KEYSIGHT TECHNOLOGIES IN (KEYS)
US49338L1035 - Common Stock
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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. KEYS has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
KEYS had positive earnings in the past year.
In the past year KEYS had a positive cash flow from operations.
KEYS had positive earnings in 4 of the past 5 years.
Of the past 5 years KEYS 4 years had a positive operating cash flow.
1.2 Ratios
KEYS's Return On Assets of 9.79% is amongst the best of the industry. KEYS outperforms 92.68% of its industry peers.
Looking at the Return On Equity, with a value of 17.46%, KEYS belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
KEYS has a Return On Invested Capital of 10.32%. This is amongst the best in the industry. KEYS outperforms 84.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KEYS is significantly above the industry average of 8.68%.
The 3 year average ROIC (15.74%) for KEYS is well above the current ROIC(10.32%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.79% | ||
| ROE | 17.46% | ||
| ROIC | 10.32% |
ROA(3y)12.51%
ROA(5y)11.12%
ROE(3y)24.45%
ROE(5y)22.61%
ROIC(3y)15.74%
ROIC(5y)13.51%
1.3 Margins
The Profit Margin of KEYS (18.25%) is better than 95.94% of its industry peers.
In the last couple of years the Profit Margin of KEYS has grown nicely.
Looking at the Operating Margin, with a value of 18.39%, KEYS belongs to the top of the industry, outperforming 95.12% of the companies in the same industry.
In the last couple of years the Operating Margin of KEYS has grown nicely.
KEYS has a Gross Margin of 63.46%. This is amongst the best in the industry. KEYS outperforms 97.56% of its industry peers.
KEYS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.39% | ||
| PM (TTM) | 18.25% | ||
| GM | 63.46% |
OM growth 3Y12.69%
OM growth 5Y25.07%
PM growth 3Y9.2%
PM growth 5Y35.37%
GM growth 3Y2.51%
GM growth 5Y3.5%
2. Health
2.1 Basic Checks
KEYS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
There is no outstanding debt for KEYS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
KEYS has an Altman-Z score of 6.28. This indicates that KEYS is financially healthy and has little risk of bankruptcy at the moment.
KEYS has a better Altman-Z score (6.28) than 81.30% of its industry peers.
KEYS has a debt to FCF ratio of 1.96. This is a very positive value and a sign of high solvency as it would only need 1.96 years to pay back of all of its debts.
KEYS's Debt to FCF ratio of 1.96 is fine compared to the rest of the industry. KEYS outperforms 73.98% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that KEYS is not too dependend on debt financing.
The Debt to Equity ratio of KEYS (0.23) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.96 | ||
| Altman-Z | 6.28 |
ROIC/WACC1.04
WACC9.9%
2.3 Liquidity
A Current Ratio of 2.05 indicates that KEYS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.05, KEYS is doing worse than 60.98% of the companies in the same industry.
A Quick Ratio of 1.52 indicates that KEYS should not have too much problems paying its short term obligations.
KEYS's Quick ratio of 1.52 is on the low side compared to the rest of the industry. KEYS is outperformed by 60.16% of its industry peers.
KEYS does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
The earnings per share for KEYS have decreased strongly by -24.76% in the last year.
Measured over the past 5 years, KEYS shows a small growth in Earnings Per Share. The EPS has been growing by 5.77% on average per year.
EPS 1Y (TTM)-24.76%
EPS 3Y0.16%
EPS 5Y5.77%
EPS Q2Q%-17.09%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.83%
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 15.49% yearly.
The Revenue is expected to grow by 7.26% on average over the next years.
EPS Next Y13.56%
EPS Next 2Y15.72%
EPS Next 3Y17.91%
EPS Next 5Y15.49%
Revenue Next Year5.56%
Revenue Next 2Y6.7%
Revenue Next 3Y7.83%
Revenue Next 5Y7.26%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 27.20 indicates a quite expensive valuation of KEYS.
68.29% of the companies in the same industry are more expensive than KEYS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of KEYS to the average of the S&P500 Index (28.65), we can say KEYS is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 23.95, the valuation of KEYS can be described as rather expensive.
61.79% of the companies in the same industry are more expensive than KEYS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, KEYS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.2 | ||
| Fwd PE | 23.95 |
4.2 Price Multiples
KEYS's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, KEYS is valued a bit cheaper than 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.22 | ||
| EV/EBITDA | 24.64 |
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 17.91% in the coming years.
PEG (NY)2.01
PEG (5Y)4.72
EPS Next 2Y15.72%
EPS Next 3Y17.91%
5. Dividend
5.1 Amount
KEYS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
KEYSIGHT TECHNOLOGIES IN
NYSE:KEYS (11/21/2024, 2:34:03 PM)
170.27
+4.79 (+2.89%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap29.55B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.2 | ||
| Fwd PE | 23.95 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.01
PEG (5Y)4.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.79% | ||
| ROE | 17.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.39% | ||
| PM (TTM) | 18.25% | ||
| GM | 63.46% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.05 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-24.76%
EPS 3Y0.16%
EPS 5Y
EPS Q2Q%
EPS Next Y13.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y