KEYSIGHT TECHNOLOGIES IN (KEYS) Stock Fundamental Analysis
NYSE:KEYS - New York Stock Exchange, Inc. - US49338L1035 - Common Stock - Currency: USD
KEYS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
KEYS had positive earnings in the past year.
In the past year KEYS had a positive cash flow from operations.
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
KEYS has a Return On Assets of 7.03%. This is amongst the best in the industry. KEYS outperforms 85.48% of its industry peers.
KEYS has a Return On Equity of 13.55%. This is amongst the best in the industry. KEYS outperforms 83.06% of its industry peers.
The Return On Invested Capital of KEYS (7.18%) is better than 71.77% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KEYS is above the industry average of 9.31%.
The last Return On Invested Capital (7.18%) 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 | 7.03% | ||
| ROE | 13.55% | ||
| ROIC | 7.18% |
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 14.53% is amongst the best of the industry. KEYS outperforms 90.32% of its industry peers.
In the last couple of years the Profit Margin of KEYS has declined.
With an excellent Operating Margin value of 16.84%, KEYS belongs to the best of the industry, outperforming 92.74% 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.
KEYS has a Gross Margin of 62.47%. This is amongst the best in the industry. KEYS outperforms 94.35% of its industry peers.
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 | 16.84% | ||
| PM (TTM) | 14.53% | ||
| GM | 62.47% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KEYS is creating some value.
KEYS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, KEYS has less shares outstanding
The debt/assets ratio for KEYS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.41 indicates that KEYS is not in any danger for bankruptcy at the moment.
The Altman-Z score of KEYS (5.41) is better than 79.03% of its industry peers.
KEYS has a debt to FCF ratio of 1.88. This is a very positive value and a sign of high solvency as it would only need 1.88 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.88, KEYS is in the better half of the industry, outperforming 79.03% of the companies in the same industry.
A Debt/Equity ratio of 0.46 indicates that KEYS is not too dependend on debt financing.
KEYS's Debt to Equity ratio of 0.46 is on the low side compared to the rest of the industry. KEYS is outperformed by 70.16% 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 | 0.46 | ||
| Debt/FCF | 1.88 | ||
| Altman-Z | 5.41 |
ROIC/WACC0.77
WACC9.28%
2.3 Liquidity
A Current Ratio of 3.37 indicates that KEYS has no problem at all paying its short term obligations.
KEYS has a better Current ratio (3.37) than 70.16% of its industry peers.
KEYS has a Quick Ratio of 2.74. This indicates that KEYS is financially healthy and has no problem in meeting its short term obligations.
KEYS has a better Quick ratio (2.74) than 69.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.37 | ||
| Quick Ratio | 2.74 |
3. Growth
3.1 Past
The earnings per share for KEYS have decreased by -6.65% in the last year.
Measured over the past 5 years, KEYS shows a small growth in Earnings Per Share. The EPS has been growing by 5.77% on average per year.
Looking at the last year, KEYS shows a decrease in Revenue. The Revenue has decreased by -1.16% in the last 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)-6.65%
EPS 3Y0.16%
EPS 5Y5.77%
EPS Q2Q%20.57%
Revenue 1Y (TTM)-1.16%
Revenue growth 3Y0.26%
Revenue growth 5Y2.96%
Sales Q2Q%8.22%
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 Y14.23%
EPS Next 2Y13.6%
EPS Next 3Y13.62%
EPS Next 5Y14.62%
Revenue Next Year6.93%
Revenue Next 2Y6.81%
Revenue Next 3Y6.44%
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
The Price/Earnings ratio is 23.54, which indicates a rather expensive current valuation of KEYS.
KEYS's Price/Earnings ratio is a bit cheaper when compared to the industry. KEYS is cheaper than 71.77% of the companies in the same industry.
When comparing the Price/Earnings ratio of KEYS to the average of the S&P500 Index (26.82), we can say KEYS is valued inline with the index average.
With a Price/Forward Earnings ratio of 19.64, KEYS is valued on the expensive side.
Based on the Price/Forward Earnings ratio, KEYS is valued a bit cheaper than 71.77% of the companies in the same industry.
KEYS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.54 | ||
| Fwd PE | 19.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KEYS is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KEYS indicates a rather cheap valuation: KEYS is cheaper than 80.65% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.29 | ||
| EV/EBITDA | 24.53 |
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 13.62% in the coming years.
PEG (NY)1.65
PEG (5Y)4.08
EPS Next 2Y13.6%
EPS Next 3Y13.62%
5. Dividend
5.1 Amount
No dividends for KEYS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
158.68
-5.23 (-3.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners91.23%
Inst Owner Change-0.96%
Ins Owners0.51%
Ins Owner Change1.4%
Market Cap27.31B
Analysts80
Price Target190.16 (19.84%)
Short Float %1.8%
Short Ratio3.45
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)3.44%
Min EPS beat(2)1.26%
Max EPS beat(2)5.63%
EPS beat(4)4
Avg EPS beat(4)6%
Min EPS beat(4)1.26%
Max EPS beat(4)14.1%
EPS beat(8)7
Avg EPS beat(8)4.27%
EPS beat(12)11
Avg EPS beat(12)5.29%
EPS beat(16)15
Avg EPS beat(16)5.51%
Revenue beat(2)1
Avg Revenue beat(2)0.15%
Min Revenue beat(2)-0.31%
Max Revenue beat(2)0.61%
Revenue beat(4)2
Avg Revenue beat(4)0.11%
Min Revenue beat(4)-0.31%
Max Revenue beat(4)0.61%
Revenue beat(8)2
Avg Revenue beat(8)-0.62%
Revenue beat(12)5
Avg Revenue beat(12)-0.35%
Revenue beat(16)7
Avg Revenue beat(16)-0.25%
PT rev (1m)0%
PT rev (3m)2.64%
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 | 23.54 | ||
| Fwd PE | 19.64 | ||
| P/S | 5.35 | ||
| P/FCF | 20.29 | ||
| P/OCF | 18.5 | ||
| P/B | 4.99 | ||
| P/tB | 10.98 | ||
| EV/EBITDA | 24.53 |
EPS(TTM)6.74
EY4.25%
EPS(NY)8.08
Fwd EY5.09%
FCF(TTM)7.82
FCFY4.93%
OCF(TTM)8.58
OCFY5.4%
SpS29.68
BVpS31.82
TBVpS14.46
PEG (NY)1.65
PEG (5Y)4.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.03% | ||
| ROE | 13.55% | ||
| ROCE | 9.64% | ||
| ROIC | 7.18% | ||
| ROICexc | 11.03% | ||
| ROICexgc | 22.75% | ||
| OM | 16.84% | ||
| PM (TTM) | 14.53% | ||
| GM | 62.47% | ||
| FCFM | 26.35% |
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 Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.88 | ||
| Debt/EBITDA | 2.25 | ||
| Cap/Depr | 48.87% | ||
| Cap/Sales | 2.55% | ||
| Interest Coverage | 11.32 | ||
| Cash Conversion | 131.08% | ||
| Profit Quality | 181.4% | ||
| Current Ratio | 3.37 | ||
| Quick Ratio | 2.74 | ||
| Altman-Z | 5.41 |
F-Score5
WACC9.28%
ROIC/WACC0.77
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)-6.65%
EPS 3Y0.16%
EPS 5Y5.77%
EPS Q2Q%20.57%
EPS Next Y14.23%
EPS Next 2Y13.6%
EPS Next 3Y13.62%
EPS Next 5Y14.62%
Revenue 1Y (TTM)-1.16%
Revenue growth 3Y0.26%
Revenue growth 5Y2.96%
Sales Q2Q%8.22%
Revenue Next Year6.93%
Revenue Next 2Y6.81%
Revenue Next 3Y6.44%
Revenue Next 5Y6.32%
EBIT growth 1Y-20.37%
EBIT growth 3Y-8.29%
EBIT growth 5Y3.22%
EBIT Next Year21.37%
EBIT Next 3Y14.78%
EBIT Next 5YN/A
FCF growth 1Y11.42%
FCF growth 3Y-7.86%
FCF growth 5Y0.45%
OCF growth 1Y4.61%
OCF growth 3Y-7.33%
OCF growth 5Y1.06%