KEYSIGHT TECHNOLOGIES IN (KEYS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KEYS - US49338L1035 - Common Stock
208.81 USD
-5.33 (-2.49%)
208.81 USD
0 (0%)
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 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.
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.
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.
KEYS has a better Return On Invested Capital (7.02%) than 71.20% 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 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
Looking at the Profit Margin, with a value of 15.74%, KEYS belongs to the top of the industry, outperforming 92.80% of the companies in the same industry.
KEYS's Profit Margin has been stable in the last couple of years.
KEYS has a better Operating Margin (16.30%) than 91.20% 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 62.08%. This is amongst the best in the industry. KEYS outperforms 94.40% 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) | 15.74% | ||
| 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
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 5.94 indicates that KEYS is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.94, KEYS is doing good in the industry, outperforming 79.20% of the companies in the same industry.
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 has a Debt to FCF ratio of 1.98. This is in the better half of the industry: KEYS outperforms 76.80% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that KEYS is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.43, KEYS is not doing good in the industry: 65.60% of the companies in the same industry are doing better.
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 | 0.43 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 5.94 |
ROIC/WACC0.8
WACC8.82%
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.
KEYS has a Quick Ratio of 1.78. This is a normal value and indicates that KEYS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of KEYS (1.78) is comparable to the rest of the 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.
The Revenue has been growing slightly by 7.95% in the past year.
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
KEYS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.90% yearly.
Based on estimates for the next years, KEYS will show a small growth in Revenue. The Revenue will grow by 6.23% on average per year.
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
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
With a Price/Earnings ratio of 29.20, KEYS can be considered very expensive at the moment.
Based on the Price/Earnings ratio, KEYS is valued a bit cheaper than 64.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.54, KEYS is valued at the same level.
With a Price/Forward Earnings ratio of 25.37, KEYS can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, KEYS is valued a bit cheaper than the industry average as 61.60% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of KEYS to the average of the S&P500 Index (23.78), we can say KEYS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.2 | ||
| Fwd PE | 25.37 |
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 the industry average as 70.40% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.91 | ||
| EV/EBITDA | 32.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
KEYS has an outstanding profitability rating, which 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)1.93
PEG (5Y)3.62
EPS Next 2Y14.75%
EPS Next 3Y13.49%
5. Dividend
5.1 Amount
KEYS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
208.81
-5.33 (-2.49%)
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 Cap35.75B
Revenue(TTM)5.38B
Net Income(TTM)846.00M
Analysts79
Price Target216.73 (3.79%)
Short Float %1.95%
Short Ratio2.67
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)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 | 29.2 | ||
| Fwd PE | 25.37 | ||
| P/S | 6.65 | ||
| P/FCF | 27.91 | ||
| P/OCF | 25.37 | ||
| P/B | 6.08 | ||
| P/tB | 30.9 | ||
| EV/EBITDA | 32.4 |
EPS(TTM)7.15
EY3.42%
EPS(NY)8.23
Fwd EY3.94%
FCF(TTM)7.48
FCFY3.58%
OCF(TTM)8.23
OCFY3.94%
SpS31.4
BVpS34.33
TBVpS6.76
PEG (NY)1.93
PEG (5Y)3.62
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 | 5.94 |
F-Score5
WACC8.82%
ROIC/WACC0.8
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.