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MKS
(NASDAQ:MKSI)
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Rating:64Neutral
Price Target:
$279.00
▲(3.15% Upside)
Action:Reiterated
Date:08/06/26
MKSI scores 64 driven primarily by improving fundamentals (better margins, earnings, and free cash flow) and a strong earnings-call outlook with upbeat growth and profitability guidance. Offsetting these positives are a weaker near-term technical setup (negative MACD and below key short-term averages) and a stretched valuation (high P/E with low yield), with leverage and historical volatility adding ongoing risk.
Positive Factors
Broad-based revenue growth
Strong growth across major businesses indicates broad customer demand rather than dependence on one narrow product line. Continued semiconductor acceleration and healthy Electronics & Packaging trends can expand MKS’s installed base, improve operating leverage, and support durable revenue growth over the next several quarters.
Negative Factors
Elevated leverage
Despite meaningful deleveraging, leverage remains substantial and competes with capital requirements for capacity, inventory, and working capital. Debt repayment therefore remains dependent on continued strong cash generation, while a weaker cycle could limit financial flexibility and slow balance-sheet improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad-based revenue growth
Strong growth across major businesses indicates broad customer demand rather than dependence on one narrow product line. Continued semiconductor acceleration and healthy Electronics & Packaging trends can expand MKS’s installed base, improve operating leverage, and support durable revenue growth over the next several quarters.
Read all positive factors
MKS Key Performance Indicators (KPIs)
Any
Revenue by Geography
Shows how much sales come from each region, highlighting where MKS is strongest, which markets drive growth, and where exposure to local demand swings or trade disruptions could affect results.
Shows how much sales come from each region, highlighting where MKS is strongest, which markets drive growth, and where exposure to local demand swings or trade disruptions could affect results.
Data provided by:
The Fly
The FlyMKS (MKSI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.60B
Dividend Yield0.37%
Average Volume (3M)1.52M
Price to Earnings (P/E)39.8
Beta (1Y)2.34
Revenue Growth16.23%
EPS Growth65.58%
CountryUS
Employees10,200
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)6.54
Shares Outstanding67,617,560
10 Day Avg. Volume1,347,417
30 Day Avg. Volume1,519,649
Financial Highlights & Ratios
PEG Ratio0.65
Price to Book (P/B)3.96
Price to Sales (P/S)2.74
P/FCF Ratio21.64
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$406.00Price Target Upside50.10% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)13.13
Revenue Forecast (FY)$5.08B
MKS Business Overview & Revenue Model
Company Description
MKS Inc. (MKSI) functions as a worldwide supplier of sophisticated instruments, integrated systems, specialized components, and advanced process control solutions. The company's products are engineered to precisely measure, observe, deliver, evalu...
How the Company Makes Money
MKS makes money primarily by selling hardware and subsystems used in semiconductor and advanced manufacturing equipment, along with related software, spares, and service/support offerings. A significant portion of revenue is generated by supplying...
MKS Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed strong and broad-based top-line growth (total revenue +28% YoY) with notable acceleration in Semiconductors (>50% YoY guidance for Q3) and Electronics & Packaging (+44% YoY in Q2), improved profitability (operating margin +480 bps YoY) and solid cash generation and liquidity. Management acknowledged mix- and ramp-related margin headwinds and the need for elevated working capital and CapEx to support capacity expansion, but characterized these as strategic, temporary investments to capture long-term demand. Given the scale and visibility of demand, ongoing design wins, capacity expansions, and improving leverage, the positives materially outweigh the near-term margin and investment challenges.Positive Updates
Record Revenue Growth
Total revenue of $1.25B in Q2 2026, up 16% sequentially and 28% year-over-year, with management noting results at the high end or above guidance.
Negative Updates
Gross Margin Headwinds from Mix and Investments
Company reported Q2 gross margin included ~100 basis points of discrete benefits (tariff/duty refunds); excluding discretes margin headwinds persist due to unfavorable product mix (ramping VSD and chemistry equipment) and accelerated ramp investments. Management quantified start-up/ramp-related margin impact at ~50–80 basis points per quarter for the next few quarters.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue Growth
Total revenue of $1.25B in Q2 2026, up 16% sequentially and 28% year-over-year, with management noting results at the high end or above guidance.
Read all positive updates
Company Guidance
MKS guided Q3 revenue of $1.35 billion ± $40 million, with semiconductor revenue of $630 million ± $15 million (implying >50% YoY growth), Electronics & Packaging $385 million ± $15 million (expected >30% YoY) and Specialty Industrial $335 million ± $10 million; they estimate Q3 gross margin of 47% ± 100 bps, operating expenses of $280 million ± $5 million, operating income of $355 million (26.3% operating margin), adjusted EBITDA of $395 million ± $28 million, and diluted EPS of $3.58 ± $0.31. Additional guidance items: Q3 tax rate ~20% (full‑year tax at the low end of 18–20%), full‑year CapEx expected at 4–5% of revenue, palladium ~ $1,300 expected to be flat in Q3, and ongoing deleveraging priorities alongside ~ $1.6 billion liquidity and ~3x leverage on trailing‑12‑month adjusted EBITDA of $1.1 billion.MKS Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
63
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.35B | 3.93B | 3.59B | 3.62B | 3.55B | 2.95B |
| Gross Profit | 1.92B | 1.59B | 1.71B | 1.64B | 1.55B | 1.38B |
| EBITDA | 936.00M | 860.00M | 870.00M | -1.11B | 832.00M | 794.00M |
| Net Income | 440.00M | 295.00M | 190.00M | -1.84B | 333.00M | 551.00M |
Balance Sheet | ||||||
| Total Assets | 8.94B | 8.80B | 8.59B | 9.12B | 11.49B | 4.54B |
| Cash, Cash Equivalents and Short-Term Investments | 611.00M | 675.00M | 714.00M | 875.00M | 910.00M | 1.04B |
| Total Debt | 4.19B | 4.69B | 4.78B | 5.02B | 5.17B | 1.03B |
| Total Liabilities | 5.95B | 6.08B | 6.27B | 6.65B | 7.01B | 1.65B |
| Stockholders Equity | 2.99B | 2.72B | 2.32B | 2.47B | 4.48B | 2.89B |
Cash Flow | ||||||
| Free Cash Flow | 454.00M | 497.00M | 410.00M | 232.00M | 365.00M | 552.80M |
| Operating Cash Flow | 635.00M | 645.00M | 528.00M | 319.00M | 529.00M | 639.50M |
| Investing Cash Flow | -180.00M | -145.00M | -117.00M | -84.00M | -4.55B | -204.60M |
| Financing Cash Flow | -538.00M | -562.00M | -549.00M | -259.00M | 3.97B | -65.00M |
MKS Technical Analysis
Negative
270.48
Price Trends
315.87
Negative
316.42
Negative
261.94
Negative
Market Momentum
-17.19
Positive
39.78
Neutral
27.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MKSI, the sentiment is Negative. The current price of 270.48 is below the 20-day moving average (MA) of 278.66, below the 50-day MA of 315.87, and above the 200-day MA of 261.94, indicating a bearish trend. The MACD of -17.19 indicates Positive momentum. The RSI at 39.78 is Neutral, neither overbought nor oversold. The STOCH value of 27.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MKSI.
MKS Risk Analysis
MKS disclosed 32 risk factors in its most recent earnings report. MKS reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
MKS Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $28.31B | 29.40 | 9.13% | ― | 7.70% | 13.95% | |
75 Outperform | $55.71B | 45.07 | 20.11% | ― | 25.54% | 131.92% | |
69 Neutral | $5.61B | 93.31 | 4.90% | ― | 7.61% | -7.28% | |
64 Neutral | $17.60B | 39.80 | 15.83% | 0.37% | 16.23% | 65.58% | |
63 Neutral | $11.25B | 48.60 | 15.93% | 0.14% | 24.58% | 159.06% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $55.20B | 64.80 | 8.37% | 5.73% | 22.51% | ― |
* Technology Sector Average
MKSI
MKS
260.31
151.75
139.77%
AEIS
Advanced Energy
280.90
126.70
82.16%
NOVT
Novanta
148.36
32.79
28.37%
COHR
Coherent Corp
281.86
183.19
185.66%
TDY
Teledyne Technologies
610.65
64.35
11.78%
KEYS
Keysight Technologies
327.21
157.92
93.28%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.