KEYSIGHT TECHNOLOGIES IN (KEYS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KEYS - US49338L1035 - Common Stock
209.3 USD
+0.57 (+0.27%)
209.3 USD
0 (0%)
Taking everything into account, KEYS scores 6 out of 10 in our fundamental rating. KEYS was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. KEYS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. KEYS is not valued too expensively and it also shows a decent 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.
KEYS had positive earnings in each of the past 5 years.
KEYS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KEYS has a Return On Assets of 7.52%. This is amongst the best in the industry. KEYS outperforms 88.00% of its industry peers.
KEYS has a Return On Equity of 14.45%. This is amongst the best in the industry. KEYS outperforms 81.60% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.01%, KEYS is in the better half of the industry, outperforming 71.20% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KEYS is in line with the industry average of 8.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.52% | ||
| ROE | 14.45% | ||
| ROIC | 7.01% |
ROA(3y)8.77%
ROA(5y)10.34%
ROE(3y)16.4%
ROE(5y)19.97%
ROIC(3y)10.18%
ROIC(5y)11.65%
1.3 Margins
KEYS has a Profit Margin of 15.81%. This is amongst the best in the industry. KEYS outperforms 94.40% of its industry peers.
KEYS's Profit Margin has been stable in the last couple of years.
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.
With an excellent Gross Margin value of 62.08%, KEYS belongs to the best of the industry, outperforming 94.40% 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 | 16.3% | ||
| PM (TTM) | 15.81% | ||
| GM | 62.08% |
OM growth 3Y-12.84%
OM growth 5Y-1.26%
PM growth 3Y-8.64%
PM growth 5Y1.26%
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.
The number of shares outstanding for KEYS has been reduced compared to 5 years ago.
The debt/assets ratio for KEYS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.83 indicates that KEYS is not in any danger for bankruptcy at the moment.
KEYS has a better Altman-Z score (5.83) than 75.20% of its industry peers.
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 better Debt to FCF ratio (1.98) than 77.60% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that KEYS is not too dependend on debt financing.
KEYS's Debt to Equity ratio of 0.43 is on the low side compared to the rest of the industry. KEYS is outperformed by 64.80% 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 | 5.83 |
ROIC/WACC0.76
WACC9.26%
2.3 Liquidity
A Current Ratio of 2.35 indicates that KEYS has no problem at all paying its short term obligations.
The Current ratio of KEYS (2.35) is comparable to the rest of the industry.
KEYS has a Quick Ratio of 1.78. This is a normal value and indicates that KEYS is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.78, KEYS perfoms like the industry average, outperforming 55.20% 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.
KEYS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.07% yearly.
Looking at the last year, KEYS shows a small growth in Revenue. The Revenue has grown by 7.95% in the last 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
The Earnings Per Share is expected to grow by 14.76% on average over the next years. This is quite good.
Based on estimates for the next years, KEYS will show a quite strong growth in Revenue. The Revenue will grow by 8.41% on average per year.
EPS Next Y15.42%
EPS Next 2Y14.98%
EPS Next 3Y13.43%
EPS Next 5Y14.76%
Revenue Next Year15.75%
Revenue Next 2Y10.99%
Revenue Next 3Y9.19%
Revenue Next 5Y8.41%
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
The Price/Earnings ratio is 29.27, which means the current valuation is very expensive for KEYS.
Based on the Price/Earnings ratio, KEYS is valued a bit cheaper than 64.00% of the companies in the same industry.
KEYS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 25.36, the valuation of KEYS can be described as expensive.
63.20% of the companies in the same industry are more expensive than KEYS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.04. KEYS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.27 | ||
| Fwd PE | 25.36 |
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 70.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.97 | ||
| EV/EBITDA | 31.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of KEYS may justify a higher PE ratio.
A more expensive valuation may be justified as KEYS's earnings are expected to grow with 13.43% in the coming years.
PEG (NY)1.9
PEG (5Y)3.63
EPS Next 2Y14.98%
EPS Next 3Y13.43%
5. Dividend
5.1 Amount
KEYS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
209.3
+0.57 (+0.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners91.79%
Inst Owner Change0.07%
Ins Owners0.49%
Ins Owner Change1.78%
Market Cap35.83B
Revenue(TTM)5.38B
Net Income(TTM)850.00M
Analysts79
Price Target221.67 (5.91%)
Short Float %1.78%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)2.28%
PT rev (3m)15.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.61%
EPS NY rev (1m)0.28%
EPS NY rev (3m)2.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)12.46%
Revenue NY rev (1m)0.67%
Revenue NY rev (3m)8.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.27 | ||
| Fwd PE | 25.36 | ||
| P/S | 6.67 | ||
| P/FCF | 27.97 | ||
| P/OCF | 25.43 | ||
| P/B | 6.09 | ||
| P/tB | 31.08 | ||
| EV/EBITDA | 31.59 |
EPS(TTM)7.15
EY3.42%
EPS(NY)8.25
Fwd EY3.94%
FCF(TTM)7.48
FCFY3.58%
OCF(TTM)8.23
OCFY3.93%
SpS31.4
BVpS34.35
TBVpS6.73
PEG (NY)1.9
PEG (5Y)3.63
Graham Number74.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.52% | ||
| ROE | 14.45% | ||
| ROCE | 9.27% | ||
| ROIC | 7.01% | ||
| ROICexc | 8.74% | ||
| ROICexgc | 23.25% | ||
| OM | 16.3% | ||
| PM (TTM) | 15.81% | ||
| GM | 62.08% | ||
| FCFM | 23.83% |
ROA(3y)8.77%
ROA(5y)10.34%
ROE(3y)16.4%
ROE(5y)19.97%
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)13.45%
ROCE(5y)15.4%
ROICexgc growth 3Y-12.8%
ROICexgc growth 5Y0.81%
ROICexc growth 3Y-26.14%
ROICexc growth 5Y-7.13%
OM growth 3Y-12.84%
OM growth 5Y-1.26%
PM growth 3Y-8.64%
PM growth 5Y1.26%
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 | 150.71% | ||
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.78 | ||
| Altman-Z | 5.83 |
F-Score5
WACC9.26%
ROIC/WACC0.76
Cap/Depr(3y)65.29%
Cap/Depr(5y)67.64%
Cap/Sales(3y)3.02%
Cap/Sales(5y)3.2%
Profit Quality(3y)137.21%
Profit Quality(5y)125.07%
High Growth Momentum
Growth
EPS 1Y (TTM)14.22%
EPS 3Y-2.14%
EPS 5Y8.07%
EPS Q2Q%15.76%
EPS Next Y15.42%
EPS Next 2Y14.98%
EPS Next 3Y13.43%
EPS Next 5Y14.76%
Revenue 1Y (TTM)7.95%
Revenue growth 3Y-0.28%
Revenue growth 5Y4.95%
Sales Q2Q%10.26%
Revenue Next Year15.75%
Revenue Next 2Y10.99%
Revenue Next 3Y9.19%
Revenue Next 5Y8.41%
EBIT growth 1Y5.16%
EBIT growth 3Y-13.08%
EBIT growth 5Y3.63%
EBIT Next Year30.58%
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.
What is the valuation status of KEYSIGHT TECHNOLOGIES IN (KEYS) stock?
ChartMill assigns a valuation rating of 4 / 10 to KEYSIGHT TECHNOLOGIES IN (KEYS). This can be considered as Fairly Valued.
Can you provide the profitability details for KEYSIGHT TECHNOLOGIES IN?
KEYSIGHT TECHNOLOGIES IN (KEYS) has a profitability rating of 8 / 10.
What is the financial health of KEYSIGHT TECHNOLOGIES IN (KEYS) stock?
The financial health rating of KEYSIGHT TECHNOLOGIES IN (KEYS) is 7 / 10.
Can you provide the expected EPS growth for KEYS stock?
The Earnings per Share (EPS) of KEYSIGHT TECHNOLOGIES IN (KEYS) is expected to grow by 15.42% in the next year.