NYSE:KEYS

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

Excellent balance sheet with solid track record.


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: KEYS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.1%

KEYS

-0.1%

US Electronic

0.6%

US Market


1 Year Return

46.6%

KEYS

29.0%

US Electronic

24.6%

US Market

Return vs Industry: KEYS exceeded the US Electronic industry which returned 30.2% over the past year.

Return vs Market: KEYS exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

KEYSIndustryMarket
7 Day-1.1%-0.1%0.6%
30 Day0.9%1.9%3.0%
90 Day2.8%9.4%10.6%
1 Year46.6%46.6%30.3%29.0%27.3%24.6%
3 Year181.4%181.4%48.8%44.6%50.5%40.8%
5 Year212.0%212.0%88.8%79.2%78.9%59.1%

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

Valuation

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

31.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KEYS ($101.39) is trading above our estimate of fair value ($100.7)

Significantly Below Fair Value: KEYS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KEYS is poor value based on its PE Ratio (30.7x) compared to the Electronic industry average (21.2x).

PE vs Market: KEYS is poor value based on its PE Ratio (30.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: KEYS is overvalued based on its PB Ratio (6.3x) compared to the US Electronic industry average (2.1x).


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: KEYS's forecast earnings growth (16.9% per year) is above the savings rate (1.7%).

Earnings vs Market: KEYS's earnings (16.9% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: KEYS's revenue (7.3% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: KEYS's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KEYS'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: KEYS has high quality earnings.

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


Past Earnings Growth Analysis

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

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

Earnings vs Industry: KEYS earnings growth over the past year (276.4%) exceeded the Electronic industry 53.6%.


Return on Equity

High ROE: KEYS'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: KEYS's short term assets ($3.2B) exceed its short term liabilities ($1.0B).

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


Debt to Equity History and Analysis

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

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

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

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


Balance Sheet

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

Debt Coverage by Assets: KEYS'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%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate KEYS'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 KEYS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KEYS'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 KEYS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Keysight Technologies's salary, the management and board of directors tenure and is there insider trading?

5.4yrs

Average management tenure


CEO

Ron Nersesian (60yo)

6.1yrs

Tenure

US$10,240,253

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 ($USD10.24M) is about average for companies of similar size in the US market ($USD10.76M).

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


Management Age and Tenure

5.4yrs

Average Tenure

54yo

Average Age

Experienced Management: KEYS's management team is seasoned and experienced (5.4 years average tenure).


Board Age and Tenure

4.2yrs

Average Tenure

65yo

Average Age

Experienced Board: KEYS's board of directors are considered experienced (4.2 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$246,76626 Dec 19
Satish Dhanasekaran
EntityIndividual
Shares2,393
Max PriceUS$103.12
SellUS$2,399,59423 Dec 19
Neil Dougherty
EntityIndividual
Role
Chief Financial Officer
CFO & Senior VP
Shares23,254
Max PriceUS$103.19
SellUS$1,058,14816 Dec 19
Mark Wallace
EntityIndividual
Role
Head of Sales
Senior Vice President of Global Sales
Shares10,000
Max PriceUS$105.81
SellUS$289,76116 Dec 19
Jeffrey Li
EntityIndividual
Role
Chief Legal Officer
SVP, General Counsel & Secretary
Shares2,737
Max PriceUS$105.87
SellUS$1,590,00016 Dec 19
Jay Alexander
EntityIndividual
Role
Chief Technology Officer
CTO & Senior VP
Shares15,000
Max PriceUS$106.00
SellUS$2,159,08816 Dec 19
Soon Gooi
EntityIndividual
Role
Senior Key Executive
Senior VP & President of Electronic Industrial Solutions Group
Shares20,000
Max PriceUS$107.95
SellUS$859,11406 Dec 19
John Skinner
EntityIndividual
Role
Chief Accounting Officer
Principal Accounting Officer
Shares8,327
Max PriceUS$103.17
SellUS$350,00001 Oct 19
Ingrid Estrada
EntityIndividual
Role
Chief Administrative Officer
Senior VP
Shares3,500
Max PriceUS$100.00
SellUS$251,05603 Sep 19
Satish Dhanasekaran
EntityIndividual
Shares2,600
Max PriceUS$96.56
SellUS$1,228,23404 Jun 19
James Cullen
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares16,268
Max PriceUS$75.50
SellUS$2,157,38501 Mar 19
Soon Gooi
EntityIndividual
Role
Senior Key Executive
Senior VP & President of Electronic Industrial Solutions Group
Shares25,381
Max PriceUS$85.00
SellUS$2,173,40601 Mar 19
Neil Dougherty
EntityIndividual
Role
Chief Financial Officer
CFO & Senior VP
Shares25,621
Max PriceUS$84.83
SellUS$395,20927 Feb 19
John Skinner
EntityIndividual
Role
Chief Accounting Officer
Principal Accounting Officer
Shares4,671
Max PriceUS$84.61

Ownership Breakdown

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


Management Team

  • Ron Nersesian (60yo)

    Chairman of the Board

    • Tenure: 6.1yrs
    • Compensation: US$10.24m
  • Soon Gooi (58yo)

    Senior VP & President of Electronic Industrial Solutions Group

    • Compensation: US$3.51m
  • Jeff Li (49yo)

    SVP, General Counsel & Secretary

    • Tenure: 0.5yrs
  • Marie Hattar (51yo)

    Chief Marketing Officer & Senior VP

    • Tenure: 2.5yrs
  • Neil Dougherty (50yo)

    CFO & Senior VP

    • Tenure: 6.1yrs
    • Compensation: US$2.73m
  • John Skinner (56yo)

    Principal Accounting Officer

    • Tenure: 6.1yrs
  • Jay Alexander (56yo)

    CTO & Senior VP

    • Tenure: 5.7yrs
    • Compensation: US$2.59m
  • Ingrid Estrada (54yo)

    Senior VP

    • Tenure: 2.4yrs
    • Compensation: US$718.56k
  • Jason Kary (50yo)

    Vice President of Treasurer & Investor Relations

    • Tenure: 5.4yrs
  • Mark Wallace (54yo)

    Senior Vice President of Global Sales

    • Tenure: 3.2yrs

Board Members

  • Rick Hamada (61yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$298.01k
  • Ron Nersesian (60yo)

    Chairman of the Board

    • Tenure: 6.1yrs
    • Compensation: US$10.24m
  • Jean Halloran (67yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$298.01k
  • Paul Clark (72yo)

    Lead Independent Director

    • Tenure: 0.2yrs
    • Compensation: US$463.01k
  • Jim Cullen (76yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$318.01k
  • Bob Rango (61yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$308.01k
  • Charles Dockendorff (65yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$338.01k
  • Paul Lacouture (68yo)

    Director

    • Tenure: 0.8yrs
  • Joanne Olsen (60yo)

    Director

    • Tenure: 0.7yrs

Company Information

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


Key Information

  • Name: Keysight Technologies, Inc.
  • Ticker: KEYS
  • Exchange: NYSE
  • Founded: 2013
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$19.629b
  • Shares outstanding: 188.45m
  • 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

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 Analysis2020/01/24 01:21
End of Day Share Price2020/01/23 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.