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

Fundamentals

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


Market Performance


7 Day Return

2.4%

NasdaqGS:MKSI

0.8%

US Semiconductor

1.1%

US Market


1 Year Return

12.7%

NasdaqGS:MKSI

11.3%

US Semiconductor

2.1%

US Market

MKSI outperformed the Semiconductor industry which returned 11.1% over the past year.

MKSI outperformed the Market in United States of America which returned 2% over the past year.


Share holder returns

MKSIIndustryMarket
7 Day2.4%0.8%1.1%
30 Day21.5%7.7%3.7%
90 Day25.9%12.3%2.3%
1 Year13.9%12.7%13.3%11.3%4.4%2.1%
3 Year100.3%94.9%83.6%72.9%47.0%37.4%
5 Year195.4%177.0%123.2%100.4%61.6%43.8%

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 based on future cash flows and its price relative to the stock market?

23.5x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

MKS Instruments's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

MKS Instruments's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

MKS Instruments is good value based on earnings compared to the US Semiconductor industry average.

MKS Instruments is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

MKS Instruments is good value based on expected growth next year.


Price Based on Value of Assets

MKS Instruments is good value based on assets compared to the US Semiconductor industry average.


Next Steps

Future Growth

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

41.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

MKS Instruments's revenue is expected to grow by 10.7% yearly, however this is not considered high growth (20% yearly).

MKS Instruments's earnings are expected to grow significantly at over 20% yearly.

MKS Instruments's revenue growth is expected to exceed the United States of America market average.

MKS Instruments's earnings growth is expected to exceed the United States of America market average.

MKS Instruments's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

MKS Instruments is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has MKS Instruments performed over the past 5 years?

30.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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.


Return on Equity

MKS Instruments has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

MKS Instruments used its assets less efficiently than the US Semiconductor industry average last year based on Return on Assets.


Return on Capital Employed

MKS Instruments has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is MKS Instruments's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

MKS Instruments's level of debt (48.4%) compared to net worth is high (greater than 40%).

Unable to establish if MKS Instruments's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (35.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 15.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.5x debt.


Next Steps

Dividend

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

0.89%

Expected Dividend Yield


Dividend Yield and Payments Analysis

MKS Instruments's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

MKS Instruments's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

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 9 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (8.7x coverage).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Jerry Colella (62yo)

5.7yrs

Tenure

US$10,260,205

Compensation

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  ...


CEO Compensation Analysis

Jerry's remuneration is higher than average for companies of similar size in United States of America.

Jerry's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.3yrs

Average Tenure

59yo

Average Age

The average tenure for the MKS Instruments management team is less than 2 years, this suggests a new team.


Board Age and Tenure

4.5yrs

Average Tenure

61.5yo

Average Age

The tenure for the MKS Instruments board of directors is about average.


Insider Trading

MKS Instruments individual insiders have only sold shares in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

SellUS$49,43405 Aug 19
Jacqueline Moloney
EntityIndividual
Role
Member of the Board of Directors
Director
Shares603
Max PriceUS$81.98
SellUS$379,08812 Jun 19
Gerald Colella
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares5,000
Max PriceUS$75.82
SellUS$21,98009 May 19
Jacqueline Moloney
EntityIndividual
Role
Member of the Board of Directors
Director
Shares256
Max PriceUS$85.86
SellUS$128,95609 May 19
Richard Chute
EntityIndividual
Shares1,499
Max PriceUS$86.03

Ownership Breakdown


Management Team

  • Seth Bagshaw (59yo)

    Senior VP

    • Tenure: 9.7yrs
    • Compensation: US$2.43m
  • Kathleen Burke

    SVP, Secretary & General Counsel

    • Tenure: 0yrs
  • Jerry Colella (62yo)

    CEO & Director

    • Tenure: 5.7yrs
    • Compensation: US$10.26m
  • John T. Lee (56yo)

    President & COO

    • Tenure: 1.3yrs
    • Compensation: US$2.66m
  • Maryann Naddy

    Senior Director of Corporate Marketing

    • Tenure: 0yrs
  • Jennifer Reilly

    Senior Vice President of Global Human Resources

    • Tenure: 0.7yrs
  • Francis Tan

    Senior Vice President of Strategic Development

    • Tenure: 0.7yrs

Board Members

  • John Bertucci (78yo)

    Non-Executive Chairman

    • Tenure: 23.8yrs
    • Compensation: US$341.10k
  • Greg Beecher (61yo)

    Lead Director

    • Tenure: 7.7yrs
    • Compensation: US$292.25k
  • Michelle Warner (52yo)

    Director

    • Tenure: 0.3yrs
  • Jerry Colella (62yo)

    CEO & Director

    • Tenure: 5.7yrs
    • Compensation: US$10.26m
  • Rick Hess (66yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$245.50k
  • Elizabeth Mora (58yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$270.00k
  • Raj Batra (51yo)

    Director

    • Tenure: 0.9yrs
    • Compensation: US$189.50k
  • Jacqueline Moloney (65yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$255.50k

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$5.067b
  • Shares outstanding: 54.48m
  • 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

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. I ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 23:37
End of Day Share Price2019/09/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.