Overall KEYS gets a fundamental rating of 6 out of 10. We evaluated KEYS against 123 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 has a correct valuation and a medium growth rate. These ratings could make KEYS a good candidate for quality investing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
In the past 5 years KEYS always reported a positive cash flow from operatings.

1.2 Ratios

With an excellent Return On Assets value of 7.52%, KEYS belongs to the best of the industry, outperforming 86.99% of the companies in the same industry.
With an excellent Return On Equity value of 14.45%, KEYS belongs to the best of the industry, outperforming 81.30% of the companies in the same industry.
KEYS has a Return On Invested Capital of 7.01%. This is in the better half of the industry: KEYS outperforms 70.73% 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 8.87%.

		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

Looking at the Profit Margin, with a value of 15.81%, KEYS belongs to the top of the industry, outperforming 94.31% of the companies in the same industry.
In the last couple of years the Profit Margin of KEYS has remained more or less at the same level.
KEYS's Operating Margin of 16.30% is amongst the best of the industry. KEYS outperforms 91.06% of its industry peers.
KEYS's Operating Margin has been stable in the last couple of years.
KEYS's Gross Margin of 62.08% is amongst the best of the industry. KEYS outperforms 95.12% 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
Compared to 1 year ago, KEYS has less shares outstanding
KEYS has less shares outstanding than it did 5 years ago.
KEYS has a worse debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 6.00 indicates that KEYS is not in any danger for bankruptcy at the moment.
KEYS's Altman-Z score of 6.00 is fine compared to the rest of the industry. KEYS outperforms 75.61% 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.
The Debt to FCF ratio of KEYS (1.98) is better than 77.24% 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 64.23% 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	6

ROIC/WACC0.82

WACC8.55%

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.
Looking at the Current ratio, with a value of 2.35, KEYS is in line with its industry, outperforming 50.41% 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

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WACC

Debt/Equity

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Altman-Z score

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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.
Looking at the last year, KEYS shows a small growth in Revenue. The Revenue has grown by 7.95% in the last year.
Measured over the past years, KEYS shows a small growth in Revenue. The Revenue has been growing by 4.95% on average per year.

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 14.76% yearly.
The Revenue is expected to grow by 8.41% on average over the next years. This is quite good.

EPS Next Y15.53%

EPS Next 2Y15.03%

EPS Next 3Y13.5%

EPS Next 5Y14.76%

Revenue Next Year15.8%

Revenue Next 2Y11.02%

Revenue Next 3Y9.21%

Revenue Next 5Y8.41%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 30.98, which means the current valuation is very expensive for KEYS.
Compared to the rest of the industry, the Price/Earnings ratio of KEYS indicates a somewhat cheap valuation: KEYS is cheaper than 65.04% of the companies listed in the same industry.
KEYS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.60.
A Price/Forward Earnings ratio of 26.81 indicates a quite expensive valuation of KEYS.
Based on the Price/Forward Earnings ratio, KEYS is valued a bit cheaper than the industry average as 63.41% of the companies are valued more expensively.
KEYS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.83.

		Industry Rank	Sector Rank
PE	30.98
Fwd PE	26.81

4.2 Price Multiples

KEYS's Enterprise Value to EBITDA ratio is in line with 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 70.73% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	29.6
EV/EBITDA	32.94

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 13.50% in the coming years. This may justify a more expensive valuation.