KEYSIGHT TECHNOLOGIES IN (KEYS) Stock Fundamental Analysis
NYSE:KEYS - New York Stock Exchange, Inc. - US49338L1035 - Common Stock - Currency: USD
Overall KEYS gets a fundamental rating of 6 out of 10. We evaluated KEYS against 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.
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.
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
The Return On Assets of KEYS (6.62%) is better than 79.17% of its industry peers.
Looking at the Return On Equity, with a value of 12.03%, KEYS is in the better half of the industry, outperforming 78.33% of the companies in the same industry.
KEYS has a better Return On Invested Capital (7.91%) than 74.17% of its industry peers.
KEYS had an Average Return On Invested Capital over the past 3 years of 12.66%. This is above the industry average of 8.95%.
The 3 year average ROIC (12.66%) for KEYS is well above the current ROIC(7.91%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.62% | ||
| ROE | 12.03% | ||
| ROIC | 7.91% |
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
KEYS has a better Profit Margin (12.33%) than 88.33% of its industry peers.
In the last couple of years the Profit Margin of KEYS has declined.
The Operating Margin of KEYS (16.73%) is better than 92.50% 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 (62.92%) is better than 96.67% of its industry peers.
KEYS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.73% | ||
| PM (TTM) | 12.33% | ||
| GM | 62.92% |
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
KEYS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
KEYS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.75 indicates that KEYS is not in any danger for bankruptcy at the moment.
KEYS's Altman-Z score of 6.75 is amongst the best of the industry. KEYS outperforms 84.17% of its industry peers.
The Debt to FCF ratio of KEYS is 1.99, which is an excellent value as it means it would take KEYS, only 1.99 years of fcf income to pay off all of its debts.
KEYS has a better Debt to FCF ratio (1.99) than 72.50% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that KEYS is not too dependend on debt financing.
KEYS's Debt to Equity ratio of 0.35 is on the low side compared to the rest of the industry. KEYS is outperformed by 64.17% 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 | 0.35 | ||
| Debt/FCF | 1.99 | ||
| Altman-Z | 6.75 |
ROIC/WACC0.9
WACC8.8%
2.3 Liquidity
KEYS has a Current Ratio of 2.98. This indicates that KEYS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.98, KEYS is in the better half of the industry, outperforming 60.83% of the companies in the same industry.
KEYS has a Quick Ratio of 2.27. This indicates that KEYS is financially healthy and has no problem in meeting its short term obligations.
KEYS has a better Quick ratio (2.27) than 61.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.98 | ||
| Quick Ratio | 2.27 |
3. Growth
3.1 Past
The earnings per share for KEYS have decreased strongly by -24.76% in the last year.
The Earnings Per Share has been growing slightly by 5.77% on average over the past years.
Looking at the last year, KEYS shows a decrease in Revenue. The Revenue has decreased by -8.88% in the last 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)-24.76%
EPS 3Y0.16%
EPS 5Y5.77%
EPS Q2Q%-17.09%
Revenue 1Y (TTM)-8.88%
Revenue growth 3Y0.26%
Revenue growth 5Y2.96%
Sales Q2Q%-1.83%
3.2 Future
The Earnings Per Share is expected to grow by 13.22% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.36% on average over the next years.
EPS Next Y12.96%
EPS Next 2Y14.31%
EPS Next 3Y14.02%
EPS Next 5Y13.22%
Revenue Next Year6%
Revenue Next 2Y6.43%
Revenue Next 3Y6.34%
Revenue Next 5Y6.36%
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
KEYS is valuated quite expensively with a Price/Earnings ratio of 28.03.
Based on the Price/Earnings ratio, KEYS is valued a bit cheaper than 62.50% of the companies in the same industry.
When comparing the Price/Earnings ratio of KEYS to the average of the S&P500 Index (29.63), we can say KEYS is valued inline with the index average.
The Price/Forward Earnings ratio is 24.81, which indicates a rather expensive current valuation of KEYS.
Based on the Price/Forward Earnings ratio, KEYS is valued a bit cheaper than the industry average as 61.67% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.68. KEYS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.03 | ||
| Fwd PE | 24.81 |
4.2 Price Multiples
KEYS's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KEYS indicates a somewhat cheap valuation: KEYS is cheaper than 61.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.78 | ||
| EV/EBITDA | 28.98 |
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.
KEYS's earnings are expected to grow with 14.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.16
PEG (5Y)4.86
EPS Next 2Y14.31%
EPS Next 3Y14.02%
5. Dividend
5.1 Amount
KEYS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
175.45
-9.45 (-5.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners90.02%
Inst Owner Change3%
Ins Owners0.64%
Ins Owner Change0.78%
Market Cap30.34B
Analysts80
Price Target185.57 (5.77%)
Short Float %1.27%
Short Ratio2.27
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)8.57%
Min EPS beat(2)3.03%
Max EPS beat(2)14.1%
EPS beat(4)3
Avg EPS beat(4)4.41%
Min EPS beat(4)-0.22%
Max EPS beat(4)14.1%
EPS beat(8)7
Avg EPS beat(8)5.09%
EPS beat(12)11
Avg EPS beat(12)5.65%
EPS beat(16)15
Avg EPS beat(16)5.57%
Revenue beat(2)1
Avg Revenue beat(2)0.08%
Min Revenue beat(2)-0.08%
Max Revenue beat(2)0.23%
Revenue beat(4)1
Avg Revenue beat(4)-0.46%
Min Revenue beat(4)-1.1%
Max Revenue beat(4)0.23%
Revenue beat(8)2
Avg Revenue beat(8)-0.75%
Revenue beat(12)5
Avg Revenue beat(12)-0.35%
Revenue beat(16)7
Avg Revenue beat(16)-0.31%
PT rev (1m)0%
PT rev (3m)7.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.03 | ||
| Fwd PE | 24.81 | ||
| P/S | 6.09 | ||
| P/FCF | 33.78 | ||
| P/OCF | 28.84 | ||
| P/B | 5.94 | ||
| P/tB | 14.38 | ||
| EV/EBITDA | 28.98 |
EPS(TTM)6.26
EY3.57%
EPS(NY)7.07
Fwd EY4.03%
FCF(TTM)5.19
FCFY2.96%
OCF(TTM)6.08
OCFY3.47%
SpS28.8
BVpS29.52
TBVpS12.2
PEG (NY)2.16
PEG (5Y)4.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.62% | ||
| ROE | 12.03% | ||
| ROCE | 10.62% | ||
| ROIC | 7.91% | ||
| ROICexc | 10.26% | ||
| ROICexgc | 20.32% | ||
| OM | 16.73% | ||
| PM (TTM) | 12.33% | ||
| GM | 62.92% | ||
| FCFM | 18.04% |
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 Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.99 | ||
| Debt/EBITDA | 1.62 | ||
| Cap/Depr | 57.04% | ||
| Cap/Sales | 3.09% | ||
| Interest Coverage | 11.11 | ||
| Cash Conversion | 95.38% | ||
| Profit Quality | 146.25% | ||
| Current Ratio | 2.98 | ||
| Quick Ratio | 2.27 | ||
| Altman-Z | 6.75 |
F-Score5
WACC8.8%
ROIC/WACC0.9
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)-24.76%
EPS 3Y0.16%
EPS 5Y5.77%
EPS Q2Q%-17.09%
EPS Next Y12.96%
EPS Next 2Y14.31%
EPS Next 3Y14.02%
EPS Next 5Y13.22%
Revenue 1Y (TTM)-8.88%
Revenue growth 3Y0.26%
Revenue growth 5Y2.96%
Sales Q2Q%-1.83%
Revenue Next Year6%
Revenue Next 2Y6.43%
Revenue Next 3Y6.34%
Revenue Next 5Y6.36%
EBIT growth 1Y-38.66%
EBIT growth 3Y-8.29%
EBIT growth 5Y3.22%
EBIT Next Year22.4%
EBIT Next 3Y13.95%
EBIT Next 5YN/A
FCF growth 1Y-25.91%
FCF growth 3Y-7.86%
FCF growth 5Y0.45%
OCF growth 1Y-25.28%
OCF growth 3Y-7.33%
OCF growth 5Y1.06%