MKS INC (MKSI) Stock Fundamental Analysis
NASDAQ:MKSI - Nasdaq - US55306N1046 - Common Stock - Currency: USD
MKSI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 110 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
MKSI had positive earnings in the past year.
In the past year MKSI had a positive cash flow from operations.
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's Return On Assets of 2.66% is in line compared to the rest of the industry. MKSI outperforms 54.55% of its industry peers.
MKSI has a Return On Equity of 9.69%. This is in the better half of the industry: MKSI outperforms 68.18% of its industry peers.
MKSI's Return On Invested Capital of 5.38% is fine compared to the rest of the industry. MKSI outperforms 65.45% 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 10.58%.
The last Return On Invested Capital (5.38%) for MKSI is above the 3 year average (4.62%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 9.69% | ||
| ROIC | 5.38% |
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 6.24%. This is comparable to the rest of the industry: MKSI outperforms 55.45% of its industry peers.
MKSI's Profit Margin has declined in the last couple of years.
MKSI's Operating Margin of 14.48% is fine compared to the rest of the industry. MKSI outperforms 72.73% 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's Gross Margin of 47.52% is in line compared to the rest of the industry. MKSI outperforms 53.64% of its industry peers.
In the last couple of years the Gross Margin of MKSI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.48% | ||
| PM (TTM) | 6.24% | ||
| GM | 47.52% |
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.
Compared to 1 year ago, MKSI has more shares outstanding
The number of shares outstanding for MKSI has been increased compared to 5 years ago.
Compared to 1 year ago, MKSI has a worse debt to assets ratio.
2.2 Solvency
MKSI has an Altman-Z score of 1.64. This is a bad value and indicates that MKSI is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.64, MKSI is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
MKSI has a debt to FCF ratio of 9.21. This is a negative value and a sign of low solvency as MKSI would need 9.21 years to pay back of all of its debts.
MKSI has a Debt to FCF ratio of 9.21. This is comparable to the rest of the industry: MKSI outperforms 46.36% of its industry peers.
MKSI has a Debt/Equity ratio of 1.87. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of MKSI (1.87) is worse than 93.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | 9.21 | ||
| Altman-Z | 1.64 |
ROIC/WACC0.49
WACC11.05%
2.3 Liquidity
A Current Ratio of 3.11 indicates that MKSI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.11, MKSI is in line with its industry, outperforming 52.73% of the companies in the same industry.
MKSI has a Quick Ratio of 1.96. This is a normal value and indicates that MKSI is financially healthy and should not expect problems in meeting its short term obligations.
MKSI's Quick ratio of 1.96 is in line compared to the rest of the industry. MKSI outperforms 44.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.11 | ||
| Quick Ratio | 1.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.60% over the past year.
The Earnings Per Share has been growing slightly by 7.75% on average over the past years.
The Revenue has decreased by -1.14% in the past 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)38.6%
EPS 3Y-16.71%
EPS 5Y7.75%
EPS Q2Q%44.92%
Revenue 1Y (TTM)-1.14%
Revenue growth 3Y6.73%
Revenue growth 5Y13.55%
Sales Q2Q%7.83%
3.2 Future
The Earnings Per Share is expected to grow by 10.80% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.63% on average over the next years.
EPS Next Y5.13%
EPS Next 2Y12.32%
EPS Next 3Y10.8%
EPS Next 5YN/A
Revenue Next Year5.44%
Revenue Next 2Y6.02%
Revenue Next 3Y5.63%
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
MKSI is valuated correctly with a Price/Earnings ratio of 14.84.
MKSI's Price/Earnings ratio is rather cheap when compared to the industry. MKSI is cheaper than 89.09% of the companies in the same industry.
When comparing the Price/Earnings ratio of MKSI to the average of the S&P500 Index (27.41), we can say MKSI is valued slightly cheaper.
The Price/Forward Earnings ratio is 12.71, which indicates a correct valuation of MKSI.
Based on the Price/Forward Earnings ratio, MKSI is valued cheaper than 93.64% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MKSI to the average of the S&P500 Index (35.19), we can say MKSI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.84 | ||
| Fwd PE | 12.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MKSI is valued cheaper than 83.64% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MKSI is valued cheaply inside the industry as 92.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.62 | ||
| EV/EBITDA | 12.52 |
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.
PEG (NY)2.89
PEG (5Y)1.91
EPS Next 2Y12.32%
EPS Next 3Y10.8%
5. Dividend
5.1 Amount
MKSI has a yearly dividend return of 0.82%, which is pretty low.
MKSI's Dividend Yield is a higher than the industry average which is at 2.17.
Compared to an average S&P500 Dividend Yield of 2.35, MKSI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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 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
25.88% 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.
DP25.88%
EPS Next 2Y12.32%
EPS Next 3Y10.8%
NASDAQ:MKSI (7/14/2025, 3:51:03 PM)
105.48
-0.97 (-0.91%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners107.78%
Inst Owner Change0%
Ins Owners0.41%
Ins Owner Change9.19%
Market Cap7.07B
Analysts81
Price Target119.21 (13.02%)
Short Float %6.11%
Short Ratio3.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Yearly Dividend0.88
Dividend Growth(5Y)1.94%
DP25.88%
Div Incr Years0
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.06%
Min EPS beat(2)7.82%
Max EPS beat(2)16.31%
EPS beat(4)4
Avg EPS beat(4)20.13%
Min EPS beat(4)7.82%
Max EPS beat(4)39.88%
EPS beat(8)8
Avg EPS beat(8)27.73%
EPS beat(12)12
Avg EPS beat(12)60.12%
EPS beat(16)15
Avg EPS beat(16)45.37%
Revenue beat(2)2
Avg Revenue beat(2)0.36%
Min Revenue beat(2)0.27%
Max Revenue beat(2)0.44%
Revenue beat(4)4
Avg Revenue beat(4)0.39%
Min Revenue beat(4)0.27%
Max Revenue beat(4)0.48%
Revenue beat(8)6
Avg Revenue beat(8)0.45%
Revenue beat(12)9
Avg Revenue beat(12)1.07%
Revenue beat(16)10
Avg Revenue beat(16)0.43%
PT rev (1m)0.36%
PT rev (3m)-12.53%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-3.37%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-3.87%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.79%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.84 | ||
| Fwd PE | 12.71 | ||
| P/S | 1.94 | ||
| P/FCF | 14.62 | ||
| P/OCF | 11.75 | ||
| P/B | 3.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.52 |
EPS(TTM)7.11
EY6.74%
EPS(NY)8.3
Fwd EY7.87%
FCF(TTM)7.22
FCFY6.84%
OCF(TTM)8.98
OCFY8.51%
SpS54.47
BVpS35.1
TBVpS-35.49
PEG (NY)2.89
PEG (5Y)1.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 9.69% | ||
| ROCE | 6.8% | ||
| ROIC | 5.38% | ||
| ROICexc | 5.87% | ||
| ROICexgc | 17.52% | ||
| OM | 14.48% | ||
| PM (TTM) | 6.24% | ||
| GM | 47.52% | ||
| FCFM | 13.25% |
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 Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | 9.21 | ||
| Debt/EBITDA | 5.04 | ||
| Cap/Depr | 34.2% | ||
| Cap/Sales | 3.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.88% | ||
| Profit Quality | 212.28% | ||
| Current Ratio | 3.11 | ||
| Quick Ratio | 1.96 | ||
| Altman-Z | 1.64 |
F-Score8
WACC11.05%
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)38.6%
EPS 3Y-16.71%
EPS 5Y7.75%
EPS Q2Q%44.92%
EPS Next Y5.13%
EPS Next 2Y12.32%
EPS Next 3Y10.8%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.14%
Revenue growth 3Y6.73%
Revenue growth 5Y13.55%
Sales Q2Q%7.83%
Revenue Next Year5.44%
Revenue Next 2Y6.02%
Revenue Next 3Y5.63%
Revenue Next 5YN/A
EBIT growth 1Y8.4%
EBIT growth 3Y-11.49%
EBIT growth 5Y14.38%
EBIT Next Year28.54%
EBIT Next 3Y14.82%
EBIT Next 5YN/A
FCF growth 1Y33.33%
FCF growth 3Y-9.48%
FCF growth 5Y17.82%
OCF growth 1Y14.67%
OCF growth 3Y-6.19%
OCF growth 5Y16.65%