MKS INSTRUMENTS INC (MKSI) Stock Fundamental Analysis
NASDAQ:MKSI - Nasdaq - US55306N1046 - Common Stock - Currency: USD
Taking everything into account, MKSI scores 5 out of 10 in our fundamental rating. MKSI was compared to 108 industry peers in the Semiconductors & Semiconductor Equipment industry. There are concerns on the financial health of MKSI while its profitability can be described as average. MKSI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year MKSI was profitable.
In the past year MKSI had a positive cash flow from operations.
Of the past 5 years MKSI 4 years were profitable.
Each year in the past 5 years MKSI had a positive operating cash flow.
1.2 Ratios
MKSI has a Return On Assets (2.21%) which is in line with its industry peers.
With a decent Return On Equity value of 8.18%, MKSI is doing good in the industry, outperforming 61.11% of the companies in the same industry.
MKSI's Return On Invested Capital of 5.18% is fine compared to the rest of the industry. MKSI outperforms 65.74% of its industry peers.
MKSI had an Average Return On Invested Capital over the past 3 years of 4.62%. This is significantly below the industry average of 11.67%.
The last Return On Invested Capital (5.18%) for MKSI is above the 3 year average (4.62%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.21% | ||
| ROE | 8.18% | ||
| ROIC | 5.18% |
ROA(3y)-5.03%
ROA(5y)1.21%
ROE(3y)-19.62%
ROE(5y)-4.99%
ROIC(3y)4.62%
ROIC(5y)7.73%
1.3 Margins
MKSI has a Profit Margin (5.30%) which is comparable to the rest of the industry.
MKSI's Profit Margin has declined in the last couple of years.
MKSI has a Operating Margin of 14.28%. This is in the better half of the industry: MKSI outperforms 71.30% of its industry peers.
MKSI's Operating Margin has been stable in the last couple of years.
MKSI's Gross Margin of 47.60% is in line compared to the rest of the industry. MKSI outperforms 58.33% of its industry peers.
MKSI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.28% | ||
| PM (TTM) | 5.3% | ||
| GM | 47.6% |
OM growth 3Y-17.07%
OM growth 5Y0.74%
PM growth 3Y-34.31%
PM growth 5Y-6.44%
GM growth 3Y0.59%
GM growth 5Y1.73%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MKSI is destroying value.
The number of shares outstanding for MKSI has been increased compared to 1 year ago.
Compared to 5 years ago, MKSI has more shares outstanding
MKSI has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.63, we must say that MKSI is in the distress zone and has some risk of bankruptcy.
MKSI has a Altman-Z score of 1.63. This is in the lower half of the industry: MKSI underperforms 67.59% of its industry peers.
MKSI has a debt to FCF ratio of 11.07. This is a negative value and a sign of low solvency as MKSI would need 11.07 years to pay back of all of its debts.
MKSI has a Debt to FCF ratio of 11.07. This is comparable to the rest of the industry: MKSI outperforms 50.93% of its industry peers.
A Debt/Equity ratio of 1.93 is on the high side and indicates that MKSI has dependencies on debt financing.
The Debt to Equity ratio of MKSI (1.93) is worse than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 11.07 | ||
| Altman-Z | 1.63 |
ROIC/WACC0.47
WACC11.01%
2.3 Liquidity
MKSI has a Current Ratio of 3.19. This indicates that MKSI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of MKSI (3.19) is comparable to the rest of the industry.
MKSI has a Quick Ratio of 2.04. This indicates that MKSI is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of MKSI (2.04) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.19 | ||
| Quick Ratio | 2.04 |
3. Growth
3.1 Past
MKSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.53%, which is quite impressive.
MKSI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.75% yearly.
MKSI shows a decrease in Revenue. In the last year, the revenue decreased by -0.97%.
MKSI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.55% yearly.
EPS 1Y (TTM)48.53%
EPS 3Y-16.71%
EPS 5Y7.75%
EPS Q2Q%83.76%
Revenue 1Y (TTM)-0.97%
Revenue growth 3Y6.73%
Revenue growth 5Y13.55%
Sales Q2Q%4.7%
3.2 Future
MKSI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.53% yearly.
Based on estimates for the next years, MKSI will show a small growth in Revenue. The Revenue will grow by 7.57% on average per year.
EPS Next Y7.83%
EPS Next 2Y14.9%
EPS Next 3Y13.53%
EPS Next 5YN/A
Revenue Next Year7.01%
Revenue Next 2Y7.49%
Revenue Next 3Y7.57%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.67 indicates a correct valuation of MKSI.
MKSI's Price/Earnings ratio is rather cheap when compared to the industry. MKSI is cheaper than 86.11% of the companies in the same industry.
MKSI is valuated rather cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.53, the valuation of MKSI can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MKSI indicates a rather cheap valuation: MKSI is cheaper than 90.74% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. MKSI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.67 | ||
| Fwd PE | 14.53 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MKSI indicates a rather cheap valuation: MKSI is cheaper than 81.48% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MKSI indicates a rather cheap valuation: MKSI is cheaper than 91.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.92 | ||
| EV/EBITDA | 12.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MKSI does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of MKSI may justify a higher PE ratio.
MKSI's earnings are expected to grow with 13.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)2
PEG (5Y)2.02
EPS Next 2Y14.9%
EPS Next 3Y13.53%
5. Dividend
5.1 Amount
With a yearly dividend of 0.82%, MKSI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.34, MKSI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, MKSI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
The dividend of MKSI has a limited annual growth rate of 1.95%.
MKSI has been paying a dividend for at least 10 years, so it has a reliable track record.
MKSI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.95%
Div Incr Years0
Div Non Decr Years13
5.3 Sustainability
MKSI pays out 31.05% of its income as dividend. This is a sustainable payout ratio.
MKSI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP31.05%
EPS Next 2Y14.9%
EPS Next 3Y13.53%
103.09
-4.76 (-4.41%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners104.07%
Inst Owner Change2.64%
Ins Owners0.24%
Ins Owner Change0.4%
Market Cap6.94B
Analysts79.05
Price Target136.28 (32.2%)
Short Float %4.47%
Short Ratio3.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Yearly Dividend0.88
Dividend Growth(5Y)1.95%
DP31.05%
Div Incr Years0
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.18%
Min EPS beat(2)7.82%
Max EPS beat(2)16.53%
EPS beat(4)4
Avg EPS beat(4)29.66%
Min EPS beat(4)7.82%
Max EPS beat(4)54.42%
EPS beat(8)8
Avg EPS beat(8)79.53%
EPS beat(12)12
Avg EPS beat(12)58.92%
EPS beat(16)15
Avg EPS beat(16)45.22%
Revenue beat(2)2
Avg Revenue beat(2)0.38%
Min Revenue beat(2)0.27%
Max Revenue beat(2)0.48%
Revenue beat(4)4
Avg Revenue beat(4)0.34%
Min Revenue beat(4)0.24%
Max Revenue beat(4)0.48%
Revenue beat(8)6
Avg Revenue beat(8)0.53%
Revenue beat(12)8
Avg Revenue beat(12)0.74%
Revenue beat(16)10
Avg Revenue beat(16)0.67%
PT rev (1m)-0.77%
PT rev (3m)1.15%
EPS NQ rev (1m)-3.66%
EPS NQ rev (3m)8.64%
EPS NY rev (1m)-4.99%
EPS NY rev (3m)-3.17%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-5.75%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.67 | ||
| Fwd PE | 14.53 | ||
| P/S | 1.93 | ||
| P/FCF | 16.92 | ||
| P/OCF | 13.14 | ||
| P/B | 2.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.89 |
EPS(TTM)6.58
EY6.38%
EPS(NY)7.1
Fwd EY6.88%
FCF(TTM)6.09
FCFY5.91%
OCF(TTM)7.85
OCFY7.61%
SpS53.28
BVpS34.5
TBVpS-36.09
PEG (NY)2
PEG (5Y)2.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.21% | ||
| ROE | 8.18% | ||
| ROCE | 6.55% | ||
| ROIC | 5.18% | ||
| ROICexc | 5.7% | ||
| ROICexgc | 17.21% | ||
| OM | 14.28% | ||
| PM (TTM) | 5.3% | ||
| GM | 47.6% | ||
| FCFM | 11.43% |
ROA(3y)-5.03%
ROA(5y)1.21%
ROE(3y)-19.62%
ROE(5y)-4.99%
ROIC(3y)4.62%
ROIC(5y)7.73%
ROICexc(3y)5.1%
ROICexc(5y)9.65%
ROICexgc(3y)18.5%
ROICexgc(5y)27.17%
ROCE(3y)5.85%
ROCE(5y)9.79%
ROICexcg growth 3Y-28.61%
ROICexcg growth 5Y-4.49%
ROICexc growth 3Y-33.31%
ROICexc growth 5Y-6.61%
OM growth 3Y-17.07%
OM growth 5Y0.74%
PM growth 3Y-34.31%
PM growth 5Y-6.44%
GM growth 3Y0.59%
GM growth 5Y1.73%
F-Score8
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 11.07 | ||
| Debt/EBITDA | 5.22 | ||
| Cap/Depr | 33.91% | ||
| Cap/Sales | 3.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.4% | ||
| Profit Quality | 215.79% | ||
| Current Ratio | 3.19 | ||
| Quick Ratio | 2.04 | ||
| Altman-Z | 1.63 |
F-Score8
WACC11.01%
ROIC/WACC0.47
Cap/Depr(3y)43.92%
Cap/Depr(5y)60.12%
Cap/Sales(3y)3.44%
Cap/Sales(5y)3.38%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)48.53%
EPS 3Y-16.71%
EPS 5Y7.75%
EPS Q2Q%83.76%
EPS Next Y7.83%
EPS Next 2Y14.9%
EPS Next 3Y13.53%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.97%
Revenue growth 3Y6.73%
Revenue growth 5Y13.55%
Sales Q2Q%4.7%
Revenue Next Year7.01%
Revenue Next 2Y7.49%
Revenue Next 3Y7.57%
Revenue Next 5YN/A
EBIT growth 1Y30.28%
EBIT growth 3Y-11.49%
EBIT growth 5Y14.38%
EBIT Next Year43.75%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y76.72%
FCF growth 3Y-9.48%
FCF growth 5Y17.82%
OCF growth 1Y65.52%
OCF growth 3Y-6.19%
OCF growth 5Y16.65%