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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
Of the past 5 years MKSI 4 years were profitable.
MKSI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MKSI has a Return On Assets (2.66%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 9.69%, MKSI is in the better half of the industry, outperforming 69.09% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.38%, MKSI is doing good in the industry, outperforming 65.45% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MKSI is significantly below the industry average of 10.69%.
The 3 year average ROIC (4.62%) for MKSI is below the current ROIC(5.38%), indicating increased profibility in the last year.
| 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
The Profit Margin of MKSI (6.24%) is comparable to the rest of the industry.
MKSI's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 14.48%, MKSI is doing good in the industry, outperforming 72.73% of the companies in the same industry.
MKSI's Operating Margin has been stable in the last couple of years.
The Gross Margin of MKSI (47.52%) is comparable to the rest of the industry.
MKSI's Gross Margin has improved in the last couple of years.
| 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
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.
Compared to 5 years ago, MKSI has more shares outstanding
MKSI has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.53, we must say that MKSI is in the distress zone and has some risk of bankruptcy.
MKSI has a worse Altman-Z score (1.53) than 67.27% of its industry peers.
The Debt to FCF ratio of MKSI is 9.21, which is on the high side as it means it would take MKSI, 9.21 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 9.21, MKSI perfoms like the industry average, outperforming 46.36% of the companies in the same industry.
MKSI has a Debt/Equity ratio of 1.87. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.87, MKSI is doing worse than 93.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | 9.21 | ||
| Altman-Z | 1.53 |
ROIC/WACC0.5
WACC10.78%
2.3 Liquidity
A Current Ratio of 3.11 indicates that MKSI has no problem at all paying its short term obligations.
MKSI has a Current ratio of 3.11. This is comparable to the rest of the industry: MKSI outperforms 51.82% of its industry peers.
A Quick Ratio of 1.96 indicates that MKSI should not have too much problems paying its short term obligations.
MKSI has a Quick ratio (1.96) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.11 | ||
| Quick Ratio | 1.96 |
3. Growth
3.1 Past
MKSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.64%, which is quite impressive.
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 decrease in Revenue. The Revenue has decreased by -0.99% 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)-0.99%
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 10.80% on average per year.
The Revenue is expected to grow by 5.91% on average over the next years.
EPS Next Y5.13%
EPS Next 2Y12.32%
EPS Next 3Y10.8%
EPS Next 5YN/A
Revenue Next Year5.66%
Revenue Next 2Y6.16%
Revenue Next 3Y5.91%
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
Based on the Price/Earnings ratio of 13.44, the valuation of MKSI can be described as correct.
MKSI's Price/Earnings ratio is rather cheap when compared to the industry. MKSI is cheaper than 93.64% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.54, MKSI is valued a bit cheaper.
The Price/Forward Earnings ratio is 11.90, which indicates a very decent valuation of MKSI.
MKSI's Price/Forward Earnings ratio is rather cheap when compared to the industry. MKSI is cheaper than 92.73% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.28, MKSI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.44 | ||
| Fwd PE | 11.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MKSI is valued cheaper than 81.82% of the companies in the same industry.
MKSI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MKSI is cheaper than 93.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.69 | ||
| EV/EBITDA | 11.23 |
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.
PEG (NY)2.62
PEG (5Y)1.73
EPS Next 2Y12.32%
EPS Next 3Y10.8%
5. Dividend
5.1 Amount
MKSI has a yearly dividend return of 0.96%, which is pretty low.
Compared to an average industry Dividend Yield of 2.38, MKSI pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.96, MKSI pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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
MKSI pays out 25.88% 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.
DP25.88%
EPS Next 2Y12.32%
EPS Next 3Y10.8%
98.77
+9.15 (+10.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners107.78%
Inst Owner Change-1.08%
Ins Owners0.41%
Ins Owner Change9.19%
Market Cap6.62B
Analysts79.05
Price Target121 (22.51%)
Short Float %5.76%
Short Ratio4.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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)-0.08%
PT rev (3m)-3.39%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)-3.14%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-1.59%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.79%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)-0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.44 | ||
| Fwd PE | 11.9 | ||
| P/S | 1.81 | ||
| P/FCF | 13.69 | ||
| P/OCF | 11 | ||
| P/B | 2.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.23 |
EPS(TTM)7.35
EY7.44%
EPS(NY)8.3
Fwd EY8.4%
FCF(TTM)7.22
FCFY7.31%
OCF(TTM)8.98
OCFY9.09%
SpS54.47
BVpS35.1
TBVpS-35.49
PEG (NY)2.62
PEG (5Y)1.73
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 | 1.53 |
F-Score8
WACC10.78%
ROIC/WACC0.5
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 Y5.13%
EPS Next 2Y12.32%
EPS Next 3Y10.8%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.99%
Revenue growth 3Y6.73%
Revenue growth 5Y13.55%
Sales Q2Q%9.7%
Revenue Next Year5.66%
Revenue Next 2Y6.16%
Revenue Next 3Y5.91%
Revenue Next 5YN/A
EBIT growth 1Y8.4%
EBIT growth 3Y-11.49%
EBIT growth 5Y14.38%
EBIT Next Year32.13%
EBIT Next 3Y13.9%
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%