KEYSIGHT TECHNOLOGIES IN (KEYS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KEYS - US49338L1035 - Common Stock
212.32 USD
-1.32 (-0.62%)
212.32 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to KEYS. 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 is not valued too expensively and it also shows a decent growth rate. These ratings could make KEYS a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year KEYS was profitable.
KEYS had a positive operating cash flow in the past year.
In the past 5 years KEYS has always been profitable.
KEYS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of KEYS (7.52%) is better than 87.90% of its industry peers.
KEYS has a better Return On Equity (14.45%) than 81.45% of its industry peers.
The Return On Invested Capital of KEYS (7.01%) is better than 70.97% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KEYS is in line with the industry average of 9.00%.
| 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 94.35% 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 91.13% of its industry peers.
In the last couple of years the Operating Margin of KEYS has remained more or less at the same level.
Looking at the Gross Margin, with a value of 62.08%, KEYS belongs to the top of the industry, outperforming 94.35% of the companies in the same industry.
KEYS's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for KEYS has been reduced compared to 1 year ago.
Compared to 5 years ago, KEYS has less shares outstanding
Compared to 1 year ago, KEYS has a worse debt to assets ratio.
2.2 Solvency
KEYS has an Altman-Z score of 5.92. This indicates that KEYS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.92, KEYS is in the better half of the industry, outperforming 77.42% 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 77.42% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that KEYS is not too dependend on debt financing.
KEYS has a worse Debt to Equity ratio (0.43) than 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 | 5.92 |
ROIC/WACC0.76
WACC9.25%
2.3 Liquidity
A Current Ratio of 2.35 indicates that KEYS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.35, KEYS is in line with its industry, outperforming 50.00% 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.
KEYS has a Quick ratio (1.78) which is in line with its industry peers.
| 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.
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
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.
The Revenue 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
Based on the Price/Earnings ratio of 29.70, the valuation of KEYS can be described as expensive.
Based on the Price/Earnings ratio, KEYS is valued a bit cheaper than the industry average as 65.32% of the companies are valued more expensively.
KEYS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
KEYS is valuated quite expensively with a Price/Forward Earnings ratio of 25.73.
Based on the Price/Forward Earnings ratio, KEYS is valued a bit cheaper than 61.29% of the companies in the same industry.
KEYS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.7 | ||
| Fwd PE | 25.73 |
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.
Based on the Price/Free Cash Flow ratio, KEYS is valued a bit cheaper than the industry average as 70.97% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.38 | ||
| EV/EBITDA | 32.32 |
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.
The excellent profitability rating of KEYS may justify a higher PE ratio.
KEYS's earnings are expected to grow with 13.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.93
PEG (5Y)3.68
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% |
212.32
-1.32 (-0.62%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners91.79%
Inst Owner Change0.01%
Ins Owners0.49%
Ins Owner Change1.78%
Market Cap36.35B
Revenue(TTM)5.38B
Net Income(TTM)850.00M
Analysts79
Price Target221.67 (4.4%)
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)12.59%
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 | 29.7 | ||
| Fwd PE | 25.73 | ||
| P/S | 6.76 | ||
| P/FCF | 28.38 | ||
| P/OCF | 25.8 | ||
| P/B | 6.18 | ||
| P/tB | 31.53 | ||
| EV/EBITDA | 32.32 |
EPS(TTM)7.15
EY3.37%
EPS(NY)8.25
Fwd EY3.89%
FCF(TTM)7.48
FCFY3.52%
OCF(TTM)8.23
OCFY3.88%
SpS31.4
BVpS34.35
TBVpS6.73
PEG (NY)1.93
PEG (5Y)3.68
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 | 5.92 |
F-Score5
WACC9.25%
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 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.
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.