217.06 USD
-5.94 (-2.66%)
217.06 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to MKSI. MKSI was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. MKSI has a medium profitability rating, but doesn't score so well on its financial health evaluation. MKSI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year MKSI was profitable.
- MKSI had a positive operating cash flow in the past year.
- MKSI had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years MKSI had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 3.18%, MKSI perfoms like the industry average, outperforming 57.52% of the companies in the same industry.
- With a decent Return On Equity value of 10.73%, MKSI is doing good in the industry, outperforming 71.68% of the companies in the same industry.
- MKSI has a Return On Invested Capital of 5.49%. This is in the better half of the industry: MKSI outperforms 64.60% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for MKSI is significantly below the industry average of 10.75%.
- The 3 year average ROIC (4.62%) for MKSI is below the current ROIC(5.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 10.73% | ||
| ROIC | 5.49% |
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 better Profit Margin (7.28%) than 63.72% of its industry peers.
- MKSI's Profit Margin has declined in the last couple of years.
- The Operating Margin of MKSI (14.30%) is better than 69.91% of its industry peers.
- MKSI's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 46.96%, MKSI is in line with its industry, outperforming 56.64% of the companies in the same industry.
- In the last couple of years the Gross Margin of MKSI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.3% | ||
| PM (TTM) | 7.28% | ||
| GM | 46.96% |
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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MKSI is destroying value.
- The number of shares outstanding for MKSI has been increased compared to 1 year ago.
- MKSI has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for MKSI is higher compared to a year ago.
2.2 Solvency
- MKSI has an Altman-Z score of 2.38. This is not the best score and indicates that MKSI is in the grey zone with still only limited risk for bankruptcy at the moment.
- MKSI has a worse Altman-Z score (2.38) than 65.49% of its industry peers.
- The Debt to FCF ratio of MKSI is 8.12, which is on the high side as it means it would take MKSI, 8.12 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of MKSI (8.12) is comparable to the rest of the industry.
- A Debt/Equity ratio of 1.64 is on the high side and indicates that MKSI has dependencies on debt financing.
- The Debt to Equity ratio of MKSI (1.64) is worse than 90.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 8.12 | ||
| Altman-Z | 2.38 |
ROIC/WACC0.51
WACC10.66%
2.3 Liquidity
- A Current Ratio of 2.86 indicates that MKSI has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.86, MKSI is in line with its industry, outperforming 50.44% of the companies in the same industry.
- A Quick Ratio of 1.81 indicates that MKSI should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.81, MKSI is doing worse than 61.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.86 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 35.00% over the past year.
- Measured over the past 5 years, MKSI shows a small growth in Earnings Per Share. The EPS has been growing by 7.75% on average per year.
- Looking at the last year, MKSI shows a quite strong growth in Revenue. The Revenue has grown by 8.13% in the last year.
- 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)35%
EPS 3Y-16.71%
EPS 5Y7.75%
EPS Q2Q%12.21%
Revenue 1Y (TTM)8.13%
Revenue growth 3Y6.73%
Revenue growth 5Y13.55%
Sales Q2Q%10.27%
3.2 Future
- The Earnings Per Share is expected to grow by 11.80% on average over the next years. This is quite good.
- MKSI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.45% yearly.
EPS Next Y19.44%
EPS Next 2Y16.39%
EPS Next 3Y15.8%
EPS Next 5Y11.8%
Revenue Next Year9.79%
Revenue Next 2Y9.28%
Revenue Next 3Y9.11%
Revenue Next 5Y6.45%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- Based on the Price/Earnings ratio of 28.71, the valuation of MKSI can be described as expensive.
- Based on the Price/Earnings ratio, MKSI is valued cheaply inside the industry as 83.19% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.21. MKSI is around the same levels.
- The Price/Forward Earnings ratio is 24.35, which indicates a rather expensive current valuation of MKSI.
- Based on the Price/Forward Earnings ratio, MKSI is valued a bit cheaper than the industry average as 77.88% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, MKSI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.71 | ||
| Fwd PE | 24.35 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MKSI is valued a bit cheaper than the industry average as 74.34% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of MKSI indicates a rather cheap valuation: MKSI is cheaper than 87.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.51 | ||
| EV/EBITDA | 20.39 |
4.3 Compensation for Growth
- MKSI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- MKSI has a very decent profitability rating, which may justify a higher PE ratio.
- MKSI's earnings are expected to grow with 15.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.48
PEG (5Y)3.7
EPS Next 2Y16.39%
EPS Next 3Y15.8%
5. Dividend
5.1 Amount
- MKSI has a yearly dividend return of 0.39%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.50, MKSI pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, MKSI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.39% |
5.2 History
- The dividend of MKSI has a limited annual growth rate of 1.94%.
- MKSI has paid a dividend for at least 10 years, which is a reliable track record.
- MKSI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.94%
Div Incr Years0
Div Non Decr Years13
5.3 Sustainability
- MKSI pays out 21.15% of its income as dividend. This is a sustainable payout ratio.
- The dividend of MKSI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP21.15%
EPS Next 2Y16.39%
EPS Next 3Y15.8%
MKS INC / MKSI FAQ
What is the ChartMill fundamental rating of MKS INC (MKSI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to MKSI.
What is the valuation status for MKSI stock?
ChartMill assigns a valuation rating of 5 / 10 to MKS INC (MKSI). This can be considered as Fairly Valued.
Can you provide the profitability details for MKS INC?
MKS INC (MKSI) has a profitability rating of 6 / 10.
What is the expected EPS growth for MKS INC (MKSI) stock?
The Earnings per Share (EPS) of MKS INC (MKSI) is expected to grow by 19.44% in the next year.
Is the dividend of MKS INC sustainable?
The dividend rating of MKS INC (MKSI) is 6 / 10 and the dividend payout ratio is 21.15%.