Keysight Technologies, Inc. (KEYS) Stock Analysis

Analysis from 10-K filed 2025-12-17. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 11.9%. FCF margin 22.3%. D/E 0.4x. Source: 10-K filed 2025-12-17.

Metric	Value	Context
ROIC	11.9%	Near cost of capital
FCF Margin	22.3%	Strong cash generation
Debt/Equity	0.4x	Conservative leverage

ROIC 11.9% — Top 25% of sector peers. FCF margin 22.3% — Top 5%.

Explore Keysight Technologies, Inc.: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for KEYS: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

---

Profitability: Keysight Technologies, Inc. earns 11.9% ROIC, Top 25% in Other

ROIC TTM 11.9%, sector median 2.9%, Top 25%. DuPont: NOPAT margin 16.5% × asset turnover 0.5x. Gross margin 63.7%. Operating margin 18.2%. Source: 10-K filed 2025-12-17.

Metric	KEYS	Rating	Context
Return on Invested Capital (ROIC)	11.9%	Adequate	Above sector median of 2.9%
Return on Equity (ROE)	17.8%	Good	Efficient use of shareholder equity
Gross Margin	63.7%	Excellent	Strong pricing power
Operating Margin	18.2%	Good	Efficient operations

---

Cash Flow: Keysight Technologies, Inc. generates $1.4B FCF at 22.3% margin, positive NaN/8 quarters

FCF TTM $1.4B. FCF margin 22.3%, Top 5%. OCF/Net income 1.4x. Positive FCF in NaN/8 trailing quarters. Source: 10-K filed 2025-12-17.

Metric	KEYS	Rating	Context
Free Cash Flow Margin	22.3%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$1.4B	Good	Positive cash generation
OCF/Net Income	1.4x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

---

Balance Sheet: Keysight Technologies, Inc. at 0.4x leverage

Debt/Equity 0.4x. Total debt $2.5B, cash & investments $2.4B. Source: 10-K filed 2025-12-17.

Metric	KEYS	Rating	Context
Debt to Equity	0.4x	Good	Conservative capital structure
Net Cash Position	$-119.0M	Adequate	Net debt position

---

Valuation: Keysight Technologies, Inc. trades at 57.0x earnings

P/E 57.0x. EV/Sales 9.9x. FCF yield 2.3%. Source: 10-K filed 2025-12-17.

Metric	KEYS	Rating	Context
P/E Ratio	57.0x	Warning	Premium valuation
EV/Sales	9.9x	Adequate	Growth premium priced in
FCF Yield	2.3%	Adequate	Lower cash yield

---

Capital Allocation: Keysight Technologies, Inc. returns 0.8% shareholder yield

Total shareholder yield 0.8% (buyback 0.8%). Capital returned $457.0M TTM. Source: 10-K filed 2025-12-17.

Metric	KEYS	Rating	Context
Total Shareholder Yield	0.8%	Adequate	Dividend + buyback yield combined
Buyback Yield	0.8%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$457.0M	Good	Dividends + buybacks returned to shareholders

---

Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	11.9%	Top 25%	4.1x above
Free Cash Flow Margin	22.3%	Top 5%	-
Gross Margin	63.7%	Top 25%	2.1x above
Operating Margin	18.2%	Top 25%	3.7x above
Return on Equity (ROE)	17.8%	Top 25%	2.8x above
P/E Ratio	57.0x	N/A	-

---

Financial Scorecard

Metric	KEYS	Rating	Sector Context
Return on Invested Capital (ROIC)	11.9%	Adequate	Top 25% of sector (median: 2.9%)
Free Cash Flow Margin	22.3%	Excellent	Top 5% of sector (median: 0.0%)
Gross Margin	63.7%	Excellent	Top 25% of sector (median: 30.4%)
Debt to Equity Ratio	40.0%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	57.0x	Warning	High expectations priced in
Free Cash Flow Yield	2.3%	Warning	Growth-focused valuation

---

Frequently Asked Questions

Q: What is Keysight Technologies, Inc.'s Return on Invested Capital (ROIC)?

Keysight Technologies, Inc. (KEYS) has a trailing twelve-month Return on Invested Capital (ROIC) of 11.9%. Sector median 2.9%. Source: 10-K filed 2025-12-17.

Q: What is Keysight Technologies, Inc.'s Free Cash Flow Margin?

Keysight Technologies, Inc. (KEYS) has a free cash flow margin of 22.3%, generating $1.4 billion in free cash flow over the trailing twelve months. Source: 10-K filed 2025-12-17.

Q: What is Keysight Technologies, Inc.'s P/E ratio and how does it compare to peers?

Keysight Technologies, Inc. (KEYS) trades at a P/E ratio of 57.0x, which is above the sector median of N/A. EV/Sales 9.9x. FCF yield 2.3%. Source: 10-K filed 2025-12-17.

Q: What is Keysight Technologies, Inc.'s revenue and earnings growth?

Keysight Technologies, Inc. (KEYS) grew revenue by 19.2% year-over-year. EPS +43.1% YoY. Source: 10-K filed 2025-12-17.

Q: Is Keysight Technologies, Inc. buying back stock?

Keysight Technologies, Inc. (KEYS) repurchased $457.0 million of stock over the trailing twelve months. This represents a buyback yield of 0.8%. Source: 10-K filed 2025-12-17.

Q: How does Keysight Technologies, Inc. compare to competitors in Other?

Compared to other companies in Other, Keysight Technologies, Inc. (KEYS) shows: ROIC 11.9%, sector median 2.9% (Top 25%). FCF margin 22.3%, sector median 0.0% (Top 5%). Gross margin 63.7%, 33.3pp above sector median. These rankings are based on MetricDuck's analysis of all Other companies with available SEC filings.

Q: What warning signs should I watch for with Keysight Technologies, Inc.?

No quantitative warning flags fired for Keysight Technologies, Inc. (KEYS) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-K filed 2025-12-17.

---

Data Source: Data sourced from 10-K filed 2025-12-17. TTM metrics as of Q2 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.