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 125 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 is not valued too expensively and it also shows a decent growth rate.
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.
KEYS had positive earnings in each of the past 5 years.
Each year in the past 5 years KEYS had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.03%, KEYS belongs to the best of the industry, outperforming 85.60% of the companies in the same industry.
The Return On Equity of KEYS (13.55%) is better than 83.20% of its industry peers.
KEYS has a Return On Invested Capital of 7.18%. This is in the better half of the industry: KEYS outperforms 72.80% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KEYS is above the industry average of 9.30%.
The 3 year average ROIC (12.66%) for KEYS is well above the current ROIC(7.18%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.03% | ||
| ROE | 13.55% | ||
| ROIC | 7.18% |
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
The Profit Margin of KEYS (14.53%) is better than 91.20% of its industry peers.
In the last couple of years the Profit Margin of KEYS has declined.
Looking at the Operating Margin, with a value of 16.84%, KEYS belongs to the top of the industry, outperforming 92.80% of the companies in the same industry.
In the last couple of years the Operating Margin of KEYS has remained more or less at the same level.
With an excellent Gross Margin value of 62.47%, KEYS belongs to the best 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 | 16.84% | ||
| PM (TTM) | 14.53% | ||
| GM | 62.47% |
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.
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
KEYS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.48 indicates that KEYS is not in any danger for bankruptcy at the moment.
KEYS has a better Altman-Z score (5.48) than 78.40% of its industry peers.
KEYS has a debt to FCF ratio of 1.88. This is a very positive value and a sign of high solvency as it would only need 1.88 years to pay back of all of its debts.
KEYS has a Debt to FCF ratio of 1.88. This is in the better half of the industry: KEYS outperforms 80.00% of its industry peers.
KEYS has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
KEYS's Debt to Equity ratio of 0.46 is on the low side compared to the rest of the industry. KEYS is outperformed by 68.80% 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 | 0.46 | ||
| Debt/FCF | 1.88 | ||
| Altman-Z | 5.48 |
ROIC/WACC0.84
WACC8.58%
2.3 Liquidity
KEYS has a Current Ratio of 3.37. This indicates that KEYS is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of KEYS (3.37) is better than 70.40% of its industry peers.
A Quick Ratio of 2.74 indicates that KEYS has no problem at all paying its short term obligations.
KEYS's Quick ratio of 2.74 is fine compared to the rest of the industry. KEYS outperforms 70.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.37 | ||
| Quick Ratio | 2.74 |
3. Growth
3.1 Past
KEYS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.65%.
The Earnings Per Share has been growing slightly by 5.77% on average over the past years.
The Revenue has decreased by -1.16% in the past year.
The Revenue has been growing slightly by 2.96% on average over the past years.
EPS 1Y (TTM)-6.65%
EPS 3Y0.16%
EPS 5Y5.77%
EPS Q2Q%20.57%
Revenue 1Y (TTM)-1.16%
Revenue growth 3Y0.26%
Revenue growth 5Y2.96%
Sales Q2Q%8.22%
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 14.62% yearly.
Based on estimates for the next years, KEYS will show a small growth in Revenue. The Revenue will grow by 6.32% on average per year.
EPS Next Y14.23%
EPS Next 2Y13.6%
EPS Next 3Y13.62%
EPS Next 5Y14.62%
Revenue Next Year6.93%
Revenue Next 2Y6.81%
Revenue Next 3Y6.44%
Revenue Next 5Y6.32%
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
Based on the Price/Earnings ratio of 24.78, the valuation of KEYS can be described as rather expensive.
Based on the Price/Earnings ratio, KEYS is valued a bit cheaper than 70.40% of the companies in the same industry.
KEYS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.45.
With a Price/Forward Earnings ratio of 20.68, KEYS is valued on the expensive side.
KEYS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KEYS is cheaper than 67.20% of the companies in the same industry.
KEYS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.78 | ||
| Fwd PE | 20.68 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KEYS is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KEYS indicates a somewhat cheap valuation: KEYS is cheaper than 77.60% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.36 | ||
| EV/EBITDA | 25.01 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of KEYS may justify a higher PE ratio.
KEYS's earnings are expected to grow with 13.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.74
PEG (5Y)4.3
EPS Next 2Y13.6%
EPS Next 3Y13.62%
5. Dividend
5.1 Amount
KEYS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
167.05
+1.53 (+0.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners91.23%
Inst Owner Change0.2%
Ins Owners0.51%
Ins Owner Change1.46%
Market Cap28.75B
Analysts80
Price Target190.16 (13.83%)
Short Float %1.5%
Short Ratio2.73
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)3.44%
Min EPS beat(2)1.26%
Max EPS beat(2)5.63%
EPS beat(4)4
Avg EPS beat(4)6%
Min EPS beat(4)1.26%
Max EPS beat(4)14.1%
EPS beat(8)7
Avg EPS beat(8)4.27%
EPS beat(12)11
Avg EPS beat(12)5.29%
EPS beat(16)15
Avg EPS beat(16)5.51%
Revenue beat(2)1
Avg Revenue beat(2)0.15%
Min Revenue beat(2)-0.31%
Max Revenue beat(2)0.61%
Revenue beat(4)2
Avg Revenue beat(4)0.11%
Min Revenue beat(4)-0.31%
Max Revenue beat(4)0.61%
Revenue beat(8)2
Avg Revenue beat(8)-0.62%
Revenue beat(12)5
Avg Revenue beat(12)-0.35%
Revenue beat(16)7
Avg Revenue beat(16)-0.25%
PT rev (1m)2.64%
PT rev (3m)-0.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.14%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.83%
Revenue NY rev (1m)0.95%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.78 | ||
| Fwd PE | 20.68 | ||
| P/S | 5.63 | ||
| P/FCF | 21.36 | ||
| P/OCF | 19.48 | ||
| P/B | 5.25 | ||
| P/tB | 11.56 | ||
| EV/EBITDA | 25.01 |
EPS(TTM)6.74
EY4.03%
EPS(NY)8.08
Fwd EY4.84%
FCF(TTM)7.82
FCFY4.68%
OCF(TTM)8.58
OCFY5.13%
SpS29.68
BVpS31.82
TBVpS14.46
PEG (NY)1.74
PEG (5Y)4.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.03% | ||
| ROE | 13.55% | ||
| ROCE | 9.64% | ||
| ROIC | 7.18% | ||
| ROICexc | 11.03% | ||
| ROICexgc | 22.75% | ||
| OM | 16.84% | ||
| PM (TTM) | 14.53% | ||
| GM | 62.47% | ||
| FCFM | 26.35% |
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 Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.88 | ||
| Debt/EBITDA | 2.25 | ||
| Cap/Depr | 48.87% | ||
| Cap/Sales | 2.55% | ||
| Interest Coverage | 11.32 | ||
| Cash Conversion | 131.08% | ||
| Profit Quality | 181.4% | ||
| Current Ratio | 3.37 | ||
| Quick Ratio | 2.74 | ||
| Altman-Z | 5.48 |
F-Score5
WACC8.58%
ROIC/WACC0.84
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)-6.65%
EPS 3Y0.16%
EPS 5Y5.77%
EPS Q2Q%20.57%
EPS Next Y14.23%
EPS Next 2Y13.6%
EPS Next 3Y13.62%
EPS Next 5Y14.62%
Revenue 1Y (TTM)-1.16%
Revenue growth 3Y0.26%
Revenue growth 5Y2.96%
Sales Q2Q%8.22%
Revenue Next Year6.93%
Revenue Next 2Y6.81%
Revenue Next 3Y6.44%
Revenue Next 5Y6.32%
EBIT growth 1Y-20.37%
EBIT growth 3Y-8.29%
EBIT growth 5Y3.22%
EBIT Next Year21.37%
EBIT Next 3Y14.78%
EBIT Next 5YN/A
FCF growth 1Y11.42%
FCF growth 3Y-7.86%
FCF growth 5Y0.45%
OCF growth 1Y4.61%
OCF growth 3Y-7.33%
OCF growth 5Y1.06%