NasdaqGS:MKSI

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Reasonable growth potential with adequate 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.2%

MKSI

-2.2%

US Semiconductor

-2.0%

US Market


1 Year Return

-24.3%

MKSI

-2.3%

US Semiconductor

-15.1%

US Market

Return vs Industry: MKSI underperformed the US Semiconductor industry which returned 3.6% over the past year.

Return vs Market: MKSI underperformed the US Market which returned -10.7% over the past year.


Shareholder returns

MKSIIndustryMarket
7 Day-6.2%-2.2%-2.0%
30 Day-26.9%-15.3%-19.7%
90 Day-30.4%-18.9%-23.2%
1 Year-23.6%-24.3%-0.4%-2.3%-13.4%-15.1%
3 Year12.6%9.8%45.3%37.3%10.9%3.7%
5 Year133.3%120.0%96.9%78.0%28.4%14.4%

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?

18.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MKSI ($81.44) is trading below our estimate of fair value ($92.04)

Significantly Below Fair Value: MKSI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MKSI is poor value based on its PE Ratio (31.7x) compared to the Semiconductor industry average (26.7x).

PE vs Market: MKSI is poor value based on its PE Ratio (31.7x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: MKSI is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: MKSI is good value based on its PB Ratio (2.2x) compared to the US Semiconductor industry average (2.3x).


Next Steps

Future Growth

How is MKS Instruments forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

41.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MKSI's forecast earnings growth (42.1% per year) is above the savings rate (1.7%).

Earnings vs Market: MKSI's earnings (42.1% per year) are forecast to grow faster than the US market (12.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MKSI's revenue (10.4% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: MKSI's revenue (10.4% 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 (12.8%).


Next Steps

Past Performance

How has MKS Instruments performed over the past 5 years?

20.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MKSI has a large one-off loss of $56.4M impacting its December 31 2019 financial results.

Growing Profit Margin: MKSI's current net profit margins (7.4%) are lower than last year (18.9%).


Past Earnings Growth Analysis

Earnings Trend: MKSI's earnings have grown significantly by 20.6% per year over the past 5 years.

Accelerating Growth: MKSI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MKSI had negative earnings growth (-64.3%) over the past year, making it difficult to compare to the Semiconductor industry average (-30.5%).


Return on Equity

High ROE: MKSI's Return on Equity (6.9%) is considered low.


Next Steps

Financial Health

How is MKS Instruments's financial position?


Financial Position Analysis

Short Term Liabilities: MKSI's short term assets ($1.4B) exceed its short term liabilities ($317.7M).

Long Term Liabilities: MKSI's short term assets ($1.4B) exceed its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: MKSI's debt to equity ratio (44%) is considered high.

Reducing Debt: Insufficient data to determine if MKSI's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: MKSI's debt is well covered by operating cash flow (27.5%).

Interest Coverage: MKSI's interest payments on its debt are well covered by EBIT (7.1x coverage).


Balance Sheet

Inventory Level: MKSI has a high level of physical assets or inventory.

Debt Coverage by Assets: MKSI's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

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

1.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MKSI's dividend (0.98%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: MKSI's dividend (0.98%) is low compared to the top 25% of dividend payers in the US market (5.37%).


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?

0.9yrs

Average management tenure


CEO

John T. Lee (56yo)

0.25

Tenure

US$2,764,743

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 ($USD2.66M) is below average for companies of similar size in the US market ($USD5.53M).

Compensation vs Earnings: John T.'s compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John T. Lee
President0.25yrUS$2.76m0.039% $1.6m
Seth Bagshaw
Senior VP10.25yrsUS$3.63m0.053% $2.2m
Kathleen Burke
Senior VPno dataUS$2.00m0.063% $2.6m
James Schreiner
Senior VP & COO0.58yrno datano data
David Ryzhik
Vice President of Investor Relations0.50yrno datano data
Maryann Naddy
Senior Director of Corporate Marketingno datano datano data
Dave Henry
Senior Vice President of Marketing & Project Managementno datano datano data
Jennifer Reilly
Senior VP & Chief Human Resources Officer1.25yrsno datano data
Francis Tan
Senior Vice President of Strategic Development1.25yrsno datano data

0.9yrs

Average Tenure

57yo

Average Age

Experienced Management: MKSI's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
John T. Lee
President0.25yrUS$2.76m0.039% $1.6m
John Bertucci
Former Chairman Emeritus24.42yrsUS$344.80k0.67% $27.5m
Gregory Beecher
Lead Director8.25yrsUS$293.00k0.033% $1.4m
Michelle Warner
Independent Director0.92yrUS$218.74kno data
Gerald Colella
Director6.25yrsUS$9.67m0.17% $7.2m
Richard Hess
Independent Director2.92yrsUS$248.00k0.0063% $261.3k
Elizabeth Mora
Independent Director7.92yrsUS$272.50k0.024% $1.0m
Rajeev Batra
Independent Director1.5yrsUS$251.55k0.0039% $158.4k
Jacqueline Moloney
Independent Director3.83yrsUS$262.52k0.0090% $369.5k

3.8yrs

Average Tenure

61yo

Average Age

Experienced Board: MKSI's board of directors are considered experienced (3.8 years average tenure).


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$4.114b
  • Shares outstanding: 54.87m
  • Website: https://www.mksinst.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MKSINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 1999
MKTDB (Deutsche Boerse AG)YesCommon StockDEEURMar 1999
0JWGLSE (London Stock Exchange)YesCommon StockGBUSDMar 1999
MKTBRSE (Berne Stock Exchange)YesCommon StockCHCHFMar 1999
MKSI *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMar 1999

Biography

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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 23:56
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.