KEYSIGHT TECHNOLOGIES IN (KEYS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KEYS - US49338L1035 - Common Stock
206.04 USD
+0.71 (+0.35%)
206.04 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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. KEYS has a decent growth rate and is not valued too expensively. With these ratings, KEYS could be worth investigating further 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
With an excellent Return On Assets value of 7.52%, KEYS belongs to the best of the industry, outperforming 87.10% of the companies in the same industry.
KEYS has a better Return On Equity (14.45%) than 81.45% of its industry peers.
KEYS has a Return On Invested Capital of 7.01%. This is in the better half of the industry: KEYS outperforms 70.16% of its industry peers.
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 9.30%.
| 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 better Profit Margin (15.81%) than 93.55% of its industry peers.
KEYS's Profit Margin has been stable in the last couple of years.
KEYS's Operating Margin of 16.30% is amongst the best of 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.
The Gross Margin of KEYS (62.08%) is better than 94.35% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KEYS is creating some value.
KEYS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for KEYS has been reduced compared to 5 years ago.
Compared to 1 year ago, KEYS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.78 indicates that KEYS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.78, KEYS is in the better half of the industry, outperforming 78.23% of the companies in the same industry.
The Debt to FCF ratio of KEYS is 1.98, which is an excellent value as it means it would take KEYS, only 1.98 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.98, KEYS is doing good in the industry, outperforming 77.42% of the companies in the same industry.
KEYS has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
KEYS has a Debt to Equity ratio of 0.43. This is in the lower half of the industry: KEYS underperforms 65.32% 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 | 5.78 |
ROIC/WACC0.8
WACC8.75%
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.
KEYS has a Current ratio (2.35) which is in line with its industry peers.
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.
KEYS has a Quick ratio (1.78) which is comparable to the rest of the 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.
The Earnings Per Share has been growing by 8.07% on average over the past years. This is quite good.
KEYS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.95%.
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.
KEYS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.23% yearly.
EPS Next Y15.42%
EPS Next 2Y14.98%
EPS Next 3Y13.43%
EPS Next 5Y12.9%
Revenue Next Year15.75%
Revenue Next 2Y10.99%
Revenue Next 3Y9.19%
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
The Price/Earnings ratio is 28.82, which means the current valuation is very expensive for KEYS.
Based on the Price/Earnings ratio, KEYS is valued a bit cheaper than the industry average as 63.71% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of KEYS to the average of the S&P500 Index (26.92), we can say KEYS is valued inline with the index average.
A Price/Forward Earnings ratio of 24.97 indicates a rather expensive valuation of KEYS.
KEYS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KEYS is cheaper than 61.29% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, KEYS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.82 | ||
| Fwd PE | 24.97 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as KEYS.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KEYS indicates a somewhat cheap valuation: KEYS is cheaper than 70.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.54 | ||
| EV/EBITDA | 31.19 |
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)1.87
PEG (5Y)3.57
EPS Next 2Y14.98%
EPS Next 3Y13.43%
5. Dividend
5.1 Amount
No dividends for KEYS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
206.04
+0.71 (+0.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners91.95%
Inst Owner Change13.86%
Ins Owners0.54%
Ins Owner Change1.12%
Market Cap35.27B
Revenue(TTM)5.38B
Net Income(TTM)850.00M
Analysts79
Price Target221.67 (7.59%)
Short Float %2.01%
Short Ratio2.71
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)12.59%
PT rev (3m)15.77%
EPS NQ rev (1m)9%
EPS NQ rev (3m)7.61%
EPS NY rev (1m)2.97%
EPS NY rev (3m)2.97%
Revenue NQ rev (1m)7.82%
Revenue NQ rev (3m)12.46%
Revenue NY rev (1m)8.91%
Revenue NY rev (3m)8.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.82 | ||
| Fwd PE | 24.97 | ||
| P/S | 6.56 | ||
| P/FCF | 27.54 | ||
| P/OCF | 25.03 | ||
| P/B | 6 | ||
| P/tB | 30.59 | ||
| EV/EBITDA | 31.19 |
EPS(TTM)7.15
EY3.47%
EPS(NY)8.25
Fwd EY4.01%
FCF(TTM)7.48
FCFY3.63%
OCF(TTM)8.23
OCFY3.99%
SpS31.4
BVpS34.35
TBVpS6.73
PEG (NY)1.87
PEG (5Y)3.57
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 | 5.78 |
F-Score5
WACC8.75%
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)137.21%
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 5Y12.9%
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 5Y6.23%
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.
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.