MKS INC (MKSI) Stock Fundamental Analysis
USA - NASDAQ:MKSI - US55306N1046 - Common Stock
142.74 USD
-1.37 (-0.95%)
142.74 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to MKSI. MKSI was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. While MKSI is still in line with the averages on profitability rating, there are concerns on its financial health. 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
MKSI has a Return On Assets (3.18%) which is in line with its industry peers.
With a decent Return On Equity value of 10.73%, MKSI is doing good in the industry, outperforming 72.32% of the companies in the same industry.
The Return On Invested Capital of MKSI (5.49%) is better than 65.18% 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 10.86%.
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
Looking at the Profit Margin, with a value of 7.28%, MKSI is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
In the last couple of years the Profit Margin of MKSI has declined.
The Operating Margin of MKSI (14.30%) is better than 71.43% 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 55.36% 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.
MKSI has more shares outstanding than it did 1 year ago.
MKSI has more shares outstanding than it did 5 years ago.
MKSI has a worse debt/assets ratio than last year.
2.2 Solvency
MKSI has an Altman-Z score of 1.90. 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's Altman-Z score of 1.90 is on the low side compared to the rest of the industry. MKSI is outperformed by 66.96% 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.
Looking at the Debt to FCF ratio, with a value of 8.12, MKSI is in line with its industry, outperforming 50.00% of the companies in the same industry.
MKSI has a Debt/Equity ratio of 1.64. This is a high value indicating a heavy dependency on external financing.
MKSI has a worse Debt to Equity ratio (1.64) than 91.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 8.12 | ||
| Altman-Z | 1.9 |
ROIC/WACC0.53
WACC10.39%
2.3 Liquidity
MKSI has a Current Ratio of 2.86. This indicates that MKSI is financially healthy and has no problem in meeting its short term obligations.
MKSI has a Current ratio (2.86) which is in line with its industry peers.
MKSI has a Quick Ratio of 1.81. This is a normal value and indicates that MKSI is financially healthy and should not expect problems in meeting its short term obligations.
MKSI has a Quick ratio (1.81) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.86 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
MKSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.00%, which is quite impressive.
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.
The Revenue has been growing by 13.55% on average over the past years. This is quite good.
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
Based on estimates for the next years, MKSI will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.77% on average per year.
The Revenue is expected to grow by 6.69% on average over the next years.
EPS Next Y10.47%
EPS Next 2Y15.07%
EPS Next 3Y15.77%
EPS Next 5YN/A
Revenue Next Year7.45%
Revenue Next 2Y6.87%
Revenue Next 3Y6.69%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.88, the valuation of MKSI can be described as rather expensive.
Based on the Price/Earnings ratio, MKSI is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
MKSI is valuated rather cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.38, which indicates a correct valuation of MKSI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MKSI indicates a rather cheap valuation: MKSI is cheaper than 84.82% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MKSI to the average of the S&P500 Index (34.59), we can say MKSI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.88 | ||
| Fwd PE | 16.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MKSI is valued a bit cheaper than the industry average as 79.46% 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 86.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.09 | ||
| EV/EBITDA | 14.79 |
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.
MKSI has a very decent profitability rating, which may justify a higher PE ratio.
MKSI's earnings are expected to grow with 15.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.8
PEG (5Y)2.44
EPS Next 2Y15.07%
EPS Next 3Y15.77%
5. Dividend
5.1 Amount
With a yearly dividend of 0.61%, MKSI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.22, MKSI pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.61, MKSI pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
The dividend of MKSI has a limited annual growth rate of 1.94%.
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)1.94%
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 2Y15.07%
EPS Next 3Y15.77%
142.74
-1.37 (-0.95%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners113.15%
Inst Owner Change1.64%
Ins Owners0.41%
Ins Owner Change-2.36%
Market Cap9.59B
Revenue(TTM)3.83B
Net Income(TTM)279.00M
Analysts80
Price Target144.22 (1.04%)
Short Float %5.53%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Yearly Dividend0.88
Dividend Growth(5Y)1.94%
DP21.15%
Div Incr Years0
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.46%
Min EPS beat(2)2.02%
Max EPS beat(2)6.9%
EPS beat(4)4
Avg EPS beat(4)8.26%
Min EPS beat(4)2.02%
Max EPS beat(4)16.31%
EPS beat(8)8
Avg EPS beat(8)22.47%
EPS beat(12)12
Avg EPS beat(12)58.98%
EPS beat(16)16
Avg EPS beat(16)45.98%
Revenue beat(2)1
Avg Revenue beat(2)1.15%
Min Revenue beat(2)-0.19%
Max Revenue beat(2)2.49%
Revenue beat(4)3
Avg Revenue beat(4)0.76%
Min Revenue beat(4)-0.19%
Max Revenue beat(4)2.49%
Revenue beat(8)7
Avg Revenue beat(8)0.97%
Revenue beat(12)9
Avg Revenue beat(12)1.17%
Revenue beat(16)10
Avg Revenue beat(16)0.61%
PT rev (1m)16.03%
PT rev (3m)19.2%
EPS NQ rev (1m)18.88%
EPS NQ rev (3m)21.19%
EPS NY rev (1m)0.68%
EPS NY rev (3m)5.08%
Revenue NQ rev (1m)3.58%
Revenue NQ rev (3m)3.18%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.88 | ||
| Fwd PE | 16.38 | ||
| P/S | 2.5 | ||
| P/FCF | 18.09 | ||
| P/OCF | 14.12 | ||
| P/B | 3.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.79 |
EPS(TTM)7.56
EY5.3%
EPS(NY)8.71
Fwd EY6.1%
FCF(TTM)7.89
FCFY5.53%
OCF(TTM)10.11
OCFY7.08%
SpS57.04
BVpS38.71
TBVpS-32.15
PEG (NY)1.8
PEG (5Y)2.44
Graham Number81.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 10.73% | ||
| ROCE | 6.94% | ||
| ROIC | 5.49% | ||
| ROICexc | 6.02% | ||
| ROICexgc | 17.78% | ||
| OM | 14.3% | ||
| PM (TTM) | 7.28% | ||
| GM | 46.96% | ||
| FCFM | 13.83% |
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%
ROICexgc growth 3Y-28.61%
ROICexgc 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-Score7
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 8.12 | ||
| Debt/EBITDA | 4.77 | ||
| Cap/Depr | 43.31% | ||
| Cap/Sales | 3.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.12% | ||
| Profit Quality | 189.96% | ||
| Current Ratio | 2.86 | ||
| Quick Ratio | 1.81 | ||
| Altman-Z | 1.9 |
F-Score7
WACC10.39%
ROIC/WACC0.53
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)35%
EPS 3Y-16.71%
EPS 5Y7.75%
EPS Q2Q%12.21%
EPS Next Y10.47%
EPS Next 2Y15.07%
EPS Next 3Y15.77%
EPS Next 5YN/A
Revenue 1Y (TTM)8.13%
Revenue growth 3Y6.73%
Revenue growth 5Y13.55%
Sales Q2Q%10.27%
Revenue Next Year7.45%
Revenue Next 2Y6.87%
Revenue Next 3Y6.69%
Revenue Next 5YN/A
EBIT growth 1Y13.93%
EBIT growth 3Y-11.49%
EBIT growth 5Y14.38%
EBIT Next Year35.5%
EBIT Next 3Y15.86%
EBIT Next 5YN/A
FCF growth 1Y147.66%
FCF growth 3Y-9.48%
FCF growth 5Y17.82%
OCF growth 1Y110.87%
OCF growth 3Y-6.19%
OCF growth 5Y16.65%
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 of MKS INC (MKSI) stock?
ChartMill assigns a valuation rating of 6 / 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 financial health of MKS INC (MKSI) stock?
The financial health rating of MKS INC (MKSI) is 3 / 10.
How sustainable is the dividend of MKS INC (MKSI) stock?
The dividend rating of MKS INC (MKSI) is 6 / 10 and the dividend payout ratio is 21.15%.