KEYSKEYS
US • —
$318.67
P/E
52.31
PEG
1.22
FCF Yield
2.4%
Rev Growth YoY
+19.2% YoY
Gross Margin
63.7%
Health Score
8/10
D/E Ratio
0.43
Confidence
MEDIUM
Business Snapshot
Keysight Technologies (KEYS) provides electronic design and test solutions, primarily serving end markets in communications, aerospace and defense, and industrial electronics. The company operates in the specialized electronic test and measurement equipment industry, holding a strong competitive position as a leading player alongside peers like Rohde & Schwarz and Tektronix. With a market capitalization of $55.56 billion, Keysight is a large-cap company that generated $1.36 billion in free cash flow. The company is set apart by its exposure to long-term secular trends in 5G/6G communications and aerospace/defense spending.
Financial Health
Keysight maintains strong profitability with a gross margin of 63.7% and a net margin of 17.3%. The balance sheet is conservative, featuring a Debt/Equity ratio of just 0.43x, and ample liquidity with a current ratio of 2.35x...
Risk Assessment
- VALUATION — P/E of 52.31x is nearly 2.4x the sector average of 22x, suggesting high expectations for future growth are already priced in.
- INSIDER ACTIVITY — Insiders have executed 6 sells against 0 buys over the last 90 days, a pattern that often warrants close monitoring.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- VALUATION DIVERGENCE — The Python DCF estimate of $222.06 provides a below-market intrinsic value, while no FMP DCF fair value is available to triangulate the range.
- FCF YIELD — The FCF yield of 2.4% is low relative to the earnings yield, suggesting free cash flow generation is not keeping pace with earnings growth or market capitalization....
Keysight maintains strong profitability with a gross margin of 63.7% and a net margin of 17.3%. The balance sheet is conservative, featuring a Debt/Equity ratio of just 0.43x, and ample liquidity with a current ratio of 2.35x. Free cash flow is robust at $1.36 billion, though the FCF yield of 2.4% is modest relative to the current share price. Overall, the company possesses a healthy financial foundation that supports reinvestment into R&D and potential capital returns to shareholders, with limited risk of financial distress.
- VALUATION — P/E of 52.31x is nearly 2.4x the sector average of 22x, suggesting high expectations for future growth are already priced in. - INSIDER ACTIVITY — Insiders have executed 6 sells against 0 buys over the last 90 days, a pattern that often warrants close monitoring. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - VALUATION DIVERGENCE — The Python DCF estimate of $222.06 provides a below-market intrinsic value, while no FMP DCF fair value is available to triangulate the range. - FCF YIELD — The FCF yield of 2.4% is low relative to the earnings yield, suggesting free cash flow generation is not keeping pace with earnings growth or market capitalization.
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