KEYSIGHT TECHNOLOGIES IN (KEYS)
US49338L1035 - Common Stock
We assign a fundamental rating of 6 out of 10 to KEYS. KEYS was compared to 127 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 has a decent growth rate and is not valued too expensively.
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.
In the past 5 years KEYS has always been profitable.
Each year in the past 5 years KEYS had a positive operating cash flow.
1.2 Ratios
KEYS has a Return On Assets of 6.62%. This is in the better half of the industry: KEYS outperforms 80.00% of its industry peers.
Looking at the Return On Equity, with a value of 12.03%, KEYS is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.91%, KEYS is in the better half of the industry, outperforming 73.60% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KEYS is above the industry average of 8.74%.
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
KEYS has a Profit Margin of 12.33%. This is amongst the best in the industry. KEYS outperforms 88.80% of its industry peers.
KEYS's Profit Margin has declined in the last couple of years.
The Operating Margin of KEYS (16.73%) is better than 93.60% 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 96.80% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KEYS is still creating some value.
The number of shares outstanding for KEYS has been reduced compared to 1 year ago.
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
KEYS has an Altman-Z score of 6.20. This indicates that KEYS is financially healthy and has little risk of bankruptcy at the moment.
KEYS has a Altman-Z score of 6.20. This is amongst the best in the industry. KEYS outperforms 80.80% 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.
KEYS has a better Debt to FCF ratio (1.99) than 75.20% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that KEYS is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.35, KEYS is not doing good in the industry: 64.00% of the companies in the same industry are doing better.
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 | 0.35 | ||
| Debt/FCF | 1.99 | ||
| Altman-Z | 6.2 |
ROIC/WACC0.77
WACC10.31%
2.3 Liquidity
A Current Ratio of 2.98 indicates that KEYS has no problem at all paying its short term obligations.
KEYS has a Current ratio of 2.98. This is in the better half of the industry: KEYS outperforms 60.80% of its industry peers.
A Quick Ratio of 2.27 indicates that KEYS has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.27, KEYS is in the better half of the industry, outperforming 60.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.98 | ||
| Quick Ratio | 2.27 |
3. Growth
3.1 Past
KEYS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.76%.
KEYS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.77% yearly.
KEYS shows a decrease in Revenue. In the last year, the revenue decreased by -8.88%.
The Revenue has been growing slightly by 2.96% on average over the past years.
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
Based on estimates for the next years, KEYS will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.22% on average per year.
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 3Y6.33%
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
The Price/Earnings ratio is 26.07, 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 68.80% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. KEYS is around the same levels.
With a Price/Forward Earnings ratio of 23.08, KEYS is valued on the expensive side.
Based on the Price/Forward Earnings ratio, KEYS is valued a bit cheaper than the industry average as 60.80% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of KEYS to the average of the S&P500 Index (22.83), we can say KEYS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.07 | ||
| Fwd PE | 23.08 |
4.2 Price Multiples
KEYS's Enterprise Value to EBITDA ratio is in line with the industry average.
64.80% of the companies in the same industry are more expensive than KEYS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.37 | ||
| EV/EBITDA | 25.54 |
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)2.01
PEG (5Y)4.52
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 (12/20/2024, 8:21:12 PM)
After market: 163.22 0 (0%)163.22
+3.37 (+2.11%)
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-0.33%
Ins Owners0.64%
Ins Owner Change1.38%
Market Cap28.17B
Analysts78.95
Price Target183.02 (12.13%)
Short Float %1.71%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)2.2%
PT rev (3m)5.64%
EPS NQ rev (1m)0.6%
EPS NQ rev (3m)8.03%
EPS NY rev (1m)-0.53%
EPS NY rev (3m)-0.58%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)3.09%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.07 | ||
| Fwd PE | 23.08 | ||
| P/S | 5.66 | ||
| P/FCF | 31.37 | ||
| P/OCF | 26.78 | ||
| P/B | 5.52 | ||
| P/tB | 13.35 | ||
| EV/EBITDA | 25.54 |
EPS(TTM)6.26
EY3.84%
EPS(NY)7.07
Fwd EY4.33%
FCF(TTM)5.2
FCFY3.19%
OCF(TTM)6.1
OCFY3.73%
SpS28.85
BVpS29.58
TBVpS12.22
PEG (NY)2.01
PEG (5Y)4.52
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 | 6.2 |
F-Score5
WACC10.31%
ROIC/WACC0.77
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 3Y6.33%
Revenue Next 5Y6.36%
EBIT growth 1Y-38.66%
EBIT growth 3Y-8.29%
EBIT growth 5Y3.22%
EBIT Next Year21.29%
EBIT Next 3Y15.36%
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%