MKS (MKSI) AI Stock Analysis

• Market Cap: $9.45B
• Dividend Yield: 0.63%
• Average Volume (3M): 1.34M
• Price to Earnings (P/E): 35.7
• Beta (1Y): 2.62
• Revenue Growth: 4.47%
• EPS Growth: 2887.37%
• Country: US
• Employees: 10,200
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.77
• Shares Outstanding: 67,159,004
• 10 Day Avg. Volume: 914,273
• 30 Day Avg. Volume: 1,342,013
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 2.87
• Enterprise Value/Gross Profit: 6.06
• Enterprise Value/Ebitda: 13.50
• 1Y Price Target: $138.60
• Price Target Upside: -1.46% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 76 Outperform
• Price Target: $159.00 ▲(13.05% Upside)

MKS Instruments is performing well, driven by strong financial performance and positive technical indicators. The earnings call reinforced confidence with revenue exceeding expectations and successful deleveraging. However, high leverage and valuation concerns slightly temper the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth, particularly in key markets like Semiconductor and Electronics & Packaging, indicates robust demand and market expansion.

Successful Deleveraging

Reducing debt through prepayments enhances financial stability and flexibility, supporting long-term strategic investments and growth.

Market Expansion

Growth in Electronics & Packaging, driven by AI applications, underscores MKS's ability to capitalize on emerging technology trends.

Negative Factors

High Leverage

High leverage can pose financial risks, limiting the company's ability to invest in growth opportunities and navigate economic downturns.

Tariff Impact

Tariff impacts on margins could pressure profitability, requiring effective cost management and mitigation strategies to sustain margins.

Specialty Industrial Market Challenges

Challenges in the Specialty Industrial market could hinder overall revenue growth, necessitating strategic adjustments to address market softness.

MKS Business Overview & Revenue Model

Company Description

MKS Instruments, Inc. (MKSI) is a global provider of instruments, systems, and services that enable advanced processes and manufacturing across a range of industries including semiconductor, industrial technologies, and life sciences. The company specializes in delivering solutions related to vacuum technology, pressure measurement, gas analysis, and semiconductor manufacturing equipment, thereby supporting the production of high-tech devices and materials.

How the Company Makes Money

MKS generates revenue primarily through the sale of its products and services, which include vacuum solutions, pressure control instruments, and gas management systems. Key revenue streams consist of direct sales of equipment and instruments to manufacturers in the semiconductor and industrial sectors, as well as recurring revenue from service contracts and aftermarket support. Significant partnerships with major manufacturers in the semiconductor industry enhance their market reach and contribute to consistent revenue growth. Additionally, MKS benefits from expanding its portfolio through strategic acquisitions, which allows them to offer integrated solutions and tap into new markets.

MKS Financial Statement Overview

Summary

MKS shows strong revenue growth and efficient cash flow management, with a solid gross profit margin. However, the high debt-to-equity ratio poses a risk, and there is room for improvement in net profit margins.

Income Statement

MKS has demonstrated a solid revenue growth rate of 2.35% in the TTM, recovering from a slight decline in the previous year. The gross profit margin remains strong at 47.33%, indicating efficient cost management. However, the net profit margin is relatively low at 7.11%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are stable, reflecting consistent operational performance.

Balance Sheet

The company's debt-to-equity ratio is high at 1.84, indicating significant leverage, which could pose a risk if not managed carefully. However, the return on equity has improved to 11.05%, showing better utilization of equity. The equity ratio stands at 28.92%, suggesting a moderate level of financial stability.

Cash Flow

MKS has shown a healthy free cash flow growth rate of 8.47% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.78, and the free cash flow to net income ratio is 0.81, both reflecting efficient cash flow management relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.74B	3.59B	3.62B	3.55B	2.95B	2.33B
Gross Profit	1.77B	1.71B	1.64B	1.55B	1.38B	1.05B
EBITDA	794.00M	873.00M	-1.18B	826.00M	794.00M	551.30M
Net Income	266.00M	190.00M	-1.84B	333.00M	551.00M	350.00M
Balance Sheet
Total Assets	8.83B	8.59B	9.12B	11.49B	4.54B	3.90B
Cash, Cash Equivalents and Short-Term Investments	674.00M	714.00M	875.00M	910.00M	1.04B	836.00M
Total Debt	4.70B	4.78B	5.02B	5.17B	1.03B	1.03B
Total Liabilities	6.27B	6.27B	6.65B	7.01B	1.65B	1.54B
Stockholders Equity	2.55B	2.32B	2.47B	4.48B	2.89B	2.36B
Cash Flow
Free Cash Flow	525.00M	410.00M	232.00M	365.00M	552.80M	428.30M
Operating Cash Flow	645.00M	528.00M	319.00M	529.00M	639.50M	513.20M
Investing Cash Flow	-118.00M	-117.00M	-84.00M	-4.55B	-204.60M	-202.40M
Financing Cash Flow	-699.00M	-549.00M	-259.00M	3.97B	-65.00M	-121.50M

MKS Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 140.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MKSI, the sentiment is Positive. The current price of 140.65 is above the 20-day moving average (MA) of 133.20, above the 50-day MA of 119.71, and above the 200-day MA of 99.13, indicating a bullish trend. The MACD of 5.32 indicates Positive momentum. The RSI at 60.29 is Neutral, neither overbought nor oversold. The STOCH value of 81.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MKSI.

MKS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SANM	79 Outperform	$6.78B	28.43	11.58%	―	5.87%	20.66%
MKSI	76 Outperform	$9.45B	35.75	11.12%	0.63%	4.47%	2887.37%
ITRI	73 Outperform	$6.05B	22.89	18.92%	―	3.90%	44.95%
VNT	71 Outperform	$6.20B	16.39	35.63%	0.23%	1.16%	0.98%
CGNX	70 Outperform	$8.07B	67.24	8.10%	0.67%	10.14%	57.53%
ST	67 Neutral	$4.60B	42.52	3.78%	1.52%	-7.23%	1278.91%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

MKS Corporate Events

MKS Inc. Reports Strong Q2 2025 Financial Results

MKS Inc., a prominent player in the semiconductor and electronics manufacturing industry, specializes in providing advanced technology solutions that enhance process performance and productivity. In its latest earnings report for the second quarter of 2025, MKS Inc. announced a revenue of $973 million, surpassing its guidance expectations. The company also reported a GAAP net income of $62 million and an adjusted EBITDA of $240 million, both exceeding the high end of their guidance range.

MKS Instruments Reports Strong Earnings Amid Market Challenges

The recent earnings call for MKS Instruments painted a generally positive picture, highlighting strong revenue performance in key segments such as Semiconductor and Electronics & Packaging. The company showcased effective cost management and strategic deleveraging efforts. However, there were concerns regarding the impact of tariffs and softness in specific market segments like Specialty Industrial.