KEYSIGHT TECHNOLOGIES IN (KEYS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KEYS - US49338L1035 - Common Stock
196.19 USD
+0.73 (+0.37%)
196 USD
-0.19 (-0.1%)
We assign a fundamental rating of 6 out of 10 to KEYS. KEYS was compared to 123 industry peers in the Electronic Equipment, Instruments & Components industry. KEYS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. KEYS has a decent growth rate and is not valued too expensively. 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.
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
KEYS has a better Return On Assets (7.49%) than 86.18% of its industry peers.
Looking at the Return On Equity, with a value of 14.40%, KEYS belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.02%, KEYS is doing good in the industry, outperforming 70.73% of the companies in the same industry.
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 9.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.49% | ||
| ROE | 14.4% | ||
| ROIC | 7.02% |
ROA(3y)8.76%
ROA(5y)10.33%
ROE(3y)16.38%
ROE(5y)19.95%
ROIC(3y)10.18%
ROIC(5y)11.65%
1.3 Margins
KEYS has a Profit Margin of 15.74%. This is amongst the best in the industry. KEYS outperforms 92.68% of its industry peers.
In the last couple of years the Profit Margin of KEYS has remained more or less at the same level.
KEYS has a Operating Margin of 16.30%. This is amongst the best in the industry. KEYS outperforms 91.06% of its industry peers.
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 62.08%. This is amongst the best in the industry. KEYS outperforms 94.31% 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) | 15.74% | ||
| GM | 62.08% |
OM growth 3Y-12.84%
OM growth 5Y-1.26%
PM growth 3Y-8.78%
PM growth 5Y1.16%
GM growth 3Y-0.83%
GM growth 5Y0.68%
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 a worse debt to assets ratio.
2.2 Solvency
KEYS has an Altman-Z score of 5.61. This indicates that KEYS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.61, KEYS is in the better half of the industry, outperforming 79.67% of the companies in the same industry.
The Debt to FCF ratio of KEYS is 1.98, which is an excellent value as it means it would take KEYS, only 1.98 years of fcf income to pay off all of its debts.
KEYS has a better Debt to FCF ratio (1.98) than 77.24% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that KEYS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.43, KEYS is doing worse than 66.67% of the companies in the same industry.
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 | 0.43 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 5.61 |
ROIC/WACC0.77
WACC9.08%
2.3 Liquidity
A Current Ratio of 2.35 indicates that KEYS has no problem at all paying its short term obligations.
KEYS has a Current ratio (2.35) which is comparable to the rest of the industry.
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 (1.78) which is comparable to the rest of the industry.
| 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.
The Earnings Per Share has been growing by 8.07% on average over the past years. This is quite good.
Looking at the last year, KEYS shows a small growth in Revenue. The Revenue has grown by 7.95% in the last year.
The Revenue has been growing slightly by 4.95% on average over the past years.
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
The Earnings Per Share is expected to grow by 12.90% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.24% on average over the next years.
EPS Next Y12.09%
EPS Next 2Y12.47%
EPS Next 3Y11.78%
EPS Next 5Y12.9%
Revenue Next Year6.33%
Revenue Next 2Y6.32%
Revenue Next 3Y7.4%
Revenue Next 5Y6.24%
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
A Price/Earnings ratio of 27.44 indicates a quite expensive valuation of KEYS.
Based on the Price/Earnings ratio, KEYS is valued a bit cheaper than 65.04% of the companies in the same industry.
KEYS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 24.48, the valuation of KEYS can be described as rather expensive.
KEYS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KEYS is cheaper than 60.98% of the companies in the same industry.
KEYS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.44 | ||
| Fwd PE | 24.48 |
4.2 Price Multiples
KEYS's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, KEYS is valued a bit cheaper than the industry average as 73.98% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.32 | ||
| EV/EBITDA | 29.84 |
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.
PEG (NY)2.27
PEG (5Y)3.4
EPS Next 2Y12.47%
EPS Next 3Y11.78%
5. Dividend
5.1 Amount
No dividends for KEYS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
196.19
+0.73 (+0.37%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners90.93%
Inst Owner Change13.85%
Ins Owners0.5%
Ins Owner Change3.01%
Market Cap33.72B
Revenue(TTM)5.38B
Net Income(TTM)846.00M
Analysts78.95
Price Target196.88 (0.35%)
Short Float %2.23%
Short Ratio3.38
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)1.55%
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)2.82%
PT rev (3m)2.9%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)1.08%
EPS NY rev (1m)0%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)1.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.44 | ||
| Fwd PE | 24.48 | ||
| P/S | 6.27 | ||
| P/FCF | 26.32 | ||
| P/OCF | 23.93 | ||
| P/B | 5.74 | ||
| P/tB | 29.14 | ||
| EV/EBITDA | 29.84 |
EPS(TTM)7.15
EY3.64%
EPS(NY)8.01
Fwd EY4.09%
FCF(TTM)7.45
FCFY3.8%
OCF(TTM)8.2
OCFY4.18%
SpS31.28
BVpS34.2
TBVpS6.73
PEG (NY)2.27
PEG (5Y)3.4
Graham Number74.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.49% | ||
| ROE | 14.4% | ||
| ROCE | 9.28% | ||
| ROIC | 7.02% | ||
| ROICexc | 8.75% | ||
| ROICexgc | 23.25% | ||
| OM | 16.3% | ||
| PM (TTM) | 15.74% | ||
| GM | 62.08% | ||
| FCFM | 23.83% |
ROA(3y)8.76%
ROA(5y)10.33%
ROE(3y)16.38%
ROE(5y)19.95%
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)13.46%
ROCE(5y)15.4%
ROICexgc growth 3Y-12.8%
ROICexgc growth 5Y0.81%
ROICexc growth 3Y-26.12%
ROICexc growth 5Y-7.11%
OM growth 3Y-12.84%
OM growth 5Y-1.26%
PM growth 3Y-8.78%
PM growth 5Y1.16%
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 | 151.42% | ||
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.78 | ||
| Altman-Z | 5.61 |
F-Score5
WACC9.08%
ROIC/WACC0.77
Cap/Depr(3y)65.29%
Cap/Depr(5y)67.64%
Cap/Sales(3y)3.02%
Cap/Sales(5y)3.2%
Profit Quality(3y)137.45%
Profit Quality(5y)125.21%
High Growth Momentum
Growth
EPS 1Y (TTM)14.22%
EPS 3Y-2.14%
EPS 5Y8.07%
EPS Q2Q%15.76%
EPS Next Y12.09%
EPS Next 2Y12.47%
EPS Next 3Y11.78%
EPS Next 5Y12.9%
Revenue 1Y (TTM)7.95%
Revenue growth 3Y-0.28%
Revenue growth 5Y4.95%
Sales Q2Q%10.26%
Revenue Next Year6.33%
Revenue Next 2Y6.32%
Revenue Next 3Y7.4%
Revenue Next 5Y6.24%
EBIT growth 1Y5.16%
EBIT growth 3Y-13.08%
EBIT growth 5Y3.63%
EBIT Next Year23.56%
EBIT Next 3Y14.31%
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.
Can you provide the valuation status for KEYSIGHT TECHNOLOGIES IN?
ChartMill assigns a valuation rating of 4 / 10 to KEYSIGHT TECHNOLOGIES IN (KEYS). This can be considered as Fairly Valued.
What is the profitability of KEYS stock?
KEYSIGHT TECHNOLOGIES IN (KEYS) has a profitability rating of 8 / 10.
How financially healthy is KEYSIGHT TECHNOLOGIES IN?
The financial health rating of KEYSIGHT TECHNOLOGIES IN (KEYS) is 7 / 10.