(KEYS) Keysight Technologies - Overview
Sector: Technology | Industry: Scientific & Technical Instruments | Exchange: NYSE (USA) | Market Cap: 57.766m USD | Total Return: 118.9% in 12m
Avg Turnover: 556M
EPS Trend: -29.7%
Qual. Beats: 2
Rev. Trend: 30.4%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Rs Leader, Idiosyncratic Leader, Tailwind, Pullback Swing, Confidence
Keysight Technologies, Inc. (KEYS) is a global provider of electronic design and test solutions, specializing in software and instrumentation for the validation and optimization of electronic systems. The company operates through two primary segments: the Communications Solutions Group and the Electronic Industrial Solutions Group. Its portfolio includes oscilloscopes, signal generators, and network security tools used across the wireless, aerospace, automotive, and semiconductor industries.
As a leader in the Electronic Equipment & Instruments sector, Keysight utilizes a high-margin business model centered on the design-to-manufacturing lifecycle, where integrated software and hardware solutions create high switching costs for enterprise customers. The company benefits from the secular growth of 5G deployment, electric vehicle development, and high-speed data center expansion, which require increasingly complex testing protocols. For a deeper look into these growth drivers and valuation metrics, consider reviewing the detailed analysis on ValueRay.
Founded in 1939 and headquartered in Santa Rosa, California, the firm also generates recurring revenue through professional services, including technical support, calibration, and test as a service models. This service layer complements its core engineering solutions, providing stability across various industrial and government end markets.
- 5G and 6G infrastructure buildouts drive high-end wireless test equipment demand
- Semiconductor capital expenditure cycles dictate electronic design automation software revenue
- Aerospace and defense spending levels impact long-term government contract backlogs
- Automotive electrification and autonomous driving R&D fuel hardware simulation growth
- Global manufacturing recovery influences general electronics and industrial instrumentation orders
| Net Income: 1.05b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA -0.45 > 1.0 |
| NWC/Revenue: 39.31% < 20% (prev 75.41%; Δ -36.10% < -1%) |
| CFO/TA 0.13 > 3% & CFO 1.49b > Net Income 1.05b |
| Net Debt (585.0m) to EBITDA (1.44b): 0.41 < 3 |
| Current Ratio: 1.90 > 1.5 & < 3 |
| Outstanding Shares: last quarter (173.0m) vs 12m ago 0.0% < -2% |
| Gross Margin: 63.67% > 18% (prev 62.47%; Δ 1.20% > 0.5%) |
| Asset Turnover: 54.67% > 50% (prev 48.49%; Δ 6.18% > 0%) |
| Interest Coverage Ratio: 11.24 > 6 (EBIT TTM 1.24b / Interest Expense TTM 110.0m) |
| A: 0.20 (Total Current Assets 5.04b - Total Current Liabilities 2.65b) / Total Assets 11.7b |
| B: 0.66 (Retained Earnings 7.71b / Total Assets 11.7b) |
| C: 0.11 (EBIT TTM 1.24b / Avg Total Assets 11.1b) |
| D: 1.17 (Book Value of Equity 6.33b / Total Liabilities 5.41b) |
| Altman-Z'' = 5.45 = AAA |
| DSRI: 1.00 (Receivables 1.02b/856.0m, Revenue 6.09b/5.11b) |
| GMI: 0.98 (GM 62.47% / 63.67%) |
| AQI: 1.26 (AQ_t 0.49 / AQ_t-1 0.39) |
| SGI: 1.19 (Revenue 6.09b / 5.11b) |
| TATA: -0.04 (NI 1.05b - CFO 1.49b) / TA 11.7b) |
| Beneish M = -2.75 (Cap -4..+1) = A |
As of June 03, 2026, the stock is trading at USD 346.57 with a total of 1,460,515 shares traded.
Over the past week, the price has changed by -2.58%,
over one month by -1.36%,
over three months by +10.63% and
over the past year by +118.85%.
Keysight Technologies has received a consensus analysts rating of 4.23. Therefore, it is recommended to buy KEYS.
- StrongBuy: 6
- Buy: 5
- Hold: 1
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 383.1 | 10.5% |
P/E Trailing = 54.3066
P/E Forward = 32.4675
P/S = 9.4885
P/B = 9.1243
P/EG = 1.456
Revenue TTM = 6.09b USD
EBIT TTM = 1.24b USD
EBITDA TTM = 1.44b USD
Long Term Debt = 2.53b USD (from longTermDebt, last fiscal year)
Short Term Debt = 751.0m USD (from shortTermDebt, last quarter)
Debt = 3.00b USD (from shortLongTermDebtTotal, last quarter) + Leases 238.0m
Net Debt = 585.0m USD (calculated: Debt 3.00b - CCE 2.41b)
Enterprise Value = 58.4b USD (57.8b + Debt 3.00b - CCE 2.41b)
Interest Coverage Ratio = 11.24 (Ebit TTM 1.24b / Interest Expense TTM 110.0m)
EV/FCF = 40.33x (Enterprise Value 58.4b / FCF TTM 1.45b)
FCF Yield = 2.48% (FCF TTM 1.45b / Enterprise Value 58.4b)
FCF Margin = 23.77% (FCF TTM 1.45b / Revenue TTM 6.09b)
Net Margin = 17.25% (Net Income TTM 1.05b / Revenue TTM 6.09b)
Gross Margin = 63.67% ((Revenue TTM 6.09b - Cost of Revenue TTM 2.21b) / Revenue TTM)
Gross Margin QoQ = 68.61% (prev 62.19%)
Tobins Q-Ratio = 4.97 (Enterprise Value 58.4b / Total Assets 11.7b)
Interest Expense / Debt = 3.67% (Interest Expense 110.0m / Debt 3.00b)
Taxrate = 8.99% (106.0m / 1.18b)
NOPAT = 1.12b (EBIT 1.24b * (1 - 8.99%))
Current Ratio = 1.90 (Total Current Assets 5.04b / Total Current Liabilities 2.65b)
Debt / Equity = 0.47 (Debt 3.00b / totalStockholderEquity, last quarter 6.33b)
Debt / EBITDA = 0.41 (Net Debt 585.0m / EBITDA 1.44b)
Debt / FCF = 0.40 (Net Debt 585.0m / FCF TTM 1.45b)
Total Stockholder Equity = 6.02b (last 4 quarters mean from totalStockholderEquity)
RoA = 9.43% (Net Income 1.05b / Total Assets 11.7b)
RoE = 17.44% (Net Income TTM 1.05b / Total Stockholder Equity 6.02b)
RoCE = 14.45% (EBIT 1.24b / Capital Employed (Equity 6.02b + L.T.Debt 2.53b))
RoIC = 11.80% (NOPAT 1.12b / Invested Capital 9.54b)
WACC = 12.13% (E(57.8b)/V(60.8b) * Re(12.59%) + D(3.00b)/V(60.8b) * Rd(3.67%) * (1-Tc(0.09)))
Discount Rate = 12.59% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -74.74 | Cagr: -0.76%
[DCF] Terminal Value 64.62% ; FCFF base≈1.41b ; Y1≈1.50b ; Y5≈1.79b
[DCF] Fair Price = 94.09 (EV 16.7b - Net Debt 585.0m = Equity 16.1b / Shares 170.7m; r=12.13% [WACC]; 5y FCF grow 7.50% → 2.50% )
EPS Correlation: -29.70 | EPS CAGR: -4.95% | SUE: 3.35 | # QB: 2
Revenue Correlation: 30.43 | Revenue CAGR: 2.06% | SUE: 0.82 | # QB: 0
EPS current Quarter (2026-07-31): EPS=2.48 | Chg30d=+16.08% | Revisions=+76% | Analysts=13
EPS current Year (2026-10-31): EPS=10.19 | Chg30d=+14.42% | Revisions=+76% | GrowthEPS=+42.4% | GrowthRev=+28.3%
EPS next Year (2027-10-31): EPS=11.86 | Chg30d=+14.73% | Revisions=+62% | GrowthEPS=+16.3% | GrowthRev=+11.1%
[Analyst] Revisions Ratio: +76%