Keysight Technologies is an overlooked and underappreciated industrial technology business. Since being spun out of Agilent in 11/2014, FCF/shr. has grown 29.0% annualized, yet The Company is early in their process of streamlining their org. and investing for growth (1/10) 
Keysight sells electronic measurement hardware, software and services to the telco, networking, semiconductor, defense and automotive industries. Their products are used to design, manufacture, and test systems such as networks, printed circuits and radar. As an example; (2/10)
While new the public markets, Keysight originated as the electronic measurement group within HP, which spun off Agilent in 06/2000. Keysight’s legacy includes an install base of $30B that generated $749mm in servicing revenues during FY2019 and a customer base of 30,000+ (3/10)
Agilent spun out Keysight to enhance it's growth prospects. To that end, The Company has increasing R&D spend from 13.6% to 16.0% of sales, doubled their software engineers and streamlined their org. structure, increasing speed of innovation, feedback and delivery (4/10)
Keysight purchased Ixia for $1.6B in 04/2017, a network testing software businesses. Results under-performed managements expectations initially, but is now growing sales >10% y/y and contributing ~$90-$110mm in FCF, more than validating the acquisition (5/10)
Keysight’s total returns were about equal to the SPY and XLK in its first three years of trading but have outpaced them by ~73.4% and 44.9%, respectively over the last two years. The stock currently trades at 21.9x Price / TTM FCF, also its 5Yr. median valuation (6/10)
Among The Company’s competition, 5 are pure-play and publicly traded in the U.S.; Ametek, Fortiv, National Instrument, Teledyne and Viavi. Keysight’s sales CAGR stands out at nearly double the group’s average, while it's multiple is only 19.3% greater than the average (7/10)
Keysight's future results will continue to improve as they switch software and services to recurring revenue models. Considered together, their M&A program and emerging technology initiatives (below) are a positive expected value portfolio of high-growth opportunities (8/10)
Keysight’s defense business is their only segment without a positive sales trajectory and would be more valuable to a defense contractor. The segment generates ~ $200mm in EBITDA and based on the LHX transaction multiple and ELBT, a comparable company, may be worth $3B (9/10)
Keysight’s challenges are to stay relevant to their customers and to execute on past and future M&A opportunities. The Company’s stable foundation, current momentum and opportunities for future growth, combined with a reasonable multiple creates an attractive investment (10/10)
