MKS Instruments (NasdaqGS:MKSI) - Share price, News & Analysis

MKSI fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	1/6
Past Performance	4/6
Financial Health	6/6
Dividends	0/6

MKSI Stock Overview

Rewards

Trading at 35.6% below our estimate of its fair value

Earnings are forecast to grow 8.28% per year

Earnings have grown 12.7% per year over the past 5 years

Risk Analysis

No risks detected for MKSI from our risk checks.

MKS Instruments Competitors

Applied Materials

NasdaqGS:AMAT

US$103.9b

Lam Research

NasdaqGS:LRCX

US$73.7b

Onto Innovation

NYSE:ONTO

US$4.1b

Ultra Clean Holdings

NasdaqGS:UCTT

US$1.5b

Price History & Performance

Summary of all time highs, changes and price drops for MKS Instruments
Historical stock prices
Current Share Price	US$122.41
52 Week High	US$191.85
52 Week Low	US$110.26
Beta	1.54
1 Month Change	9.30%
3 Month Change	-19.07%
1 Year Change	-34.97%
3 Year Change	71.30%
5 Year Change	45.81%
Change since IPO	770.47%

Recent News & Updates

May 20

MKS Instruments: Mergers And 5G Wireless Could Make The Price Spike

MKS Instruments is a provider of instruments and systems to monitor advanced manufacturing as well as to improve productivity. In my view, given the increase in 5G wireless networks, big data, and artificial intelligence, the company appears in a very good position to provide solutions in these emerging trends. If the acquisitions are successful, and the integration of new teams is properly done, both revenue and free cash flow may increase.

May 10

MKS Instruments Has Hit A Speed Bump

MKSI is feeling the impact of getting hit by a double whammy in the form of rising inflation and supply chain disruptions. MKSI wants to acquire ATC and the former has big plans for the latter, but the deal is facing opposition, meaning the deal could fail. The charts suggest the stock is up against resistance, which opens the door for a possible rebound or further losses. With the charts leaning slightly bearish and growth likely to remain under pressure, staying on hold is the way to go.

Apr 29

Is Now The Time To Look At Buying MKS Instruments, Inc. (NASDAQ:MKSI)?

MKS Instruments, Inc. ( NASDAQ:MKSI ), might not be a large cap stock, but it received a lot of attention from a...

Shareholder Returns

	MKSI	US Semiconductor	US Market
7D	4.2%	8.7%	5.9%
1Y	-35.0%	2.0%	-10.2%

Return vs Industry: MKSI underperformed the US Semiconductor industry which returned -4.5% over the past year.

Return vs Market: MKSI underperformed the US Market which returned -15.1% over the past year.

Price Volatility

Is MKSI's price volatile compared to industry and market?
MKSI volatility
MKSI Average Weekly Movement	8.1%
Semiconductor Industry Average Movement	8.7%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

Stable Share Price: MKSI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: MKSI's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1961	6,000	John T. Lee	https://www.mksinst.com

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. Its Vacuum & Analysis segment offers pressure and vacuum control solutions, including direct and indirect pressure measurement; materials delivery solutions comprising flow and valve technologies, as well as integrated pressure measurement and control subsystems, which provide customers with precise control capabilities; power solutions products, such as microwave, power delivery systems, radio frequency matching networks, and metrology products used in providing energy to etching, stripping, and deposition processes; and plasma and reactive gas products. Its Light & Motion segment offers laser products, such as continuous wave and pulsed nanosecond, diode and diode-pumped solid-state, and fiber laser technologies; and photonics products comprising motion control, optical tables and vibration isolation systems, photonic instruments, optics and optical assemblies, opto-mechanical components, temperature sensing products for wafer fabrication systems, and laser and LED measurement products, including laser power and energy meters, laser beam profilers, and optical and photonic subsystems.

MKS Instruments Fundamentals Summary

How do MKS Instruments's earnings and revenue compare to its market cap?
MKSI fundamental statistics
Market Cap	US$6.81b
Earnings (TTM)	US$572.40m
Revenue (TTM)	US$3.00b

11.9x

P/E Ratio

2.3x

P/S Ratio

Is MKSI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MKSI income statement (TTM)
Revenue	US$3.00b
Cost of Revenue	US$1.61b
Gross Profit	US$1.39b
Other Expenses	US$819.80m
Earnings	US$572.40m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	10.28
Gross Margin	46.44%
Net Profit Margin	19.10%
Debt/Equity Ratio	27.0%

How did MKSI perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

9%

Payout Ratio

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

35.6%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MKSI ($122.41) is trading below our estimate of fair value ($190.02)

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 Price-To-Earnings Ratio (11.9x) compared to the US Semiconductor industry average (20.5x).

PE vs Market: MKSI is good value based on its Price-To-Earnings Ratio (11.9x) compared to the US market (15.2x).

Price to Earnings Growth Ratio

PEG Ratio: MKSI is poor value based on its PEG Ratio (1.4x)

Price to Book Ratio

PB vs Industry: MKSI is good value based on its Price-To-Book Ratio (2.3x) compared to the US Semiconductor industry average (3.3x).

Future Growth

How is MKS Instruments forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

8.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MKSI's forecast earnings growth (8.3% per year) is above the savings rate (1.9%).

Earnings vs Market: MKSI's earnings (8.3% per year) are forecast to grow slower than the US market (13% per year).

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

Revenue vs Market: MKSI's revenue (4% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: MKSI's revenue (4% 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 (14%).

Past Performance

How has MKS Instruments performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

12.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MKSI has high quality earnings.

Growing Profit Margin: MKSI's current net profit margins (19.1%) are higher than last year (16.2%).

Past Earnings Growth Analysis

Earnings Trend: MKSI's earnings have grown by 12.7% per year over the past 5 years.

Accelerating Growth: MKSI's earnings growth over the past year (42%) exceeds its 5-year average (12.7% per year).

Earnings vs Industry: MKSI earnings growth over the past year (42%) underperformed the Semiconductor industry 70.4%.

Return on Equity

High ROE: MKSI's Return on Equity (18.9%) is considered low.

Financial Health

How is MKS Instruments's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: MKSI's short term assets ($2.3B) exceed its short term liabilities ($436.0M).

Long Term Liabilities: MKSI's short term assets ($2.3B) exceed its long term liabilities ($1.2B).

Debt to Equity History and Analysis

Debt Level: MKSI has more cash than its total debt.

Reducing Debt: MKSI's debt to equity ratio has reduced from 43.1% to 27% over the past 5 years.

Debt Coverage: MKSI's debt is well covered by operating cash flow (67.7%).

Interest Coverage: MKSI's interest payments on its debt are well covered by EBIT (30.2x coverage).

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.72%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MKSI's dividend (0.72%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: MKSI's dividend (0.72%) is low compared to the top 25% of dividend payers in the US market (4.01%).

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.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

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

Discover strong dividend paying companies

Management

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

3.3yrs

Average management tenure

CEO

John T. Lee (58 yo)

4yrs

Tenure

US$7,638,355

Compensation

Dr. John T. C. Lee serves as Director of Cognex Corporation since May 2022. He has been the President of MKS Instruments, Inc. since May 2018 and Chief Executive Officer and Director since January 1, 2020....

CEO Compensation Analysis

Compensation vs Market: John T.'s total compensation ($USD7.64M) is about average for companies of similar size in the US market ($USD8.23M).

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 (3.3 years average tenure).

Board Members

Experienced Board: MKSI's board of directors are considered experienced (3 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/27 00:00
End of Day Share Price	2022/05/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31