KEYSIGHT TECHNOLOGIES IN (KEYS) Stock Fundamental Analysis
NYSE:KEYS - New York Stock Exchange, Inc. - US49338L1035 - Common Stock - Currency: USD
Overall KEYS gets a fundamental rating of 6 out of 10. We evaluated KEYS against 125 industry peers in the Electronic Equipment, Instruments & Components industry. KEYS gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
KEYS had positive earnings in each of the past 5 years.
In the past 5 years KEYS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of KEYS (6.51%) is better than 80.80% of its industry peers.
With an excellent Return On Equity value of 11.78%, KEYS belongs to the best of the industry, outperforming 82.40% of the companies in the same industry.
KEYS's Return On Invested Capital of 7.84% is fine compared to the rest of the industry. KEYS outperforms 77.60% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KEYS is above the industry average of 9.30%.
The last Return On Invested Capital (7.84%) 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 | 6.51% | ||
| ROE | 11.78% | ||
| ROIC | 7.84% |
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 better Profit Margin (12.18%) than 88.00% of its industry peers.
In the last couple of years the Profit Margin of KEYS has declined.
With an excellent Operating Margin value of 16.54%, KEYS belongs to the best of the industry, outperforming 91.20% of the companies in the same industry.
KEYS's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 62.57%, KEYS belongs to the best of the industry, outperforming 96.00% 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 | 16.54% | ||
| PM (TTM) | 12.18% | ||
| GM | 62.57% |
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.
Compared to 1 year ago, KEYS has less shares outstanding
KEYS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, KEYS has an improved debt to assets ratio.
2.2 Solvency
KEYS has an Altman-Z score of 5.75. This indicates that KEYS is financially healthy and has little risk of bankruptcy at the moment.
KEYS's Altman-Z score of 5.75 is amongst the best of the industry. KEYS outperforms 81.60% of its industry peers.
KEYS has a debt to FCF ratio of 1.86. This is a very positive value and a sign of high solvency as it would only need 1.86 years to pay back of all of its debts.
The Debt to FCF ratio of KEYS (1.86) is better than 77.60% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that KEYS is not too dependend on debt financing.
KEYS's Debt to Equity ratio of 0.35 is on the low side compared to the rest of the industry. KEYS is outperformed by 62.40% 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 | 0.35 | ||
| Debt/FCF | 1.86 | ||
| Altman-Z | 5.75 |
ROIC/WACC0.93
WACC8.45%
2.3 Liquidity
KEYS has a Current Ratio of 2.95. This indicates that KEYS is financially healthy and has no problem in meeting its short term obligations.
KEYS's Current ratio of 2.95 is fine compared to the rest of the industry. KEYS outperforms 66.40% of its industry peers.
A Quick Ratio of 2.26 indicates that KEYS has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.26, KEYS is in the better half of the industry, outperforming 66.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.95 | ||
| Quick Ratio | 2.26 |
3. Growth
3.1 Past
The earnings per share for KEYS have decreased strongly by -18.66% 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.
The Revenue has decreased by -6.07% in the past year.
The Revenue has been growing slightly by 2.96% on average over the past years.
EPS 1Y (TTM)-18.66%
EPS 3Y0.16%
EPS 5Y5.77%
EPS Q2Q%11.66%
Revenue 1Y (TTM)-6.07%
Revenue growth 3Y0.26%
Revenue growth 5Y2.96%
Sales Q2Q%3.1%
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 14.67% on average per year.
Based on estimates for the next years, KEYS will show a small growth in Revenue. The Revenue will grow by 6.41% on average per year.
EPS Next Y14.3%
EPS Next 2Y13.74%
EPS Next 3Y13.97%
EPS Next 5Y14.67%
Revenue Next Year5.92%
Revenue Next 2Y6.07%
Revenue Next 3Y6.18%
Revenue Next 5Y6.41%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 22.56, which indicates a rather expensive current valuation of KEYS.
63.20% of the companies in the same industry are more expensive than KEYS, based on the Price/Earnings ratio.
KEYS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.85.
A Price/Forward Earnings ratio of 17.97 indicates a rather expensive valuation of KEYS.
66.40% of the companies in the same industry are more expensive than KEYS, based on the Price/Forward Earnings ratio.
KEYS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.56 | ||
| Fwd PE | 17.97 |
4.2 Price Multiples
KEYS's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KEYS indicates a somewhat cheap valuation: KEYS is cheaper than 67.20% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.12 | ||
| EV/EBITDA | 22.64 |
4.3 Compensation for Growth
KEYS's 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 13.97% in the coming years.
PEG (NY)1.58
PEG (5Y)3.91
EPS Next 2Y13.74%
EPS Next 3Y13.97%
5. Dividend
5.1 Amount
No dividends for KEYS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
145.54
+0.14 (+0.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners93.05%
Inst Owner Change0.69%
Ins Owners0.62%
Ins Owner Change1.35%
Market Cap25.15B
Analysts80
Price Target185.28 (27.31%)
Short Float %1.12%
Short Ratio1.65
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)4.33%
Min EPS beat(2)3.03%
Max EPS beat(2)5.63%
EPS beat(4)3
Avg EPS beat(4)5.63%
Min EPS beat(4)-0.22%
Max EPS beat(4)14.1%
EPS beat(8)7
Avg EPS beat(8)4.94%
EPS beat(12)11
Avg EPS beat(12)5.78%
EPS beat(16)15
Avg EPS beat(16)5.77%
Revenue beat(2)1
Avg Revenue beat(2)-0.04%
Min Revenue beat(2)-0.31%
Max Revenue beat(2)0.23%
Revenue beat(4)1
Avg Revenue beat(4)-0.26%
Min Revenue beat(4)-0.9%
Max Revenue beat(4)0.23%
Revenue beat(8)2
Avg Revenue beat(8)-0.62%
Revenue beat(12)5
Avg Revenue beat(12)-0.26%
Revenue beat(16)6
Avg Revenue beat(16)-0.34%
PT rev (1m)-2.95%
PT rev (3m)-0.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.56%
EPS NY rev (1m)-0.41%
EPS NY rev (3m)1.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.69%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.56 | ||
| Fwd PE | 17.97 | ||
| P/S | 5.01 | ||
| P/FCF | 26.12 | ||
| P/OCF | 22.82 | ||
| P/B | 4.85 | ||
| P/tB | 11.05 | ||
| EV/EBITDA | 22.64 |
EPS(TTM)6.45
EY4.43%
EPS(NY)8.1
Fwd EY5.56%
FCF(TTM)5.57
FCFY3.83%
OCF(TTM)6.38
OCFY4.38%
SpS29.04
BVpS30.02
TBVpS13.18
PEG (NY)1.58
PEG (5Y)3.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.51% | ||
| ROE | 11.78% | ||
| ROCE | 10.54% | ||
| ROIC | 7.84% | ||
| ROICexc | 10.62% | ||
| ROICexgc | 21.25% | ||
| OM | 16.54% | ||
| PM (TTM) | 12.18% | ||
| GM | 62.57% | ||
| FCFM | 19.19% |
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 Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.86 | ||
| Debt/EBITDA | 1.63 | ||
| Cap/Depr | 51.87% | ||
| Cap/Sales | 2.77% | ||
| Interest Coverage | 11.07 | ||
| Cash Conversion | 100.36% | ||
| Profit Quality | 157.61% | ||
| Current Ratio | 2.95 | ||
| Quick Ratio | 2.26 | ||
| Altman-Z | 5.75 |
F-Score5
WACC8.45%
ROIC/WACC0.93
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)-18.66%
EPS 3Y0.16%
EPS 5Y5.77%
EPS Q2Q%11.66%
EPS Next Y14.3%
EPS Next 2Y13.74%
EPS Next 3Y13.97%
EPS Next 5Y14.67%
Revenue 1Y (TTM)-6.07%
Revenue growth 3Y0.26%
Revenue growth 5Y2.96%
Sales Q2Q%3.1%
Revenue Next Year5.92%
Revenue Next 2Y6.07%
Revenue Next 3Y6.18%
Revenue Next 5Y6.41%
EBIT growth 1Y-33.97%
EBIT growth 3Y-8.29%
EBIT growth 5Y3.22%
EBIT Next Year21.84%
EBIT Next 3Y15.54%
EBIT Next 5YN/A
FCF growth 1Y-11.08%
FCF growth 3Y-7.86%
FCF growth 5Y0.45%
OCF growth 1Y-14.31%
OCF growth 3Y-7.33%
OCF growth 5Y1.06%