KEYSIGHT TECHNOLOGIES IN (KEYS) Stock Fundamental Analysis
USA - NYSE:KEYS - US49338L1035 - Common Stock
173.1 USD
-1.82 (-1.04%)
173.1 USD
0 (0%)
Overall KEYS gets a fundamental rating of 6 out of 10. We evaluated KEYS against 124 industry peers in the Electronic Equipment, Instruments & Components industry. Both the health and profitability get an excellent rating, making KEYS a very profitable company, without any liquidiy or solvency issues. KEYS has a decent growth rate and is not valued too expensively. With these ratings, KEYS could be worth investigating further 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.
In the past 5 years KEYS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.11%, KEYS is in the better half of the industry, outperforming 71.77% of the companies in the same industry.
KEYS has a Return On Equity of 9.59%. This is in the better half of the industry: KEYS outperforms 73.39% of its industry peers.
KEYS's Return On Invested Capital of 7.28% is fine compared to the rest of the industry. KEYS outperforms 72.58% of its industry peers.
KEYS had an Average Return On Invested Capital over the past 3 years of 12.66%. This is above the industry average of 9.48%.
The last Return On Invested Capital (7.28%) for KEYS is well below the 3 year average (12.66%), which needs to be investigated, but indicates that KEYS had better years and this may not be a problem.
| 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's Profit Margin of 10.38% is amongst the best of the industry. KEYS outperforms 85.48% of its industry peers.
KEYS's Profit Margin has declined in the last couple of years.
KEYS has a Operating Margin of 16.96%. This is amongst the best in the industry. KEYS outperforms 91.13% of its industry peers.
KEYS's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 62.37%, KEYS belongs to the top of the industry, outperforming 94.35% of the companies in the same industry.
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 | 16.96% | ||
| 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.
The number of shares outstanding for KEYS has been reduced compared to 1 year ago.
The number of shares outstanding for KEYS has been reduced compared to 5 years ago.
KEYS has a better debt/assets ratio than last year.
2.2 Solvency
KEYS has an Altman-Z score of 5.71. This indicates that KEYS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of KEYS (5.71) is better than 77.42% of its industry peers.
The Debt to FCF ratio of KEYS is 1.79, which is an excellent value as it means it would take KEYS, only 1.79 years of fcf income to pay off 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 78.23% 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.
The Debt to Equity ratio of KEYS (0.45) is worse than 66.94% 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 | 0.45 | ||
| Debt/FCF | 1.79 | ||
| Altman-Z | 5.71 |
ROIC/WACC0.78
WACC9.38%
2.3 Liquidity
A Current Ratio of 3.59 indicates that KEYS has no problem at all paying 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.
KEYS has a Quick Ratio of 2.94. This indicates that KEYS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.94, KEYS is in the better half of the industry, outperforming 74.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.59 | ||
| Quick Ratio | 2.94 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.39% over the past year.
The Earnings Per Share has been growing slightly by 5.77% on average over the past years.
Looking at the last year, KEYS shows a small growth in Revenue. The Revenue has grown by 4.80% in the last year.
The Revenue has been growing slightly by 2.96% on average over the past years.
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 13.16% yearly.
KEYS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.56% yearly.
EPS Next Y15.21%
EPS Next 2Y13.15%
EPS Next 3Y13.05%
EPS Next 5Y13.16%
Revenue Next Year7.84%
Revenue Next 2Y7.09%
Revenue Next 3Y6.82%
Revenue Next 5Y6.56%
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 25.12.
Based on the Price/Earnings ratio, KEYS is valued a bit cheaper than the industry average as 73.39% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.79, KEYS is valued at the same level.
KEYS is valuated rather expensively with a Price/Forward Earnings ratio of 21.60.
KEYS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KEYS is cheaper than 69.35% of the companies in the same industry.
KEYS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.12 | ||
| Fwd PE | 21.6 |
4.2 Price Multiples
KEYS's Enterprise Value to EBITDA ratio is in line with the industry average.
KEYS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KEYS is cheaper than 80.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.02 | ||
| EV/EBITDA | 25.6 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 13.05% in the coming years.
PEG (NY)1.65
PEG (5Y)4.36
EPS Next 2Y13.15%
EPS Next 3Y13.05%
5. Dividend
5.1 Amount
No dividends for KEYS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
173.1
-1.82 (-1.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners90.93%
Inst Owner Change-13.38%
Ins Owners0.5%
Ins Owner Change0.72%
Market Cap29.75B
Analysts81.11
Price Target191.48 (10.62%)
Short Float %1.73%
Short Ratio3.02
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)0.08%
PT rev (3m)0.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.44%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.12 | ||
| Fwd PE | 21.6 | ||
| P/S | 5.67 | ||
| P/FCF | 21.02 | ||
| P/OCF | 19.28 | ||
| P/B | 5.25 | ||
| P/tB | 10.95 | ||
| EV/EBITDA | 25.6 |
EPS(TTM)6.89
EY3.98%
EPS(NY)8.01
Fwd EY4.63%
FCF(TTM)8.23
FCFY4.76%
OCF(TTM)8.98
OCFY5.19%
SpS30.51
BVpS32.99
TBVpS15.81
PEG (NY)1.65
PEG (5Y)4.36
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 | 5.71 |
F-Score5
WACC9.38%
ROIC/WACC0.78
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 Y15.21%
EPS Next 2Y13.15%
EPS Next 3Y13.05%
EPS Next 5Y13.16%
Revenue 1Y (TTM)4.8%
Revenue growth 3Y0.26%
Revenue growth 5Y2.96%
Sales Q2Q%11.09%
Revenue Next Year7.84%
Revenue Next 2Y7.09%
Revenue Next 3Y6.82%
Revenue Next 5Y6.56%
EBIT growth 1Y-3.37%
EBIT growth 3Y-8.29%
EBIT growth 5Y3.22%
EBIT Next Year22.8%
EBIT Next 3Y12.68%
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%