MKS INSTRUMENTS INC (MKSI) Stock Fundamental Analysis
NASDAQ:MKSI - Nasdaq - US55306N1046 - Common Stock
We assign a fundamental rating of 4 out of 10 to MKSI. MKSI was compared to 109 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 decent growth rate and is not valued too expensively.
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
Looking at the Return On Assets, with a value of 0.34%, MKSI is in line with its industry, outperforming 46.30% of the companies in the same industry.
MKSI's Return On Equity of 1.29% is in line compared to the rest of the industry. MKSI outperforms 47.22% of its industry peers.
With a decent Return On Invested Capital value of 4.49%, MKSI is doing good in the industry, outperforming 64.81% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MKSI is below the industry average of 11.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.34% | ||
| ROE | 1.29% | ||
| ROIC | 4.49% |
ROA(3y)-1.72%
ROA(5y)1.59%
ROE(3y)-15.98%
ROE(5y)-5.24%
ROIC(3y)7.47%
ROIC(5y)7.82%
1.3 Margins
Looking at the Profit Margin, with a value of 0.87%, MKSI is in line with its industry, outperforming 47.22% of the companies in the same industry.
MKSI has a Operating Margin of 13.58%. This is in the better half of the industry: MKSI outperforms 69.44% of its industry peers.
MKSI's Operating Margin has declined in the last couple of years.
The Gross Margin of MKSI (47.33%) is comparable to the rest of the industry.
MKSI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.58% | ||
| PM (TTM) | 0.87% | ||
| GM | 47.33% |
OM growth 3Y-19.33%
OM growth 5Y-15.3%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.21%
GM growth 5Y-0.8%
2. Health
2.1 Basic Checks
MKSI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
MKSI has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, MKSI has more shares outstanding
Compared to 1 year ago, MKSI has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.62, we must say that MKSI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.62, MKSI is not doing good in the industry: 70.37% of the companies in the same industry are doing better.
The Debt to FCF ratio of MKSI is 11.13, which is on the high side as it means it would take MKSI, 11.13 years of fcf income to pay off all of its debts.
MKSI has a Debt to FCF ratio of 11.13. This is comparable to the rest of the industry: MKSI outperforms 52.78% of its industry peers.
A Debt/Equity ratio of 1.98 is on the high side and indicates that MKSI has dependencies on debt financing.
MKSI has a Debt to Equity ratio of 1.98. This is amonst the worse of the industry: MKSI underperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.98 | ||
| Debt/FCF | 11.13 | ||
| Altman-Z | 1.62 |
ROIC/WACC0.37
WACC11.98%
2.3 Liquidity
A Current Ratio of 3.42 indicates that MKSI has no problem at all paying its short term obligations.
The Current ratio of MKSI (3.42) is comparable to the rest of the industry.
MKSI has a Quick Ratio of 2.21. This indicates that MKSI is financially healthy and has no problem in meeting its short term obligations.
MKSI has a Quick ratio (2.21) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.42 | ||
| Quick Ratio | 2.21 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.46% over the past year.
Measured over the past years, MKSI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.74% on average per year.
MKSI shows a decrease in Revenue. In the last year, the revenue decreased by -7.13%.
MKSI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.78% yearly.
EPS 1Y (TTM)6.46%
EPS 3Y-15.83%
EPS 5Y-10.74%
EPS Q2Q%17.81%
Revenue 1Y (TTM)-7.13%
Revenue growth 3Y15.84%
Revenue growth 5Y11.78%
Sales Q2Q%-3.86%
3.2 Future
MKSI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.50% yearly.
Based on estimates for the next years, MKSI will show a small growth in Revenue. The Revenue will grow by 5.47% on average per year.
EPS Next Y46.83%
EPS Next 2Y33.85%
EPS Next 3Y29.5%
EPS Next 5YN/A
Revenue Next Year-0.22%
Revenue Next 2Y3.84%
Revenue Next 3Y5.47%
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 21.83 indicates a rather expensive valuation of MKSI.
Based on the Price/Earnings ratio, MKSI is valued a bit cheaper than the industry average as 79.63% of the companies are valued more expensively.
MKSI is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.40 indicates a correct valuation of MKSI.
Based on the Price/Forward Earnings ratio, MKSI is valued cheaper than 85.19% of the companies in the same industry.
MKSI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.83 | ||
| Fwd PE | 15.4 |
4.2 Price Multiples
76.85% of the companies in the same industry are more expensive than MKSI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MKSI is valued cheaply inside the industry as 90.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.04 | ||
| EV/EBITDA | 14.34 |
4.3 Compensation for Growth
MKSI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as MKSI's earnings are expected to grow with 29.50% in the coming years.
PEG (NY)0.47
PEG (5Y)N/A
EPS Next 2Y33.85%
EPS Next 3Y29.5%
5. Dividend
5.1 Amount
MKSI has a yearly dividend return of 0.75%, which is pretty low.
MKSI's Dividend Yield is a higher than the industry average which is at 2.28.
Compared to an average S&P500 Dividend Yield of 2.28, MKSI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
5.2 History
The dividend of MKSI has a limited annual growth rate of 2.34%.
MKSI has paid a dividend for at least 10 years, which is 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)2.34%
Div Incr Years0
Div Non Decr Years13
5.3 Sustainability
MKSI pays out 190.32% of its income as dividend. This is not a sustainable payout ratio.
MKSI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP190.32%
EPS Next 2Y33.85%
EPS Next 3Y29.5%
MKS INSTRUMENTS INC
NASDAQ:MKSI (1/21/2025, 8:14:28 PM)
After market: 122.24 0 (0%)122.24
+2.13 (+1.77%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners104.07%
Inst Owner Change1.04%
Ins Owners0.24%
Ins Owner Change0.21%
Market Cap8.23B
Analysts77.14
Price Target142.1 (16.25%)
Short Float %4.87%
Short Ratio4.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Yearly Dividend0.88
Dividend Growth(5Y)2.34%
DP190.32%
Div Incr Years0
Div Non Decr Years13
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)28.2%
Min EPS beat(2)16.53%
Max EPS beat(2)39.88%
EPS beat(4)4
Avg EPS beat(4)36.68%
Min EPS beat(4)16.53%
Max EPS beat(4)54.42%
EPS beat(8)8
Avg EPS beat(8)84.34%
EPS beat(12)12
Avg EPS beat(12)58.55%
EPS beat(16)15
Avg EPS beat(16)45.58%
Revenue beat(2)2
Avg Revenue beat(2)0.43%
Min Revenue beat(2)0.37%
Max Revenue beat(2)0.48%
Revenue beat(4)4
Avg Revenue beat(4)1.19%
Min Revenue beat(4)0.24%
Max Revenue beat(4)3.67%
Revenue beat(8)6
Avg Revenue beat(8)1.38%
Revenue beat(12)7
Avg Revenue beat(12)0.57%
Revenue beat(16)10
Avg Revenue beat(16)1.11%
PT rev (1m)-1.14%
PT rev (3m)0.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)25.13%
EPS NY rev (1m)0%
EPS NY rev (3m)13.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.83 | ||
| Fwd PE | 15.4 | ||
| P/S | 2.32 | ||
| P/FCF | 19.04 | ||
| P/OCF | 15.43 | ||
| P/B | 3.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.34 |
EPS(TTM)5.6
EY4.58%
EPS(NY)7.94
Fwd EY6.49%
FCF(TTM)6.42
FCFY5.25%
OCF(TTM)7.92
OCFY6.48%
SpS52.65
BVpS35.64
TBVpS-38.82
PEG (NY)0.47
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.34% | ||
| ROE | 1.29% | ||
| ROCE | 5.84% | ||
| ROIC | 4.49% | ||
| ROICexc | 5.01% | ||
| ROICexgc | 15.6% | ||
| OM | 13.58% | ||
| PM (TTM) | 0.87% | ||
| GM | 47.33% | ||
| FCFM | 12.19% |
ROA(3y)-1.72%
ROA(5y)1.59%
ROE(3y)-15.98%
ROE(5y)-5.24%
ROIC(3y)7.47%
ROIC(5y)7.82%
ROICexc(3y)9.36%
ROICexc(5y)9.84%
ROICexgc(3y)27.79%
ROICexgc(5y)27.32%
ROCE(3y)9.71%
ROCE(5y)10.17%
ROICexcg growth 3Y-25.59%
ROICexcg growth 5Y-24.23%
ROICexc growth 3Y-33.21%
ROICexc growth 5Y-29.97%
OM growth 3Y-19.33%
OM growth 5Y-15.3%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.21%
GM growth 5Y-0.8%
F-Score7
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.98 | ||
| Debt/FCF | 11.13 | ||
| Debt/EBITDA | 5.67 | ||
| Cap/Depr | 28.21% | ||
| Cap/Sales | 2.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.53% | ||
| Profit Quality | 1393.55% | ||
| Current Ratio | 3.42 | ||
| Quick Ratio | 2.21 | ||
| Altman-Z | 1.62 |
F-Score7
WACC11.98%
ROIC/WACC0.37
Cap/Depr(3y)60.38%
Cap/Depr(5y)64.96%
Cap/Sales(3y)3.32%
Cap/Sales(5y)3.39%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.46%
EPS 3Y-15.83%
EPS 5Y-10.74%
EPS Q2Q%17.81%
EPS Next Y46.83%
EPS Next 2Y33.85%
EPS Next 3Y29.5%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.13%
Revenue growth 3Y15.84%
Revenue growth 5Y11.78%
Sales Q2Q%-3.86%
Revenue Next Year-0.22%
Revenue Next 2Y3.84%
Revenue Next 3Y5.47%
Revenue Next 5YN/A
EBIT growth 1Y4.79%
EBIT growth 3Y-6.55%
EBIT growth 5Y-5.31%
EBIT Next Year48.27%
EBIT Next 3Y24.32%
EBIT Next 5YN/A
FCF growth 1Y6.17%
FCF growth 3Y-18.48%
FCF growth 5Y-7.94%
OCF growth 1Y-1.17%
OCF growth 3Y-14.66%
OCF growth 5Y-5.07%