MKS INSTRUMENTS INC (MKSI)
US55306N1046 - Common Stock
We assign a fundamental rating of 4 out of 10 to MKSI. MKSI was compared to 107 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and financial health of MKSI have multiple concerns. MKSI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MKSI was profitable.
In the past year MKSI had a positive cash flow from operations.
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
The Return On Assets of MKSI (-20.19%) is worse than 81.13% of its industry peers.
With a Return On Equity value of -74.47%, MKSI is not doing good in the industry: 82.08% of the companies in the same industry are doing better.
MKSI has a Return On Invested Capital (3.65%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for MKSI is below the industry average of 10.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -20.19% | ||
| ROE | -74.47% | ||
| ROIC | 3.65% |
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
MKSI has a better Operating Margin (10.85%) than 62.26% of its industry peers.
In the last couple of years the Operating Margin of MKSI has declined.
MKSI has a Gross Margin of 45.35%. This is comparable to the rest of the industry: MKSI outperforms 49.06% of its industry peers.
MKSI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.85% | ||
| PM (TTM) | N/A | ||
| GM | 45.35% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MKSI is destroying value.
Compared to 1 year ago, MKSI has about the same amount of shares outstanding.
Compared to 5 years ago, MKSI has more shares outstanding
The debt/assets ratio for MKSI is higher compared to a year ago.
2.2 Solvency
MKSI has an Altman-Z score of 1.54. This is a bad value and indicates that MKSI is not financially healthy and even has some risk of bankruptcy.
MKSI's Altman-Z score of 1.54 is on the low side compared to the rest of the industry. MKSI is outperformed by 68.87% of its industry peers.
MKSI has a debt to FCF ratio of 20.64. This is a negative value and a sign of low solvency as MKSI would need 20.64 years to pay back of all of its debts.
MKSI has a Debt to FCF ratio (20.64) which is comparable to the rest of the industry.
MKSI has a Debt/Equity ratio of 1.90. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.90, MKSI is doing worse than 87.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.9 | ||
| Debt/FCF | 20.64 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.33
WACC11.14%
2.3 Liquidity
MKSI has a Current Ratio of 3.18. This indicates that MKSI is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 3.18, MKSI perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
MKSI has a Quick Ratio of 2.01. This indicates that MKSI is financially healthy and has no problem in meeting its short term obligations.
MKSI's Quick ratio of 2.01 is in line compared to the rest of the industry. MKSI outperforms 43.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.18 | ||
| Quick Ratio | 2.01 |
3. Growth
3.1 Past
MKSI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -55.88%.
MKSI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.74% yearly.
Looking at the last year, MKSI shows a small growth in Revenue. The Revenue has grown by 2.09% in the last year.
Measured over the past years, MKSI shows a quite strong growth in Revenue. The Revenue has been growing by 11.78% on average per year.
EPS 1Y (TTM)-55.88%
EPS 3Y-15.83%
EPS 5Y-10.74%
EPS growth Q2Q-41.5%
Revenue 1Y (TTM)2.09%
Revenue growth 3Y15.84%
Revenue growth 5Y11.78%
Revenue growth Q2Q-17.86%
3.2 Future
Based on estimates for the next years, MKSI will show a very strong growth in Earnings Per Share. The EPS will grow by 26.11% on average per year.
Based on estimates for the next years, MKSI will show a small growth in Revenue. The Revenue will grow by 6.56% on average per year.
EPS Next Y-0.11%
EPS Next 2Y26.22%
EPS Next 3Y26.11%
EPS Next 5YN/A
Revenue Next Year0.82%
Revenue Next 2Y6.32%
Revenue Next 3Y6.56%
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.
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
MKSI is valuated quite expensively with a Price/Earnings ratio of 27.26.
65.09% of the companies in the same industry are more expensive than MKSI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 24.92. MKSI is around the same levels.
MKSI is valuated quite expensively with a Price/Forward Earnings ratio of 27.29.
Based on the Price/Forward Earnings ratio, MKSI is valued a bit cheaper than 66.98% of the companies in the same industry.
MKSI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.26 | ||
| Fwd PE | 27.29 |
4.2 Price Multiples
MKSI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MKSI is cheaper than 80.19% of the companies in the same industry.
MKSI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MKSI is cheaper than 72.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.9 | ||
| EV/EBITDA | 14.82 |
4.3 Compensation for Growth
MKSI's earnings are expected to grow with 26.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y26.22%
EPS Next 3Y26.11%
5. Dividend
5.1 Amount
With a yearly dividend of 0.76%, MKSI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.09, MKSI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, MKSI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
The dividend of MKSI has a limited annual growth rate of 2.34%.
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)2.34%
Div Incr Years0
Div Non Decr Years12
5.3 Sustainability
The earnings of MKSI are negative and hence is the payout ratio. MKSI will probably not be able to sustain this dividend level.
The dividend of MKSI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-3.2%
EPS Next 2Y26.22%
EPS Next 3Y26.11%
MKS INSTRUMENTS INC
NASDAQ:MKSI (4/26/2024, 7:03:55 PM)
After market: 120.75 0 (0%)120.75
+4.48 (+3.85%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.10B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.26 | ||
| Fwd PE | 27.29 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -20.19% | ||
| ROE | -74.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.85% | ||
| PM (TTM) | N/A | ||
| GM | 45.35% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.9 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.18 | ||
| Quick Ratio | 2.01 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-55.88%
EPS 3Y-15.83%
EPS 5Y
EPS growth Q2Q
EPS Next Y-0.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.09%
Revenue growth 3Y15.84%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y