NasdaqGS:MKSI

Stock Analysis Report

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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

Undervalued 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

MKSI

-2.8%

US Semiconductor

-3.3%

US Market


1 Year Return

18.8%

MKSI

34.3%

US Semiconductor

10.9%

US Market

Return vs Industry: MKSI underperformed the US Semiconductor industry which returned 34.3% over the past year.

Return vs Market: MKSI exceeded the US Market which returned 10.9% over the past year.


Shareholder returns

MKSIIndustryMarket
7 Day0.7%-2.8%-3.3%
30 Day-11.0%-4.8%-5.7%
90 Day-0.5%10.3%8.2%
1 Year19.7%18.8%36.8%34.3%13.4%10.9%
3 Year17.3%14.4%77.0%67.8%34.9%25.9%
5 Year237.2%219.9%237.4%204.1%84.6%63.8%

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 compared to its fair value and its price relative to the market?

22.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MKSI ($108.06) is trading below our estimate of fair value ($138.51)

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 (25.5x) compared to the US Semiconductor industry average (33.4x).

PE vs Market: MKSI is poor value based on its PE Ratio (25.5x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: MKSI is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: MKSI is good value based on its PB Ratio (2.8x) compared to the US Semiconductor industry average (3.1x).


Next Steps

Future Growth

How is MKS Instruments forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

27.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MKSI's forecast earnings growth (27.3% per year) is above the savings rate (2.2%).

Earnings vs Market: MKSI's earnings (27.3% per year) are forecast to grow faster than the US market (23% per year).

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

Revenue vs Market: MKSI's revenue (9.4% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: MKSI's revenue (9.4% 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 (14.4%).


Next Steps

Past Performance

How has MKS Instruments performed over the past 5 years?

14.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MKSI has high quality earnings.

Growing Profit Margin: MKSI's current net profit margins (11.4%) are higher than last year (11.4%).


Past Earnings Growth Analysis

Earnings Trend: MKSI's earnings have grown by 14.8% per year over the past 5 years.

Accelerating Growth: MKSI's earnings growth over the past year (8.6%) is below its 5-year average (14.8% per year).

Earnings vs Industry: MKSI earnings growth over the past year (8.6%) exceeded the Semiconductor industry 7.5%.


Return on Equity

High ROE: MKSI's Return on Equity (11%) 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 ($1.6B) exceed its short term liabilities ($351.6M).

Long Term Liabilities: MKSI's short term assets ($1.6B) exceed its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: MKSI's debt to equity ratio (39.8%) is considered satisfactory.

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 (41.6%).

Interest Coverage: MKSI's interest payments on its debt are well covered by EBIT (9.6x coverage).


Balance Sheet


Next Steps

Dividend

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

0.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MKSI's dividend (0.74%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.75%).

High Dividend: MKSI's dividend (0.74%) is low compared to the top 25% of dividend payers in the US market (5.03%).


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

  • Explore strong dividend paying companies in the Semiconductors industry.

Management

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

1.3yrs

Average management tenure


CEO

John T. Lee (57 yo)

0.67

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 ($USD2.76M) is below average for companies of similar size in the US market ($USD7.46M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John T. Lee
President0.67yrUS$2.76m0.039%
$ 2.3m
Seth Bagshaw
Senior VP10.67yrsUS$3.63m0.035%
$ 2.1m
Kathleen Burke
Senior VPno dataUS$2.00m0.062%
$ 3.7m
James Schreiner
Senior VP & COO1yrno data0.0018%
$ 109.6k
David Ryzhik
Vice President of Investor Relations0.92yrno 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 Officer1.67yrsno datano data
Francis Tan
Senior Vice President of Strategic Development1.67yrsno datano data

1.3yrs

Average Tenure

58yo

Average Age

Experienced Management: MKSI's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
John T. Lee
President0.67yrUS$2.76m0.039%
$ 2.3m
Janice Henry
Director Nominee0.33yrno datano data
John Bertucci
Chairman Emeritus0.33yrUS$344.80k0.67%
$ 39.7m
Michelle Warner
Independent Director1.33yrsUS$218.74k0.0036%
$ 213.9k
Gerald Colella
Chairman of the Board0.33yrUS$9.67m0.22%
$ 13.3m
Joseph Donahue
Director Nominee0.33yrno datano data
Elizabeth Mora
Independent Director8.33yrsUS$272.50k0.025%
$ 1.5m
Rajeev Batra
Independent Director1.92yrsUS$251.55k0.0074%
$ 442.6k
Jacqueline Moloney
Independent Lead Director0.67yrUS$262.52k0.015%
$ 912.6k

0.7yrs

Average Tenure

61yo

Average Age

Experienced Board: MKSI's board of directors are not considered experienced ( 0.7 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$5.957b
  • Shares outstanding: 55.13m
  • 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
MKSI *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMar 1999

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 Analysis2020/09/25 05:49
End of Day Share Price2020/09/24 00:00
Earnings2020/06/30
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.