KEYSIGHT TECHNOLOGIES IN (KEYS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KEYS - US49338L1035 - Common Stock
209.07 USD
+2.46 (+1.19%)
209 USD
-0.07 (-0.03%)
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.
KEYS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 7.49%, KEYS belongs to the best of the industry, outperforming 86.40% of the companies in the same industry.
KEYS's Return On Equity of 14.40% is amongst the best of the industry. KEYS outperforms 80.80% of its industry peers.
KEYS has a better Return On Invested Capital (7.02%) than 70.40% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KEYS is in line with the industry average of 9.17%.
| 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
KEYS's Profit Margin of 15.74% is amongst the best of the industry. KEYS outperforms 92.80% of its industry peers.
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.
KEYS's Operating Margin has been stable in the last couple of years.
KEYS has a Gross Margin of 62.08%. This is amongst the best in the industry. KEYS outperforms 94.40% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KEYS is still creating some value.
KEYS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for KEYS has been reduced compared to 5 years ago.
Compared to 1 year ago, KEYS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.85 indicates that KEYS is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.85, KEYS is doing good in the industry, outperforming 79.20% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 1.98, KEYS is doing good in the industry, outperforming 77.60% of the companies in the same industry.
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 65.60% 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 | 0.43 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 5.85 |
ROIC/WACC0.81
WACC8.71%
2.3 Liquidity
A Current Ratio of 2.35 indicates that KEYS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.35, KEYS is in line with its industry, outperforming 52.00% 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.
With a Quick ratio value of 1.78, KEYS perfoms like the industry average, outperforming 53.60% of the companies in the same 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.
The Earnings Per Share has been growing by 8.07% on average over the past years. This is quite good.
The Revenue has been growing slightly by 7.95% in the past 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 12.90% yearly.
KEYS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.23% yearly.
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.
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
KEYS is valuated quite expensively with a Price/Earnings ratio of 29.24.
64.00% of the companies in the same industry are more expensive than KEYS, based on the Price/Earnings ratio.
KEYS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.41.
Based on the Price/Forward Earnings ratio of 25.40, the valuation of KEYS can be described as expensive.
Based on the Price/Forward Earnings ratio, KEYS is valued a bit cheaper than 60.80% of the companies in the same industry.
KEYS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.24 | ||
| Fwd PE | 25.4 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as KEYS.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KEYS indicates a somewhat cheap valuation: KEYS is cheaper than 71.20% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.05 | ||
| EV/EBITDA | 31.76 |
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.
A more expensive valuation may be justified as KEYS's earnings are expected to grow with 13.49% in the coming years.
PEG (NY)1.94
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 | N/A |
209.07
+2.46 (+1.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners90.93%
Inst Owner Change13.84%
Ins Owners0.5%
Ins Owner Change3.36%
Market Cap35.93B
Revenue(TTM)5.38B
Net Income(TTM)846.00M
Analysts79
Price Target196.88 (-5.83%)
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)2.82%
PT rev (3m)2.9%
EPS NQ rev (1m)-1.28%
EPS NQ rev (3m)-1.28%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)4.29%
Revenue NQ rev (3m)4.29%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.24 | ||
| Fwd PE | 25.4 | ||
| P/S | 6.68 | ||
| P/FCF | 28.05 | ||
| P/OCF | 25.5 | ||
| P/B | 6.11 | ||
| P/tB | 31.06 | ||
| EV/EBITDA | 31.76 |
EPS(TTM)7.15
EY3.42%
EPS(NY)8.23
Fwd EY3.94%
FCF(TTM)7.45
FCFY3.57%
OCF(TTM)8.2
OCFY3.92%
SpS31.28
BVpS34.2
TBVpS6.73
PEG (NY)1.94
PEG (5Y)3.62
Graham Number74.17
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 | 5.85 |
F-Score5
WACC8.71%
ROIC/WACC0.81
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 Year23.56%
EBIT Next 3Y14.31%
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.