KEYSIGHT TECHNOLOGIES IN (KEYS) Stock Fundamental Analysis
NYSE:KEYS - New York Stock Exchange, Inc. - US49338L1035 - Common Stock
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.
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.
In the past 5 years KEYS always reported a positive cash flow from operatings.
1.2 Ratios
KEYS's Return On Assets of 6.62% is fine compared to the rest of the industry. KEYS outperforms 79.17% of its industry peers.
KEYS has a Return On Equity of 12.03%. This is in the better half of the industry: KEYS outperforms 79.17% of its industry peers.
With a decent Return On Invested Capital value of 7.91%, KEYS is doing good in the industry, outperforming 72.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KEYS is above the industry average of 9.03%.
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
With an excellent Profit Margin value of 12.33%, KEYS belongs to the best of the industry, outperforming 88.33% of the companies in the same industry.
KEYS's Profit Margin has declined in the last couple of years.
The Operating Margin of KEYS (16.73%) is better than 93.33% of its industry peers.
In the last couple of years the Operating Margin of KEYS has remained more or less at the same level.
KEYS has a Gross Margin of 62.92%. This is amongst the best in the industry. KEYS outperforms 96.67% 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 | 16.73% | ||
| 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.
Compared to 1 year ago, KEYS has less shares outstanding
KEYS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for KEYS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.41 indicates that KEYS is not in any danger for bankruptcy at the moment.
KEYS's Altman-Z score of 6.41 is amongst the best of the industry. KEYS outperforms 80.83% 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.
Looking at the Debt to FCF ratio, with a value of 1.99, KEYS is in the better half of the industry, outperforming 74.17% of the companies in the same industry.
A Debt/Equity ratio of 0.35 indicates that KEYS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.35, KEYS is doing worse than 63.33% of the companies in the same industry.
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 | 6.41 |
ROIC/WACC0.76
WACC10.38%
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.
With a decent Current ratio value of 2.98, KEYS is doing good in 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's Quick ratio of 2.27 is fine compared to the rest of the industry. KEYS outperforms 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.
Measured over the past years, KEYS shows a small growth in Revenue. The Revenue has been growing by 2.96% on average per year.
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
KEYS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.22% yearly.
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
Based on the Price/Earnings ratio of 27.31, 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 67.50% of the companies are valued more expensively.
KEYS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.29.
The Price/Forward Earnings ratio is 24.18, which indicates a rather expensive current valuation of KEYS.
KEYS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KEYS is cheaper than 63.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.44. KEYS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.31 | ||
| Fwd PE | 24.18 |
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 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.97 | ||
| EV/EBITDA | 26.84 |
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 14.02% in the coming years.
PEG (NY)2.11
PEG (5Y)4.74
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 |
KEYSIGHT TECHNOLOGIES IN
NYSE:KEYS (1/21/2025, 8:10:37 PM)
After market: 170.97 0 (0%)170.97
+5.28 (+3.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners90.02%
Inst Owner Change-0.6%
Ins Owners0.64%
Ins Owner Change0.78%
Market Cap29.61B
Analysts80
Price Target185.57 (8.54%)
Short Float %1.39%
Short Ratio1.95
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)1.39%
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)-0.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.31 | ||
| Fwd PE | 24.18 | ||
| P/S | 5.95 | ||
| P/FCF | 32.97 | ||
| P/OCF | 28.14 | ||
| P/B | 5.8 | ||
| P/tB | 14.03 | ||
| EV/EBITDA | 26.84 |
EPS(TTM)6.26
EY3.66%
EPS(NY)7.07
Fwd EY4.14%
FCF(TTM)5.19
FCFY3.03%
OCF(TTM)6.07
OCFY3.55%
SpS28.75
BVpS29.48
TBVpS12.18
PEG (NY)2.11
PEG (5Y)4.74
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 | 6.41 |
F-Score5
WACC10.38%
ROIC/WACC0.76
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%