MKS INC (MKSI) Stock Fundamental Analysis
USA - NASDAQ:MKSI - US55306N1046 - Common Stock
142.94 USD
+2.29 (+1.63%)
145 USD
+2.06 (+1.44%)
MKSI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 112 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 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.
Each year in the past 5 years MKSI had a positive operating cash flow.
1.2 Ratios
MKSI has a Return On Assets (3.03%) which is in line with its industry peers.
MKSI has a better Return On Equity (10.46%) than 75.00% of its industry peers.
With a decent Return On Invested Capital value of 5.32%, MKSI is doing good in the industry, outperforming 66.07% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MKSI is significantly below the industry average of 11.03%.
The last Return On Invested Capital (5.32%) for MKSI is above the 3 year average (4.62%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 7.14%, MKSI is doing good in the industry, outperforming 62.50% of the companies in the same industry.
MKSI's Profit Margin has declined in the last couple of years.
The Operating Margin of MKSI (14.39%) is better than 72.32% of its industry peers.
In the last couple of years the Operating Margin of MKSI has remained more or less at the same level.
MKSI has a Gross Margin of 47.34%. This is comparable 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
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 1.86. 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 Altman-Z score of 1.86. This is in the lower half of the industry: MKSI underperforms 68.75% 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.
MKSI has a Debt to FCF ratio (8.40) which is in line with its industry peers.
MKSI has a Debt/Equity ratio of 1.71. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.71, MKSI is not doing good in the industry: 91.96% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | 8.4 | ||
| Altman-Z | 1.86 |
ROIC/WACC0.47
WACC11.24%
2.3 Liquidity
A Current Ratio of 2.99 indicates that MKSI has no problem at all paying its short term obligations.
MKSI has a Current ratio (2.99) which is comparable to the rest of the industry.
MKSI has a Quick Ratio of 1.88. 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 of 1.88. This is comparable to the rest of the industry: MKSI outperforms 45.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.99 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.64% 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.
The Revenue has been growing slightly by 4.47% in the past year.
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
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 6.76% on average over the next years.
EPS Next Y10.34%
EPS Next 2Y15.07%
EPS Next 3Y15.77%
EPS Next 5YN/A
Revenue Next Year7.45%
Revenue Next 2Y6.9%
Revenue Next 3Y6.76%
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.
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
A Price/Earnings ratio of 19.45 indicates a rather expensive valuation of MKSI.
Based on the Price/Earnings ratio, MKSI is valued cheaply inside the industry as 88.39% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.89, MKSI is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.41, the valuation of MKSI can be described as correct.
MKSI's Price/Forward Earnings ratio is rather cheap when compared to the industry. MKSI is cheaper than 90.18% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MKSI to the average of the S&P500 Index (22.99), we can say MKSI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.45 | ||
| Fwd PE | 16.41 |
4.2 Price Multiples
79.46% of the companies in the same industry are more expensive than MKSI, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MKSI indicates a rather cheap valuation: MKSI is cheaper than 88.39% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.29 | ||
| EV/EBITDA | 15.1 |
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.
A more expensive valuation may be justified as MKSI's earnings are expected to grow with 15.77% in the coming years.
PEG (NY)1.88
PEG (5Y)2.51
EPS Next 2Y15.07%
EPS Next 3Y15.77%
5. Dividend
5.1 Amount
With a yearly dividend of 0.63%, MKSI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.18, MKSI pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.63, MKSI pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
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 22.10% 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.
DP22.1%
EPS Next 2Y15.07%
EPS Next 3Y15.77%
142.94
+2.29 (+1.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners113.15%
Inst Owner Change-0.13%
Ins Owners0.41%
Ins Owner Change1.19%
Market Cap9.60B
Revenue(TTM)3.74B
Net Income(TTM)267.00M
Analysts80
Price Target124.29 (-13.05%)
Short Float %5.42%
Short Ratio3.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
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)0%
PT rev (3m)4.35%
EPS NQ rev (1m)0.76%
EPS NQ rev (3m)8.93%
EPS NY rev (1m)0.57%
EPS NY rev (3m)4.96%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)2.07%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)1.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.45 | ||
| Fwd PE | 16.41 | ||
| P/S | 2.57 | ||
| P/FCF | 18.29 | ||
| P/OCF | 14.88 | ||
| P/B | 3.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.1 |
EPS(TTM)7.35
EY5.14%
EPS(NY)8.71
Fwd EY6.1%
FCF(TTM)7.82
FCFY5.47%
OCF(TTM)9.6
OCFY6.72%
SpS55.67
BVpS38.01
TBVpS-34.01
PEG (NY)1.88
PEG (5Y)2.51
Graham Number79.29
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%
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-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 | 1.86 |
F-Score8
WACC11.24%
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)37.64%
EPS 3Y-16.71%
EPS 5Y7.75%
EPS Q2Q%15.69%
EPS Next Y10.34%
EPS Next 2Y15.07%
EPS Next 3Y15.77%
EPS Next 5YN/A
Revenue 1Y (TTM)4.47%
Revenue growth 3Y6.73%
Revenue growth 5Y13.55%
Sales Q2Q%9.7%
Revenue Next Year7.45%
Revenue Next 2Y6.9%
Revenue Next 3Y6.76%
Revenue Next 5YN/A
EBIT growth 1Y14.71%
EBIT growth 3Y-11.49%
EBIT growth 5Y14.38%
EBIT Next Year35.5%
EBIT Next 3Y15.86%
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%
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 22.1%.