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, and electronic industries in the Americas and the Asia Pacific.

Snowflake

Fundamentals

Adequate balance sheet with moderate growth potential.


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


Market Performance


7 Day Return

-1.3%

KEYS

1.0%

US Electronic

1.0%

US Market


1 Year Return

54.5%

KEYS

11.0%

US Electronic

6.7%

US Market

Return vs Industry: KEYS exceeded the US Electronic industry which returned 11% over the past year.

Return vs Market: KEYS exceeded the US Market which returned 6.7% over the past year.


Share holder returns

KEYSIndustryMarket
7 Day-1.3%1.0%1.0%
30 Day-4.6%-2.1%-1.8%
90 Day6.2%0.5%-1.8%
1 Year54.5%54.5%12.1%11.0%9.1%6.7%
3 Year200.2%200.2%53.2%48.9%46.1%36.6%
5 Yearn/a84.0%74.9%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

57.17x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: KEYS ($95) is trading above our estimate of fair value ($81.33)

Significantly Undervalued: KEYS is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: KEYS is poor value based on its PE Ratio (57.2x) compared to the Electronic industry average (19x).

PE vs Market: KEYS is poor value based on its PE Ratio (57.2x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: KEYS is poor value based on its PEG Ratio (1.2x)


Price Based on Value of Assets

PB vs Industry: KEYS is overvalued based on its PB Ratio (6.1x) compared to the US Electronic industry average (2x).


Next Steps

Future Growth

How is Keysight Technologies expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

46.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: KEYS's forecast earnings growth (46.9% per year) is above the savings rate (2.7%).

Earnings vs Market: KEYS's earnings (46.9% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KEYS's revenue (5.3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: KEYS's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if KEYS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Keysight Technologies performed over the past 5 years?

-18.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: KEYS's earnings have declined by -18.2% per year over the past 5 years.

Accelerating Growth: KEYS's earnings growth over the past year (29.5%) exceeds its 5-year average (-18.2% per year).

Earnings vs Industry: KEYS earnings growth over the past year (29.5%) underperformed the Electronic industry 58.6%.


Return on Equity

High ROE: KEYS's Return on Equity (10.6%) is considered low.


Return on Assets

ROA vs Industry: KEYS's Return on Assets is below or equal to the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: KEYS's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Keysight Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: KEYS's short term assets ($2.9B) exceeds its short term liabilities ($1.4B)

Long Term Liabilities: KEYS's short term assets (2.9B) exceeds its long term liabilities (2.0B)


Debt to Equity History and Analysis

Debt Level: KEYS's debt to equity ratio (60.8%) is considered high

Reducing Debt: KEYS's debt to equity ratio has increased from 1% to 60.8% over the past 5 years.

Debt Coverage: KEYS's debt is well covered by operating cash flow (54.3%).

Interest Coverage: KEYS's interest payments on its debt are well covered by EBIT (11.6x 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 1.642410x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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.

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?

5.2yrs

Average management tenure


CEO

Ron Nersesian (60yo)

5.8yrs

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. Mr. Nersesian served as the President and Chief Execu ...


CEO Compensation Analysis

Compensation vs. Market: Ron's total compensation ($USD10.24M) is about average for companies of similar size in the US market ($USD11.20M).

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


Management Age and Tenure

5.2yrs

Average Tenure

54yo

Average Age

Experienced Management: KEYS's management team is seasoned and experienced (5.2 years average tenure).


Board Age and Tenure

5.0yrs

Average Tenure

65yo

Average Age

Experienced Board: KEYS's board of directors are considered experienced (5 years average tenure).


Insider Trading

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


Recent Insider Transactions

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
SellUS$83,32520 Dec 18
Satish Dhanasekaran
EntityIndividual
Shares1,354
Max PriceUS$61.54
SellUS$920,80818 Dec 18
Soon Gooi
EntityIndividual
Role
Senior Key Executive
Senior VP & President of Electronic Industrial Solutions Group
Shares15,091
Max PriceUS$61.02
SellUS$1,014,62427 Nov 18
Stephen Williams
EntityIndividual
Shares17,752
Max PriceUS$57.16

Ownership Breakdown


Management Team

  • Ron Nersesian (60yo)

    CEO, President & Director

    • Tenure: 5.8yrs
    • Compensation: US$10.24m
  • Soon Gooi (58yo)

    Senior VP & President of Electronic Industrial Solutions Group

    • Tenure: 0yrs
    • Compensation: US$3.51m
  • Jeff Li (49yo)

    SVP, General Counsel & Secretary

    • Tenure: 0.3yrs
  • Marie Hattar (51yo)

    Chief Marketing Officer & Senior VP

    • Tenure: 2.3yrs
  • Neil Dougherty (50yo)

    CFO & Senior VP

    • Tenure: 5.8yrs
    • Compensation: US$2.73m
  • John Skinner (56yo)

    Principal Accounting Officer

    • Tenure: 5.8yrs
  • Jay Alexander (56yo)

    CTO & Senior VP

    • Tenure: 5.4yrs
    • Compensation: US$2.59m
  • Ingrid Estrada (54yo)

    Senior VP

    • Tenure: 2.2yrs
    • Compensation: US$718.56k
  • Jason Kary (50yo)

    Vice President of Treasurer & Investor Relations

    • Tenure: 5.2yrs
  • Mark Wallace (54yo)

    Senior Vice President of Global Sales

    • Tenure: 2.9yrs

Board Members

  • Rick Hamada (61yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$298.01k
  • Ron Nersesian (60yo)

    CEO, President & Director

    • Tenure: 5.8yrs
    • Compensation: US$10.24m
  • Jean Halloran (67yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$298.01k
  • Paul Clark (72yo)

    Non-Executive Chairman

    • Tenure: 5yrs
    • Compensation: US$463.01k
  • Jim Cullen (76yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$318.01k
  • Bob Rango (61yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$308.01k
  • Charles Dockendorff (65yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$338.01k
  • Paul Lacouture (68yo)

    Director

    • Tenure: 0.6yrs
  • Joanne Olsen (60yo)

    Director

    • Tenure: 0.4yrs

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$17.820b
  • Shares outstanding: 187.58m
  • 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, and electronic indu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 02:57
End of Day Share Price2019/10/11 00:00
Earnings2019/07/31
Annual Earnings2018/10/31


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.

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