Keysight Technologies, Inc. (KEYS) stock analysis
Close on Nov 11, 2026Market cap $52.03BP/E 41.9Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed14 of 30 checks passed
Keysight Technologies passes 14 of the 30 checks behind our score; 8 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 1/6
- Growth
- 2/6
- Past performance
- 5/6
- Financial health
- 6/6
- Dividend
- 0/6
What stands out
Return on equity over 15%
Return on equity was 20.6% over the last twelve months and averaged 20.1% over five years.
Return on capital over 10%
Return on invested capital was 21.3%, above the 10% that usually covers the cost of capital.
Low debt
Debt is 38.3% of shareholders' equity, under the 40% we consider low.
Interest well covered
Operating income covers interest expense 12.3 times.
What to watch
Margin of safety under 20%
The price is 28.8% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $305.64 is above our fair value estimate of $237.34.
Revenue growing under 10% a year
Revenue grew -0.3% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew -7.4% a year over the last three fiscal years.
Valuation1/6
P/E below its 5-year median
Keysight Technologies's P/E of 41.9 is below its own 5-year median of 42.2.
P/E above the industry
Keysight Technologies's P/E of 41.9 is above the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 36.5.
EV/EBITDA above its 5-year median
Keysight Technologies's EV/EBITDA of 39.0 is above its 5-year median of 26.1.
P/B above the industry
Keysight Technologies's price-to-book of 7.92 is above the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 3.17.
Trading above fair value
The share price of $305.64 is above our fair value estimate of $237.34.
Margin of safety under 20%
The price is 28.8% above fair value, so there is no margin of safety.
Growth2/6
Revenue growing under 10% a year
Revenue grew -0.3% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew -7.4% a year over the last three fiscal years.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 25.5% over the last twelve months; the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median is 8.4%.
Guidance issued
The latest outlook (fourth fiscal quarter of 2026 revenue, Aug 18, 2026) was issued for the first time, so it neither adds nor takes away points.
Gross margin improving
Gross margin was 64.7% over the last twelve months, against 62.4% a year earlier.
Past performance5/6
Return on equity over 15%
Return on equity was 20.6% over the last twelve months and averaged 20.1% over five years.
Return on capital over 10%
Return on invested capital was 21.3%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
Keysight Technologies's return on equity of 20.6% is above the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 1.1%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 19.1% over the last twelve months, against a 5-year average of 17.1%.
Net margin above the industry
Keysight Technologies's net margin of 19.1% is above the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of -1.3%.
Financial health6/6
Low debt
Debt is 38.3% of shareholders' equity, under the 40% we consider low.
Debt falling against equity
Debt to equity fell from 54.3% five years ago to 38.3%.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 63.7% of total debt.
Interest well covered
Operating income covers interest expense 12.3 times.
Short-term assets cover short-term debts
Current assets are 2.02 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 7.98; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Keysight Technologies has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$237.34
The share price is 29% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 39.4× | 42.2× | 36.5× | $287.57 | 47% |
| EV/EBITDA | 24.9× | 26.1× | 23.7× | $195.65 | 41% |
| P/B | 4.7× | 6.3× | 3.2× | $182.36 | 12% |
| Earnings powerleft out, too far from the others | 12.0% cost of equity | – | – | $55.41 | – |
| Fair value | $237.34 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 42.2
- Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median 36.5
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $463.80M
- Value traded per 1% price move
- $177.37M
Downside
Medium risk
- Typical loss in a bad month
- 21.5%
- Volatility (annualized)
- 48%
- Sharpe ratio, 1 year
- 1.30
- Beta to the S&P 500 (5Y)
- 1.42
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2012 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +8.0% | -0.3% | +5.0% | +6.5% | |
| Gross profit | +6.5% | -1.1% | +5.7% | +7.7% | |
| Operating income | +5.2% | -13.1% | +2.7% | +7.4% | |
| Net income | +38.4% | -8.9% | – | – | |
| EPS, diluted | +39.9% | -7.4% | +8.2% | +5.0% | |
| Free cash flow | +42.7% | +10.1% | +7.3% | +16.3% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | – | 15.5% | |
| Return on assets | – | – | 8.3% | |
| Current ratio | 2.88 | 3.12 | 2.35 | |
| Debt to equity | 0.72 | 0.54 | 0.43 | |
| Net debt to EBITDA | 0.57× | – | – | |
| Interest coverage | 8.6× | 9.8× | 9.1× | |
| Inventory turnover | 2.7× | 2.3× | 2.0× | |
| Capex to revenue | 3.1% | 2.8% | 2.4% | |
| Diluted shares | 172M | 189M | 173M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Keysight Technologies generated $6.34B from operations and spent $3.88B on capital expenditure, dividends and share buybacks. 22% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 15.8% | 0.52× | 1.87× | 15.5% |
| FY2024 | 12.3% | 0.55× | 1.84× | 12.6% |
| FY2023 | 19.3% | 0.65× | 1.90× | 24.0% |
| FY2022 | 20.7% | 0.68× | 2.00× | 28.3% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$850.00M
- Cash generatingOperating cash flow above zero$1.41B
- Return on assets improvedROA up on the prior year7.1% → 9.2%
- Earnings backed by cashOperating cash flow above net income$1.41B vs $850.00M
- Less leverageLong-term debt to assets fell19.3% → 22.4%
- Better liquidityCurrent ratio rose2.98 → 2.35
- No dilutionShare count did not rise175M → 173M
- Gross margin improvedGross margin up on the prior year62.92% → 62.08%
- More efficientAsset turnover rose0.57 → 0.58
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