KEYSIGHT TECHNOLOGIES IN (KEYS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KEYS - US49338L1035 - Common Stock
212.78 USD
+2.32 (+1.1%)
214.5 USD
+1.72 (+0.81%)
Taking everything into account, KEYS scores 6 out of 10 in our fundamental rating. KEYS was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. Both the health and profitability get an excellent rating, making KEYS a very profitable company, without any liquidiy or solvency issues. KEYS has a correct valuation and a medium 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.
In the past year KEYS had a positive cash flow from operations.
KEYS had positive earnings in each of the past 5 years.
In the past 5 years KEYS always reported a positive cash flow from operatings.
1.2 Ratios
KEYS has a Return On Assets of 7.49%. This is amongst the best in the industry. KEYS outperforms 86.40% of its industry peers.
KEYS has a Return On Equity of 14.40%. This is amongst the best in the industry. KEYS outperforms 80.80% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.02%, KEYS is in the better half of the industry, outperforming 71.20% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KEYS is in line with the industry average of 9.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.49% | ||
| ROE | 14.4% | ||
| ROIC | 7.02% |
ROA(3y)8.76%
ROA(5y)10.33%
ROE(3y)16.38%
ROE(5y)19.95%
ROIC(3y)10.18%
ROIC(5y)11.65%
1.3 Margins
The Profit Margin of KEYS (15.74%) is better than 92.80% 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 better Operating Margin (16.30%) than 91.20% of its industry peers.
KEYS's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 62.08%, KEYS belongs to the top of the industry, outperforming 94.40% 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) | 15.74% | ||
| GM | 62.08% |
OM growth 3Y-12.84%
OM growth 5Y-1.26%
PM growth 3Y-8.78%
PM growth 5Y1.16%
GM growth 3Y-0.83%
GM growth 5Y0.68%
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.
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
The debt/assets ratio for KEYS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.87 indicates that KEYS is not in any danger for bankruptcy at the moment.
KEYS has a better Altman-Z score (5.87) than 79.20% of its industry peers.
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 better Debt to FCF ratio (1.98) than 76.80% 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 has a Debt to Equity ratio of 0.43. This is in the lower half of the industry: KEYS underperforms 65.60% 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 | 5.87 |
ROIC/WACC0.79
WACC8.85%
2.3 Liquidity
A Current Ratio of 2.35 indicates that KEYS has no problem at all paying its short term obligations.
With a Current ratio value of 2.35, KEYS perfoms like the industry average, outperforming 50.40% 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
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%.
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
Based on estimates for the next years, KEYS will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.90% on average per year.
The Revenue is expected to grow by 6.23% on average over the next years.
EPS Next Y15.1%
EPS Next 2Y14.75%
EPS Next 3Y13.49%
EPS Next 5Y12.9%
Revenue Next Year14.98%
Revenue Next 2Y10.56%
Revenue Next 3Y9.18%
Revenue Next 5Y6.23%
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.
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
A Price/Earnings ratio of 29.76 indicates a quite expensive valuation of KEYS.
Compared to the rest of the industry, the Price/Earnings ratio of KEYS indicates a somewhat cheap valuation: KEYS is cheaper than 64.00% of the companies listed in the same industry.
KEYS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 25.85 indicates a quite expensive valuation of KEYS.
KEYS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KEYS is cheaper than 61.60% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.80. KEYS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.76 | ||
| Fwd PE | 25.85 |
4.2 Price Multiples
KEYS's Enterprise Value to EBITDA ratio is in line with the industry average.
KEYS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KEYS is cheaper than 69.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.44 | ||
| EV/EBITDA | 31.85 |
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 13.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.97
PEG (5Y)3.69
EPS Next 2Y14.75%
EPS Next 3Y13.49%
5. Dividend
5.1 Amount
No dividends for KEYS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
212.78
+2.32 (+1.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners91.95%
Inst Owner Change13.85%
Ins Owners0.54%
Ins Owner Change1.92%
Market Cap36.43B
Revenue(TTM)5.38B
Net Income(TTM)846.00M
Analysts79
Price Target216.73 (1.86%)
Short Float %1.95%
Short Ratio2.67
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)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)13.61%
PT rev (3m)13.19%
EPS NQ rev (1m)8.42%
EPS NQ rev (3m)7.61%
EPS NY rev (1m)2.69%
EPS NY rev (3m)2.59%
Revenue NQ rev (1m)11.26%
Revenue NQ rev (3m)12.46%
Revenue NY rev (1m)8.19%
Revenue NY rev (3m)8.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.76 | ||
| Fwd PE | 25.85 | ||
| P/S | 6.78 | ||
| P/FCF | 28.44 | ||
| P/OCF | 25.85 | ||
| P/B | 6.2 | ||
| P/tB | 31.48 | ||
| EV/EBITDA | 31.85 |
EPS(TTM)7.15
EY3.36%
EPS(NY)8.23
Fwd EY3.87%
FCF(TTM)7.48
FCFY3.52%
OCF(TTM)8.23
OCFY3.87%
SpS31.4
BVpS34.33
TBVpS6.76
PEG (NY)1.97
PEG (5Y)3.69
Graham Number74.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.49% | ||
| ROE | 14.4% | ||
| ROCE | 9.28% | ||
| ROIC | 7.02% | ||
| ROICexc | 8.75% | ||
| ROICexgc | 23.25% | ||
| OM | 16.3% | ||
| PM (TTM) | 15.74% | ||
| GM | 62.08% | ||
| FCFM | 23.83% |
ROA(3y)8.76%
ROA(5y)10.33%
ROE(3y)16.38%
ROE(5y)19.95%
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)13.46%
ROCE(5y)15.4%
ROICexgc growth 3Y-12.8%
ROICexgc growth 5Y0.81%
ROICexc growth 3Y-26.12%
ROICexc growth 5Y-7.11%
OM growth 3Y-12.84%
OM growth 5Y-1.26%
PM growth 3Y-8.78%
PM growth 5Y1.16%
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 | 151.42% | ||
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.78 | ||
| Altman-Z | 5.87 |
F-Score5
WACC8.85%
ROIC/WACC0.79
Cap/Depr(3y)65.29%
Cap/Depr(5y)67.64%
Cap/Sales(3y)3.02%
Cap/Sales(5y)3.2%
Profit Quality(3y)137.45%
Profit Quality(5y)125.21%
High Growth Momentum
Growth
EPS 1Y (TTM)14.22%
EPS 3Y-2.14%
EPS 5Y8.07%
EPS Q2Q%15.76%
EPS Next Y15.1%
EPS Next 2Y14.75%
EPS Next 3Y13.49%
EPS Next 5Y12.9%
Revenue 1Y (TTM)7.95%
Revenue growth 3Y-0.28%
Revenue growth 5Y4.95%
Sales Q2Q%10.26%
Revenue Next Year14.98%
Revenue Next 2Y10.56%
Revenue Next 3Y9.18%
Revenue Next 5Y6.23%
EBIT growth 1Y5.16%
EBIT growth 3Y-13.08%
EBIT growth 5Y3.63%
EBIT Next Year30.51%
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.
Can you provide the valuation status for KEYSIGHT TECHNOLOGIES IN?
ChartMill assigns a valuation rating of 4 / 10 to KEYSIGHT TECHNOLOGIES IN (KEYS). This can be considered as Fairly Valued.
What is the profitability of KEYS stock?
KEYSIGHT TECHNOLOGIES IN (KEYS) has a profitability rating of 8 / 10.
How financially healthy is KEYSIGHT TECHNOLOGIES IN?
The financial health rating of KEYSIGHT TECHNOLOGIES IN (KEYS) is 7 / 10.