Keysight Technologies, Inc. Fundamental Analysis
Keysight Technologies, Inc. (KEYS) shows moderate financial fundamentals with a PE ratio of 54.16, profit margin of 17.25%, and ROE of 17.44%. The company generates $6.0B in annual revenue with moderate year-over-year growth of 7.95%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze KEYS's fundamental strength across five key dimensions:
Efficiency Score
WeakKEYS struggles to generate sufficient returns from assets.
Valuation Score
ModerateKEYS shows balanced valuation metrics.
Growth Score
ExcellentKEYS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentKEYS maintains a strong and stable balance sheet.
Profitability Score
ExcellentKEYS achieves industry-leading margins.
Key Financial Metrics
Is KEYS Expensive or Cheap?
P/E Ratio
KEYS trades at 54.16 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, KEYS's PEG of 1.30 indicates fair valuation.
Price to Book
The market values Keysight Technologies, Inc. at 8.98 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 38.91 times EBITDA. This signals the market has high growth expectations.
How Well Does KEYS Make Money?
Net Profit Margin
For every $100 in sales, Keysight Technologies, Inc. keeps $17.25 as profit after all expenses.
Operating Margin
Core operations generate 18.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.44 in profit for every $100 of shareholder equity.
ROA
Keysight Technologies, Inc. generates $8.95 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Keysight Technologies, Inc. produces operating cash flow of $1.48B, showing steady but balanced cash generation.
Free Cash Flow
Keysight Technologies, Inc. generates strong free cash flow of $1.43B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.36 in free cash annually.
FCF Yield
KEYS converts 2.55% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
54.16
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.30
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.98
vs 25 benchmark
P/S Ratio
Price to sales ratio
9.26
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.44
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.90
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How KEYS Stacks Against Its Sector Peers
| Metric | KEYS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 54.16 | 36.36 | Worse (Expensive) |
| ROE | 17.44% | 980.00% | Weak |
| Net Margin | 17.25% | 5969454258.00% | Weak |
| Debt/Equity | 0.44 | 0.36 | Weak (High Leverage) |
| Current Ratio | 1.90 | 5.04 | Neutral |
| ROA | 8.95% | -298400.00% (disorted) | Weak |
KEYS outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Keysight Technologies, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
37.64%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
45.85%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
49.90%
Industry Style: Growth, Innovation, High Beta
High Growth