KEYSIGHT TECHNOLOGIES IN (KEYS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KEYS - US49338L1035 - Common Stock
208.73 USD
+1.43 (+0.69%)
208.8 USD
+0.07 (+0.03%)
Overall KEYS gets a fundamental rating of 6 out of 10. We evaluated KEYS against 125 industry peers in the Electronic Equipment, Instruments & Components industry. KEYS gets an excellent profitability rating and is at the same time showing great financial health properties. KEYS is not valued too expensively and it also shows a decent growth rate. These ratings would make KEYS suitable 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 88.00% of the companies in the same industry.
The Return On Equity of KEYS (14.45%) is better than 81.60% of its industry peers.
With a decent Return On Invested Capital value of 7.01%, KEYS is doing good in the industry, outperforming 71.20% of the companies in the same industry.
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 8.82%.
| 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
The Profit Margin of KEYS (15.81%) is better than 94.40% of its industry peers.
In the last couple of years the Profit Margin of KEYS has remained more or less at the same level.
KEYS has a Operating Margin of 16.30%. This is amongst the best in the industry. KEYS outperforms 91.20% of its industry peers.
KEYS's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 62.08%, KEYS belongs to the best of the industry, outperforming 94.40% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KEYS is still creating some value.
Compared to 1 year ago, KEYS has less shares outstanding
Compared to 5 years ago, KEYS has less shares outstanding
KEYS has a worse debt/assets ratio than last year.
2.2 Solvency
KEYS has an Altman-Z score of 5.83. This indicates that KEYS is financially healthy and has little risk of bankruptcy at the moment.
KEYS has a better Altman-Z score (5.83) than 75.20% of its industry peers.
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.
KEYS's Debt to FCF ratio of 1.98 is fine compared to the rest of the industry. KEYS outperforms 77.60% of its industry peers.
KEYS has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
KEYS's Debt to Equity ratio of 0.43 is on the low side compared to the rest of the industry. KEYS is outperformed by 64.80% of its industry peers.
Even though the debt/equity ratio score it not favorable for KEYS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 5.83 |
ROIC/WACC0.76
WACC9.26%
2.3 Liquidity
A Current Ratio of 2.35 indicates that KEYS has no problem at all paying its short term obligations.
KEYS has a Current ratio (2.35) which is comparable to the rest of the industry.
A Quick Ratio of 1.78 indicates that KEYS should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.78, KEYS perfoms like the industry average, outperforming 55.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
KEYS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.22%, which is quite good.
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.
KEYS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.95%.
The Revenue has been growing slightly by 4.95% on average over the past years.
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
The Earnings Per Share is expected to grow by 14.76% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.41% on average over the next years. This is quite good.
EPS Next Y15.42%
EPS Next 2Y14.98%
EPS Next 3Y13.43%
EPS Next 5Y14.76%
Revenue Next Year15.75%
Revenue Next 2Y10.99%
Revenue Next 3Y9.19%
Revenue Next 5Y8.41%
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
With a Price/Earnings ratio of 29.19, KEYS can be considered very expensive at the moment.
64.00% of the companies in the same industry are more expensive than KEYS, based on the Price/Earnings ratio.
KEYS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.25.
KEYS is valuated quite expensively with a Price/Forward Earnings ratio of 25.29.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KEYS indicates a somewhat cheap valuation: KEYS is cheaper than 63.20% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.98, KEYS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.19 | ||
| Fwd PE | 25.29 |
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 70.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.9 | ||
| EV/EBITDA | 31.59 |
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.
KEYS's earnings are expected to grow with 13.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.89
PEG (5Y)3.62
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% |
208.73
+1.43 (+0.69%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners91.79%
Inst Owner Change0.07%
Ins Owners0.49%
Ins Owner Change1.78%
Market Cap35.73B
Revenue(TTM)5.38B
Net Income(TTM)850.00M
Analysts79
Price Target221.67 (6.2%)
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)2.28%
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 | 29.19 | ||
| Fwd PE | 25.29 | ||
| P/S | 6.65 | ||
| P/FCF | 27.9 | ||
| P/OCF | 25.36 | ||
| P/B | 6.08 | ||
| P/tB | 30.99 | ||
| EV/EBITDA | 31.59 |
EPS(TTM)7.15
EY3.43%
EPS(NY)8.25
Fwd EY3.95%
FCF(TTM)7.48
FCFY3.58%
OCF(TTM)8.23
OCFY3.94%
SpS31.4
BVpS34.35
TBVpS6.73
PEG (NY)1.89
PEG (5Y)3.62
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 | 5.83 |
F-Score5
WACC9.26%
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 5Y14.76%
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 5Y8.41%
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.