KEYSIGHT TECHNOLOGIES IN (KEYS)
US49338L1035 - Common Stock
Taking everything into account, KEYS scores 6 out of 10 in our fundamental rating. KEYS was compared to 127 industry peers in the Electronic Equipment, Instruments & Components industry. KEYS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. KEYS has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year KEYS was profitable.
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
Looking at the Return On Assets, with a value of 10.70%, KEYS belongs to the top of the industry, outperforming 91.27% of the companies in the same industry.
KEYS has a Return On Equity of 20.12%. This is amongst the best in the industry. KEYS outperforms 90.48% of its industry peers.
The Return On Invested Capital of KEYS (14.97%) is better than 90.48% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KEYS is significantly above the industry average of 9.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.7% | ||
| ROE | 20.12% | ||
| ROIC | 14.97% |
ROA(3y)12.51%
ROA(5y)11.12%
ROE(3y)24.45%
ROE(5y)22.61%
ROIC(3y)15.74%
ROIC(5y)13.51%
1.3 Margins
The Profit Margin of KEYS (18.14%) is better than 96.83% of its industry peers.
KEYS's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 23.53%, KEYS belongs to the best of the industry, outperforming 99.21% of the companies in the same industry.
In the last couple of years the Operating Margin of KEYS has grown nicely.
The Gross Margin of KEYS (64.81%) is better than 97.62% of its industry peers.
KEYS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.53% | ||
| PM (TTM) | 18.14% | ||
| GM | 64.81% |
OM growth 3Y12.69%
OM growth 5Y25.07%
PM growth 3Y9.2%
PM growth 5Y35.37%
GM growth 3Y2.51%
GM growth 5Y3.5%
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.
KEYS has a better debt/assets ratio than last year.
2.2 Solvency
KEYS has an Altman-Z score of 5.88. This indicates that KEYS is financially healthy and has little risk of bankruptcy at the moment.
KEYS's Altman-Z score of 5.88 is amongst the best of the industry. KEYS outperforms 80.16% of its industry peers.
KEYS has a debt to FCF ratio of 1.53. This is a very positive value and a sign of high solvency as it would only need 1.53 years to pay back of all of its debts.
KEYS has a better Debt to FCF ratio (1.53) than 75.40% of its industry peers.
KEYS has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.25, KEYS is in line with its industry, outperforming 43.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | 5.88 |
ROIC/WACC1.65
WACC9.09%
2.3 Liquidity
A Current Ratio of 1.93 indicates that KEYS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.93, KEYS is doing worse than 65.08% of the companies in the same industry.
A Quick Ratio of 1.44 indicates that KEYS should not have too much problems paying its short term obligations.
KEYS has a Quick ratio (1.44) which is in line with its industry peers.
The current and quick ratio evaluation for KEYS is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
KEYS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.87%.
Measured over the past years, KEYS shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.76% on average per year.
Looking at the last year, KEYS shows a decrease in Revenue. The Revenue has decreased by -3.77% in the last year.
Measured over the past years, KEYS shows a small growth in Revenue. The Revenue has been growing by 7.10% on average per year.
EPS 1Y (TTM)-0.87%
EPS 3Y19.71%
EPS 5Y20.76%
EPS growth Q2Q-19.31%
Revenue 1Y (TTM)-3.77%
Revenue growth 3Y8.98%
Revenue growth 5Y7.1%
Revenue growth Q2Q-8.83%
3.2 Future
KEYS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.01% yearly.
KEYS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.64% yearly.
EPS Next Y-24.38%
EPS Next 2Y-5.05%
EPS Next 3Y2.84%
EPS Next 5Y6.01%
Revenue Next Year-8.83%
Revenue Next 2Y-1.04%
Revenue Next 3Y2.39%
Revenue Next 5Y3.64%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.81, KEYS is valued on the expensive side.
KEYS's Price/Earnings ratio is a bit cheaper when compared to the industry. KEYS is cheaper than 74.60% of the companies in the same industry.
When comparing the Price/Earnings ratio of KEYS to the average of the S&P500 Index (28.28), we can say KEYS is valued slightly cheaper.
KEYS is valuated rather expensively with a Price/Forward Earnings ratio of 19.89.
KEYS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KEYS is cheaper than 67.46% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.88. KEYS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.81 | ||
| Fwd PE | 19.89 |
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 73.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.94 | ||
| EV/EBITDA | 17.6 |
4.3 Compensation for Growth
KEYS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.91
EPS Next 2Y-5.05%
EPS Next 3Y2.84%
5. Dividend
5.1 Amount
KEYS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
KEYSIGHT TECHNOLOGIES IN
NYSE:KEYS (5/3/2024, 7:04:00 PM)
After market: 149.18 0 (0%)149.18
+2.19 (+1.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap26.04B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.81 | ||
| Fwd PE | 19.89 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.7% | ||
| ROE | 20.12% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.53% | ||
| PM (TTM) | 18.14% | ||
| GM | 64.81% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-0.87%
EPS 3Y19.71%
EPS 5Y
EPS growth Q2Q
EPS Next Y-24.38%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.77%
Revenue growth 3Y8.98%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
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