yearly.
The Revenue is expected to grow by 6.23% on average over the next years.
EPS Next Y15.1%
EPS Next 2Y14.75%
EPS Next 3Y13.49%
EPS Next 5Y12.9%
Revenue Next Year14.98%
Revenue Next 2Y10.56%
Revenue Next 3Y9.18%
Revenue Next 5Y6.23%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 29.44, KEYS can be considered very expensive at the moment.
63.20% of the companies in the same industry are more expensive than KEYS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.49. KEYS is around the same levels.
A Price/Forward Earnings ratio of 25.58 indicates a quite expensive valuation of KEYS.
KEYS's Price/Forward Earnings ratio is in line with the industry average.
KEYS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.44 | ||
| Fwd PE | 25.58 |
4.2 Price Multiples
KEYS's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, KEYS is valued a bit cheaper than the industry average as 71.20% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.13 | ||
| EV/EBITDA | 31.85 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KEYS does not grow enough to justify the current Price/Earnings ratio.
KEYS has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as KEYS's earnings are expected to grow with 13.49% in the coming years.
PEG (NY)1.95
PEG (5Y)3.65
EPS Next 2Y14.75%
EPS Next 3Y13.49%
5. Dividend
5.1 Amount
KEYS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
210.49
+1.42 (+0.68%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners91.95%
Inst Owner Change13.85%
Ins Owners0.54%
Ins Owner Change1.92%
Market Cap36.04B
Revenue(TTM)5.38B
Net Income(TTM)846.00M
Analysts79
Price Target216.73 (2.96%)
Short Float %1.95%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.55%
Min EPS beat(2)0.93%
Max EPS beat(2)2.17%
EPS beat(4)4
Avg EPS beat(4)2.5%
Min EPS beat(4)0.93%
Max EPS beat(4)5.63%
EPS beat(8)7
Avg EPS beat(8)3.45%
EPS beat(12)11
Avg EPS beat(12)4.22%
EPS beat(16)15
Avg EPS beat(16)4.86%
Revenue beat(2)2
Avg Revenue beat(2)0.55%
Min Revenue beat(2)0.5%
Max Revenue beat(2)0.6%
Revenue beat(4)3
Avg Revenue beat(4)0.35%
Min Revenue beat(4)-0.31%
Max Revenue beat(4)0.61%
Revenue beat(8)4
Avg Revenue beat(8)-0.06%
Revenue beat(12)5
Avg Revenue beat(12)-0.38%
Revenue beat(16)8
Avg Revenue beat(16)-0.18%
PT rev (1m)13.61%
PT rev (3m)13.19%
EPS NQ rev (1m)8.42%
EPS NQ rev (3m)7.61%
EPS NY rev (1m)2.69%
EPS NY rev (3m)2.59%
Revenue NQ rev (1m)11.26%
Revenue NQ rev (3m)12.46%
Revenue NY rev (1m)8.19%
Revenue NY rev (3m)8.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.44 | ||
| Fwd PE | 25.58 | ||
| P/S | 6.7 | ||
| P/FCF | 28.13 | ||
| P/OCF | 25.58 | ||
| P/B | 6.13 | ||
| P/tB | 31.15 | ||
| EV/EBITDA | 31.85 |
EPS(TTM)7.15
EY3.4%
EPS(NY)8.23
Fwd EY3.91%
FCF(TTM)7.48
FCFY3.55%
OCF(TTM)8.23
OCFY3.91%
SpS31.4
BVpS34.33
TBVpS6.76
PEG (NY)1.95
PEG (5Y)3.65
Graham Number74.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.49% | ||
| ROE | 14.4% | ||
| ROCE | 9.28% | ||
| ROIC | 7.02% | ||
| ROICexc | 8.75% | ||
| ROICexgc | 23.25% | ||
| OM | 16.3% | ||
| PM (TTM) | 15.74% | ||
| GM | 62.08% | ||
| FCFM | 23.83% |
ROA(3y)8.76%
ROA(5y)10.33%
ROE(3y)16.38%
ROE(5y)19.95%
ROIC(3y)10.18%
ROIC(5y)11.65%
ROICexc(3y)14.62%
ROICexc(5y)16.81%
ROICexgc(3y)29.1%
ROICexgc(5y)30.96%
ROCE(3y)13.46%
ROCE(5y)15.4%
ROICexgc growth 3Y-12.8%
ROICexgc growth 5Y0.81%
ROICexc growth 3Y-26.12%
ROICexc growth 5Y-7.11%
OM growth 3Y-12.84%
OM growth 5Y-1.26%
PM growth 3Y-8.78%
PM growth 5Y1.16%
GM growth 3Y-0.83%
GM growth 5Y0.68%
F-Score5
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 1.98 | ||
| Debt/EBITDA | 2.2 | ||
| Cap/Depr | 46.38% | ||
| Cap/Sales | 2.38% | ||
| Interest Coverage | 11.38 | ||
| Cash Conversion | 122.31% | ||
| Profit Quality | 151.42% | ||
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.78 | ||
| Altman-Z | 5.87 |
F-Score5
WACC8.78%
ROIC/WACC0.8
Cap/Depr(3y)65.29%
Cap/Depr(5y)67.64%
Cap/Sales(3y)3.02%
Cap/Sales(5y)3.2%
Profit Quality(3y)137.45%
Profit Quality(5y)125.21%
High Growth Momentum
Growth
EPS 1Y (TTM)14.22%
EPS 3Y-2.14%
EPS 5Y8.07%
EPS Q2Q%15.76%
EPS Next Y15.1%
EPS Next 2Y14.75%
EPS Next 3Y13.49%
EPS Next 5Y12.9%
Revenue 1Y (TTM)7.95%
Revenue growth 3Y-0.28%
Revenue growth 5Y4.95%
Sales Q2Q%10.26%
Revenue Next Year14.98%
Revenue Next 2Y10.56%
Revenue Next 3Y9.18%
Revenue Next 5Y6.23%
EBIT growth 1Y5.16%
EBIT growth 3Y-13.08%
EBIT growth 5Y3.63%
EBIT Next Year30.51%
EBIT Next 3Y15.75%
EBIT Next 5YN/A
FCF growth 1Y42.65%
FCF growth 3Y10.13%
FCF growth 5Y7.34%
OCF growth 1Y33.94%
OCF growth 3Y7.19%
OCF growth 5Y6.76%
KEYSIGHT TECHNOLOGIES IN / KEYS FAQ
Can you provide the ChartMill fundamental rating for KEYSIGHT TECHNOLOGIES IN?
ChartMill assigns a fundamental rating of 6 / 10 to KEYS.
Can you provide the valuation status for KEYSIGHT TECHNOLOGIES IN?
ChartMill assigns a valuation rating of 4 / 10 to KEYSIGHT TECHNOLOGIES IN (KEYS). This can be considered as Fairly Valued.
What is the profitability of KEYS stock?
KEYSIGHT TECHNOLOGIES IN (KEYS) has a profitability rating of 8 / 10.
How financially healthy is KEYSIGHT TECHNOLOGIES IN?
The financial health rating of KEYSIGHT TECHNOLOGIES IN (KEYS) is 7 / 10.