Keysight Technologies, Inc. (KEYS) Stock Analysis

Analysis from 10-K filed 2025-12-17. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 10.1%. FCF margin 23.6%. D/E 0.4x. Source: 10-K filed 2025-12-17.

Metric	Value	Context
ROIC	10.1%	Near cost of capital
FCF Margin	23.6%	Strong cash generation
Debt/Equity	0.4x	Conservative leverage

ROIC 10.1% — Top 50% of sector peers. FCF margin 23.6% — Top 5%.

Explore Keysight Technologies, Inc.: Earnings History | Filings | ROIC Analysis

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.

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Profitability: Keysight Technologies, Inc. earns 10.1% ROIC, Top 50% in Other

ROIC TTM 10.1%, sector median 3.8%, Top 50%. DuPont: NOPAT margin 14.5% × asset turnover 0.5x. Gross margin 61.9%. Operating margin 16.0%. Source: 10-K filed 2025-12-17.

Metric	KEYS	Rating	Context
Return on Invested Capital (ROIC)	10.1%	Adequate	Above sector median of 3.8%
Return on Equity (ROE)	16.9%	Good	Efficient use of shareholder equity
Gross Margin	61.9%	Excellent	Strong pricing power
Operating Margin	16.0%	Good	Efficient operations

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Cash Flow: Keysight Technologies, Inc. generates $1.3B FCF at 23.6% margin, positive NaN/8 quarters

FCF TTM $1.3B. FCF margin 23.6%, Top 5%. OCF/Net income 1.5x. Positive FCF in NaN/8 trailing quarters. Source: 10-K filed 2025-12-17.

Metric	KEYS	Rating	Context
Free Cash Flow Margin	23.6%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$1.3B	Good	Positive cash generation
OCF/Net Income	1.5x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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

Debt/Equity 0.4x. Total debt $2.5B, cash & investments $2.2B. Source: 10-K filed 2025-12-17.

Metric	KEYS	Rating	Context
Debt to Equity	0.4x	Good	Conservative capital structure
Net Cash Position	$-339.0M	Adequate	Net debt position

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Valuation: Keysight Technologies, Inc. trades at 38.7x earnings

P/E 38.7x. EV/Sales 6.5x. FCF yield 3.6%. Source: 10-K filed 2025-12-17.

Metric	KEYS	Rating	Context
P/E Ratio	38.7x	Adequate	Premium valuation
EV/Sales	6.5x	Adequate	Growth premium priced in
FCF Yield	3.6%	Adequate	Lower cash yield

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Capital Allocation: Keysight Technologies, Inc. returns 1.0% shareholder yield

Total shareholder yield 1.0% (buyback 1.0%). Capital returned $387.0M TTM. Source: 10-K filed 2025-12-17.

Metric	KEYS	Rating	Context
Total Shareholder Yield	1.0%	Adequate	Dividend + buyback yield combined
Buyback Yield	1.0%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$387.0M	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	10.1%	Top 50%	2.7x above
Free Cash Flow Margin	23.6%	Top 5%	-
Gross Margin	61.9%	Top 25%	2.0x above
Operating Margin	16.0%	Top 25%	3.2x above
Return on Equity (ROE)	16.9%	Top 25%	2.6x above
P/E Ratio	38.7x	N/A	-

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Financial Scorecard

Metric	KEYS	Rating	Sector Context
Return on Invested Capital (ROIC)	10.1%	Adequate	Top 50% of sector (median: 3.8%)
Free Cash Flow Margin	23.6%	Excellent	Top 5% of sector (median: 0.0%)
Gross Margin	61.9%	Excellent	Top 25% of sector (median: 31.3%)
Debt to Equity Ratio	40.8%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	38.7x	Adequate	High expectations priced in
Free Cash Flow Yield	3.6%	Adequate	Moderate yield

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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 10.1%. Sector median 3.8%. 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 23.6%, generating $1.3 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 38.7x, which is above the sector median of N/A. EV/Sales 6.5x. FCF yield 3.6%. 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 13.1% year-over-year. EPS +59.1% YoY. Source: 10-K filed 2025-12-17.

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

Keysight Technologies, Inc. (KEYS) repurchased $387.0 million of stock over the trailing twelve months. This represents a buyback yield of 1.0%. 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 10.1%, sector median 3.8% (Top 50%). FCF margin 23.6%, sector median 0.0% (Top 5%). Gross margin 61.9%, 30.6pp 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.

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Data Source: Data sourced from 10-K filed 2025-12-17. TTM metrics as of Q1 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.