MKS INC (MKSI) Stock Fundamental Analysis
USA - NASDAQ:MKSI - US55306N1046 - Common Stock
119.44 USD
+1.09 (+0.92%)
124.12 USD
+4.68 (+3.92%)
Overall MKSI gets a fundamental rating of 5 out of 10. We evaluated MKSI against 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
MKSI had positive earnings in the past year.
MKSI had a positive operating cash flow in the past year.
Of the past 5 years MKSI 4 years were profitable.
MKSI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MKSI (3.03%) is comparable to the rest of the industry.
With a decent Return On Equity value of 10.46%, MKSI is doing good in the industry, outperforming 75.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.32%, MKSI is in the better half of the industry, outperforming 66.07% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MKSI is significantly below the industry average of 10.87%.
The 3 year average ROIC (4.62%) for MKSI is below the current ROIC(5.32%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.03% | ||
| ROE | 10.46% | ||
| ROIC | 5.32% |
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 7.14%, MKSI is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
In the last couple of years the Profit Margin of MKSI has declined.
MKSI's Operating Margin of 14.39% is fine compared to the rest of the industry. MKSI outperforms 72.32% of its industry peers.
MKSI's Operating Margin has been stable in the last couple of years.
MKSI's Gross Margin of 47.34% is in line compared to the rest of the industry. MKSI outperforms 55.36% of its industry peers.
MKSI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.39% | ||
| PM (TTM) | 7.14% | ||
| GM | 47.34% |
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.
MKSI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MKSI has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.71, we must say that MKSI is in the distress zone and has some risk of bankruptcy.
MKSI has a Altman-Z score of 1.71. This is in the lower half of the industry: MKSI underperforms 66.96% of its industry peers.
MKSI has a debt to FCF ratio of 8.40. This is a slightly negative value and a sign of low solvency as MKSI would need 8.40 years to pay back of all of its debts.
With a Debt to FCF ratio value of 8.40, MKSI perfoms like the industry average, outperforming 48.21% of the companies in the same industry.
MKSI has a Debt/Equity ratio of 1.71. This is a high value indicating a heavy dependency on external financing.
MKSI has a Debt to Equity ratio of 1.71. This is amonst the worse of the industry: MKSI underperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | 8.4 | ||
| Altman-Z | 1.71 |
ROIC/WACC0.49
WACC10.95%
2.3 Liquidity
A Current Ratio of 2.99 indicates that MKSI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.99, MKSI is in line with its industry, outperforming 52.68% of the companies in the same industry.
A Quick Ratio of 1.88 indicates that MKSI should not have too much problems paying its short term obligations.
MKSI has a Quick ratio (1.88) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.99 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
MKSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.64%, 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.
MKSI shows a small growth in Revenue. In the last year, the Revenue has grown by 4.47%.
The Revenue has been growing by 13.55% on average over the past years. This is quite good.
EPS 1Y (TTM)37.64%
EPS 3Y-16.71%
EPS 5Y7.75%
EPS Q2Q%15.69%
Revenue 1Y (TTM)4.47%
Revenue growth 3Y6.73%
Revenue growth 5Y13.55%
Sales Q2Q%9.7%
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 12.47% yearly.
Based on estimates for the next years, MKSI will show a small growth in Revenue. The Revenue will grow by 6.30% on average per year.
EPS Next Y9.85%
EPS Next 2Y13.35%
EPS Next 3Y12.47%
EPS Next 5YN/A
Revenue Next Year7.29%
Revenue Next 2Y6.46%
Revenue Next 3Y6.3%
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.
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
With a Price/Earnings ratio of 16.25, MKSI is valued correctly.
91.07% of the companies in the same industry are more expensive than MKSI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.20. MKSI is valued slightly cheaper when compared to this.
MKSI is valuated correctly with a Price/Forward Earnings ratio of 14.13.
Based on the Price/Forward Earnings ratio, MKSI is valued cheaper than 91.96% of the companies in the same industry.
MKSI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.25 | ||
| Fwd PE | 14.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MKSI is valued cheaper than 80.36% of the companies in the same industry.
MKSI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MKSI is cheaper than 91.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.28 | ||
| EV/EBITDA | 13.31 |
4.3 Compensation for Growth
The 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 12.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.65
PEG (5Y)2.1
EPS Next 2Y13.35%
EPS Next 3Y12.47%
5. Dividend
5.1 Amount
MKSI has a yearly dividend return of 0.76%, which is pretty low.
Compared to an average industry Dividend Yield of 2.31, MKSI pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.76, MKSI pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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
22.10% of the earnings are spent on dividend by MKSI. This is a low number and sustainable payout ratio.
MKSI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.1%
EPS Next 2Y13.35%
EPS Next 3Y12.47%
119.44
+1.09 (+0.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners108.13%
Inst Owner Change0.25%
Ins Owners0.4%
Ins Owner Change2.23%
Market Cap8.02B
Analysts80
Price Target124.29 (4.06%)
Short Float %6.22%
Short Ratio4.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend0.88
Dividend Growth(5Y)1.94%
DP22.1%
Div Incr Years0
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.61%
Min EPS beat(2)6.9%
Max EPS beat(2)16.31%
EPS beat(4)4
Avg EPS beat(4)11.89%
Min EPS beat(4)6.9%
Max EPS beat(4)16.53%
EPS beat(8)8
Avg EPS beat(8)27.23%
EPS beat(12)12
Avg EPS beat(12)59.85%
EPS beat(16)15
Avg EPS beat(16)45.79%
Revenue beat(2)2
Avg Revenue beat(2)1.47%
Min Revenue beat(2)0.44%
Max Revenue beat(2)2.49%
Revenue beat(4)4
Avg Revenue beat(4)0.92%
Min Revenue beat(4)0.27%
Max Revenue beat(4)2.49%
Revenue beat(8)7
Avg Revenue beat(8)0.76%
Revenue beat(12)9
Avg Revenue beat(12)1.09%
Revenue beat(16)11
Avg Revenue beat(16)0.64%
PT rev (1m)2.72%
PT rev (3m)4.64%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)-4.62%
EPS NY rev (1m)4.49%
EPS NY rev (3m)4.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.31%
Revenue NY rev (1m)1.54%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.25 | ||
| Fwd PE | 14.13 | ||
| P/S | 2.15 | ||
| P/FCF | 15.28 | ||
| P/OCF | 12.44 | ||
| P/B | 3.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.31 |
EPS(TTM)7.35
EY6.15%
EPS(NY)8.45
Fwd EY7.08%
FCF(TTM)7.82
FCFY6.54%
OCF(TTM)9.6
OCFY8.04%
SpS55.67
BVpS38.01
TBVpS-34.01
PEG (NY)1.65
PEG (5Y)2.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.03% | ||
| ROE | 10.46% | ||
| ROCE | 6.73% | ||
| ROIC | 5.32% | ||
| ROICexc | 5.81% | ||
| ROICexgc | 17.12% | ||
| OM | 14.39% | ||
| PM (TTM) | 7.14% | ||
| GM | 47.34% | ||
| FCFM | 14.04% |
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 | 1.71 | ||
| Debt/FCF | 8.4 | ||
| Debt/EBITDA | 4.93 | ||
| Cap/Depr | 34.78% | ||
| Cap/Sales | 3.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.05% | ||
| Profit Quality | 196.63% | ||
| Current Ratio | 2.99 | ||
| Quick Ratio | 1.88 | ||
| Altman-Z | 1.71 |
F-Score8
WACC10.95%
ROIC/WACC0.49
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)37.64%
EPS 3Y-16.71%
EPS 5Y7.75%
EPS Q2Q%15.69%
EPS Next Y9.85%
EPS Next 2Y13.35%
EPS Next 3Y12.47%
EPS Next 5YN/A
Revenue 1Y (TTM)4.47%
Revenue growth 3Y6.73%
Revenue growth 5Y13.55%
Sales Q2Q%9.7%
Revenue Next Year7.29%
Revenue Next 2Y6.46%
Revenue Next 3Y6.3%
Revenue Next 5YN/A
EBIT growth 1Y14.71%
EBIT growth 3Y-11.49%
EBIT growth 5Y14.38%
EBIT Next Year32.13%
EBIT Next 3Y13.9%
EBIT Next 5YN/A
FCF growth 1Y114.29%
FCF growth 3Y-9.48%
FCF growth 5Y17.82%
OCF growth 1Y78.67%
OCF growth 3Y-6.19%
OCF growth 5Y16.65%