Loading...

MKS Instruments

Nasdaq:MKSI
Snowflake Description

Undervalued with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MKSI
Nasdaq
$4B
Market Cap
  1. Home
  2. US
  3. Semiconductors
Company description

MKS Instruments, Inc. provides instruments, subsystems, and process control solutions that measure, monitor, deliver, analyze, power, and control critical parameters of manufacturing processes worldwide. The last earnings update was 73 days ago. More info.


Add to Portfolio Compare Print
  • MKS Instruments has significant price volatility in the past 3 months.
MKSI Share Price and Events
7 Day Returns
1.5%
NasdaqGS:MKSI
0.9%
US Semiconductor
-1.2%
US Market
1 Year Returns
-21.9%
NasdaqGS:MKSI
3.9%
US Semiconductor
3.4%
US Market
MKSI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
MKS Instruments (MKSI) 1.5% 4% -21.2% -21.9% 69.3% 151.8%
US Semiconductor 0.9% 7.5% -4.4% 3.9% 76% 98.8%
US Market -1.2% 1.2% 1.7% 3.4% 35.5% 41.6%
1 Year Return vs Industry and Market
  • MKSI underperformed the Semiconductor industry which returned 3.9% over the past year.
  • MKSI underperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
MKSI
Industry
5yr Volatility vs Market
Related Companies

Value

 Is MKS Instruments undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of MKS Instruments to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for MKS Instruments.

NasdaqGS:MKSI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:MKSI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Semiconductor Unlevered Beta Simply Wall St/ S&P Global 1.27
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.27 (1 + (1- 21%) (24.53%))
1.346
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.35
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.346 * 5.96%)
10.75%

Discounted Cash Flow Calculation for NasdaqGS:MKSI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for MKS Instruments is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:MKSI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.75%)
2020 436.15 Analyst x2 393.81
2021 499.30 Analyst x1 407.06
2022 550.61 Est @ 10.28% 405.32
2023 594.73 Est @ 8.01% 395.29
2024 632.95 Est @ 6.43% 379.86
2025 666.62 Est @ 5.32% 361.23
2026 696.89 Est @ 4.54% 340.98
2027 724.76 Est @ 4% 320.18
2028 750.98 Est @ 3.62% 299.56
2029 776.15 Est @ 3.35% 279.55
Present value of next 10 years cash flows $3,582.84
NasdaqGS:MKSI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $776.15 × (1 + 2.73%) ÷ (10.75% – 2.73%)
$9,940.14
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $9,940.14 ÷ (1 + 10.75%)10
$3,580.15
NasdaqGS:MKSI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,582.84 + $3,580.15
$7,162.99
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $7,162.99 / 54.36
$131.78
NasdaqGS:MKSI Discount to Share Price
Calculation Result
Value per share (USD) From above. $131.78
Current discount Discount to share price of $79.20
= -1 x ($79.20 - $131.78) / $131.78
39.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price MKS Instruments is available for.
Intrinsic value
40%
Share price is $79.2 vs Future cash flow value of $131.78
Current Discount Checks
For MKS Instruments to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • MKS Instruments's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • MKS Instruments's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for MKS Instruments's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are MKS Instruments's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:MKSI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $5.53
NasdaqGS:MKSI Share Price ** NasdaqGS (2019-07-19) in USD $79.2
United States of America Semiconductor Industry PE Ratio Median Figure of 68 Publicly-Listed Semiconductor Companies 22.57x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 17.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of MKS Instruments.

NasdaqGS:MKSI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:MKSI Share Price ÷ EPS (both in USD)

= 79.2 ÷ 5.53

14.33x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MKS Instruments is good value based on earnings compared to the US Semiconductor industry average.
  • MKS Instruments is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does MKS Instruments's expected growth come at a high price?
Raw Data
NasdaqGS:MKSI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.33x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
30.2%per year
United States of America Semiconductor Industry PEG Ratio Median Figure of 63 Publicly-Listed Semiconductor Companies 0.99x
United States of America Market PEG Ratio Median Figure of 2,119 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NasdaqGS:MKSI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.33x ÷ 30.2%

0.48x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MKS Instruments is good value based on expected growth next year.
Price based on value of assets
What value do investors place on MKS Instruments's assets?
Raw Data
NasdaqGS:MKSI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $35.42
NasdaqGS:MKSI Share Price * NasdaqGS (2019-07-19) in USD $79.2
United States of America Semiconductor Industry PB Ratio Median Figure of 107 Publicly-Listed Semiconductor Companies 2.67x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.79x
NasdaqGS:MKSI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:MKSI Share Price ÷ Book Value per Share (both in USD)

= 79.2 ÷ 35.42

2.24x

* Primary Listing of MKS Instruments.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MKS Instruments is good value based on assets compared to the US Semiconductor industry average.
X
Value checks
We assess MKS Instruments's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Semiconductor industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Semiconductor industry average (and greater than 0)? (1 check)
  5. MKS Instruments has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is MKS Instruments expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
30.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is MKS Instruments expected to grow at an attractive rate?
  • MKS Instruments's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • MKS Instruments's earnings growth is expected to exceed the United States of America market average.
  • MKS Instruments's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:MKSI Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:MKSI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 30.2%
NasdaqGS:MKSI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 10.7%
United States of America Semiconductor Industry Earnings Growth Rate Market Cap Weighted Average 17.7%
United States of America Semiconductor Industry Revenue Growth Rate Market Cap Weighted Average 7.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:MKSI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:MKSI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 2,566 551 441 1
2020-12-31 2,224 616 346 7
2019-12-31 1,973 474 189 7
NasdaqGS:MKSI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,984 370 300
2018-12-31 2,075 414 393
2018-09-30 2,126 359 399
2018-06-30 2,125 362 382
2018-03-31 2,033 362 379
2017-12-31 1,916 355 339
2017-09-30 1,809 327 307
2017-06-30 1,704 304 264
2017-03-31 1,549 223 152
2016-12-31 1,295 180 105
2016-09-30 1,063 170 85
2016-06-30 891 132 82

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • MKS Instruments's earnings are expected to grow significantly at over 20% yearly.
  • MKS Instruments's revenue is expected to grow by 10.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:MKSI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from MKS Instruments Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:MKSI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 7.78 7.78 7.78 1.00
2020-12-31 6.25 7.00 5.57 5.00
2019-12-31 3.25 3.66 2.92 4.00
NasdaqGS:MKSI Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 5.53
2018-12-31 7.22
2018-09-30 7.32
2018-06-30 7.01
2018-03-31 6.98
2017-12-31 6.26
2017-09-30 5.69
2017-06-30 4.90
2017-03-31 2.84
2016-12-31 1.96
2016-09-30 1.59
2016-06-30 1.54

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • MKS Instruments is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess MKS Instruments's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
MKS Instruments has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has MKS Instruments performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare MKS Instruments's growth in the last year to its industry (Semiconductor).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • MKS Instruments has delivered over 20% year on year earnings growth in the past 5 years.
  • MKS Instruments's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • MKS Instruments's 1-year earnings growth is negative, it can't be compared to the US Semiconductor industry average.
Earnings and Revenue History
MKS Instruments's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from MKS Instruments Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:MKSI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,984.39 300.23 297.62 139.80
2018-12-31 2,075.11 392.90 298.12 135.72
2018-09-30 2,126.37 398.90 302.95 136.30
2018-06-30 2,125.48 381.62 303.86 136.95
2018-03-31 2,033.10 379.19 298.79 134.13
2017-12-31 1,915.98 339.13 290.06 132.56
2017-09-30 1,809.32 306.98 285.17 132.38
2017-06-30 1,703.71 263.54 281.84 132.10
2017-03-31 1,548.81 152.31 269.44 126.63
2016-12-31 1,295.34 104.81 227.93 110.58
2016-09-30 1,062.59 84.84 193.10 94.55
2016-06-30 891.26 82.06 158.48 79.50
2016-03-31 783.37 106.07 132.17 68.85
2015-12-31 813.52 122.30 129.09 68.31
2015-09-30 844.16 130.97 130.17 67.49
2015-06-30 821.62 130.32 129.13 66.10
2015-03-31 788.36 118.32 128.10 63.95
2014-12-31 780.87 115.78 131.83 62.89
2014-09-30 782.24 101.82 139.07 63.12
2014-06-30 761.90 75.16 139.86 62.55
2014-03-31 734.13 61.26 142.47 63.94
2013-12-31 669.42 35.78 142.01 63.57
2013-09-30 598.82 19.65 132.99 61.53
2013-06-30 573.82 19.77 129.47 60.40
2013-03-31 594.29 31.02 127.20 59.18
2012-12-31 643.51 48.03 127.19 60.12
2012-09-30 681.38 66.63 127.81 60.14

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • MKS Instruments has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • MKS Instruments used its assets more efficiently than the US Semiconductor industry average last year based on Return on Assets.
  • MKS Instruments has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess MKS Instruments's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Semiconductor industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
MKS Instruments has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is MKS Instruments's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up MKS Instruments's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • MKS Instruments is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • MKS Instruments's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of MKS Instruments's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from MKS Instruments Company Filings, last reported 3 months ago.

NasdaqGS:MKSI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,920.86 987.10 462.34
2018-12-31 1,873.19 347.83 718.17
2018-09-30 1,810.29 349.10 619.51
2018-06-30 1,801.44 354.61 631.00
2018-03-31 1,698.34 346.75 541.38
2017-12-31 1,588.91 392.97 543.32
2017-09-30 1,507.71 439.75 534.61
2017-06-30 1,429.76 561.66 571.85
2017-03-31 1,305.41 562.86 411.21
2016-12-31 1,241.79 612.22 418.09
2016-09-30 1,215.54 650.60 419.98
2016-06-30 1,181.61 709.58 425.65
2016-03-31 1,171.07 0.00 666.62
2015-12-31 1,160.88 0.00 658.24
2015-09-30 1,146.67 0.00 391.99
2015-06-30 1,129.44 0.00 355.75
2015-03-31 1,104.69 0.00 351.34
2014-12-31 1,081.82 0.00 592.23
2014-09-30 1,058.56 0.00 435.50
2014-06-30 1,043.29 0.00 464.92
2014-03-31 1,045.77 0.00 593.60
2013-12-31 1,021.52 0.00 589.62
2013-09-30 1,005.42 0.00 620.65
2013-06-30 1,004.07 0.00 582.44
2013-03-31 1,003.06 0.76 598.34
2012-12-31 1,012.16 0.00 615.24
2012-09-30 1,015.19 4.45 583.63
  • MKS Instruments's level of debt (51.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 51.4% today).
  • Debt is well covered by operating cash flow (37.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 30.5x coverage).
X
Financial health checks
We assess MKS Instruments's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. MKS Instruments has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.01%
Current annual income from MKS Instruments dividends. Estimated to be 1.04% next year.
If you bought $2,000 of MKS Instruments shares you are expected to receive $20 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • MKS Instruments's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • MKS Instruments's dividend is below the markets top 25% of dividend payers in United States of America (3.76%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:MKSI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
United States of America Semiconductor Industry Average Dividend Yield Market Cap Weighted Average of 32 Stocks 2.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2016 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:MKSI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.84 2.00
2020-12-31 0.82 2.00
2019-12-31 0.80 2.00
NasdaqGS:MKSI Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-09 0.800 1.047
2019-02-12 0.800 0.893
2018-10-30 0.800 1.109
2018-07-31 0.800 0.960
2018-05-10 0.800 0.774
2018-02-13 0.720 0.634
2017-10-31 0.720 0.716
2017-08-01 0.700 0.793
2017-05-11 0.700 0.903
2017-02-14 0.700 1.004
2016-10-25 0.680 1.163
2016-07-27 0.680 1.414
2016-05-03 0.680 1.660
2016-02-09 0.680 1.922
2015-10-27 0.680 1.926
2015-07-28 0.680 1.991
2015-05-04 0.680 1.832
2015-02-10 0.660 1.888
2014-10-28 0.660 1.846
2014-07-29 0.660 1.988
2014-05-06 0.660 2.210
2014-02-11 0.640 2.168
2013-10-29 0.640 2.168
2013-07-30 0.640 2.380
2013-05-07 0.640 2.315
2013-02-12 0.640 2.386
2012-10-31 0.640 2.511
2012-07-31 0.640 2.497
2012-05-08 0.600 2.250
2012-02-14 0.600 2.079
2011-10-25 0.600 2.155
2011-07-26 0.600 2.568
2011-05-03 0.600 2.349
2011-02-02 0.600 1.988

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, MKS Instruments has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but MKS Instruments only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of MKS Instruments's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (6.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (9.3x coverage).
X
Income/ dividend checks
We assess MKS Instruments's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can MKS Instruments afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. MKS Instruments has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of MKS Instruments's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jerry Colella
COMPENSATION $10,260,205
AGE 62
TENURE AS CEO 5.5 years
CEO Bio

Mr. Gerald G. Colella, also known as Jerry, has been the Chief Executive Officer of MKS Instruments, Inc. since January 1, 2014 and served as its President since February 2013 until 2018. Mr. Colella over 30 years of commercial and operating experience and leadership. As the CEO of a public company, he is familiar with the numerous and varied issues facing public companies, particularly with respect to operational, financial and corporate governance matters. He served as Vice President of MKS Instruments Inc. from April 2005 to February 2013 and served as its Chief Operating Officer from January 2010 to December 2013, Chief Business Officer from April 2005 to January 2010 and Acting Group Vice President of PRG Products from July 2007 to March 2010. He served as Vice President of Global Business and Service Operations at MKS Instruments Inc. from October 1997 to April 2005. From March 1996 to October 1997, he served as a Director of Materials Planning and Logistics at MKS Instruments, Inc. and served as its Materials Planning and Logistics Manager from February 1994 to March 1996. He joined MKS in April 1983 as Purchase Contract Administrator. He served as the Chairman at GCP Applied Technologies Inc., until September 1, 2017 and has been its Director since May 4, 2017. He has been a Director at MKS Instruments, Inc. since January 1, 2014. Mr. Colella holds an M.B.A. from Southern New Hampshire University, Manchester, New Hampshire, as well as a B.A. Degree in Secondary Education from the University of Massachusetts.

CEO Compensation
  • Jerry's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Jerry's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the MKS Instruments management team in years:

2.2
Average Tenure
59
Average Age
  • The tenure for the MKS Instruments management team is about average.
Management Team

Jerry Colella

TITLE
CEO & Director
COMPENSATION
$10M
AGE
62
TENURE
5.5 yrs

John T. Lee

TITLE
President & COO
COMPENSATION
$3M
AGE
56
TENURE
1.2 yrs

Seth Bagshaw

TITLE
Senior VP
COMPENSATION
$2M
AGE
59
TENURE
9.5 yrs

Kathleen Burke

TITLE
SVP, Secretary & General Counsel

Maryann Naddy

TITLE
Senior Director of Corporate Marketing

Catherine Langtry

TITLE
Senior Vice President of Global Human Resources
TENURE
2.2 yrs

John Ippolito

TITLE
Senior Vice President of Strategic Development
TENURE
2.1 yrs
Board of Directors Tenure

Average tenure and age of the MKS Instruments board of directors in years:

4.3
Average Tenure
61.5
Average Age
  • The tenure for the MKS Instruments board of directors is about average.
Board of Directors

John Bertucci

TITLE
Non-Executive Chairman
COMPENSATION
$341K
AGE
78
TENURE
23.7 yrs

Jerry Colella

TITLE
CEO & Director
COMPENSATION
$10M
AGE
62
TENURE
5.5 yrs

Greg Beecher

TITLE
Lead Director
COMPENSATION
$292K
AGE
61
TENURE
7.5 yrs

Elizabeth Mora

TITLE
Independent Director
COMPENSATION
$270K
AGE
58
TENURE
7.2 yrs

Jacqueline Moloney

TITLE
Director
COMPENSATION
$256K
AGE
65
TENURE
3.1 yrs

Rick Hess

TITLE
Director
COMPENSATION
$246K
AGE
66
TENURE
2.2 yrs

Raj Batra

TITLE
Director
COMPENSATION
$190K
AGE
51
TENURE
0.8 yrs

Michelle Warner

TITLE
Director
AGE
52
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • MKS Instruments individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
12. Jun 19 Sell Gerald Colella Individual 11. Jun 19 11. Jun 19 -5,000 $75.82 $-379,088
09. May 19 Sell Jacqueline Moloney Individual 08. May 19 08. May 19 -256 $85.86 $-21,980
09. May 19 Sell Richard Chute Individual 08. May 19 08. May 19 -1,499 $86.03 $-128,956
08. Aug 18 Sell Peter Hanley Individual 07. Aug 18 07. Aug 18 -1,240 $94.39 $-117,044
X
Management checks
We assess MKS Instruments's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. MKS Instruments has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

MKS Instruments, Inc. (NASDAQ:MKSI): A Fundamentally Attractive Investment

Very undervalued with reasonable growth potential One reason why investors are attracted to MKSI is its earnings growth potential in the near future of 36%, bolstered by its impressive cash-generating ability, as analysts predict its operating cash flows will rise by 62% over the same time period. … Investors have the opportunity to buy into the stock to reap capital gains, if MKSI's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. … MKSI seems to have put its debt to good use, generating operating cash levels of 0.37x total debt in the most recent year.

Simply Wall St -

Is It Too Late To Consider Buying MKS Instruments, Inc. (NASDAQ:MKSI)?

What’s more interesting is that, MKS Instruments’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. … With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. … Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy MKSI.

Simply Wall St -

Here's What MKS Instruments, Inc.'s (NASDAQ:MKSI) P/E Ratio Is Telling Us

We'll look at MKS Instruments, Inc.'s (NASDAQ:MKSI) P/E ratio and reflect on what it tells us about the company's share price. … Check out our latest analysis for MKS Instruments How Do I Calculate A Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for MKS Instruments: P/E of 14.1 = $77.89 ÷ $5.53 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good?

Simply Wall St -

Does MKS Instruments, Inc.'s (NASDAQ:MKSI) Stock Price Account For Its Growth?

MKS Instruments is poised for extremely high earnings growth in the near future. … A PE ratio of 13.77x and expected year-on-year earnings growth of 36% give MKS Instruments an extremely low PEG ratio of 0.39x. … So, when we include the growth factor in our analysis, MKS Instruments appears relatively cheap , based on fundamental analysis.

Simply Wall St -

Is MKS Instruments, Inc.'s (NASDAQ:MKSI) Growth Strong Enough To Justify Its June Share Price?

One reason why investors are attracted to MKSI is the high growth potential in the near future. … But, to properly examine the value of a high-growth stock such as MKS Instruments, we must reflect its earnings growth into the valuation. … A PE ratio of 13.77x and expected year-on-year earnings growth of 36% give MKS Instruments an extremely low PEG ratio of 0.39x.

Simply Wall St -

MKS Instruments, Inc. (NASDAQ:MKSI): How To Win In A Volatile Market

is a financially healthy and robust stock with a proven track record of outperformance. … We all know MKS Instruments, and having this large-cap to cushion your portfolio during a volatile period in the stock market isn't a bad idea. … Characteristics I value in a long term investment are proven in MKS Instruments, and I can continue to sleep easy at night with the stock as part of my portfolio.

Simply Wall St -

Is MKS Instruments, Inc.'s (NASDAQ:MKSI) Balance Sheet A Threat To Its Future?

MKSI’s Debt (And Cash Flows) MKSI has built up its total debt levels in the last twelve months, from US$347m to US$1.1b , which accounts for long term debt. … On top of this, MKSI has generated US$370m in operating cash flow in the last twelve months, resulting in an operating cash to total debt ratio of 35%, meaning that MKSI’s current level of operating cash is high enough to cover debt. … We can check to see whether MKSI is able to meet its debt obligations by looking at the net interest coverage ratio.

Simply Wall St -

What Did MKS Instruments, Inc.'s (NASDAQ:MKSI) CEO Take Home Last Year?

First, this article will compare CEO compensation with compensation at similar sized companies. … View our latest analysis for MKS Instruments How Does Jerry Colella's Compensation Compare With Similar Sized Companies? … pays its CEO, and compared it to the amount paid by similar sized companies.

Simply Wall St -

One Thing To Remember About The MKS Instruments, Inc. (NASDAQ:MKSI) Share Price

(NASDAQ:MKSI), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … The fact that this is well above 1 indicates that its share price movements have shown sensitivity to overall market volatility.

Simply Wall St -

Should MKS Instruments, Inc. (NASDAQ:MKSI) Be Part Of Your Dividend Portfolio?

Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. … Investors might not know much about MKS Instruments's dividend prospects, even though it has been paying dividends for the last eight years and offers a 0.9% yield. … The company also bought back stock during the year, equivalent to approximately 1.6% of the company's market capitalisation at the time.

Simply Wall St -

Company Info

Description

MKS Instruments, Inc. provides instruments, subsystems, and process control solutions that measure, monitor, deliver, analyze, power, and control critical parameters of manufacturing processes worldwide. It operates through two segments, Vacuum and Analysis, and Light and Motion. The Vacuum and Analysis segment offers analytical and control solutions, including gas analyzers, automation control products, I/O modules, automation software, and precision machined components and electromechanical assemblies; direct and indirect pressure measurement and integrated process solutions; and materials delivery solutions comprising flow and valve technologies, as well as integrated pressure measurement and control subsystems to provide customers with control capabilities that are optimized for a given application. It also provides delivery, plasma, and reactive gas generation products used in semiconductor and other thin film applications, and medical imaging equipment applications. The Light and Motion segment offers lasers and laser-based systems, such as amplifiers, fiber lasers, diode-pumped solid-state lasers, high-energy pulsed lasers, and tunable lasers, as well as accessories; optics products comprising precision optics, thin-film filters and coatings, replicated mirrors, and ruled and holographic diffraction gratings; and photonics products comprising optical components, lens assemblies, and vibration isolation solutions, as well as three-dimensional non-contact measurement sensors and equipment. It also designs, develops, and manufactures subsystems and subassemblies. The company markets and sells its products and services through its direct sales organization, an international network of independent distributors, and sales representatives, as well as through its Websites and product catalogs. MKS Instruments, Inc. was founded in 1961 and is headquartered in Andover, Massachusetts.

Details
Name: MKS Instruments, Inc.
MKSI
Exchange: NasdaqGS
Founded: 1961
$4,305,094,992
54,357,260
Website: http://www.mksinst.com
Address: MKS Instruments, Inc.
2 Tech Drive,
Suite 201,
Andover,
Massachusetts, 01810,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS MKSI Common Stock Nasdaq Global Select US USD 30. Mar 1999
DB MKT Common Stock Deutsche Boerse AG DE EUR 30. Mar 1999
LSE 0JWG Common Stock London Stock Exchange GB USD 30. Mar 1999
Number of employees
Current staff
Staff numbers
4,851
MKS Instruments employees.
Industry
Semiconductor Equipment
Semiconductors
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 23:47
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/18
Last earnings filing: 2019/05/08
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.