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

2.1%

MKSI

-0.9%

US Semiconductor

0.07%

US Market


1 Year Return

30.7%

MKSI

23.5%

US Semiconductor

8.9%

US Market

Return vs Industry: MKSI exceeded the US Semiconductor industry which returned 23.5% over the past year.

Return vs Market: MKSI exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

MKSIIndustryMarket
7 Day2.1%-0.9%0.07%
30 Day3.1%1.9%-0.3%
90 Day7.1%-1.3%-1.6%
1 Year32.0%30.7%26.0%23.5%11.3%8.9%
3 Year100.1%94.6%80.4%69.8%46.3%36.8%
5 Year186.2%168.4%129.7%106.0%62.1%44.3%

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?

24.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MKSI ($95.86) is trading above our estimate of fair value ($59.87)

Significantly Below Fair Value: MKSI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MKSI is good value based on its PE Ratio (24.2x) compared to the Semiconductor industry average (27.5x).

PE vs Market: MKSI is poor value based on its PE Ratio (24.2x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: MKSI is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: MKSI is overvalued based on its PB Ratio (2.7x) compared to the US Semiconductor industry average (2.7x).


Next Steps

Future Growth

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

42.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MKSI's forecast earnings growth (42.3% per year) is above the savings rate (2.7%).

Earnings vs Market: MKSI's earnings (42.3% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: MKSI's revenue (10.7% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: MKSI's revenue (10.7% 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 (11.3%).


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

Earnings Trend: MKSI's earnings have grown significantly by 30.5% 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 (-43.6%) over the past year, making it difficult to compare to the Semiconductor industry average (-6.2%).


Return on Equity

High ROE: MKSI's Return on Equity (11.1%) is considered low.


Return on Assets

ROA vs Industry: MKSI's Return on Assets is below or equal to the Semiconductor industry average last year.


Return on Capital Employed

ROCE Improving: MKSI has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is MKS Instruments's financial position?


Financial Position Analysis

Short Term Liabilities: MKSI's short term assets ($1.4B) exceeds its short term liabilities ($285.2M)

Long Term Liabilities: MKSI's short term assets (1.4B) exceeds its long term liabilities (1.2B)


Debt to Equity History and Analysis

Debt Level: MKSI's debt to equity ratio (48.4%) 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 (35.9%).

Interest Coverage: MKSI's interest payments on its debt are well covered by EBIT (15.3x 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 1.453660x debt).


Next Steps

Dividend

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

0.83%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Years0.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MKSI's dividend (0.83%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: MKSI's dividend (0.83%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: Whilst dividend payments have been stable, MKSI has been paying a dividend for less than 10 years.

Growing Dividend: MKSI's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.2%), MKSI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MKSI's dividends in 3 years are forecast to be thoroughly covered by earnings (11.5% payout ratio).


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Jerry Colella (62yo)

5.8yrs

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

Compensation vs. Market: Jerry's total compensation ($USD10.26M) is about average for companies of similar size in the US market ($USD6.88M).

Compensation vs Earnings: 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

1.1yrs

Average Tenure

58yo

Average Age

Experienced Management: MKSI's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

4.5yrs

Average Tenure

61.5yo

Average Age

Experienced Board: MKSI's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

Insider Buying: MKSI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$49,43405 Aug 19
Jacqueline Moloney
EntityIndividual
Role
Member of the Board of Directors
Independent 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
Independent 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: 9.8yrs
    • Compensation: US$2.43m
  • Jim Schreiner (57yo)

    Senior VP & COO

    • Tenure: 0.08yrs
  • Kathleen Burke

    SVP, Secretary & General Counsel

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

    CEO & Director

    • Tenure: 5.8yrs
    • Compensation: US$10.26m
  • John T. Lee (56yo)

    President

    • Tenure: 1.4yrs
    • Compensation: US$2.66m
  • Maryann Naddy

    Senior Director of Corporate Marketing

    • Tenure: 0yrs
  • David Ryzhik

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Jennifer Reilly

    Senior VP & Chief Human Resources Officer

    • Tenure: 0.8yrs
  • Francis Tan

    Senior Vice President of Strategic Development

    • Tenure: 0.8yrs

Board Members

  • John Bertucci (78yo)

    Non-Executive Chairman

    • Tenure: 23.9yrs
    • Compensation: US$341.10k
  • Greg Beecher (61yo)

    Lead Director

    • Tenure: 7.8yrs
    • Compensation: US$292.25k
  • Michelle Warner (52yo)

    Director

    • Tenure: 0.4yrs
  • Jerry Colella (62yo)

    CEO & Director

    • Tenure: 5.8yrs
    • Compensation: US$10.26m
  • Rick Hess (66yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$245.50k
  • Elizabeth Mora (58yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$270.00k
  • Raj Batra (51yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: US$189.50k
  • Jacqueline Moloney (65yo)

    Independent 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$5.223b
  • 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 Analysis2019/10/22 23:38
End of Day Share Price2019/10/22 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.