KEYSIGHT TECHNOLOGIES IN (KEYS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KEYS - US49338L1035 - Common Stock
206.67 USD
-5.65 (-2.66%)
206.5 USD
-0.17 (-0.08%)
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. These ratings would make KEYS suitable 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.
KEYS had positive earnings in each of the past 5 years.
Each year in the past 5 years KEYS had a positive operating cash flow.
1.2 Ratios
KEYS has a Return On Assets of 7.52%. This is amongst the best in the industry. KEYS outperforms 87.90% of its industry peers.
KEYS has a Return On Equity of 14.45%. This is amongst the best in the industry. KEYS outperforms 81.45% of its industry peers.
KEYS's Return On Invested Capital of 7.01% is fine compared to the rest of the industry. KEYS outperforms 70.97% 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 9.00%.
| 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
KEYS has a Profit Margin of 15.81%. This is amongst the best in the industry. KEYS outperforms 94.35% of its industry peers.
In the last couple of years the Profit Margin of KEYS has remained more or less at the same level.
Looking at the Operating Margin, with a value of 16.30%, KEYS belongs to the top of the industry, outperforming 91.13% of the companies in the same industry.
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 (62.08%) is better than 94.35% 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) | 15.81% | ||
| 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
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.
Compared to 1 year ago, KEYS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.90 indicates that KEYS is not in any danger for bankruptcy at the moment.
KEYS has a Altman-Z score of 5.90. This is in the better half of the industry: KEYS outperforms 77.42% of its industry peers.
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 77.42% 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.
The Debt to Equity ratio of KEYS (0.43) is worse than 65.32% of its industry peers.
Even though the debt/equity ratio score it not favorable for KEYS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 5.9 |
ROIC/WACC0.76
WACC9.25%
2.3 Liquidity
KEYS has a Current Ratio of 2.35. This indicates that KEYS is financially healthy and has no problem in meeting its short term obligations.
KEYS's Current ratio of 2.35 is in line compared to the rest of the industry. KEYS outperforms 50.00% of its industry peers.
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.
KEYS has a Quick ratio of 1.78. This is comparable to the rest of the industry: KEYS outperforms 54.03% of its industry peers.
| 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
Based on estimates for the next years, KEYS will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.90% on average per year.
KEYS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.23% yearly.
EPS Next Y15.42%
EPS Next 2Y14.98%
EPS Next 3Y13.43%
EPS Next 5Y12.9%
Revenue Next Year15.75%
Revenue Next 2Y10.99%
Revenue Next 3Y9.19%
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
A Price/Earnings ratio of 28.90 indicates a quite expensive valuation of KEYS.
Based on the Price/Earnings ratio, KEYS is valued a bit cheaper than the industry average as 64.52% of the companies are valued more expensively.
KEYS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.00, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 25.04, which means the current valuation is very expensive for KEYS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KEYS indicates a somewhat cheap valuation: KEYS is cheaper than 61.29% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of KEYS to the average of the S&P500 Index (23.70), we can say KEYS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.9 | ||
| Fwd PE | 25.04 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as KEYS.
Based on the Price/Free Cash Flow ratio, KEYS is valued a bit cheaper than the industry average as 70.97% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.62 | ||
| EV/EBITDA | 32.13 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 13.43% in the coming years.
PEG (NY)1.87
PEG (5Y)3.58
EPS Next 2Y14.98%
EPS Next 3Y13.43%
5. Dividend
5.1 Amount
No dividends for KEYS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
206.67
-5.65 (-2.66%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners91.79%
Inst Owner Change0.01%
Ins Owners0.49%
Ins Owner Change1.78%
Market Cap35.38B
Revenue(TTM)5.38B
Net Income(TTM)850.00M
Analysts79
Price Target221.67 (7.26%)
Short Float %1.78%
Short Ratio2.36
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)12.59%
PT rev (3m)15.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.61%
EPS NY rev (1m)0.28%
EPS NY rev (3m)2.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)12.46%
Revenue NY rev (1m)0.67%
Revenue NY rev (3m)8.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.9 | ||
| Fwd PE | 25.04 | ||
| P/S | 6.58 | ||
| P/FCF | 27.62 | ||
| P/OCF | 25.11 | ||
| P/B | 6.02 | ||
| P/tB | 30.69 | ||
| EV/EBITDA | 32.13 |
EPS(TTM)7.15
EY3.46%
EPS(NY)8.25
Fwd EY3.99%
FCF(TTM)7.48
FCFY3.62%
OCF(TTM)8.23
OCFY3.98%
SpS31.4
BVpS34.35
TBVpS6.73
PEG (NY)1.87
PEG (5Y)3.58
Graham Number74.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.52% | ||
| ROE | 14.45% | ||
| ROCE | 9.27% | ||
| ROIC | 7.01% | ||
| ROICexc | 8.74% | ||
| ROICexgc | 23.25% | ||
| OM | 16.3% | ||
| PM (TTM) | 15.81% | ||
| GM | 62.08% | ||
| FCFM | 23.83% |
ROA(3y)8.77%
ROA(5y)10.34%
ROE(3y)16.4%
ROE(5y)19.97%
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)13.45%
ROCE(5y)15.4%
ROICexgc growth 3Y-12.8%
ROICexgc growth 5Y0.81%
ROICexc growth 3Y-26.14%
ROICexc growth 5Y-7.13%
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%
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 | 150.71% | ||
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.78 | ||
| Altman-Z | 5.9 |
F-Score5
WACC9.25%
ROIC/WACC0.76
Cap/Depr(3y)65.29%
Cap/Depr(5y)67.64%
Cap/Sales(3y)3.02%
Cap/Sales(5y)3.2%
Profit Quality(3y)137.21%
Profit Quality(5y)125.07%
High Growth Momentum
Growth
EPS 1Y (TTM)14.22%
EPS 3Y-2.14%
EPS 5Y8.07%
EPS Q2Q%15.76%
EPS Next Y15.42%
EPS Next 2Y14.98%
EPS Next 3Y13.43%
EPS Next 5Y12.9%
Revenue 1Y (TTM)7.95%
Revenue growth 3Y-0.28%
Revenue growth 5Y4.95%
Sales Q2Q%10.26%
Revenue Next Year15.75%
Revenue Next 2Y10.99%
Revenue Next 3Y9.19%
Revenue Next 5Y6.23%
EBIT growth 1Y5.16%
EBIT growth 3Y-13.08%
EBIT growth 5Y3.63%
EBIT Next Year30.58%
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.
What is the valuation status of KEYSIGHT TECHNOLOGIES IN (KEYS) stock?
ChartMill assigns a valuation rating of 4 / 10 to KEYSIGHT TECHNOLOGIES IN (KEYS). This can be considered as Fairly Valued.
Can you provide the profitability details for KEYSIGHT TECHNOLOGIES IN?
KEYSIGHT TECHNOLOGIES IN (KEYS) has a profitability rating of 8 / 10.
What is the financial health of KEYSIGHT TECHNOLOGIES IN (KEYS) stock?
The financial health rating of KEYSIGHT TECHNOLOGIES IN (KEYS) is 7 / 10.
Can you provide the expected EPS growth for KEYS stock?
The Earnings per Share (EPS) of KEYSIGHT TECHNOLOGIES IN (KEYS) is expected to grow by 15.42% in the next year.