MKS INC (MKSI) Stock Fundamental Analysis
USA - NASDAQ:MKSI - US55306N1046 - Common Stock
135.9 USD
-0.52 (-0.38%)
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
In the past year MKSI was profitable.
MKSI had a positive operating cash flow in the past year.
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
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.
The Average Return On Invested Capital over the past 3 years for MKSI is significantly below the industry average of 10.94%.
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.
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 has a Gross Margin (47.34%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of MKSI has grown nicely.
| 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.
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.
The debt/assets ratio for MKSI is higher compared to a year ago.
2.2 Solvency
MKSI has an Altman-Z score of 1.81. 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.
Looking at the Altman-Z score, with a value of 1.81, MKSI is doing worse than 68.75% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 8.40, MKSI is in line with its industry, outperforming 50.89% of the companies in the same industry.
A Debt/Equity ratio of 1.71 is on the high side and indicates that MKSI has dependencies on debt 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 | 1.81 |
ROIC/WACC0.48
WACC11.19%
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 of 2.99. This is comparable to the rest of the industry: MKSI outperforms 53.57% of its industry peers.
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 (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
The Earnings Per Share has grown by an impressive 37.64% over the past year.
MKSI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.75% yearly.
Looking at the last year, MKSI shows a small growth in Revenue. The Revenue has grown by 4.47% 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)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 12.47% on average per year.
The Revenue is expected to grow by 6.36% on average over the next years.
EPS Next Y9.72%
EPS Next 2Y13.29%
EPS Next 3Y12.47%
EPS Next 5YN/A
Revenue Next Year7.29%
Revenue Next 2Y6.54%
Revenue Next 3Y6.36%
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 18.49 indicates a rather expensive valuation of MKSI.
88.39% of the companies in the same industry are more expensive than MKSI, based on the Price/Earnings ratio.
MKSI is valuated rather cheaply when we compare the Price/Earnings ratio to 27.53, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.09, MKSI is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MKSI indicates a rather cheap valuation: MKSI is cheaper than 89.29% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MKSI to the average of the S&P500 Index (23.04), we can say MKSI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.49 | ||
| Fwd PE | 16.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MKSI is valued a bit cheaper than 79.46% of the companies in the same industry.
89.29% 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 | 17.38 | ||
| EV/EBITDA | 14.6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of MKSI 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)1.9
PEG (5Y)2.39
EPS Next 2Y13.29%
EPS Next 3Y12.47%
5. Dividend
5.1 Amount
With a yearly dividend of 0.66%, MKSI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.15, MKSI pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.66, MKSI pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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.
The dividend of MKSI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.1%
EPS Next 2Y13.29%
EPS Next 3Y12.47%
NASDAQ:MKSI (10/16/2025, 2:28:45 PM)
135.9
-0.52 (-0.38%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners113.15%
Inst Owner Change-0.01%
Ins Owners0.41%
Ins Owner Change1.52%
Market Cap9.13B
Analysts80
Price Target124.29 (-8.54%)
Short Float %7.06%
Short Ratio3.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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)4.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.2%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)4.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.49 | ||
| Fwd PE | 16.09 | ||
| P/S | 2.44 | ||
| P/FCF | 17.38 | ||
| P/OCF | 14.15 | ||
| P/B | 3.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.6 |
EPS(TTM)7.35
EY5.41%
EPS(NY)8.44
Fwd EY6.21%
FCF(TTM)7.82
FCFY5.75%
OCF(TTM)9.6
OCFY7.07%
SpS55.67
BVpS38.01
TBVpS-34.01
PEG (NY)1.9
PEG (5Y)2.39
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 | 1.81 |
F-Score8
WACC11.19%
ROIC/WACC0.48
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 Y9.72%
EPS Next 2Y13.29%
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 2Y6.54%
Revenue Next 3Y6.36%
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%