KEYSIGHT TECHNOLOGIES IN (1KT.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:1KT - US49338L1035 - Common Stock
183.66 EUR
+0.52 (+0.28%)
We assign a fundamental rating of 6 out of 10 to 1KT. 1KT was compared to 51 industry peers in the Electronic Equipment, Instruments & Components industry. Both the health and profitability get an excellent rating, making 1KT a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, 1KT is valued expensive at the moment. These ratings would make 1KT suitable for quality investing!
1. Profitability
1.1 Basic Checks
- 1KT had positive earnings in the past year.
- 1KT had a positive operating cash flow in the past year.
- Each year in the past 5 years 1KT has been profitable.
- Each year in the past 5 years 1KT had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 7.52%, 1KT belongs to the top of the industry, outperforming 92.16% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 14.45%, 1KT belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
- 1KT has a better Return On Invested Capital (7.01%) than 72.55% of its industry peers.
- 1KT had an Average Return On Invested Capital over the past 3 years of 10.18%. This is above the industry average of 7.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.52% | ||
| ROE | 14.45% | ||
| ROIC | 7.01% |
ROA(3y)8.77%
ROA(5y)10.34%
ROE(3y)16.4%
ROE(5y)19.97%
ROIC(3y)10.18%
ROIC(5y)11.65%
1.3 Margins
- The Profit Margin of 1KT (15.81%) is better than 94.12% of its industry peers.
- In the last couple of years the Profit Margin of 1KT has remained more or less at the same level.
- 1KT has a better Operating Margin (16.30%) than 94.12% of its industry peers.
- In the last couple of years the Operating Margin of 1KT has remained more or less at the same level.
- 1KT has a better Gross Margin (62.08%) than 76.47% of its industry peers.
- 1KT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.3% | ||
| PM (TTM) | 15.81% | ||
| GM | 62.08% |
OM growth 3Y-12.84%
OM growth 5Y-1.26%
PM growth 3Y-8.64%
PM growth 5Y1.26%
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), 1KT is creating some value.
- The number of shares outstanding for 1KT has been reduced compared to 1 year ago.
- 1KT has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, 1KT has a worse debt to assets ratio.
2.2 Solvency
- 1KT has an Altman-Z score of 5.96. This indicates that 1KT is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 5.96, 1KT belongs to the top of the industry, outperforming 90.20% of the companies in the same industry.
- The Debt to FCF ratio of 1KT is 1.98, which is an excellent value as it means it would take 1KT, only 1.98 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.98, 1KT belongs to the top of the industry, outperforming 84.31% of the companies in the same industry.
- A Debt/Equity ratio of 0.43 indicates that 1KT is not too dependend on debt financing.
- 1KT has a Debt to Equity ratio of 0.43. This is comparable to the rest of the industry: 1KT outperforms 43.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 5.96 |
ROIC/WACC0.83
WACC8.48%
2.3 Liquidity
- A Current Ratio of 2.35 indicates that 1KT has no problem at all paying its short term obligations.
- 1KT has a Current ratio of 2.35. This is amongst the best in the industry. 1KT outperforms 82.35% of its industry peers.
- 1KT has a Quick Ratio of 1.78. This is a normal value and indicates that 1KT is financially healthy and should not expect problems in meeting its short term obligations.
- 1KT has a better Quick ratio (1.78) than 90.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
- 1KT 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, 1KT 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.
- The Revenue has been growing slightly by 4.95% on average over the past years.
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
- 1KT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.76% yearly.
- 1KT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.41% yearly.
EPS Next Y15.53%
EPS Next 2Y15.03%
EPS Next 3Y13.5%
EPS Next 5Y14.76%
Revenue Next Year15.8%
Revenue Next 2Y11.02%
Revenue Next 3Y9.21%
Revenue Next 5Y8.41%
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
- A Price/Earnings ratio of 30.16 indicates a quite expensive valuation of 1KT.
- Based on the Price/Earnings ratio, 1KT is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.21. 1KT is around the same levels.
- With a Price/Forward Earnings ratio of 26.11, 1KT can be considered very expensive at the moment.
- 1KT's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of 1KT to the average of the S&P500 Index (25.98), we can say 1KT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.16 | ||
| Fwd PE | 26.11 |
4.2 Price Multiples
- 68.63% of the companies in the same industry are cheaper than 1KT, based on the Enterprise Value to EBITDA ratio.
- 1KT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.82 | ||
| EV/EBITDA | 32.62 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1KT does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of 1KT may justify a higher PE ratio.
- A more expensive valuation may be justified as 1KT's earnings are expected to grow with 13.50% in the coming years.
PEG (NY)1.94
PEG (5Y)3.74
EPS Next 2Y15.03%
EPS Next 3Y13.5%
5. Dividend
5.1 Amount
- 1KT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
KEYSIGHT TECHNOLOGIES IN / 1KT.DE FAQ
What is the fundamental rating for 1KT stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1KT.DE.
What is the valuation status for 1KT stock?
ChartMill assigns a valuation rating of 3 / 10 to KEYSIGHT TECHNOLOGIES IN (1KT.DE). This can be considered as Overvalued.
Can you provide the profitability details for KEYSIGHT TECHNOLOGIES IN?
KEYSIGHT TECHNOLOGIES IN (1KT.DE) has a profitability rating of 8 / 10.
What is the valuation of KEYSIGHT TECHNOLOGIES IN based on its PE and PB ratios?
The Price/Earnings (PE) ratio for KEYSIGHT TECHNOLOGIES IN (1KT.DE) is 30.16 and the Price/Book (PB) ratio is 6.28.
Can you provide the financial health for 1KT stock?
The financial health rating of KEYSIGHT TECHNOLOGIES IN (1KT.DE) is 8 / 10.