KEYSIGHT TECHNOLOGIES IN (KEYS) Stock Fundamental Analysis
USA - NYSE:KEYS - US49338L1035 - Common Stock
162.19 USD
-0.22 (-0.14%)
162.19 USD
0 (0%)
Taking everything into account, KEYS scores 6 out of 10 in our fundamental rating. KEYS was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. KEYS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. KEYS has a correct valuation and a medium growth rate. These ratings could make KEYS a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
KEYS had positive earnings in the past year.
KEYS had a positive operating cash flow in the past year.
Each year in the past 5 years KEYS has been profitable.
KEYS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KEYS's Return On Assets of 5.11% is fine compared to the rest of the industry. KEYS outperforms 71.77% of its industry peers.
The Return On Equity of KEYS (9.59%) is better than 72.58% of its industry peers.
KEYS's Return On Invested Capital of 7.28% is fine compared to the rest of the industry. KEYS outperforms 72.58% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KEYS is above the industry average of 9.32%.
The 3 year average ROIC (12.66%) for KEYS is well above the current ROIC(7.28%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.11% | ||
| ROE | 9.59% | ||
| ROIC | 7.28% |
ROA(3y)10.89%
ROA(5y)10.57%
ROE(3y)20.58%
ROE(5y)20.88%
ROIC(3y)12.66%
ROIC(5y)11.86%
1.3 Margins
Looking at the Profit Margin, with a value of 10.38%, KEYS belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
In the last couple of years the Profit Margin of KEYS has declined.
KEYS has a Operating Margin of 16.96%. This is amongst the best in the industry. KEYS outperforms 91.13% of its industry peers.
In the last couple of years the Operating Margin of KEYS has remained more or less at the same level.
With an excellent Gross Margin value of 62.37%, KEYS belongs to the best of the industry, outperforming 94.35% of the companies in the same industry.
In the last couple of years the Gross Margin of KEYS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.96% | ||
| PM (TTM) | 10.38% | ||
| GM | 62.37% |
OM growth 3Y-8.53%
OM growth 5Y0.25%
PM growth 3Y-12%
PM growth 5Y-3.1%
GM growth 3Y0.43%
GM growth 5Y1.33%
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.
Compared to 1 year ago, KEYS has less shares outstanding
The number of shares outstanding for KEYS has been reduced compared to 5 years ago.
KEYS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.48 indicates that KEYS is not in any danger for bankruptcy at the moment.
The Altman-Z score of KEYS (5.48) is better than 70.16% of its industry peers.
The Debt to FCF ratio of KEYS is 1.79, which is an excellent value as it means it would take KEYS, only 1.79 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.79, KEYS is in the better half of the industry, outperforming 77.42% of the companies in the same industry.
KEYS has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
KEYS has a worse Debt to Equity ratio (0.45) than 66.94% 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 | 0.45 | ||
| Debt/FCF | 1.79 | ||
| Altman-Z | 5.48 |
ROIC/WACC0.82
WACC8.91%
2.3 Liquidity
KEYS has a Current Ratio of 3.59. This indicates that KEYS is financially healthy and has no problem in meeting its short term obligations.
KEYS's Current ratio of 3.59 is fine compared to the rest of the industry. KEYS outperforms 72.58% of its industry peers.
KEYS has a Quick Ratio of 2.94. This indicates that KEYS is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.94, KEYS is doing good in the industry, outperforming 74.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.59 | ||
| Quick Ratio | 2.94 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.39% over the past year.
The Earnings Per Share has been growing slightly by 5.77% on average over the past years.
The Revenue has been growing slightly by 4.80% in the past year.
KEYS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.96% yearly.
EPS 1Y (TTM)4.39%
EPS 3Y0.16%
EPS 5Y5.77%
EPS Q2Q%9.55%
Revenue 1Y (TTM)4.8%
Revenue growth 3Y0.26%
Revenue growth 5Y2.96%
Sales Q2Q%11.09%
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 13.16% yearly.
The Revenue is expected to grow by 6.56% on average over the next years.
EPS Next Y15.21%
EPS Next 2Y13.15%
EPS Next 3Y13.05%
EPS Next 5Y13.16%
Revenue Next Year7.84%
Revenue Next 2Y7.09%
Revenue Next 3Y6.82%
Revenue Next 5Y6.56%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
A Price/Earnings ratio of 23.54 indicates a rather expensive valuation of KEYS.
Based on the Price/Earnings ratio, KEYS is valued a bit cheaper than the industry average as 73.39% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.40, KEYS is valued at the same level.
With a Price/Forward Earnings ratio of 20.24, KEYS is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KEYS indicates a somewhat cheap valuation: KEYS is cheaper than 73.39% of the companies listed in the same industry.
KEYS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.54 | ||
| Fwd PE | 20.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KEYS is on the same level as its industry peers.
83.06% of the companies in the same industry are more expensive than KEYS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.7 | ||
| EV/EBITDA | 24.01 |
4.3 Compensation for Growth
KEYS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
KEYS has an outstanding profitability rating, which may justify a higher PE ratio.
KEYS's earnings are expected to grow with 13.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.55
PEG (5Y)4.08
EPS Next 2Y13.15%
EPS Next 3Y13.05%
5. Dividend
5.1 Amount
No dividends for KEYS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
162.19
-0.22 (-0.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners90.93%
Inst Owner Change0%
Ins Owners0.5%
Ins Owner Change0.72%
Market Cap27.87B
Analysts81.11
Price Target191.48 (18.06%)
Short Float %1.73%
Short Ratio3.02
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)1.09%
Min EPS beat(2)0.93%
Max EPS beat(2)1.26%
EPS beat(4)4
Avg EPS beat(4)2.71%
Min EPS beat(4)0.93%
Max EPS beat(4)5.63%
EPS beat(8)7
Avg EPS beat(8)3.72%
EPS beat(12)11
Avg EPS beat(12)4.5%
EPS beat(16)15
Avg EPS beat(16)5.27%
Revenue beat(2)2
Avg Revenue beat(2)0.6%
Min Revenue beat(2)0.6%
Max Revenue beat(2)0.61%
Revenue beat(4)3
Avg Revenue beat(4)0.28%
Min Revenue beat(4)-0.31%
Max Revenue beat(4)0.61%
Revenue beat(8)3
Avg Revenue beat(8)-0.29%
Revenue beat(12)5
Avg Revenue beat(12)-0.32%
Revenue beat(16)7
Avg Revenue beat(16)-0.21%
PT rev (1m)0%
PT rev (3m)0.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.44%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.54 | ||
| Fwd PE | 20.24 | ||
| P/S | 5.32 | ||
| P/FCF | 19.7 | ||
| P/OCF | 18.06 | ||
| P/B | 4.92 | ||
| P/tB | 10.26 | ||
| EV/EBITDA | 24.01 |
EPS(TTM)6.89
EY4.25%
EPS(NY)8.01
Fwd EY4.94%
FCF(TTM)8.23
FCFY5.08%
OCF(TTM)8.98
OCFY5.54%
SpS30.51
BVpS32.99
TBVpS15.81
PEG (NY)1.55
PEG (5Y)4.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.11% | ||
| ROE | 9.59% | ||
| ROCE | 9.78% | ||
| ROIC | 7.28% | ||
| ROICexc | 10.25% | ||
| ROICexgc | 18.9% | ||
| OM | 16.96% | ||
| PM (TTM) | 10.38% | ||
| GM | 62.37% | ||
| FCFM | 26.99% |
ROA(3y)10.89%
ROA(5y)10.57%
ROE(3y)20.58%
ROE(5y)20.88%
ROIC(3y)12.66%
ROIC(5y)11.86%
ROICexc(3y)18.63%
ROICexc(5y)17.31%
ROICexgc(3y)32.51%
ROICexgc(5y)30.28%
ROCE(3y)17.01%
ROCE(5y)15.93%
ROICexcg growth 3Y-13.95%
ROICexcg growth 5Y-2.26%
ROICexc growth 3Y-17.39%
ROICexc growth 5Y-4.86%
OM growth 3Y-8.53%
OM growth 5Y0.25%
PM growth 3Y-12%
PM growth 5Y-3.1%
GM growth 3Y0.43%
GM growth 5Y1.33%
F-Score5
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 1.79 | ||
| Debt/EBITDA | 2.19 | ||
| Cap/Depr | 47.58% | ||
| Cap/Sales | 2.44% | ||
| Interest Coverage | 11.7 | ||
| Cash Conversion | 133.25% | ||
| Profit Quality | 260.11% | ||
| Current Ratio | 3.59 | ||
| Quick Ratio | 2.94 | ||
| Altman-Z | 5.48 |
F-Score5
WACC8.91%
ROIC/WACC0.82
Cap/Depr(3y)77.48%
Cap/Depr(5y)65.55%
Cap/Sales(3y)3.36%
Cap/Sales(5y)3.28%
Profit Quality(3y)115.41%
Profit Quality(5y)123.61%
High Growth Momentum
Growth
EPS 1Y (TTM)4.39%
EPS 3Y0.16%
EPS 5Y5.77%
EPS Q2Q%9.55%
EPS Next Y15.21%
EPS Next 2Y13.15%
EPS Next 3Y13.05%
EPS Next 5Y13.16%
Revenue 1Y (TTM)4.8%
Revenue growth 3Y0.26%
Revenue growth 5Y2.96%
Sales Q2Q%11.09%
Revenue Next Year7.84%
Revenue Next 2Y7.09%
Revenue Next 3Y6.82%
Revenue Next 5Y6.56%
EBIT growth 1Y-3.37%
EBIT growth 3Y-8.29%
EBIT growth 5Y3.22%
EBIT Next Year22.8%
EBIT Next 3Y12.68%
EBIT Next 5YN/A
FCF growth 1Y16.75%
FCF growth 3Y-7.86%
FCF growth 5Y0.45%
OCF growth 1Y8.05%
OCF growth 3Y-7.33%
OCF growth 5Y1.06%