MKS INC (MKSI) Stock Fundamental Analysis
NASDAQ:MKSI - US55306N1046 - Common Stock
103.34 USD
-4.18 (-3.89%)
103.34 USD
0 (0%)
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. MKSI has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on MKSI.
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.
Of the past 5 years MKSI 4 years were profitable.
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.
The Return On Equity of MKSI (10.46%) is better than 73.64% of its industry peers.
With a decent Return On Invested Capital value of 5.32%, MKSI is doing good in the industry, outperforming 64.55% 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 10.90%.
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
MKSI's Profit Margin of 7.14% is fine compared to the rest of the industry. MKSI outperforms 60.91% of its industry peers.
In the last couple of years the Profit Margin of MKSI has declined.
MKSI has a better Operating Margin (14.39%) than 71.82% 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 has a Gross Margin (47.34%) which 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 | 14.39% | ||
| 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
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.
MKSI has more shares outstanding than it did 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 1.63. 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 1.63 is on the low side compared to the rest of the industry. MKSI is outperformed by 67.27% of its industry peers.
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 48.18% 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.
MKSI has a Debt to Equity ratio of 1.71. This is amonst the worse of the industry: MKSI underperforms 94.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | 8.4 | ||
| Altman-Z | 1.63 |
ROIC/WACC0.48
WACC11.18%
2.3 Liquidity
MKSI has a Current Ratio of 2.99. This indicates that MKSI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.99, MKSI is in line with its industry, outperforming 51.82% of the companies in the same industry.
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
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 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
The Earnings Per Share is expected to grow by 12.47% on average over the next years. This is quite good.
MKSI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.30% yearly.
EPS Next Y9.85%
EPS Next 2Y13.35%
EPS Next 3Y12.47%
EPS Next 5YN/A
Revenue Next Year7.23%
Revenue Next 2Y6.48%
Revenue Next 3Y6.3%
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
A Price/Earnings ratio of 14.06 indicates a correct valuation of MKSI.
Based on the Price/Earnings ratio, MKSI is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of MKSI to the average of the S&P500 Index (27.08), we can say MKSI is valued slightly cheaper.
The Price/Forward Earnings ratio is 12.22, which indicates a correct valuation of MKSI.
Based on the Price/Forward Earnings ratio, MKSI is valued cheaply inside the industry as 93.64% of the companies are valued more expensively.
MKSI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.06 | ||
| Fwd PE | 12.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MKSI is valued cheaper than 82.73% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MKSI indicates a rather cheap valuation: MKSI is cheaper than 94.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.22 | ||
| EV/EBITDA | 12.41 |
4.3 Compensation for Growth
MKSI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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)1.43
PEG (5Y)1.81
EPS Next 2Y13.35%
EPS Next 3Y12.47%
5. Dividend
5.1 Amount
MKSI has a yearly dividend return of 0.82%, which is pretty low.
Compared to an average industry Dividend Yield of 2.37, MKSI pays a bit more dividend than its industry peers.
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 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
22.10% of the earnings are spent on dividend by MKSI. This is a low number and sustainable payout ratio.
MKSI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.1%
EPS Next 2Y13.35%
EPS Next 3Y12.47%
103.34
-4.18 (-3.89%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners108.13%
Inst Owner Change0.25%
Ins Owners0.4%
Ins Owner Change2.2%
Market Cap6.94B
Analysts79.05
Price Target124.29 (20.27%)
Short Float %5.57%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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)4.35%
PT rev (3m)0.81%
EPS NQ rev (1m)7.76%
EPS NQ rev (3m)-4.54%
EPS NY rev (1m)4.49%
EPS NY rev (3m)4.33%
Revenue NQ rev (1m)1.81%
Revenue NQ rev (3m)-0.31%
Revenue NY rev (1m)1.69%
Revenue NY rev (3m)1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.06 | ||
| Fwd PE | 12.22 | ||
| P/S | 1.86 | ||
| P/FCF | 13.22 | ||
| P/OCF | 10.76 | ||
| P/B | 2.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.41 |
EPS(TTM)7.35
EY7.11%
EPS(NY)8.45
Fwd EY8.18%
FCF(TTM)7.82
FCFY7.56%
OCF(TTM)9.6
OCFY9.29%
SpS55.67
BVpS38.01
TBVpS-34.01
PEG (NY)1.43
PEG (5Y)1.81
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 | 1.63 |
F-Score8
WACC11.18%
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 Y9.85%
EPS Next 2Y13.35%
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 Year7.23%
Revenue Next 2Y6.48%
Revenue Next 3Y6.3%
Revenue Next 5YN/A
EBIT growth 1Y14.71%
EBIT growth 3Y-11.49%
EBIT growth 5Y14.38%
EBIT Next Year32.13%
EBIT Next 3Y13.9%
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%