NasdaqGS:MKSI

Stock Analysis Report

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Market Cap

US$9.0b

Last Updated

2021/07/23 02:51 UTC

Data Sources

Company Financials +

Executive Summary

MKS Instruments, Inc. provides instruments, systems, subsystems, and process control solutions that measure, monitor, deliver, analyze, power, and control critical parameters of manufacturing processes worldwide. More Details


Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

How has MKS Instruments's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MKSI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MKSI's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0.6%

MKSI

1.6%

US Semiconductor

0.4%

US Market


1 Year Return

31.6%

MKSI

53.1%

US Semiconductor

36.9%

US Market

Return vs Industry: MKSI underperformed the US Semiconductor industry which returned 51.7% over the past year.

Return vs Market: MKSI underperformed the US Market which returned 35.1% over the past year.


Shareholder returns

MKSIIndustryMarket
7 Day0.6%1.6%0.4%
30 Day-4.1%2.3%1.6%
90 Day-12.2%4.1%2.7%
1 Year32.3%31.6%55.3%53.1%39.1%36.9%
3 Year79.8%75.6%122.6%111.4%61.0%51.0%
5 Year260.0%245.1%292.9%255.9%122.5%97.8%

Long-Term Price Volatility Vs. Market

How volatile is MKS Instruments's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is MKS Instruments undervalued compared to its fair value and its price relative to the market?

23.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MKSI ($162.75) is trading below our estimate of fair value ($213.65)

Significantly Below Fair Value: MKSI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MKSI is good value based on its PE Ratio (22.3x) compared to the US Semiconductor industry average (34.2x).

PE vs Market: MKSI is poor value based on its PE Ratio (22.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: MKSI is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: MKSI is good value based on its PB Ratio (3.6x) compared to the US Semiconductor industry average (4.6x).


Future Growth

How is MKS Instruments forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

14.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MKSI's forecast earnings growth (14.4% per year) is above the savings rate (2%).

Earnings vs Market: MKSI's earnings (14.4% per year) are forecast to grow slower than the US market (15.1% per year).

High Growth Earnings: MKSI's earnings are forecast to grow, but not significantly.

Revenue vs Market: MKSI's revenue (7.3% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: MKSI's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MKSI's Return on Equity is forecast to be low in 3 years time (18.1%).


Past Performance

How has MKS Instruments performed over the past 5 years?

13.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MKSI has high quality earnings.

Growing Profit Margin: MKSI's current net profit margins (16.2%) are higher than last year (10%).


Past Earnings Growth Analysis

Earnings Trend: MKSI's earnings have grown by 13.2% per year over the past 5 years.

Accelerating Growth: MKSI's earnings growth over the past year (104.7%) exceeds its 5-year average (13.2% per year).

Earnings vs Industry: MKSI earnings growth over the past year (104.7%) exceeded the Semiconductor industry 51.1%.


Return on Equity

High ROE: MKSI's Return on Equity (16.3%) is considered low.


Financial Health

How is MKS Instruments's financial position?


Financial Position Analysis

Short Term Liabilities: MKSI's short term assets ($1.9B) exceed its short term liabilities ($371.9M).

Long Term Liabilities: MKSI's short term assets ($1.9B) exceed its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: MKSI's debt to equity ratio (33.7%) is considered satisfactory.

Reducing Debt: MKSI's debt to equity ratio has increased from 0.7% to 33.7% over the past 5 years.

Debt Coverage: MKSI's debt is well covered by operating cash flow (67.8%).

Interest Coverage: MKSI's interest payments on its debt are well covered by EBIT (21.1x coverage).


Balance Sheet


Dividend

What is MKS Instruments's current dividend yield, its reliability and sustainability?

0.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MKSI's dividend (0.49%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: MKSI's dividend (0.49%) is low compared to the top 25% of dividend payers in the US market (3.52%).


Stability and Growth of Payments

Stable Dividend: MKSI is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: MKSI is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: MKSI is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MKSI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average management tenure


CEO

John T. Lee (58 yo)

1.5yrs

Tenure

US$6,127,026

Compensation

Dr. John T. C. Lee has been the President of MKS Instruments, Inc. since May 2018 and Chief Executive Officer and Director since January 1, 2020. Dr. Lee served as the Chief Operating Officer at MKS Instru...


CEO Compensation Analysis

Compensation vs Market: John T.'s total compensation ($USD6.13M) is about average for companies of similar size in the US market ($USD6.41M).

Compensation vs Earnings: John T.'s compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: MKSI's management team is considered experienced (2.2 years average tenure).


Board Members

Experienced Board: MKSI's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MKSI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

MKS Instruments, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MKS Instruments, Inc.
  • Ticker: MKSI
  • Exchange: NasdaqGS
  • Founded: 1961
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: US$9.024b
  • Shares outstanding: 55.45m
  • Website: https://www.mksinst.com

Number of Employees


Location

  • MKS Instruments, Inc.
  • 2 Tech Drive
  • Suite 201
  • Andover
  • Massachusetts
  • 1810
  • United States

Listings


Biography

MKS Instruments, Inc. provides instruments, systems, subsystems, and process control solutions that measure, monitor, deliver, analyze, power, and control critical parameters of manufacturing processes wor...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/23 02:51
End of Day Share Price2021/07/22 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.