217.06 USD
-5.94 (-2.66%)
217.06 USD
0 (0%)
Overall MKSI gets a fundamental rating of 5 out of 10. We evaluated MKSI against 113 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 is not valued too expensively and it also shows a decent growth rate.
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.
- MKSI had positive earnings in 4 of the past 5 years.
- In the past 5 years MKSI always reported a positive cash flow from operatings.
1.2 Ratios
- MKSI's Return On Assets of 3.18% is in line compared to the rest of the industry. MKSI outperforms 57.52% of its industry peers.
- MKSI's Return On Equity of 10.73% is fine compared to the rest of the industry. MKSI outperforms 71.68% of its industry peers.
- 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.
- Measured over the past 3 years, the Average Return On Invested Capital 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 Profit Margin of 7.28%. This is in the better half of the industry: MKSI outperforms 63.72% of its industry peers.
- In the last couple of years the Profit Margin of MKSI has declined.
- Looking at the Operating Margin, with a value of 14.30%, MKSI is in the better half of the industry, outperforming 69.91% of the companies in the same industry.
- MKSI's Operating Margin has been stable in the last couple of years.
- MKSI has a Gross Margin of 46.96%. This is comparable to the rest of the industry: MKSI outperforms 56.64% of its industry peers.
- 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
- MKSI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for MKSI has been increased compared to 1 year ago.
- The number of shares outstanding for MKSI has been increased compared to 5 years ago.
- MKSI has a worse debt/assets ratio than last year.
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 Altman-Z score of 2.38. This is in the lower half of the industry: MKSI underperforms 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.
- MKSI's Debt to FCF ratio of 8.12 is in line compared to the rest of the industry. MKSI outperforms 49.56% of its industry peers.
- MKSI has a Debt/Equity ratio of 1.64. This is a high value indicating a heavy dependency on external financing.
- MKSI's Debt to Equity ratio of 1.64 is on the low side compared to the rest of the industry. MKSI is outperformed by 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
- 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.
- The Current ratio of MKSI (2.86) is comparable to the rest of the industry.
- 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.
- The Quick ratio of MKSI (1.81) is worse than 61.06% of its industry peers.
| 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.
- The Earnings Per Share has been growing slightly by 7.75% on average over the past years.
- Looking at the last year, MKSI shows a quite strong growth in Revenue. The Revenue has grown by 8.13% in the last year.
- Measured over the past years, MKSI shows a quite strong growth in Revenue. The Revenue has been growing by 13.55% on average per year.
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 11.80% on average per year.
- The Revenue is expected to grow by 6.45% on average over the next years.
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 cheaper than 83.19% of the companies in the same industry.
- MKSI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- Based on the Price/Forward Earnings ratio of 24.35, the valuation of MKSI can be described as rather expensive.
- 77.88% of the companies in the same industry are more expensive than MKSI, based on the Price/Forward Earnings ratio.
- MKSI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.71 | ||
| Fwd PE | 24.35 |
4.2 Price Multiples
- 74.34% of the companies in the same industry are more expensive than MKSI, based on the Enterprise Value to EBITDA ratio.
- 87.61% of the companies in the same industry are more expensive than MKSI, based on the Price/Free Cash Flow ratio.
| 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
- With a yearly dividend of 0.39%, MKSI is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.50, MKSI pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.39, MKSI pays less dividend than the S&P500 average, which is at 1.81.
| 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 been paying a dividend for at least 10 years, so it has 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
- 21.15% of the earnings are spent on dividend by MKSI. This is a low number and 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%.