KEYSIGHT TECHNOLOGIES IN (KEYS) Stock Fundamental Analysis
NYSE:KEYS - US49338L1035 - Common Stock
160.59 USD
+2.08 (+1.31%)
160.59 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to KEYS. KEYS was compared to 124 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. This makes KEYS very considerable for quality investing!
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.
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 5.11%. This is in the better half of the industry: KEYS outperforms 72.58% of its industry peers.
KEYS's Return On Equity of 9.59% is fine compared to the rest of the industry. KEYS outperforms 75.00% of its industry peers.
KEYS's Return On Invested Capital of 7.28% is fine compared to the rest of the industry. KEYS outperforms 73.39% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KEYS is above the industry average of 9.67%.
The 3 year average ROIC (12.66%) for KEYS is well above the current ROIC(7.28%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.11% | ||
| ROE | 9.59% | ||
| ROIC | 7.28% |
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 10.38%. This is amongst the best in the industry. KEYS outperforms 86.29% of its industry peers.
KEYS's Profit Margin has declined in the last couple of years.
The Operating Margin of KEYS (16.96%) is better than 91.94% of its industry peers.
In the last couple of years the Operating Margin of KEYS has remained more or less at the same level.
The Gross Margin of KEYS (62.37%) is better than 93.55% of its industry peers.
KEYS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.96% | ||
| PM (TTM) | 10.38% | ||
| GM | 62.37% |
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.
Compared to 1 year ago, KEYS has less shares outstanding
The number of shares outstanding for KEYS has been reduced compared to 5 years ago.
The debt/assets ratio for KEYS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.45 indicates that KEYS is not in any danger for bankruptcy at the moment.
KEYS has a better Altman-Z score (5.45) than 79.03% of its industry peers.
KEYS has a debt to FCF ratio of 1.79. This is a very positive value and a sign of high solvency as it would only need 1.79 years to pay back of all of its debts.
KEYS has a Debt to FCF ratio of 1.79. This is in the better half of the industry: KEYS outperforms 79.03% of its industry peers.
KEYS has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.45, KEYS is not doing good in the industry: 64.52% 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 | 0.45 | ||
| Debt/FCF | 1.79 | ||
| Altman-Z | 5.45 |
ROIC/WACC0.79
WACC9.27%
2.3 Liquidity
KEYS has a Current Ratio of 3.59. This indicates that KEYS is financially healthy and has no problem in meeting its short term obligations.
KEYS's Current ratio of 3.59 is fine compared to the rest of the industry. KEYS outperforms 72.58% of its industry peers.
A Quick Ratio of 2.94 indicates that KEYS has no problem at all paying its short term obligations.
KEYS's Quick ratio of 2.94 is fine compared to the rest of the industry. KEYS outperforms 74.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.59 | ||
| Quick Ratio | 2.94 |
3. Growth
3.1 Past
KEYS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.39%.
The Earnings Per Share has been growing slightly by 5.77% on average over the past years.
The Revenue has been growing slightly by 4.80% in the past year.
Measured over the past years, KEYS shows a small growth in Revenue. The Revenue has been growing by 2.96% on average per year.
EPS 1Y (TTM)4.39%
EPS 3Y0.16%
EPS 5Y5.77%
EPS Q2Q%9.55%
Revenue 1Y (TTM)4.8%
Revenue growth 3Y0.26%
Revenue growth 5Y2.96%
Sales Q2Q%11.09%
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.
The Revenue is expected to grow by 6.32% on average over the next years.
EPS Next Y15.2%
EPS Next 2Y13.2%
EPS Next 3Y13.18%
EPS Next 5Y14.62%
Revenue Next Year7.7%
Revenue Next 2Y7.04%
Revenue Next 3Y6.75%
Revenue Next 5Y6.32%
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.
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
A Price/Earnings ratio of 23.31 indicates a rather expensive valuation of KEYS.
Based on the Price/Earnings ratio, KEYS is valued a bit cheaper than the industry average as 72.58% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.76. KEYS is around the same levels.
The Price/Forward Earnings ratio is 20.02, which indicates a rather expensive current valuation of KEYS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KEYS indicates a somewhat cheap valuation: KEYS is cheaper than 69.35% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.91. KEYS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.31 | ||
| Fwd PE | 20.02 |
4.2 Price Multiples
KEYS's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, KEYS is valued cheaper than 82.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.53 | ||
| EV/EBITDA | 23.78 |
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.
A more expensive valuation may be justified as KEYS's earnings are expected to grow with 13.18% in the coming years.
PEG (NY)1.53
PEG (5Y)4.04
EPS Next 2Y13.2%
EPS Next 3Y13.18%
5. Dividend
5.1 Amount
No dividends for KEYS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
160.59
+2.08 (+1.31%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners90.3%
Inst Owner Change-13.39%
Ins Owners0.5%
Ins Owner Change1.31%
Market Cap27.64B
Analysts81.05
Price Target191.33 (19.14%)
Short Float %1.85%
Short Ratio3.87
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)1.09%
Min EPS beat(2)0.93%
Max EPS beat(2)1.26%
EPS beat(4)4
Avg EPS beat(4)2.71%
Min EPS beat(4)0.93%
Max EPS beat(4)5.63%
EPS beat(8)7
Avg EPS beat(8)3.72%
EPS beat(12)11
Avg EPS beat(12)4.5%
EPS beat(16)15
Avg EPS beat(16)5.27%
Revenue beat(2)2
Avg Revenue beat(2)0.6%
Min Revenue beat(2)0.6%
Max Revenue beat(2)0.61%
Revenue beat(4)3
Avg Revenue beat(4)0.28%
Min Revenue beat(4)-0.31%
Max Revenue beat(4)0.61%
Revenue beat(8)3
Avg Revenue beat(8)-0.29%
Revenue beat(12)5
Avg Revenue beat(12)-0.32%
Revenue beat(16)7
Avg Revenue beat(16)-0.21%
PT rev (1m)0.29%
PT rev (3m)2.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.45%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.98%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.31 | ||
| Fwd PE | 20.02 | ||
| P/S | 5.27 | ||
| P/FCF | 19.53 | ||
| P/OCF | 17.91 | ||
| P/B | 4.87 | ||
| P/tB | 10.17 | ||
| EV/EBITDA | 23.78 |
EPS(TTM)6.89
EY4.29%
EPS(NY)8.02
Fwd EY5%
FCF(TTM)8.22
FCFY5.12%
OCF(TTM)8.97
OCFY5.58%
SpS30.46
BVpS32.94
TBVpS15.79
PEG (NY)1.53
PEG (5Y)4.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.11% | ||
| ROE | 9.59% | ||
| ROCE | 9.78% | ||
| ROIC | 7.28% | ||
| ROICexc | 10.25% | ||
| ROICexgc | 18.9% | ||
| OM | 16.96% | ||
| PM (TTM) | 10.38% | ||
| GM | 62.37% | ||
| FCFM | 26.99% |
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 Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 1.79 | ||
| Debt/EBITDA | 2.19 | ||
| Cap/Depr | 47.58% | ||
| Cap/Sales | 2.44% | ||
| Interest Coverage | 11.7 | ||
| Cash Conversion | 133.25% | ||
| Profit Quality | 260.11% | ||
| Current Ratio | 3.59 | ||
| Quick Ratio | 2.94 | ||
| Altman-Z | 5.45 |
F-Score5
WACC9.27%
ROIC/WACC0.79
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)4.39%
EPS 3Y0.16%
EPS 5Y5.77%
EPS Q2Q%9.55%
EPS Next Y15.2%
EPS Next 2Y13.2%
EPS Next 3Y13.18%
EPS Next 5Y14.62%
Revenue 1Y (TTM)4.8%
Revenue growth 3Y0.26%
Revenue growth 5Y2.96%
Sales Q2Q%11.09%
Revenue Next Year7.7%
Revenue Next 2Y7.04%
Revenue Next 3Y6.75%
Revenue Next 5Y6.32%
EBIT growth 1Y-3.37%
EBIT growth 3Y-8.29%
EBIT growth 5Y3.22%
EBIT Next Year21.37%
EBIT Next 3Y14.78%
EBIT Next 5YN/A
FCF growth 1Y16.75%
FCF growth 3Y-7.86%
FCF growth 5Y0.45%
OCF growth 1Y8.05%
OCF growth 3Y-7.33%
OCF growth 5Y1.06%