KEYS Keysight Technologies Inc

Keysight Technologies produces electronic design and test measurement equipment including oscilloscopes, signal analyzers, and network analyzers for communications, aerospace, and industrial applications. Sector: Technology.

Keysight Technologies Inc (KEYS) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

Examining the company through a capital allocation lens, ROIC is 14.18%, WACC is 11.76%, and the economic spread is 2.42%. On balance, the company is generating returns above their cost of capital, though the margin is slim enough to warrant attention. Supporting metrics show ROE at 18.00% and ROA at 8.01%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that is value-creative but with less room for execution slippage.

Turning to how the market is pricing the underlying earnings, trailing P/E of 55.41, forward P/E of 34.52, PEG of 5.45. The forward multiple comes in well below the trailing figure, reflecting analyst expectations for earnings acceleration across the company. On a growth-adjusted basis, the company is expensive — the current multiple requires strong earnings delivery to be justified on conventional valuation metrics. The aggregate current ratio of 1.90 reflects a company with workable near-term liquidity positions. The combined picture across P/E, forward P/E, PEG, and current ratio suggests a company that is priced for continued execution — where disappointment would be costly and outperformance would likely require positive earnings surprises.

From gross to free cash flow, gross margin sits at 63.67%, operating margin at 18.68%, and free cash flow margin at 22.29%. At this level, gross margins reflect the kind of pricing power and cost insulation that characterizes category-leading businesses. The operating margin reading is healthy — adequate to support reinvestment without sacrificing profitability. The company's FCF margin is above average, pointing to the company with efficient capital deployment and durable cash generation. The margin profile is mixed, with some layers more resilient than others and less room for execution slippage.

Revenue momentum and analyst targets together paint a picture where the estimated 12-month price change of 13.62%, where consensus expectations favor gradual appreciation over the next year, while TTM revenue growth of 31.47% reflecting top-line acceleration that, if sustained, supports the forward earnings case. Reported revenue growth is the operational foundation; the analyst target spread shows what the market is willing to pay above it — and that premium can evaporate quickly if delivery slips. For investors, the central question is whether the operating momentum visible in revenues is durable enough to support the price appreciation implied by consensus targets. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The fundamental case holds up across most key dimensions — the combination of positive economic spread, reasonable valuation, and analyst support is constructive.

This assessment is based solely on the quantitative metrics presented above and does not constitute financial advice. Investors should consider their own risk tolerance and conduct independent research before making investment decisions.