Keysight Technologies Inc KEYS

Morningstar Rating

Company Report

Keysight Has Carved a Wide Moat with a Broad Communications Testing Portfolio

We think Keysight Technologies is the leader in communications testing and measurement solutions, and offers a vendor-agnostic way to invest in the rapidly growing 5G and high-speed networking markets. In our view, Keysight has the strongest and broadest communications testing capabilities in the market, inclusive of hardware, software, and services. We think a comprehensive portfolio allows Keysight to act as a strategic partner to its customers, enabling new designs and accelerating time to market for network operators, network equipment OEMs, device OEMs, and suppliers.

Price vs Fair Value

KEYS is trading at a 850% premium.
Price
$155.69
Fair Value
$851.00
Uncertainty
Medium
1-Star Price
$676.24
5-Star Price
$586.80
Economic Moat
Hmtv
Capital Allocation
Nsnvnlrb

Bulls Say, Bears Say

Bulls

We think Keysight’s large research and development budget has created a competitively advantaged portfolio for communications testing that we don’t expect other firms would be able to easily replicate.

Bears

We think Keysight faces an uphill battle to disrupt an automotive testing market which we think is more fragmented and competitive.

News

Trading Information

Previous Close Price
Day Range
52-Week Range
Bid/Ask
/
Market Cap
Volume/Avg
/

Key Statistics

Price/Earnings (Normalized)
23.59
Price/Sales
5.48
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Total Yield
2.65%

Company Profile

Keysight Technologies is a leader in the field of testing and measurement, helping electronics OEMs and suppliers alike bring products to market to fit industry standards and specifications. Keysight specializes in the communications market, but also supplies into the government, automotive, industrial, and semiconductor manufacturing markets. Keysight’s solutions include testing tools, analytical software, and services. The firm’s stated objective is to reduce time to market and improve efficiency at its more than 30,000 customers.
Sector
Technology
Industry
Scientific & Technical Instruments
Stock Style Box
Mid Core
Total Number of Employees
15,400

Competitors

Valuation

Metric
KEYS
FTV
EMR
Price/Earnings (Normalized)
23.5921.6320.84
Price/Book Value
5.172.593.04
Price/Sales
5.484.483.74
Price/Cash Flow
19.3618.8619.53
Price/Earnings
KEYS
FTV
EMR

Financial Strength

Metric
KEYS
FTV
EMR
Quick Ratio
1.250.770.67
Current Ratio
2.051.231.16
Interest Coverage
10.898.076.99
Quick Ratio
KEYS
FTV
EMR

Profitability

Metric
KEYS
FTV
EMR
Return on Assets (Normalized)
12.92%7.67%5.36%
Return on Equity (Normalized)
23.67%12.41%11.67%
Return on Invested Capital (Normalized)
16.60%10.20%6.49%
Return on Assets
KEYS
FTV
EMR

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