MKS (MKSI) AI Stock Analysis

• Market Cap: $15.64B
• Dividend Yield: 0.54%
• Average Volume (3M): 1.83M
• Price to Earnings (P/E): 36.5
• Beta (1Y): 2.57
• Revenue Growth: 8.13%
• EPS Growth: 780.20%
• Country: US
• Employees: 10,200
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 2.47
• Shares Outstanding: 67,248,360
• 10 Day Avg. Volume: 1,835,181
• 30 Day Avg. Volume: 1,834,368
• PEG Ratio: 0.65
• Price to Book (P/B): 3.96
• Price to Sales (P/S): 2.74
• P/FCF Ratio: 21.64
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 3.85
• Enterprise Value/Gross Profit: 8.51
• Enterprise Value/Ebitda: 17.40
• 1Y Price Target: $287.27
• Price Target Upside: 22.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 9.67
• Revenue Forecast (FY): $4.46B

• Rating: 69 Neutral
• Price Target: $288.00 ▲(22.43% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

MKSI scores a 69 primarily on improving financial performance (profitability and free cash flow recovery with much lower leverage) supported by strong technical uptrend signals. The score is moderated by expensive valuation (high P/E and low yield) and momentum indicators that look stretched, while earnings-call guidance and refinancing actions add a positive but secondary boost.

Positive Factors

Market leadership in semiconductors & packaging

MKS's broad technology portfolio and strong end-market share in semiconductor and advanced packaging generate durable revenue streams tied to secular WFE and packaging trends. High OEM integration and aftermarket content create sticky demand and structural exposure to AI-driven capex growth.

Robust free cash flow generation

Consistent, sizable free cash flow supports reinvestment, targeted capex (~4%-5% of revenue), dividend increases and debt prepayments. Strong cash generation improves financial flexibility to fund capacity expansion and withstand cyclical downturns without eroding core operations.

Capital structure refinancing & interest savings

Refinancing shifts debt to longer-dated unsecured notes, lowers margins, and reduces annual cash interest. Extended maturities and diversified facilities materially reduce near-term refinancing risk and free up cash for deleveraging, capex and shareholder returns over the medium term.

Negative Factors

Elevated net leverage

Despite meaningful paydowns, leverage remains elevated, constraining strategic flexibility. High net leverage increases sensitivity to cyclical revenue dips and interest rate moves, forcing prioritization of debt reduction over more aggressive M&A, R&D or capacity expansion during downturns.

Gross margin headwinds

Tariffs and zero-margin palladium pass-through structurally compress reported margins and add volatility. If these external cost pressures persist or expand, they limit operating leverage and could force recurring price actions, margin dilution or squeezed reinvestment capacity over the medium term.

Cyclical end-market exposure & timing risk

Heavy exposure to semiconductor WFE and cyclical specialty-industrial segments makes revenue and margins sensitive to unpredictable capex cycles. Uncertain ramp timing complicates capacity planning and inventory cadence, risking under/over-investment and interim margin volatility across quarters.

MKS Business Overview & Revenue Model

Company Description

MKS Inc. provides instruments, systems, subsystems, and process control solutions that measure, monitor, deliver, analyze, power, and control critical parameters of manufacturing processes worldwide. Its Vacuum & Analysis segment offers pressure and vacuum control solutions, including direct and indirect pressure measurement; materials delivery solutions comprising flow and valve technologies, as well as integrated pressure measurement and control subsystems, which provide customers with precise control capabilities; power solutions products, such as microwave, power delivery systems, radio frequency matching networks, and metrology products used in providing energy to etching, stripping, and deposition processes; and plasma and reactive gas products. Its Light & Motion segment offers laser products, such as continuous wave and pulsed nanosecond, diode and diode-pumped solid-state, and fiber laser technologies; and photonics products comprising motion control, optical tables and vibration isolation systems, photonic instruments, optics and optical assemblies, opto-mechanical components, temperature sensing products for wafer fabrication systems, and laser and LED measurement products, including laser power and energy meters, laser beam profilers, and optical and photonic subsystems. Its Equipment & Solutions segment provides laser-based systems for printed circuit board (PCB) manufacturing, including flexible interconnect PCB processing systems and high-density interconnect solutions for rigid PCB manufacturing and substrate processing, and multi-layer ceramic capacitor test systems. It serves semiconductor, industrial technologies, life and health sciences, research, and defense markets. It sells its products and services through its direct sales organization, independent distributors, and sales representatives, as well as through its websites and product catalogs. The company was incorporated in 1961 and is headquartered in Andover, Massachusetts.

How the Company Makes Money

MKS generates revenue through the sale of its products and services, which are primarily focused on the semiconductor manufacturing industry. The company earns money by providing high-precision instruments and control systems that enable manufacturers to improve their production processes, reduce costs, and enhance product quality. Key revenue streams include the sale of new equipment, ongoing service agreements, and maintenance contracts. MKS also benefits from strategic partnerships with major players in the semiconductor and industrial equipment sectors, which help to expand its market reach and drive sales. Additionally, the company focuses on innovation and product development to meet the evolving needs of its customers, contributing to consistent revenue growth.

MKS Financial Statement Overview

Summary

Financials show a clear TTM rebound with revenue growth (~2.6%), solid profitability (about 46.8% gross margin; ~7.5% net margin), improved leverage (debt-to-equity ~0.11) and healthy free cash flow ($496M). The score is held back by multi-year volatility (notably a severe 2023 loss), shifting capital structure, and only decent cash conversion (FCF/NI ~0.77) with coverage below 1 in recent periods.

Income Statement

TTM (Trailing-Twelve-Months) shows a clear recovery with revenue up ~2.6% and profitability back to solid levels (about 46.8% gross margin and ~7.5% net margin). The business has regained positive operating earnings after a severe 2023 loss, but the multi-year record is volatile: 2021–2022 were strong, 2023 was deeply negative, and margins in TTM remain below the peak years, suggesting earnings quality and stability are still rebuilding.

Balance Sheet

Leverage has improved dramatically in TTM, with debt low relative to equity (debt-to-equity ~0.11) and equity supporting the asset base. Returns on equity have normalized to ~11.4% in TTM versus negative in 2023. The main watchout is the sharp year-over-year swing in leverage versus 2024 (very high debt-to-equity), which points to recent balance sheet restructuring and raises questions about sustainability and consistency of capital structure.

Cash Flow

TTM operating cash flow and free cash flow are healthy in absolute terms ($645M and $496M), supporting reinvestment and flexibility. However, free cash flow is down ~6.4% versus the prior period and cash generation remains less than net income (free cash flow to net income ~0.77), indicating conversion is decent but not best-in-class. Cash flow coverage remains below 1 across recent periods, suggesting cash generation relative to obligations could be stronger.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.93B	3.59B	3.62B	3.55B	2.95B
Gross Profit	1.59B	1.71B	1.64B	1.55B	1.38B
EBITDA	860.00M	870.00M	-1.11B	832.00M	794.00M
Net Income	295.00M	190.00M	-1.84B	333.00M	551.00M
Balance Sheet
Total Assets	8.80B	8.59B	9.12B	11.49B	4.54B
Cash, Cash Equivalents and Short-Term Investments	675.00M	714.00M	875.00M	910.00M	1.04B
Total Debt	4.69B	4.78B	5.02B	5.17B	1.03B
Total Liabilities	6.08B	6.27B	6.65B	7.01B	1.65B
Stockholders Equity	2.72B	2.32B	2.47B	4.48B	2.89B
Cash Flow
Free Cash Flow	497.00M	410.00M	232.00M	365.00M	552.80M
Operating Cash Flow	645.00M	528.00M	319.00M	529.00M	639.50M
Investing Cash Flow	-145.00M	-117.00M	-84.00M	-4.55B	-204.60M
Financing Cash Flow	-562.00M	-549.00M	-259.00M	3.97B	-65.00M

MKS Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 235.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MKSI, the sentiment is Neutral. The current price of 235.23 is below the 20-day moving average (MA) of 247.16, above the 50-day MA of 215.74, and above the 200-day MA of 142.33, indicating a neutral trend. The MACD of 6.18 indicates Positive momentum. The RSI at 48.66 is Neutral, neither overbought nor oversold. The STOCH value of 18.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MKSI.

MKS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VNT	72 Outperform	$5.71B	13.43	35.39%	0.26%	1.76%	4.10%
CGNX	71 Outperform	$8.81B	46.06	7.61%	0.89%	10.23%	25.53%
SANM	71 Outperform	$7.53B	42.40	9.74%	―	7.40%	13.79%
MKSI	69 Neutral	$15.64B	36.46	11.74%	0.54%	8.13%	780.20%
ITRI	69 Neutral	$4.22B	13.96	19.38%	―	0.14%	14.12%
ST	68 Neutral	$5.15B	155.81	-0.92%	1.43%	-8.07%	63.50%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

MKS Corporate Events

MKS Refinances Debt and Extends Credit Facility Maturities

On February 4, 2026, MKS Inc. completed a €1.0 billion private offering of 4.250% senior notes due 2034 placed with institutional investors under Rule 144A and Regulation S, and used the proceeds, together with cash on hand, to prepay approximately $1.3 billion of its existing $2.2 billion U.S. dollar tranche B term loan. On the same date, the company executed a sixth amendment to its credit agreement, refinancing its prior $2.2 billion U.S. dollar tranche B term loan, €587 million euro tranche B term loan and $675 million revolving credit facility into a new $914 million U.S. dollar tranche B term loan, a €587 million euro tranche B term loan and a $1.0 billion revolving credit facility, while extending maturities on the term loan facility to 2033 and the revolver to 2031, lowering margins on both term loans and the revolver, and eliminating the SOFR credit spread adjustment on the revolving facility; collectively, these moves diversify MKS’s capital structure, shift a portion of debt from secured to unsecured, extend its debt maturity profile and reduce interest expense, with the company citing an expected meaningful reduction in annual cash interest costs based on current rates.

The most recent analyst rating on (MKSI) stock is a Buy with a $263.00 price target. To see the full list of analyst forecasts on MKS stock, see the MKSI Stock Forecast page.

MKS Prices €1 Billion Senior Notes to Refinance Debt

On January 26, 2026, MKS Inc. announced plans for a private offering of €1.0 billion in senior unsecured notes due 2034, followed on January 28, 2026, by the announcement of pricing for the issue, which is being placed with qualified institutional buyers under Rule 144A and with non-U.S. investors under Regulation S. The company expects to receive roughly €985 million in net proceeds and, together with proceeds from previously announced refinancings of its $2.2 billion U.S. dollar tranche B term loan and €587 million euro tranche B term loan plus cash on hand, intends to prepay about $1.3 billion of and fully refinance the U.S. dollar tranche B facility and fully refinance the euro tranche B facility, with the note offering scheduled to close on February 4, 2026, subject to customary conditions, in a move that will significantly reshape and extend the company’s debt profile and could reduce its reliance on term-loan financing.

The most recent analyst rating on (MKSI) stock is a Buy with a $260.00 price target. To see the full list of analyst forecasts on MKS stock, see the MKSI Stock Forecast page.

MKS Plans Comprehensive Capital Structure Refinancing With Lenders

MKS Inc. plans to meet with existing and prospective lenders on January 22, 2026 to discuss a comprehensive refinancing of its capital structure, including replacing its existing $2.2 billion term loan with a new approximately $0.9 billion term loan maturing in 2033, refinancing its existing €0.6 billion term loan with a new facility also maturing in 2033, and enlarging its revolving credit facility from $675 million to $1 billion while extending that facility’s maturity to 2031. The contemplated transactions, which are subject to market conditions and may not close, are designed to be leverage-neutral while extending debt maturities and reducing interest expense, and the company’s accompanying lender presentation emphasizes the use of non-GAAP financial metrics to analyze ongoing business trends and compares past periods, underscoring management’s focus on capital structure optimization amid its exposure to cyclical semiconductor and industrial end markets and risks linked to its Atotech chemicals technology acquisition.

The most recent analyst rating on (MKSI) stock is a Buy with a $227.00 price target. To see the full list of analyst forecasts on MKS stock, see the MKSI Stock Forecast page.