DB:1KT

Stock Analysis Report

Keysight Technologies

Executive Summary

Keysight Technologies, Inc. provides electronic design and test solutions to commercial communications, networking, aerospace, defense and government, automotive, energy, semiconductor, electronic, and education industries in the Americas, Europe, and the Asia Pacific regions.


Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

How has Keysight Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1KT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.2%

1KT

-2.4%

DE Electronic

-0.2%

DE Market


1 Year Return

28.0%

1KT

8.1%

DE Electronic

13.7%

DE Market

Return vs Industry: 1KT exceeded the German Electronic industry which returned 8.1% over the past year.

Return vs Market: 1KT exceeded the German Market which returned 13.7% over the past year.


Shareholder returns

1KTIndustryMarket
7 Day2.2%-2.4%-0.2%
30 Day-2.7%9.1%0.3%
90 Day-4.2%6.8%3.7%
1 Year28.0%28.0%10.5%8.1%17.2%13.7%
3 Year157.2%157.2%48.0%43.1%15.4%5.3%
5 Year178.3%178.3%113.5%98.2%21.3%4.7%

Price Volatility Vs. Market

How volatile is Keysight Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Keysight Technologies undervalued compared to its fair value and its price relative to the market?

7.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1KT (€91.5) is trading below our estimate of fair value (€98.43)

Significantly Below Fair Value: 1KT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1KT is good value based on its PE Ratio (29.8x) compared to the Electronic industry average (30.7x).

PE vs Market: 1KT is poor value based on its PE Ratio (29.8x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: 1KT is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: 1KT is overvalued based on its PB Ratio (6.1x) compared to the DE Electronic industry average (1.9x).


Next Steps

Future Growth

How is Keysight Technologies forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

16.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1KT's forecast earnings growth (16.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: 1KT's earnings (16.9% per year) are forecast to grow faster than the German market (13.1% per year).

High Growth Earnings: 1KT's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1KT's revenue (7.2% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: 1KT's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1KT's Return on Equity is forecast to be high in 3 years time (22%)


Next Steps

Past Performance

How has Keysight Technologies performed over the past 5 years?

-11.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1KT has high quality earnings.

Growing Profit Margin: 1KT's current net profit margins (14.4%) are higher than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: 1KT's earnings have declined by -11.3% per year over the past 5 years.

Accelerating Growth: 1KT's earnings growth over the past year (276.4%) exceeds its 5-year average (-11.3% per year).

Earnings vs Industry: 1KT earnings growth over the past year (276.4%) exceeded the Electronic industry -3.9%.


Return on Equity

High ROE: 1KT's Return on Equity (20.7%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Keysight Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: 1KT's short term assets ($3.2B) exceed its short term liabilities ($1.0B).

Long Term Liabilities: 1KT's short term assets ($3.2B) exceed its long term liabilities ($2.6B).


Debt to Equity History and Analysis

Debt Level: 1KT's debt to equity ratio (59.5%) is considered high.

Reducing Debt: 1KT's debt to equity ratio has reduced from 142.6% to 59.5% over the past 5 years.

Debt Coverage: 1KT's debt is well covered by operating cash flow (55.8%).

Interest Coverage: 1KT's interest payments on its debt are well covered by EBIT (13.6x coverage).


Balance Sheet

Inventory Level: 1KT has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1KT's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

What is Keysight Technologies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.7%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1KT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1KT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1KT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1KT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1KT's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.9yrs

Average management tenure


CEO

Ron Nersesian (60yo)

6.2yrs

Tenure

US$11,124,216

Compensation

Mr. Ronald S. Nersesian, also known as Ron, has been the Chief Executive Officer and President at Keysight Technologies, Inc. since September 18, 2013 and has been its Chairman of the Board since November  ...


CEO Compensation Analysis

Compensation vs Market: Ron's total compensation ($USD11.12M) is above average for companies of similar size in the German market ($USD4.31M).

Compensation vs Earnings: Ron's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ronald Nersesian
Chairman of the Board6.2yrsUS$11.12m0.016% $2.8m
Neil Dougherty
CFO & Senior VP6.2yrsUS$3.09m0.0091% $1.6m
Jay Alexander
CTO & Senior VP5.8yrsUS$2.77m0.026% $4.5m
Soon Gooi
Senior VP & President of Electronic Industrial Solutions Group4.3yrsUS$4.38m0.096% $16.4m
Satish Dhanasekaran
Senior VP & President of the Communications Solutions Group2.6yrsUS$2.84m0.0069% $1.2m
John Skinner
Principal Accounting Officer6.2yrsno data0.014% $2.4m
Ingrid Estrada
Senior VP2.5yrsUS$718.56k0.030% $5.1m
Jason Kary
Vice President of Treasurer & Investor Relations5.5yrsno datano data
Jeffrey Li
SVP, General Counsel & Secretary0.6yrsno data0.0043% $732.8k
Mark Wallace
Senior Vice President of Global Sales3.3yrsno data0.015% $2.6m

4.9yrs

Average Tenure

54yo

Average Age

Experienced Management: 1KT's management team is considered experienced (4.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ronald Nersesian
Chairman of the Board6.2yrsUS$11.12m0.016% $2.8m
Richard Hamada
Independent Director5.3yrsUS$299.27kno data
Jean Halloran
Independent Director5.3yrsUS$299.27k0.022% $3.8m
Paul Clark
Lead Independent Director0.3yrsUS$464.27k0.00020% $34.3k
James Cullen
Independent Director5.3yrsUS$319.27k0.0065% $1.1m
Robert Rango
Independent Director4.3yrsUS$309.27kno data
Charles Dockendorff
Independent Director5.3yrsUS$339.27k0.0083% $1.4m
Paul Lacouture
Independent Director0.9yrsUS$306.77k0.0013% $214.5k
Joanne Olsen
Independent Director0.8yrsUS$204.69k0.00094% $161.3k

4.3yrs

Average Tenure

65yo

Average Age

Experienced Board: 1KT's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 1KT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Keysight Technologies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Keysight Technologies, Inc.
  • Ticker: 1KT
  • Exchange: DB
  • Founded: 2013
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$18.527b
  • Listing Market Cap: US$17.161b
  • Shares outstanding: 188.13m
  • Website: https://www.keysight.com

Number of Employees


Location

  • Keysight Technologies, Inc.
  • 1400 Fountaingrove Parkway
  • Santa Rosa
  • California
  • 95403
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KEYSNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2014
1KTDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2014
KEYS *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 2014
K1SG34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 SHS UNSPONBRBRLJan 2020

Biography

Keysight Technologies, Inc. provides electronic design and test solutions to commercial communications, networking, aerospace, defense and government, automotive, energy, semiconductor, electronic, and education industries in the Americas, Europe, and the Asia Pacific regions. Its Communications Solutions Group segment provides electronic design automation (EDA) software; and radio frequency and microwave test instruments; oscilloscopes, logic and serial protocol analyzers, logic-signal sources, arbitrary waveform generators, and bit error rate testers; optical modulation analyzers, optical component analyzers, optical power meters, and optical laser source solutions; and repair, calibration, and consulting services, as well as resells refurbished used Keysight equipment. The company’s Electronic Industrial Solutions Group segment offers design tools; design verification solutions; digital multi-meters, function generators, frequency counters, data acquisition systems, audio analyzers, LCR meters, thermal imagers, precision source measure units, ultra-high precision device current analyzers, and test executive software platforms, as well as various power supplies comprising AC/DC modular supplies and electronically programmable loads. This segment also provides printed-circuit-board-assembly testers, integrated circuit parametric testers, and sub-nano-meter positioning sub-assemblies; test and measurement products and software; and repair, calibration, and consulting services, as well as resells refurbished used Keysight equipment. Its Ixia Solutions Group segment offers software applications and services, including warranty and maintenance offerings, and hardware platforms. The company sells its products through direct sales force, distributors, resellers, and manufacturer's representatives. The company was incorporated in 2013 and is headquartered in Santa Rosa, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 22:52
End of Day Share Price2020/02/20 00:00
Earnings2019/10/31
Annual Earnings2019/10/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.